ITC’s standalone profit witnessed a year-on-year growth of 28.6% at Rs. 3,103.5 crore for the first quarter ended June 2021. This figure stood at Rs. 2,342.76 crore in the previous fiscal’s corresponding period.
The company noted that this substantial jump was a direct result of its sequential recovery in cigarette sales. In fact, the volume of sales in this particular segment for Q4 of FY21 nearly reached its pre-Covid levels.
Here’s a Closer Look at ITC’s Q1 Results
- ITC Limited, a diversified conglomerate, reported a year-on-year rise in its net profit, which touched Rs. 3,013 crore in Q1FY22. However, the company’s net profit was lower than that of the preceding March quarter, which amounted to Rs. 3,748 crore.
- Its revenue from operations soared by 36% year-on-year, hitting Rs. 12,959 during the quarter ended June 2021. In the March quarter of FY22, ITC’s revenue from operations stood at Rs. 14,157 crore.
- The company’s earnings before interest, tax, depreciation, and amortisation (or EBITDA) also increased by 50.8% year-on-year and reached Rs. 3,992.16 crore, thus exhibiting a strong rebound across its operating segments.
- As for its FMCG segment, ITC’s cigarette business witnessed a rise of 32.9% in its revenue, ending the quarter at Rs. 5,122 crore.
- Its ‘others’ FMCG business segment, which comprises dairy and beverages, branded packaged foods businesses, stationery and education, snacks, etc., reported a growth of 10.4% in its revenue. As a result, ITC’s revenue from these businesses stood at Rs. 3,725.55 crore.
- ITC’s hotels segment, which was badly hit by the ongoing pandemic, also registered more than five-fold growth in its revenue, reaching Rs. 127.24 crore.
- Revenue by its Agri business rose by 9% to Rs. 4,091.27 crore. On the other hand, its paper, paperboards, and packaging segment posted revenue of Rs. 1,582.65 crore, noting a growth of over 54%.
Key Highlights on ITC
- ITC Limited began operations in 1910 and is acknowledged as a valuable business corporation in the country.
- Its business spans several segments, such as Hotels, Fast Moving Consumer Goods, Education and Stationery Products, Personal Care, Agri-Business, Branded Apparel, Paperboards and Packaging, and Information Technology, among others.
- ITC leads the way, as per research by Fortune India’s Most Admired Companies.
Although ITC gained a strong recovery momentum in recent quarters, the pandemic-induced restrictions and lockdowns had an impact on its operating environment during the quarter ended June 2021.
While its FMCG segment continues to indicate a marked growth due to higher demand, its hotels business is slowly rebounding due to a surge in leisure destinations, weekend gateways, and staycations.
Moreover, the company remains optimistic as mobility increases and restrictions are eliminated. In fact, it witnessed a week-on-week improvement since mid-June 2021 as most markets returned to normalcy.
Additionally, the company underwent a much faster recovery during the second wave of Covid-19 as compared to its first wave.
On 23 July 2021, the shares of ITC Limited closed 2.56% higher at Rs. 212.35 on the BSE.
Frequently Asked Questions
- What is the turnover of ITC?
ITC reported revenue of approximately Rs. 453 billion in FY 2020.
- How many businesses does ITC have?
ITC has 13 businesses in 5 segments.
- Has ITC’s stock price increased in 2021?
Yes, ITC stock prices have increased by 3.6% in the calendar year 2021.