ITC reports marginal decline in June quarter net profit, revenue surges 19%
on Friday reported a marginal decline in standalone net profit at Rs 4912.36 crore (Rs 4917.4 crore) for the first quarter ending June, while standalone revenue from operations surged by 19.7% year-on-year (yoy) at Rs 21,058.9 crore which the company attributed to the cigarette, fast moving consumer goods (FMCG) and agri businesses.
The conglomerate said in its earnings release that early signs of recovery in urban demand were visible during the quarter, while rural consumption continued to demonstrate resilience. ITC said expectations of a normal monsoon and kharif crop sowing trends augur well for the rural economy.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Public Policy
Operations Management
Product Management
Management
Data Analytics
PGDM
MCA
Technology
healthcare
Data Science
Cybersecurity
Healthcare
CXO
others
MBA
Project Management
Leadership
Degree
Artificial Intelligence
Design Thinking
Digital Marketing
Others
Finance
Data Science
Skills you'll gain:
Duration:
12 Months
IIM Calcutta
Executive Programme in Public Policy and Management
Starts on
undefined
Get Details
Skills you'll gain:
Economics for Public Policy Making
Quantitative Techniques
Public & Project Finance
Law, Health & Urban Development Policy
Duration:
12 Months
IIM Kozhikode
Professional Certificate Programme in Public Policy Management
Starts on
Mar 3, 2024
Get Details
The first quarter performance of ITC was largely in line with street estimates. While the results were declared after share market trading hours, the ITC scrip closed on Friday at a gain of 1.14% at Rs 416.5 per share at the BSE when the benchmark Sensex fell by 0.72%.
ITC's flagship cigarette business net segment revenue went up 7.6% yoy in the second quarter at Rs 8520 crore. The country's largest cigarette manufacturer said the premium cigarette brands continue to perform well while it reinforced its market standing through market interventions with focus on competitive belts and to counter illicit trade.
The cigarette business segment profit before interest and taxes (PBIT) went up by 3.7% yoy at Rs 5145.2 crore. The company said consumption of high-cost leaf tobacco inventory weighed on margins while there is a moderation in procurement prices in the current crop cycle.
ITC's FMCG business net segment revenue was up by 5.2% yoy at Rs 5777 crore. The company said excluding the notebook business which continues to operate under deflationary conditions due to low-priced paper imports and stiff competition from local brands, the business grew revenue by 8.6% yoy.
Categories like staples, biscuits, dairy, premium personal wash, homecare and agarbattis sales drove growth, while the beverage business was impacted by unseasonal rains.
The FMCG business EBITDA (earnings before interest, taxes, depreciation and amortisation) was Rs 545.5 crore as compared to Rs 619.3 crore a year back. ITC said prices of major commodities such as edible oil, wheat, maida, cocoa and soap noodles remained elevated on a yoy basis which weighed on margins.
The company's agri business segment revenue was up by 39% yoy at Rs 9685 crore driven by trading opportunities in bulk commodities and exports of leaf tobacco. The segment PBIT was up 22% yoy at Rs 433.8 crore.
The paperboards, paper and packaging segment revenue was up 7% yoy at Rs 2115.7 crore driven by higher volumes, while segment PBIT declined to Rs 162.6 crore from Rs 261.3 crore a year back. ITC said muted realisations and high wood prices impacted margins.
At a consolidated level, ITC's gross revenue was up by 19.5% yoy at Rs 23,129.3 crore while net profit up by 5% yoy at Rs 5343.4 crore. The company attributed this to 'strong performance' by group companies led by its IT business ITC Infotech, Surya Nepal and the hotels entity
ITC Hotels Ltd
.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
Cherlopalikhandam township plan back on track after 18 years
1 2 Visakhapatnam: After nearly 18 years of hurdles, stalemate over the Cherlopalikhandam land parcel near Anakapalli has finally been resolved, paving the way for the development of a 58-acre integrated township. This long-pending project, originally proposed in 2007 under the land pooling scheme (LPS), has been delayed due to complications involving 16 acres of land for which the owners had not given consent. In 2007, the then Visakhapatnam Urban Development Authority (VUDA), now the Visakhapatnam Metropolitan Region Development Authority (VMRDA), identified around 86 acres in survey nos. 1550, 1553 to 1566, and 1571 to 1572 of Cherlopalikhandam village for a large layout, citing significant public demand. Of this, 62.37 acres were private lands proposed to be acquired under the LPS. This initiative was formally approved through a VUDA board Resolution in July 2010. In 2014, VUDA issued a draft notification for 79.1 acres, inviting objections and suggestions from stakeholders. After reviewing the responses, a final notification was issued in July of the same year. Based on this, a draft layout plan was prepared in 2016 for approximately 58.18 acres, focusing on the land for which general power of attorney agreements had already been executed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses In Gubeng Container House | Search ads Search Now Undo However, consent remained pending for nearly 16 acres, leading to a prolonged impasse. This deadlock has now been broken with the state govt's recent approval of a compensation package. Under the new arrangement, landowners of the 16 disputed acres will be compensated with 1,200 square yards per acre, comprising a 1,000 square yard residential plot and a 200 square yard commercial plot. In contrast, landowners of the remaining 41 acres, who parted with their land long ago through registered agreements, will receive 1,800 square yards per acre. One acre of the land falls under govt ownership. According to VMRDA officials, the site, located adjacent to the Anakapalli–Sabbavaram Road and in close proximity to Anakapalli town, is ideally suited for housing development. Given the increasing demand for housing in the area, officials believe the township project will be financially viable for VMRDA. Notably, VMRDA has already incurred about Rs 1.7 crore towards registration charges and initial development works. Some roads and drains have also been laid on-site in preparation for the project. VMRDA metropolitan commissioner KS Viswanathan said that the govt's recent decision resolves a long-pending issue that remained unsettled for 18 years. "According to the govt order, after obtaining the approval of the landowners of the 15.9 acres for which consent had not been given earlier, 1,000 square yards of residential plots and 200 square yards for commercial use per acre will be allocated to them. The govt's move is a win-win, providing farmers with immediate and improved returns, while also generating resources for VMRDA," said Viswanathan. Infographics: Long-pending project: In 2007, plans were initiated to develop a satellite township at Cherlopalikhandam near Anakapalli The then VUDA (now VMRDA) took inspiration from the successful 'Ozone Valley' LPS project for planning the Cherlopalikhandam layout Anakapalli is now the district headquarters, increasing the project's strategic value Starting from 2008, general power of attorney (GPA) agreements were signed with farmers under specific terms The project faced a stalemate for nearly 18 years due to lack of consent from some landowners A recent government order has resolved the issue, enabling the project to proceed Farmers who gave 41.287 acres through GPA will receive 1,600 sq. yds of residential and 200 sq. yds of commercial plots per acre Landowners of 15.9 acres, who had not given their consent earlier, will receive 1,000 sq. yds of residential and 200 sq. yds of commercial plots per acre Get the latest lifestyle updates on Times of India, along with Friendship Day wishes , messages and quotes !
