ITC adjusted profit falls 3.7% to ~3,662 cr

Board declares interim dividend of ~5 a share

Diversified conglomerate ITC recorded an 11.4 per cent drop year-on-year (YOY) in its consolidated profit to ~3,587.09 crore in the December quarter. However, the company said profit after tax stood at ~3,662.85 crore, representing a decline of 3.7 per cent, on a comparable basis, after adjusting for a one-time benefit of ~340 crore in base period due to reduction of corporate tax rate.

Revenues from operations was up by 6 per cent to ~14,124.48 crore from ~13,307.54 crore in the year-ago period. A strong sequential recovery momentum continues across segments, including cigarettes, the company said. The board has declared an interim dividend of ~5 per share.

Segment revenues from cigarettes business grew 2.4 per cent YOY to ~6,091.17 crore. Sequentially, segment revenues were up from ~5,627.64 crore to ~6,091.17 crore. However, pre-tax profits from cigarettes was down YOY by 8.7 per cent, but up sequentially 7.3 per cent.

Segment revenues from non-cigarettes FMCG business was at ~3,752.61 crore against ~3,320.45 crore in the year-ago period. However, in the September quarter, revenues from the segment was higher at ~3,930.63 crore.

ITC said the “FMCG Others” revenue was up 11 per cent on a comparable basis and sustained doubled-digit despite demand moderation in certain categories with consumers broadening their purchase assortment and lower ‘athome’ consumption on the back of increased mobility. Pre-tax profits from FMCG Others saw a 124 per cent jump to ~243.17 crore over the same period last year. In the September quarter, profits were higher at ~282.85 crore.

Segment Ebitda was up 28 per cent (YTD up 44 per cent) and margins expanded 150 basis points to 9.2 per cent (YTD +210 bps), the company said. The company is likely to make a record number of launches in the non-cigarettes FMCG space, as during the first nine months, it has launched over 100 new products.