Diversified ITC Ltd reported a 30 per cent jump in profit on a 35.9 per cent growth in revenue from operations in the first quarter of this fiscal as the overall business environment improved compared with the same period last year when strict lockdown measures were in place during the first wave of Covid-19.

Profit for the April-June period of 2021-22 was Rs 3,343.4 crore on a consolidated basis against Rs 2,567.07 crore in the same period of the previous fiscal. Revenue from operations were up at Rs 14,240.76 crore compared with Rs 10,478.46 crore on a like-to-like basis.

However, profits slipped 12.4 per cent on a sequential basis from the January-March quarter, while revenue dropped 7.5 per cent as the company grappled with the second wave of Covid-19 during April-May, which led to sporadic lockdowns across the country.

In a commentary posted on the bourses, ITC said: “Localised lockdowns and mobility restrictions imposed by states during the second Covid wave rendered the operating environment during the quarter extremely challenging and impacted the strong recovery momentum witnessed in the recent quarters. The situation continues to improve with the progressive easing of restrictions and increased mobility from mid-June 2021.”

At least one analyst dubbed ITC’s profit and EBIDTA numbers ‘‘below estimate’’ but pointed out that the overall sales are in line with expectations. Abneesh Roy of Edelweiss Securities said the volume growth of 32 per cent in cigarettes is ahead of expectations on a low base of a 40 per cent dip. “The overall PAT is below estimate,” Roy added.

Cigarette volumes, which nearly reached pre-Covid levels during January-March, slid again during the last quarter, dragging down the profit before tax (PBT) to Rs 3,461.91 crore in the first quarter of FY21 from Rs 3,895.27 crore in the fourth quarter. FMCG-others, which include food, health and personal care, showed a marginal drop in PBT though revenue grew sequentially despite the disruptions.