ITC Q3 results: Net profit rises 14.8% to Rs 4,118.80 cr, revenue jumps 30%

Cigarettes-to-hotels major, ITC, reported a 14.81 per cent year-on-year (YoY) increase in consolidated profit after tax (PAT) at Rs 4,118.80 crore in the December quarter (Q3) led by growth across segments. In the year-ago period, PAT was at Rs 3,587 crore.

Its consolidated revenues were Rs 18,366 crore, up 30 per cent from Rs 14,124 crore in the year-ago period. Sequentially, too, revenues and profits were higher. In the previous quarter, revenues from operations had stood at Rs 14,844 crore and PAT at Rs 3,764 crore.

Cigarettes staged a recovery with revenues at Rs 6,959 crore, compared with Rs 6,091 crore a year ago. Pre-tax profits from the segment stood at Rs 4,187 crore, compared with Rs 3,659 crore in the year-ago period.

The company said there was a robust recovery across markets aided by increase in mobility and agile supply chain and market servicing.

Revenues from the non-cigarettes fast-moving consumer goods (FMCG) segment stood at Rs 4,099.47 crore, up from Rs 3,753 crore a year back as discretionary/out-of-home categories such as snacks, frozen snacks and beverages showed a “robust” growth while the performance in staples and convenience foods was “resilient”, the company said.

ITC said a sharp escalation in input costs was largely offset through strategic cost management programmes, premiumisation, judicious pricing actions, fiscal incentives and favourable business mix.

In rural markets, the branded packaged foods businesses grew well ahead of industry, the company said. The e-commerce sales continued to grow rapidly during the year with sales at nearly 3x of FY20 level, it added.

Pre-tax profits from the non-cigarettes FMCG segment was at Rs 246 crore, compared with Rs 243 crore in the same period last year.

ITC’s agri business recorded a sharp jump in revenues at Rs 5,157 crore compared with Rs 2,694 crore in the year-ago period driven by wheat, rice, spices, leaf tobacco exports coupled with a growth in value-added portfolio. Pre-tax profits stood at Rs 349 crore, higher than Rs 284 crore in the same period last year.

Hotels returned to profit with occupancy returning to pre-pandemic levels. The ARRs, the company said, had seen strong sequential improvement but was still below pre-pandemic levels. Revenues from the segment stood at Rs 496 crore and pre-tax profit was Rs 53 crore compared to a pre-tax loss in the year-ago period.

The paperboards, paper & packaging segment saw higher revenues with paperboard volumes recording new highs led by demand revival across most-end user segments, exports and higher realisations. Revenues from the segment were at Rs 2,047 crore and pre-tax profits at Rs 448 crore.

The ITC board on Thursday recommended an interim dividend of Rs 5.25 per share for the financial year ending March 31, 2022.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor