ITC Q1 net profit jumps 28.6% to Rs 3,013 crore

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July 25, 2021 4:15 AM

Gross revenue from sale for the period April-June this year stood at Rs 12,884.45 crore as against Rs 9,435.61 crore for the same period last year, according to the company's stock exchange filing.

ITC earningsThe cigarette-to-FMCG-to-hotel major had posted a Rs 2342.76-crore net profit for the first quarter of FY21.

Mostly in line with analysts’ estimates, diversified conglomerate ITC on Saturday reported a healthy 28.63% year-on-year rise in its standalone net profit to Rs 3,013.49 crore for the first quarter ended June 30, as its gross revenue from sales rose 36.55% y-o-y.

The cigarette-to-FMCG-to-hotel major had posted a Rs 2342.76-crore net profit for the first quarter of FY21. Gross revenue from sale for the period April-June this year stood at Rs 12,884.45 crore as against Rs 9,435.61 crore for the same period last year, according to the company’s stock exchange filing.

On a sequential basis, however, the net profit fell 19.61% from Rs 3,748.41 crore from the fourth quarter last fiscal.

In a statement, ITC said it in the June quarter it saw a strong rebound across operating segments despite operational constraints in the wake of the second Covid wave.

During the first quarter this fiscal, revenue from the company’s cigarette business rose 32.91% y-o-y to Rs 5,122.19 crore, while operating profit from the segment increased by 36.69% y-o-y to Rs 3,220.94 crore during the period, according to the stock exchange filing.

During the quarter under review, non-cigarette FMCG business registered a 10.40% y-o-y growth in its revenue to Rs 3,725.55 crore, while the segment posted a 38.29% y-o-y growth in operating profit at Rs 173.44 crore during this period. Hotels business posted over fivefold y-o-y increase in its revenue at Rs 127.24 crore, while the segment narrowed down its operating loss to Rs 151.45 crore from Rs 242.58 crore in the first quarter last fiscal.

“Against this backdrop, the company delivered a resilient performance during the quarter. Gross revenue stood at Rs 12,884.45 crore representing a growth of 36.6% y-o-y while Ebitda at Rs 3,992.16 crore grew 50.8% y-o-y. Lower other income due to lower market yields and treasury corpus limited the flow through to PBT and PAT which grew by 28.4% and 28.6% y-o-y, respectively. Earnings per share for the quarter was Rs 2.45 (previous year Rs 1.91),” the statement said.

During the first quarter this fiscal, cigarette segment Ebit was up 37% y-o-y, while margins was up by 210 bps y-o-y. “The strong volume recovery momentum witnessed in the second half of FY21 was impacted by localised lockdowns and restricted hours of convenience store operations in the wake of second wave of the pandemic,” the company said.

The non-cigarette FMCG business “responded with speed and agility demonstrating resilience and adaptive capacity while operating in the new normal,” it added.

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