ITC Ltd Q1 PAT up 28.63% at Rs3,013cr yoy on sharp growth in EBITDA in cigarettes business

ITC Ltd reported 36.39% growth yoy in total sales revenues for the Jun-21 quarter on consolidated basis at Rs12,959cr

Jul 25, 2021 12:07 IST India Infoline News Service

ITC Ltd reported 36.39% growth yoy in total sales revenues for the Jun-21 quarter on consolidated basis at Rs12,959cr. On a sequential basis, the revenues were down -8.46% compared to Rs14,157cr in the Mar-21 quarter as COVID 2.0 had an impact on the sequential sales.

In terms of yoy growth in top line, the cigarettes business saw tremendous traction, growing at 33% to Rs5,122cr. Hotels saw a revival finally while the agri business grew by 9.5% and the non-cigarettes FMCG business also grew by 10% yoy. The paperboards and packaging business saw over 50% spike in sales revenues yoy.

In the non-cigarette segment, the hygiene portfolio performed extremely well in the quarter. High base effect in staples and convenience foods led to tepid growth in this segment of the FMCG business. Meanwhile the share of ecommerce channel doubled its market share from 4% of sales to 8% of sales. There was also a 7% cut in costs as part of a conscious strategy by the company.

EBITDA was up 50.8% on a yoy basis. The cigarette segment showed EBITDA growth of 37% on yoy basis driving profits higher. The paperboards business saw a 145% growth in EBITDA, albeit on a much lower base. In the non-cigarette FMCG business, the EBITDA margins expanded by 40 bps to 100 bps in the quarter. Cigarettes saw margins improve by 210 bps on a yoy basis on a revival in the business.

Net profits for the Jun-21 quarter stood at Rs3,013cr on the strength of solid volumes an across the board in revenues as well as sharp cost cutting measures undertaken. The net profit margins for Jun-21 quarter stood at 23.25%, lower than 24.66% NPM in the Jun-20 quarter. For the sequential Mar-21 quarter comparison, the NPM stood at 26.48%,

Financial highlights for Jun-21 compared yoy and sequentially

Rs in Crore Jun-21 Jun-20 YOY Mar-21 QOQ
Total Income (Rs cr) ₹ 12,959 ₹ 9,502 36.39% ₹ 14,157 -8.46%
Operating Profit (Rs cr) ₹ 3,597 ₹ 2,248 59.97% ₹ 4,085 -11.96%
Net Profit (Rs cr) ₹ 3,013 ₹ 2,343 28.63% ₹ 3,748 -19.61%
Diluted EPS (Rs) ₹ 2.45 ₹ 1.91 ₹ 3.04
OPM 27.75% 23.66% 28.86%
Net Margins 23.25% 24.66% 26.48%

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