ITC Ltd Q2 PAT down 18.09% at Rs3,419cr

ITC Ltd reported a marginal 2.18% rise in the Sep-20 quarter top line sales revenues at Rs13,147.81cr.

Nov 07, 2020 12:11 IST India Infoline News Service

ITC Ltd reported a marginal 2.18% rise in the Sep-20 quarter top line sales revenues at Rs13,147.81cr. The cigarette business took a hit on account of the lockdown and the ban on sales of cigarettes.
For the Sep-20 quarter, the operating profits were down 9.71% at Rs3,996.40cr. This is largely on the back of higher pressure on the cigarettes business. This resulted in the operating margin or OPM contracting from 42.24% to 30.40% in the Sep-20 quarter.

Net profits for the Sep-20 quarter as measured by PAT were lower by 18.09% at Rs3,418.69cr. The operating profit challenges got carried forward to the bottom line and lower other income also contributed. This led to the net margins contracting from 39.83% to 26% in Q2.

Financial highlights for Sep-20 compared yoy and sequentially

Rs in Crore Sep-20 Sep-19 YOY Jun-20 QOQ
Revenues 13,147.81 12,867.39 2.18% 10,478.46 25.47%
Operating Profit 3,996.40 4,426.22 -9.71% 2,526.57 58.17%
Net Profits 3,418.69 4,173.72 -18.09% 2,567.07 33.17%
Diluted EPS (Rs) 2.74 3.34 2.04
OPM 30.40% 42.24% 19.64%
Net Margins 26.00% 39.83% 19.95%

Key takeaways from the Sep-20 quarter results

  • In terms of overall revenues of ITC, cigarettes accounted for 38%, FMCG at 27%, agri-business at 21% and paperboards at 10%. The balance sales were accounted for by hotels and other lines of businesses. However, cigarettes still account for 81% of the total profits of ITC, showing how concentrated its profitability is. That was the reason the overall numbers took a hit.

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