Tobacco-to-hotels major ITC on Thursday reported 24.4-per cent year-on-year (YoY) jump in its consolidated net profit in the July-September quarter (second quarter, or Q2), which came in at Rs 4,619.77 crore. In the year-ago period, profit was at Rs 3,713.76 crore.
Net revenue at Rs 17,108 in crore in Q2 of 2022-23 (FY23) was up 24.4-per cent YoY and ahead of Bloomberg consensus estimate of Rs 16,164.3 crore. The estimate for net income was at Rs 4,288.8 crore.
The company attributed the performance to strong and broad-based growth across markets and channels.
Economic activity continued to gain momentum during the quarter, along with improvement in business and consumer sentiment, said ITC, adding that input prices remained elevated, even as some commodities witnessed softening in the course of the quarter.
Inflationary headwinds continued to weigh on consumption expenditure, which were partly offset by the early onset of the festival season this year in some parts of the country, said ITC.
Sequentially, net revenue at Rs 17,108 crore was down 7.5 per cent, compared with the April-June quarter, while net profit was up 5.2 per cent.
Revenue from cigarettes stood at Rs 7,635.38 crore, compared with Rs 6,219.84 crore a year ago. Pre-tax profit from the segment came in at Rs 4,634.82 crore, against Rs 3,762 crore in the year-ago period.
The company said that stability in taxes on cigarettes, backed by deterrent action by enforcement agencies, enabled continued volume recovery from illicit trade.
Revenue from the non-cigarette fast-moving consumer goods segment was at Rs 4,894.26 crore in Q2FY23, against Rs 4,043.83 crore a year ago. Pre-tax profit was at Rs 323.98 crore, compared with Rs 275.93 crore a year ago. Severe inflationary impact was mitigated through multi-pronged interventions, the company said.
Revenue from the hospitality segment was at Rs 560.37 crore, compared with Rs 311.04 crore a year ago. With average room rate and occupancy ahead of pre-pandemic levels, the segment reported a pre-tax profit of Rs 86.85 crore, compared with a loss of Rs 49.48 crore a year ago.
Agriculture business revenue at Rs 4,038.74 crore was significantly higher — from Rs 2,823.07 crore a year ago, driven by wheat, rice, and leaf tobacco exports. Pre-tax profits from the segment were at Rs 355.94 crore in the quarter, compared with Rs 298.18 crore in the year-ago period.
Revenue from paperboards, paper, and packaging stood at Rs 2,287.58 crore, compared with Rs 1,829.72 crore a year ago, with strong demand across end-user segments. Pre-tax profits from the segment were at Rs 629.78 crore, compared with Rs 409.04 crore a year ago.
The company informed in its filing that the board had recommended for the approval of members, re-appointment of Nakul Anand as director and as whole-time director of the company for a period of one year with effect from January 3, 2023.