ITC Ltd on Friday released its fiscal first quarter earnings report with a profit growth of 3.21 per cent to Rs 5,343.41 crore in comparison to Rs 5,176.99 crore recorded during the corresponding quarter of FY25. It posted revenue from operations at Rs 23,129.35 crore, reporting a growth of 19.53 per cent as against Rs 19350.08 crore recorded during the first quarter of previous financial year.
Despite the uptick in earnings, the company did not announce any interim dividend for the quarter.
ITC Q1 performance across business verticals
ITC’s FMCG vertical posted consolidated revenue for the quarter at Rs 15,354.30 crore wherein the cigarettes business contributed to Rs 9,553.86 crore. Agri business posted Q1 revenue at Rs 9,723.84 crore. Meanwhile, ITC’s Paperboards, Paper & Packaging vertical recorded Q1 revenue at Rs 2,116.62 crore.
FMCG – Others: The segment witnessed pick-up in revenue growth momentum, posting a growth of 8.6 per cent on-year (excluding Notebooks). Since Notebooks industry continues to operate under deflationary conditions, overall growth stood at 5.2 per cent. Further, unseasonal rains during the quarter also impacted the Beverages sales
FMCG – Cigarettes: The cigarettes business posted net segment revenue growth of 7.7 per cent YoY. ITC said that differentiated variants and premium segment continued to perform well for the segment, leveraging mainstream trademarks & innovation. “As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enables volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector,” it said.
Agri Business: The segment posted revenue growth of 39 per cent on-year driven by trading opportunities in bulk commodities and exports of Leaf Tobacco. Segment PBIT went up by 22 per cent YoY.
Paperboards, Paper and Packaging: The segment reflected the impact of influx of low-priced supplies into global markets including India, elevated domestic wood prices and subdued realisations. The segment revenue went up by 7 per cent YoY driven by higher volumes. Furthermore, it added that muted realisations and high wood prices continued to weigh on margins.