Mumbai: India Tobacco Company Limited that is established in 1970 than to ITC ltd in 1974, reported an overall 30% rise in consolidated net profit for Q1 FY22 at Rs 3,343 crore over the last financial year FY21. Net profit has fallen by 12.4% when compared to the previous quarter.
While the company’s revenue grew by 36% from Rs 10,478 crore to Rs 14,240 crore y-o-y, the revenue declined from Rs 15,404 crore recorded in the previous quarter. Total revenue from FMCG-cigarette business grew 34% year-on-year to Rs 5,802 crore in the first quarter.
“Localised lockdowns and mobility restrictions imposed by States in a bid to contain the sharp increase in daily Covid‐19 infections in the second wave rendered the operating environment during the quarter extremely challenging and impacted the strong recovery momentum witnessed in recent quarters,” ITC said in an exchange filing.
“However, the situation continues to improve with the progressive easing of restrictions and increased mobility from mid‐June,” the FMCG major added
Segment wise, the revenue from the FMCG-cigarette business came in at Rs 5,802 crore, up 34 per cent from Rs 4,330 crore reported in the last year period. The profit before tax (PBT) of cigarette business too rose 36.5 per cent at Rs 3,461 crore in the first quarter.
On the cigarette business, it said the strong volume recovery momentum witnessed in the second half of FY21 was impacted by localised lockdowns and restricted hours of convenience store operations in the wake of second wave of the pandemic.
However, ITC said there has been week‐on‐week improvement in market conditions from mid‐June with most markets returning to normalcy.
The non-cigarette FMCG business or FMCG-other segment clocked a revenue of Rs 3,731 crore, up 10 per cent year-on-year, while the PBT of the same came in at Rs 174 crore.
The revenue from hotels segment more than tripled to Rs 134 crore as compared to a meagre Rs 25 crore in year-ago period. The agri business revenue rose 9 per cent, while that from the Paperboards, Paper & Packaging surged 54 per cent.
ITC stock on friday traded 3 per cent higher, its biggest intra-day gain in two months ahead of the results, which eventually closed 2.63 per cent higher at Rs 212.45 on the NSE.