ITC Q2 net profit rises 6% to ₹4,956 crore

Total expenses in Q2 rose 3.54% to ₹13,278.69 crore

Diversified entity ITC Ltd on Thursday reported a 6.11 per cent rise in consolidated net profit at ₹4,955.90 crore for the September quarter.

ITC primarily makes money by selling cigarettes but also holds interests in hotels, paper and consumer staples industries. (REUTERS)

The company had posted a consolidated net profit of ₹4,670.32 crore in the year-ago period, ITC said in a regulatory filing.

Its gross revenue from the sale of products stood at ₹19,137.51 crore, up 3.83 per cent during the quarter. It was ₹18,430.52 crore in the corresponding quarter a year ago.

ITC's revenue from operations was at ₹19,270.02 crore in the quarter, up 3.55 per cent, as against ₹18,608 crore.

"Amidst a challenging operating environment and high base effect in some of its operating segments, the company sustained its strong growth momentum during the quarter, driven by focus on customer centricity, accelerated digital adoption, execution excellence and agility," ITC said in its earning statement.

Total expenses in the quarter rose 3.54 per cent to ₹13,278.69 crore.

During the quarter, public investment remained strong, and consumption demand was relatively subdued, especially in the value segment and rural markets on the back of sub-par monsoon and persistent food inflation, which saw a sharp spike, ITC said.

"Green shoots of recovery are visible, with prospects of improved agri output, the onset of the festive season, increase in rural wages and government spending on infrastructure auguring well for a recovery in rural markets," it said.

Shares of ITC on Thursday settled at ₹450.30 on the BSE, down 0.28 per cent from the previous close.