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ITC Q2 results: Profit rises 10% to ₹3,714 crore – Mint

Cigarette-to-hotel conglomerate ITC reported 10% growth in consolidated net profit at 3,714 crore for the quarter ended September 30, 2021 (Q2FY22). It was 3,366 crore in the year-ago period.

On a sequential basis, the consolidated profit after tax (PAT) has risen 13% from 3,276 crore in the June quarter (Q1FY22).

The company’s revenue from operations rose 13% to 14,844 crore from 13,147 crore in the same quarter last year.

The FMCG major’s earnings before interest, tax, depreciation and amortisation stood at 5,017 crore in the second quarter.

Segment wise, revenue from cigarette business came in at 6,219 crore as against 5,627 crore in the last year period, which is an increase of 10% year-on-year. 

The cigarette business recorded a profit before tax (PBT) of 3,762 crore for the September quarter, up 10% over last year.

After significant disruptions in Q1, Cigarette volumes witnessed smart recovery with exit volumes at near pre-Covid levels, the company said in a filing.

The FMCG others business revenues were muted at 4,043 crore, growing just by 2.8% over last year’s 3,930 crore, while the PBT fell marginally to 275 crore as against 282 crore in the year-ago quarter.

The total FMCG business saw a year-on-year revenue growth of 11% at 10,623 crore for the quarter under review.

Meanwhile, revenue from the hotels business inched up significantly to 311 crore for the September quarter, up by a massive 253% over last year as the footfalls increased with the easing of pandemic restrictions.

In the hotels business, the company said there is a marked improvement in occupancy, which is driving faster recovery; The second quarter for the segment turned EBITDA positive.

Leisure destinations continued to perform well while business travel gathered momentum.

ITC said the quarter witnessed broad-based recovery in sales across markets and channels. Reduction in the intensity of the pandemic along with a pick-up in the pace of vaccination led to improvement in the demand environment and consumer sentiment during the quarter. However, unprecedented inflation in key input costs coupled with significant disruptions in global supply chains and logistics weighed on the operating environment.

On Wednesday, ahead of the results, ITC shares were up 0,95% to close at 238.95 on NSE. So far since 2021, the scrip has surged by 11%.

Total expenses during the quarter stood at 10,258 crore, up 11.93% over 9,164 crore of the corresponding period last year.

The company reported a strong growth in Agri Business external revenue driven mainly by Wheat, Rice and Leaf tobacco exports, leveraging strong customer relationships and robust sourcing network.

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