ITC Limited on Thursday reported a 0.3 per cent year-on-year (YoY) growth in standalone net profit at Rs 4,917.45 crore for the April-June quarter of FY25 compared to Rs 4,903 crore in the year-ago period.
The standalone revenue from operations stood at Rs 18,077.24 crore against Rs 16,842.93 crore in the year-ago period.
“Gross Revenue increased 7.3 per cent YoY in a challenging operating environment, driven by Hotels, Value Added Agri products, and Leaf Tobacco. FMCG – Others and Cigarettes delivered resilient performance amidst subdued demand conditions,” the company said in a statement
It added that the green shoots of demand recovery emerged during the quarter in the Paperboards, Paper & Packaging segment, performance remained impacted largely due to cheap Chinese supplies in international markets including India, and a surge in domestic wood prices.
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On a consolidated basis, the cigarette maker reported a 0.26 per cent YoY decline in profit at Rs 5,091.59 crore for the June quarter compared to Rs 5,104.90 crore in the year-ago period. Revenue from operations surged 7.45 per cent YoY to Rs 20,029.60 crore compared with Rs 18,639.48 crore in the corresponding quarter of the previous fiscal.
“Amidst a challenging macro-economic and operating environment as stated above, and high base effect in some of its operating segments, the Company delivered resilient performance during the quarter,” ITC said.
The company said its performance in the FMCG segment remained resilient amid muted demand conditions with segment revenue growing 6.3 per cent YoY to Rs 5,491 crore on a high base. Segment’s EBITDA Margin expanded 25 bps YoY to 11.3 per cent following a sequential uptick in prices of certain commodities.
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Revenue from cigarettes division grew 7 per cent YoY driven by continued focus on portfolio and agile execution to reinforce market standing. “Sustained volume claw back from illicit trade on the back of deterrent actions by enforcement agencies and relative stability in taxes,” the company said.
Hotels business revenue increased 10.9 per cent year-on-year and PBIT increased 11.5 per cent YoY. ITC said its hotels segment delivered robust performance despite fewer wedding dates, and extreme heatwave/elections impacting domestic travel and out-of-home dining.
In addition, shareholders approved the Scheme of Arrangement for demerger at the NCLT convened meeting held on June 6, 2024. Petition for sanction of the Scheme has been filed with NCLT on July 22, 2024, it said.
