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ITC posts all round robust growth across all businesses in revenue, profitability

ITC posts all round robust growth across all businesses in revenue, profitability

Kolkata, Aug 1 (IANS) ITC Ltd has posted record quarterly revenue and profits for the quarter ended June 30, with gross revenue up 41 per cent, and EBITDA up 41.5 per cent on a year-on-year basis.

ITC’s robust performance continued across segments and overall segment PBIT margin (ex-agri business) was up 245 bps to 36.9 per cent.

Hotels posted the highest quarterly revenue and highest profits ever in over 14 years, and also the highest-ever profits in Q1. Similarly, agriculture posted the highest quarterly revenue as did the FMCG segment.

While the trajectory of inflation remains a key monitorable, prospects of a favourable monsoon and the recent moderation in prices of key commodities along with proactive interventions by the government and the RBI, augur well for sustained economic recovery and a pick-up in consumption expenditure, ITC said.

Stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enabled green shoots of volume recovery from illicit trade. ITC cigarettes segment revenue was up by 29 per cent y-o-y while the segment EBIT was up 30.1 per cent y-o-y. ITC’s market standing reinforced through focused portfolio/market interventions and agile execution.

ITC posted strong performance in FMCG and others segment with revenue up 19.5 per cent y-o-y and 45.5 per cent over Q1 FY20. There was robust growth in discretionary/out-of-home categories; while staples and convenience foods remained resilient.

Education and stationery products business bounced back with re-opening of educational institutions. The hygiene portfolio sales remained subdued while being higher than pre-pandemic levels.

ITC posted a sharp rebound in hotels with revenue up 41.4 per cent over Q1 FY20. ARR and occupancy was ahead of pre-pandemic levels as retail (packages), leisure, weddings and MICE segments drove.

Higher RevPAR and structural interventions boosted EBITDA margins to 32.5 per cent (Vs. 17.5 per cent in Q1 FY20). Hotel segment EBITDA at 180 crore showed a positive swing of 268 crrore y-o-y; up 111 crore over Q1 FY20. ITC Narmada, a luxurious 291-key property in the city of Ahmedabad, is expected to be commissioned shortly.

ITC sustained a high growth trajectory in the agri business with segment revenue up 82.7 per cent y-o-y driven by wheat, rice and leaf tobacco exports. ITC leveraged strong customer relationships, robust sourcing network and agile execution. ITCMAARS was launched in seven states covering 200 plus FPOs with over 75,000 farmer registrations, till date.

The Paperboards, Paper and Packaging segment delivered strong performance; Revenue up 43.3 per cent y-o-y and segment results up 56.0 per cent y-o-y along with margin expansion of 220 bps. Strong demand was seen across end-user segments and sustainable products portfolio continues to be scaled up.

–IANS

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