ITC Ltd on Wednesday reported an increase of 10.09 per cent in its consolidated net profit to Rs 3,763.73 crore for the second quarter ended in September 2021 helped by a broad-based recovery across all operating segments after witnessing severe disruptions in the last quarter. The company had posted a net profit of Rs 3,418.69 crore during the July-September quarter of the previous fiscal, ITC said in a regulatory filing.
Its revenue from operations was up 12.14 per cent to Rs 14,662.59 crore during the quarter under review, as against Rs 13,075.14 crore in the corresponding period of the previous fiscal. ”The quarter witnessed broad-based recovery in sales across markets and channels. Reduction in the intensity of the pandemic along with a pick-up in the pace of vaccination led to improvement in the demand environment and consumer sentiment during the quarter,” said ITC in a post earning statement.
However, unprecedented inflation in key input costs coupled with significant disruptions in global supply chains and logistics weighed on the operating environment, it added.
Total expenses were at Rs 10,258.26 crore, up 11.93 per cent in Q2/FY 2021-22, as against Rs 9,164.68 core of the corresponding period. In the July-September quarter, ITC’s revenue from total FMCG business was Rs 10,263.67 crore, up 7.38 per cent, as against Rs 9,558.30 crore in the year-ago period.
“The FMCG Businesses delivered resilient performance growing on a high base quarter which witnessed an exceptional surge in sales,” said ITC.
The cigarettes business in Q2/FY2021-22 was up 10.52 per cent to Rs 6,219.84 crore as against Rs 5,627.67 crore in the year-ago period. “After significant disruptions in Q1, Cigarette volumes witnessed smart recovery with exit volumes at near pre-Covid levels,” said ITC adding it has a faster recovery in volumes versus the first wave of the pandemic.
Exit volumes in the segment are “near pre-Covid levels,” the company said.
FMCG Others – segment revenue stood at Rs 4,043.83 crore, up 2.88 per cent, as against Rs 3,930.63 crore in the corresponding period last fiscal, it added.
“Snacks, Confectionery, Beverages performed well as ‘Discretionary/’Out-of-Home’ categories recorded strong growth” while staples and convenience foods witnessed “moderation on a high base of Q2 FY21 while well-above pre-Covid period.” While hygiene products witnessed marked demand volatility and moderated sequentially in line with lower intensity of the pandemic and remained significantly above pre-pandemic levels.
ITC’s FMCG-others segment of ITC consists of branded packaged foods as staples, snacks, meals, dairy and beverages, confections, apparel, education and stationery products, personal care products, safety matches and incense sticks.
Revenue from its hotels business was up over two folds to Rs 311.04 crore during the quarter under review. It was Rs 87.73 crore in Q2/FY 2020-21 as with easing of travel restrictions, domestic leisure segment and staycations witnessed an uptick during the quarter.
According to ITC, there is a “strong recovery in Occupancy levels” and average room rates (ARRs) has improved. Moreover, business travel continues to gather momentum.
”Revenue growth is driven through sharply targeted packages catering to emerging trends and consumer needs along with focused communication campaigns,” said ITC.
However, its Agri-Business was down 7.16 per cent at Rs 2,823.07 crore during the July-September quarter. It was 3,040.85 crore in the corresponding quarter a year ago.
”Shortage in the availability of shipping containers/port congestions and inclement weather towards the end of the quarter delayed customer call-offs,” said ITC.
Paperboards, paper and packaging verticals reported an increase of 25.44 per cent growth in revenue to Rs 1,829.72 crore as against Rs 1,458.67 crore in the same period last year, ITC said.
“Paperboards and Specialty Papers Business witnessed a revival of demand across most end-user segments,” said ITC adding “Publications, Quick Service Restaurants (QSR) and wedding card segments, however, remain relatively subdued.” Its packaging and printing business performed well, driven primarily by the cartons segment, it added.
Revenue from ”others” segments was at Rs 736.27 crore, up 27.03 per cent in Q2/FY2021-22 as against Rs 579.59 crore of the corresponding period. ITC’s other ”Others” segments include Information Technology services and Branded Residences.
Shares of ITC Ltd on Wednesday settled at Rs 238.40 on BSE, up 0.68 per cent from the previous close. (PTI)