ITC gains after Q2 PAT rises 21% YoY to Rs 4,466 cr

21 Oct 2022 , 09:26 AM

EBITDA improved 27.1% to Rs 5,864 crore in Q2 FY23 from Rs 4,615 crore in Q2 FY22. Profit before tax in the first quarter stood at Rs 5,939 crore, up by 21.7% from Rs 4,880 crore reported in the same period last year. Total expenses during the quarter stood at Rs 10687.60 crore, up 25.5% as against Rs 8517.39 crore in the corresponding period last year. Total FMCG segment revenue increased 22% YoY to Rs 11839 crore during the period under review. In the FMCG segment, cigarettes revenue rose by 23% YoY to Rs 6954 crore while the revenue from other FMCG segment improved by 21% YoY to Rs 4885 crore during the quarter. Hotel business revenue stood at Rs 536 crore (up 82% YoY), agri-business revenue was at Rs 3997 crore (up 44% YoY) and paperboards, paper & packaging revenues were at Rs 2288 crore (up 25% YoY) in the second quarter of FY23. In FMCG – Others segment, the company witnessed strong growth in staples & convenience foods (biscuits, atta, noodles) and discretionary/out-of-home categories (snacks, beverages, fragrances, agarbatti, frozen foods). In cigarettes business, stability in taxes, backed by deterrent actions by enforcement agencies, enabled continued volume recovery from illicit trade. In hotels business, Average Room Rate (ARR) and occupancy were ahead of pre-pandemic levels. Retail, leisure, weddings and Meetings, Incentives, Conferences and Exhibitions (MICE) drove growth during the quarter. The revenue in agri business was driven by wheat, rice and leaf tobacco exports. The paperboards & specialty paper segment revenue growth was driven by higher realisation. The segment witnessed strong demand across end-user segments. Meanwhile, ITC Infotech reported revenue of Rs 821 crore in Q2 FY23, up 9.61% YoY. EBITDA stood at Rs 135 crore (down 36.02% YoY). ITC said that the economic activity continued to gather momentum during the quarter along with improvement in business and consumer sentiments. However, input prices remained elevated even as some commodities witnessed softening in course of the quarter. Inflationary headwinds continued to weigh on consumption expenditure which was partly offset by early onset of festive season this year in some parts of the country. Amidst such a challenging operating environment, the companys focus on accelerated digital adoption, customer centricity, execution excellence and agility enabled it to continue to deliver strong growth across operating segments during the quarter, both sequentially and on YoY basis, the company said. The anticipated moderation in inflation going forward, normal monsoons in most parts of the country and proactive interventions by the government and RBI augur well for sustained recovery and a pick-up in consumption expenditure in the second half of the year, it added. 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