ITC net profit jumps 11% amid ‘subdued demand’

The conglomerate’s gross revenue improved to Rs 17,483 crore, growing 2.1% year-on-year (YoY).
Representative Image.
Representative Image.

CHENNAI: ITC reported a net profit of Rs 5572 crore in the December quarter, a 10.75% increase compared to the Rs 5,031 crore in the same period last year.

The conglomerate’s gross revenue improved to Rs 17,483 crore, growing 2.1% year-on-year (YoY). The company’s board recommended Rs 6.25 interim dividend per share for the 2024 financial year.

Agri business segment witnessed a 2.2% decline in revenue in the December quarter to Rs 3,054.74 crore from Rs 3,123.77 crore compared to the same period last financial year. It has recorded a revenue of Rs 3,930.97 crore in the segment in the September 2022 quarter.

The company said it was impacted by trade restrictions placed by the government on agri commodities. ITC’s nicotine and derivative products facility has been commissioned and export shipments are expected to commence in the current quarter.

Fast moving consumer goods segment revenue stood at Rs 12,757.8 in the quarter, witnessing a 5% increase, in which revenue from cigarettes stood at Rs 7548.75 crore and other products stood at Rs 5,209.05 crore. The company noted a slowdown in consumer demand in other FMCG categories excluding cigarettes. Staples, dairy beverages, fragrances, homecare, agarbattis and notebooks drove the growth.

The cigarette segment witnessed an increase in net segment revenue and segment PBIT of 2.3% YoY. Gross revenue from sale of cigarettes stood at Rs 4,728.07 crore in the quarter.

ITC’s hotel business revenue stood at Rs 842.03 crore, up 18% from Rs 712.39 crore last December. Its paper, paperboard and packaging business revenue declined nearly 10% and stood at Rs 2080.93 crore.

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