Time of India
an hour ago
- Time of India
Discom rules flouted in inflated bill cases
1 2 Jaipur: Consumers are grappling with erroneous, inflated power bills that require payment of the full amount, facing the threat of supply disconnection if unable to do so. Discom rules are often overlooked by authorities, officials said. According to officials, supply disconnection is a lengthy process, providing consumers the right to present their position and offering several opportunities to do so. However, a lack of awareness of the rules among consumers and the indifferent, authoritarian attitude of authorities at the lower level of the administration ultimately lead to harassment. They said as per the existing rules, customers are required to pay average monthly charges in cases of inflated bills and follow the process to settle disputes. "We have an internal grievance redressal (IGR) cell set up for resolving bill payment disputes arising out of faulty meter reading or overshooting contracted demand (for large consumers). Customers should not be asked to pay the full amount pending the process," a discom official said. Payment disputes involving up to Rs 20,000 are resolved at the AEN. Disputes up to Rs 50,000 are addressed by the XEN. Cases between Rs 50,000 to Rs 5 lakh are taken up at the circle level and above that at the discom's corporate level. By the time the disputes reach the corporate level, the number is reduced to about five to seven. The highest level of grievance redressal cell is represented by the managing director of discoms, an independent official from the Rajasthan Electricity Regulatory Commission, and a senior accounts person. In fact, the IGR asks for deposits of money in the disputed cases, but they mostly involve high-value cases. Often, it is 25% or 50% of the disputed amount, depending on the nature of the case. But the rates are not uniform, said a discom official. "In most cases, the genuineness of the bill raised is known because the consumer has a record. If a meter malfunctions and the consumption of units goes up, it's easier to solve it. But in cases involving large customers when their consumption overshoots their contracted demand, we demand a deposit of 25% or 50% of the disputed amount," said the official. Get the latest lifestyle updates on Times of India, along with Friendship Day wishes , messages and quotes !
Time of India
2 hours ago
- Time of India
'Fake guarantee': ED arrests BTPL's Partha Biswal; will confront him with Anil
Anil Ambani (File photo) NEW DELHI: In a significant development ahead of questioning Anil Ambani of Reliance ADAG, Enforcement Directorate late on Friday night arrested Partha Biswal, the MD of Biswal Tradelink Pvt Ltd (BTPL) that was searched by the agency in connection with a Rs 68-crore fake bank guarantee provided by the Ambani group to Solar Energy Corporation of India Ltd (SECI) to secure a tender. The central agency has claimed that Anil Ambani ADAG group's Reliance Power Ltd paid Rs 5.4 crore to Biswal's BTPL for "providing this bank guarantee" by forging documents. A special court here on Saturday granted the custody of Biswal, whose company was searched on Friday, to ED till Aug 6, during which he is likely to be confronted with Anil Ambani and questioned about the fake bank guarantee he allegedly generated by spoofing email of govt lender SBI. ED proof confirms use of fake docus in name of banks The agency on Friday issued a look out circular (LOC) to put curbs on foreign travel by Anil Ambani who has been summoned for questioning on Aug 5 at the agency's headquarters in Delhi. Biswal's BTPL was incorporated in 2019 and has been found to have at least seven "undisclosed bank accounts" involving transactions of alleged proceeds of crime, disproportionate to its declared turnover, has been found during the money trail conducted by ED. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Santo Domingo Este: Unsold Sofas Prices May Surprise You (Prices May Surprise You) Sofas | Search Ads Search Now Undo On Friday, ED conducted searches at three premises in Bhubaneswar and one at Kolkata after its investigators found alleged evidence of the fake bank guarantee provided to SECI on behalf of Reliance NU BESS Ltd/Maharashtra Energy Generation Ltd. "BTPL fraudulently arranged and submitted fake bank guarantees of Rs 68.2 crore along with forged SBI endorsements and fabricated confirmations for a SECI tender. For providing this bank guarantee, Rs 5.4 crore have been received by BTPL from Reliance Power Ltd," a senior official aware of the probe said. The Reliance Group reiterated its statement issued on Friday saying: "The company and its subsidiaries acted bonafidely and have been a victim of fraud. .. The company has made a due disclosure on this to the stock exchanges and a criminal complaint has already been lodged with Delhi Police." Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
