ITC’s strong performance continues across segments

Mumbai, Oct 20 (IANS) ITC’s gross revenue stood at Rs 16,971 crore, representing a growth of 27.1 per cent YoY while EBITDA at Rs 5,864 crore also grew by 27.1 per cent YoY for the second quarter ending September 30.

PAT grew by 20.8 per cent YoY to Rs 4,466 crore. Earnings Per Share for the quarter was Rs 3.6 (previous year Rs 3).

Economic activity continued to gather momentum during the quarter along with improvement in business and consumer sentiments. However, input prices remained elevated even as some commodities witnessed softening in course of the quarter. Inflationary headwinds continued to weigh on consumption expenditure which was partly offset by early onset of festive season this year in some parts of the country, ITC said.

Amidst such a challenging operating environment, the company’s focus on accelerated digital adoption, customer centricity, execution excellence and agility enabled it to continue to deliver strong growth across operating segments during the quarter, both sequentially and on YoY basis.

The anticipated moderation in inflation going forward, normal monsoons in most parts of the country, and proactive interventions by the government and the RBI augur well for sustained recovery and a pick-up in consumption expenditure in the second half of the year.

The FMCG businesses continue to deliver strong performance with segment revenue growing 21 per cent YoY, and segment revenue and segment EBITDA up 49 per cent and 110 per cent, respectively over Q2 FY20.

Staples and convenience foods recorded robust growth mainly driven by biscuits, atta, and noodles.

Discretionary and out of home categories viz. snacks, confectionery, agarbattis and fragrances continued to witness strong traction.

The ‘Fiama’ and ‘Vivel’ range of personal wash products performed well, but hygiene segment was subdued, while remaining significantly ahead of pre-pandemic levels.

‘Aashirvaad’ atta consolidated its leadership position in the branded atta industry and continues to focus on enhancing penetration and premiumisation.

Education and stationery products business continues to witness strong traction, ITC said.

Stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enabled continued volume recovery from illicit trade.

Cigarettes segment revenue was up 23.3 per cent YoY, and segment PBIT up 23.6 per cent YoY.

Hotels segment revenue was up 81.9 per cent YoY and 25.6 per cent over Q2 FY20. ARR and occupancy were ahead of pre-pandemic levels.

ITC reported robust growth in agri business, and segment revenue was up 44 per cent YoY driven by wheat, rice, and leaf tobacco exports.

Paperboards, paper and packaging segment continued to deliver strong performance, with segment revenue up 25 per cent YoY while segment PBIT was up 54 per cent YoY, and segment PBIT margin at 27.5 per cent.

–IANS

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