ITC Q2 Result: Net profit Up By 10% The profit after tax (PAT) stood at INR 4,926.96 crore in September quarter of the current financial year
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Hotels-to-FMCG major ITC reported an increase of 10.32 per cent in net profit compared to last year for the September quarter of the current financial year. The profit after tax (PAT) stood at INR 4,926.96 crore in this quarter.
Revenue from operations stood at INR 17,705.08 crore, up 3.17 per cent from INR 17,159.56 crore in the year-ago quarter. While commodity prices declined on a YoY basis, the overall input cost table remains elevated compared to pre-pandemic levels; certain commodities such as wheat, maida, sugar, potato etc. witnessed sequential uptick in prices. The Businesses remain focused on driving profitability improvement through multi-pronged interventions viz. premiumisation, supply chain optimisation, digital interventions across the value chain, strategic cost management and judicious pricing actions.
Atta, Spices, Personal Wash and Agarbatti drive growth amidst a relatively subdued consumer demand environment. In the Stationery business, Classmate Notebooks and Pens witnessed strong growth on YoY basis. The FMCG Bbusinesses continued to witness robust growth in both urban and rural markets on a high base, driven by enhanced distribution footprint, superior last mile execution, deep consumer insights, purposeful innovation and portfolio premiumisation. Both traditional and emerging channels (viz. Modern Trade, eCommerce, Quick Commerce) witnessed robust traction driven by sharp execution of channel-specific business plans, collaborations, format-based assortments catering to the needs of a diverse set of shoppers and category-specific sell-out strategies. Certain categories such as Biscuits, Snacks, Noodles, popular Soaps witnessed increasing competitive intensity including from local/regional players in the backdrop of commodity price deflationary conditions.
Cigarettes segment revenue was up 8.5 percent YoY. "Stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enables volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector. Sharp escalation in costs of leaf tobacco and certain other inputs, along with increase in taxes, largely mitigated through improved mix, strategic cost management and calibrated pricing," the company said in a statement.
Hotels business saw record high second quarter performance, the company said, with segment revenue and PBIT (profit before interest and taxes) up 21 per cent and 50 percent YoY, respectively, on a high base. "Strong growth was witnessed in ARRs across properties. Occupancy remained flattish YoY mainly due to renovations and relatively fewer wedding dates during the quarter. The Business continued to focus on its strategy of offering a host of curated propositions across accommodations and iconic cuisine brands to augment revenues across properties. Strategic investments towards renovations and refurbishments continue in line with the Businesses' commitment to deliver exceptional quality and seamless experience across properties," the statement added.