ITC Q2 net profit rises 23.5% at R 1,247 cr

The diversified business conglomerate ITC reported a 23.5 % rise in its net profit, year-on-year at R1,246.7 crore for the July-September quarter as compared to R1,009.9 crore during the same period a year ago.

The diversified business conglomerate ITC reported a 23.5 % rise in its net profit, year-on-year at Rs 1,246.7 crore for the July-September quarter as compared to Rs 1,009.9 crore during the same period a year ago. The profit was led by a robust growth in all its business verticals.

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Net revenue of the company stood at Rs 5,061.2 crore, up 16.3 % driven primarily by the packaged foods and its agri and cigarette businesses.

Revenues from cigarettes, during the quarter, stood at Rs 2,550.1 crore year-on-year, as compared to Rs 2,259 crore a year ago. Even as cigarettes continue to remain largest revenue grosser for the company, revenues from its other FMCG businesses rose 22% to R1,056 crore.

Under FMCG segment, ITC, apart from cigarettes, sells personal care products, garments, stationary and branded packaged foods such as staples, biscuits, confectionery.

ITC’s operating profits from non-cigarette businesses grew by 37% to R421 crore year-on-year, as compared to R307 crore during the same period last year.
“The quarter marked the company’s foray into the fast-growing instant noodles market in India with the launch of Sunfeast Yippee in two differentiated flavours,” the company said in a statement.

Consequently, industry volumes have come under severe pressure,” the company said in its statement.

The revenues from its hotel business grew by around 20% to R208.9 crore during quarter, its agri business recorded 21.5 per cent increase to R1,249.6 crore.