scorecardresearchITC Q3 net profit rises 23% to ₹5,070 crore

ITC Q3 net profit rises 23% to 5,070 crore

Updated: 04 Feb 2023, 09:53 AM IST
TL;DR.

The company sustained its strong growth momentum across all operating segments during the quarter driven by focus on accelerated digital adoption, customer centricity, execution excellence and agility, ITC said in its earnings statement.

A woman poses with a cigarette in front of ITC Limited logo in this illustration taken July 26, 2022. REUTERS/Dado Ruvic/Illustration

A woman poses with a cigarette in front of ITC Limited logo in this illustration taken July 26, 2022. REUTERS/Dado Ruvic/Illustration

(PTI) ITC Ltd on Friday reported a 23.09 per cent increase in consolidated net profit at 5,070.09 crore for the third quarter ended December 2022, helped by growth momentum across its operating segments.

The diversified company had posted a net profit of 4,118.80 crore during the October-December quarter of the previous fiscal, ITC said in a regulatory filing.

Its revenue from operations was up 3.56 per cent to 19,020.65 crore during the quarter under review, as against 18,365.80 crore in the corresponding period of the previous fiscal.

"The company sustained its strong growth momentum across all operating segments during the quarter driven by focus on accelerated digital adoption, customer centricity, execution excellence and agility," ITC said in its earnings statement.

Economic activity in India continued to gather momentum with "sequential moderation in commodity inflation" even as core inflation remained elevated.

"Rural demand continued to be relatively subdued while improving sequentially. Consumer sentiments improved during the quarter but remained below pre-pandemic levels," said the Kolkata-headquartered company.

Total expenses were at 12,772.27 crore, down 3.29 per cent in Q3/FY 2021-22, as against 13,207.28 crore in the year-ago period.

During the quarter, revenue from the "total FMCG" segment, which also includes cigarettes, was up 16.96 per cent to 12,934.67 crore. It was 11,058.26 crore in Q3 FY22.

Revenue from the cigarette business climbed 16.19 per cent to 8,085.72 crore in the October-December quarter of this fiscal. It was 6,958.79 crore in the year-ago period.

PBIT (Pre-tax profit) of the segment was up 16.9 per cent YoY. This was led by "stability in taxes on Cigarettes, backed by deterrent actions by enforcement agencies, enabling continued volume recovery from illicit trade," said ITC.

Revenue from the FMCG-others segment was also up 18.28 per cent to 4,848.95 crore as against 4,099.47 crore.

ITC's FMCG-others segment consists of branded packaged foods such as staples, snacks, meals, dairy and beverages, apparel, education and stationery products, personal care products, safety matches and incense sticks.

This was led by strong growth in staples, biscuits, noodles, snacks, dairy, beverages and frozen foods. Its stationery sales witnessed strong growth. Segment EBITDA margin was at 10 per cent amidst elevated commodity prices.

"The FMCG Businesses witnessed strong growth across channels and markets (both urban and rural) driven by a ramp-up in outlet coverage, enhanced penetration and superior last mile execution. Overall, input costs remained elevated even as some commodities witnessed sequential moderation in prices," said ITC.

FMCG businesses continued to drive improvement in profitability through multi-pronged interventions such as cost management, premiumisation, supply chain agility, judicious pricing actions, fiscal incentives, leveraging digital and optimising channel assortments, it added.

Revenue from ITC's hotels segment jumped 49.19 per cent to 739.32 crore from 495.53 crore in Q3 FY22.

Its RevPAR (Revenue per available room) was ahead of pre-pandemic levels driven by retail (packages), leisure, weddings and MICE (Meeting, Incentives, Conferences and Exhibitions) segments.

"Domestic business travel normalised while inbound foreign travel also witnessed pickup; this augurs well for the company's portfolio that comprises a relatively higher salience of business hotels. Special occasions and festivals were effectively leveraged to drive demand," it said.

However, ITC's agribusiness revenue was down 35.91 per cent to 3,305.21 crore as it was impacted by restrictions on wheat and rice exports. It was 5,157.36 crore in the October-December quarter of the last fiscal.

The segment's PBIT was up 32.6 per cent, "driven by growth in leaf tobacco exports and value-added agri products."

Revenue from "paperboards, paper and packaging'' segment was at 2,305.54 crore, up 12.65 per cent from 2,046.48 crore earlier.

"Segment Revenue growth driven by higher realisations in domestic and export market," said ITC, adding that the segment's margin improvement was driven by higher realisations and strategic interventions.

Revenue from other segments, which includes its information technology services, branded residences etc, was up 18.30 per cent to 856.91 crore as against 724.33 crore in Q3 FY22.

Meanwhile, in a separate filing, ITC said its board on Friday declared an interim dividend of 6 per share of Re 1 each for FY23.

 

The board has also appointed Peter Rajatilakan Chittaranjan as an Additional Non-Executive Director, representing the General Insurers’ (Public Sector) Association of India.

Shares of ITC Ltd on Friday settled at 380.50 on BSE, up 0.50 per cent from the previous close.

First Published: 04 Feb 2023, 09:53 AM IST