ITC gains after Q1 PAT jumps 38% YoY to Rs 4,169 cr

2 Aug 2022 , 10:07 AM

EBITDA improved 41.5% to Rs 5,648 crore in Q1 FY23 from Rs 3,992 crore in Q1 FY22. Profit before tax in the first quarter stood at Rs 5,540 crore, up by 38% from Rs 4,015 crore reported in the same period last year. Total FMCG segment revenue increased 25% YoY to Rs 11060 crore during the period under review. In the FMCG segment, cigarettes revenue rose by 29% YoY to Rs 6609 crore while the revenue from other FMCG segment improved by 19% YoY to Rs 4451 crore during the quarter. Hotel business revenue stood at Rs 555 crore (up 336% YoY), agri-business revenue was at Rs 7473 crore (up 83% YoY) and paperboards, paper & packaging revenues were at Rs 2267 crore (up 43% YoY) in the frist quarter of FY23. The company said robust performance continued across segments. Stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enabled green shoots of volume recovery from illicit trade. In FMCG – Others segment, education & stationery products business bounced back with re-opening of educational institutions. The company said it witnessed sharp rebound in Hotels segment with Average Room Rate (ARR) and occupancy ahead of pre-pandemic levels. Leisure, weddings and Meeting, Incentives, Conferences and Exhibitions (MICE) drove growth. Economic activity during the quarter gathered further momentum with an uptick in business and consumer sentiment, the company said. However, geopolitical tensions and persistent supply chain disruptions resulted in hardening of commodity prices, exacerbating the unprecedented inflationary conditions prevailing in the economy, said ITC. Inflationary headwinds also manifested in subdued consumption expenditure with volumes coming under pressure, particularly in rural markets, it added. Commenting on the outlook, ITC said: While the trajectory of inflation remains a key monitorable, prospects of a favourable monsoon and the recent moderation in prices of key commodities along with proactive interventions by the Government and RBI augur well for sustained economic recovery and a pick-up in consumption expenditure. 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