ITC gains as Q2 PAT rises 3% YoY to Rs 4,917 cr

ITC added 4.05% to Rs 488.90 after the diversified conglomerate's net profit rose 3.07% to Rs 4,917.45 crore in Q2 FY25 as against Rs 4,926.96 crore posted in Q2 FY24.

Net revenue (excluding excise duty) was at Rs 19,150.32 crore in the September quarter FY25, up 16.81% from Rs 16,393.74 crore recorded in the corresponding quarter previous year.

Profit before exceptional items and tax was at Rs 6,754.68 crore in Q2 FY25 as compared to Rs 6,513.50 crore reported in Q2 FY24. It includes exceptional item aggregating Rs 1.15 crore as on 30 September 2024.

EBITDA was at Rs 6,335 crore in the September quarter as against Rs 6,042 crore registered in Q2 FY24.

Total FMCG segment revenue grew by 6% YoY to Rs 13,755 crore during the period under review.

The FMCG-others businesses revenue rose 5% YoY amidst subdued demand conditions & disruptions a/c excessive rains in parts of the country. The segment EBITDA up 2% YoY; marginal drop of 35 bps in margins amidst inflationary headwinds in input costs; 2-year CAGR up 13%. The growth in this segment was driven by staples, biscuits, snacks, frozen snacks, dairy, premium soaps, homecare & agarbatti drive growth.

The FMCG Cigarettes net segment revenue was up 7.3% YoY, segment PBIT rose 5.1% YoY. ITC's market standing continues to be reinforced through strategic portfolio and market interventions with a focus on competitive regions and counter illicit trade. Moreover, differentiated and premium offerings continue to perform well. Severe cost escalation in leaf tobacco partially mitigated through improved mix, strategic cost management and calibrated pricing actions.

The revenue from ITC's Hotels segment surged 17% to Rs 789.16 crore. The growth was driven by F&B, retail and wedding segments. "Hotels Segment delivered a strong performance on a high base (LY includes G20 related business)," it said, adding that the EBITDA of the Hotel business expanded "70 bps YoY, driven by higher RevPAR (revenue per available room), operating leverage and strategic cost management".

The agribusiness jumped 47% to Rs 5,845.25 crore in the September quarter of FY25, led by leaf tobacco and value-added agri products.

ITC's revenue from 'paperboards, paper and packaging' segment increased 2.14% to Rs 2,114.18 crore in Q2 FY25. It remains impacted due to low-priced Chinese supplies in global markets, including India, soft domestic demand conditions and unprecedented surge in wood prices, said ITC.

Moreover, "subdued realisation, the surge in domestic wood prices and ocean freight continue to weigh on margins. Unseasonal rains adversely impact wood availability, quality and procurement price," it added.

The revenue from other segments including its information technology services and branded residences added 10.03% to Rs 1,004.27 crore in Q2 FY25 against Rs 912.71 crore in Q2 FY24.

Meanwhile, ITC informed that its board has recommended the approval of the appointment of Siddhartha Mohanty as a non-executive director of the company for three years with effect from 1 January 2025. He will represent the Life Insurance Corporation of India.

Further, the companys board approved acquisition of 1,52,32,129 equity shares of 2 each of EIH and 34,60,829 Equity Shares of 21 each of HLV, from Russell Credit, a wholly owned subsidiary of the company, at their respective book value, in order to consolidate shareholding of EIH and HLV under the company. Post such acquisition, the total share holding of the company in EIH and HL V would be 16.13% (10,08,53,602 equity shares) and 8.11% (5,34,13,884 equity shares) of their paid-up share capital, respectively. Also approved acquisition from RCL of the entire share capital (comprising 4,20,60,166 equity shares of 10 each) of Greenacre Holdings, an unlisted company and a wholly owned subsidiary of RCL, at book value.

ITC is a diversified conglomerate with businesses spanning fast-moving consumer goods, hotels, paperboards and packaging, agribusiness and information technology.

Powered by Capital Market - Live News