In the corresponding period last year, ITC had reported a consolidated net profit of Rs 4,670.32 crore, as stated in a regulatory filing.
Mumbai: ITC Ltd, a diversified conglomerate, announced a 6.11 percent increase in its consolidated net profit, reaching Rs 4,955.90 crore for the September quarter, despite operating in a challenging business environment. This positive financial performance demonstrates the company's resilience in the face of adverse conditions.
In the corresponding period last year, ITC had reported a consolidated net profit of Rs 4,670.32 crore, as stated in a regulatory filing. The gross revenue from product sales for the company during the quarter stood at Rs 19,137.51 crore, marking a growth of 3.83 percent compared to Rs 18,430.52 crore in the same quarter a year ago.
ITC's revenue from operations also displayed a significant uptick, increasing by 3.55 percent to Rs 19,270.02 crore in the second quarter of the current fiscal year, compared to Rs 18,608 crore in the previous year.
In its earnings statement, ITC attributed this growth to its unwavering focus on customer-centric approaches, accelerated digital adoption, execution excellence, and adaptability. These factors have propelled the company's continued success, even in a challenging business environment.
The company's total expenses for the quarter increased by 3.54 percent to Rs 13,278.69 crore.
Notable highlights from ITC's performance during the quarter include:
FMCG-Others: The FMCG (Fast-Moving Consumer Goods) category displayed strong growth, with segment revenue up by 8.3 percent year-on-year, even against a high base.
Cigarettes Segment: This segment demonstrated resilience with net segment revenue increasing by 8.5 percent year-on-year. This growth was supported by efforts to combat illicit trade and relative stability in taxes.
Hotels Business: ITC reported a "stellar performance" in its hotels business, achieving a record-high second quarter.
Agribusiness: Excluding wheat and rice exports, this segment saw remarkable growth of 26.4 percent year-on-year. However, concerns about food security and global food inflation have led to trade restrictions on agri commodities.
Paperboards, Paper, and Packaging: This segment faced challenges due to low-priced Chinese supplies, muted demand in export markets, a reduction in global pulp prices, and a high-base effect. Domestic demand was also subdued in certain discretionary categories.
Economic Environment: During the quarter, public investment remained strong, while consumption demand was relatively subdued, particularly in the value segment and rural markets. This was influenced by factors such as a sub-par monsoon and persistent food inflation.
The statement from ITC also noted that signs of recovery are becoming visible, with prospects for improved agricultural output, the onset of the festive season, an increase in rural wages, and government spending on infrastructure, all of which bode well for a recovery in rural markets.
On the stock market, ITC's shares settled at Rs 450.30 on the BSE, marking a 0.28 percent decline from the previous closing price.
ITC's ability to maintain its growth trajectory in a challenging business landscape underscores its resilience and strategic approach to navigate market complexities.
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| Image : Glassdoor |
Mumbai: ITC Ltd, a diversified conglomerate, announced a 6.11 percent increase in its consolidated net profit, reaching Rs 4,955.90 crore for the September quarter, despite operating in a challenging business environment. This positive financial performance demonstrates the company's resilience in the face of adverse conditions.
In the corresponding period last year, ITC had reported a consolidated net profit of Rs 4,670.32 crore, as stated in a regulatory filing. The gross revenue from product sales for the company during the quarter stood at Rs 19,137.51 crore, marking a growth of 3.83 percent compared to Rs 18,430.52 crore in the same quarter a year ago.
ITC's revenue from operations also displayed a significant uptick, increasing by 3.55 percent to Rs 19,270.02 crore in the second quarter of the current fiscal year, compared to Rs 18,608 crore in the previous year.
In its earnings statement, ITC attributed this growth to its unwavering focus on customer-centric approaches, accelerated digital adoption, execution excellence, and adaptability. These factors have propelled the company's continued success, even in a challenging business environment.
The company's total expenses for the quarter increased by 3.54 percent to Rs 13,278.69 crore.
Notable highlights from ITC's performance during the quarter include:
FMCG-Others: The FMCG (Fast-Moving Consumer Goods) category displayed strong growth, with segment revenue up by 8.3 percent year-on-year, even against a high base.
Cigarettes Segment: This segment demonstrated resilience with net segment revenue increasing by 8.5 percent year-on-year. This growth was supported by efforts to combat illicit trade and relative stability in taxes.
Hotels Business: ITC reported a "stellar performance" in its hotels business, achieving a record-high second quarter.
Agribusiness: Excluding wheat and rice exports, this segment saw remarkable growth of 26.4 percent year-on-year. However, concerns about food security and global food inflation have led to trade restrictions on agri commodities.
Paperboards, Paper, and Packaging: This segment faced challenges due to low-priced Chinese supplies, muted demand in export markets, a reduction in global pulp prices, and a high-base effect. Domestic demand was also subdued in certain discretionary categories.
Economic Environment: During the quarter, public investment remained strong, while consumption demand was relatively subdued, particularly in the value segment and rural markets. This was influenced by factors such as a sub-par monsoon and persistent food inflation.
The statement from ITC also noted that signs of recovery are becoming visible, with prospects for improved agricultural output, the onset of the festive season, an increase in rural wages, and government spending on infrastructure, all of which bode well for a recovery in rural markets.
On the stock market, ITC's shares settled at Rs 450.30 on the BSE, marking a 0.28 percent decline from the previous closing price.
ITC's ability to maintain its growth trajectory in a challenging business landscape underscores its resilience and strategic approach to navigate market complexities.
Mudrayogi Desk, with agency input.
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