ITC has posted a 4.57 per cent rise in total income from operations and a 6.11 per cent growth in profit in Q2FY24, in line with Street expectations, aided by the cigarettes and non-tobacco FMCG segments.
The company’s total income stood at Rs 19,934.9 crore compared with Rs 19,062.68 crore in the same period last fiscal on a consolidated basis.
Net profit was Rs 4,955.9 crore against Rs 4,670.32 crore recorded in Q2FY23.
ITC said the performance came despite a challenging operating environment marked by relatively subdued consumption demand in the rural market led by sub-par monsoon and food inflation.
However, it added green shoots of recovery are visible, with prospects of improved agri output, onset of the festive season, increase in rural wages and government spending on infrastructure auguring well for rural recovery.
Profits in the July-September quarter were driven by the cigarettes segment with a profit before tax (PBT) of Rs 5,002.88 crore in Q2FY24 compared with Rs 4,634.82 crore. Revenues from this segment were Rs 8,328.21 crore compared with Rs 7,635.38 crore in Q2FY23.
Analysts pegged cigarette volume growth at 4 per cent, in line with expectations. ITC attributed the growth to ‘sustained volume claw back from illicit trade’ backed crackdown by enforcement agencies and relatively stable tax regime.
In the non-cigarette FMCG segment revenue was at Rs 5,303.25 crore in Q2FY24 compared with Rs 4,894.26 crore in Q2FY23.