ITC's net profit up by 24.4% in September quarter

21 Oct 2022 , 08:29 AM

The net profit after tax for the September quarter of ITC Ltd increased by over 24% year over year to Rs 4619 crore.

The major tobacco business’s annual revenue increased by more than 23% to Rs 17,110 crore. Cigarettes account for around 45% of ITC’s top line and more than 80% of its net profit. Fast-moving consumer goods (FMCG) other than cigarettes saw a 21% increase in quarterly revenue to Rs4,885 crore.

As business and leisure travel resumed, the hotel industry experienced a rapid comeback. The revenue for this category increased dramatically 82% year over year to Rs536 crore. The third-largest source of revenue, the agriculture sector, reported a 44% year-over-year increase in revenue to Rs3,997 crore. Sales in the paperboard and packaging sector increased by 25% to Rs2,288 crore.

According to a press release from the corporation, tax stability allowed cigarette sales volumes to continue recovering from illegal trading. For this segment, the profit before interest and tax (PBIT) increased by around 24% year over year.

The agricultural segment of the company performed well due to strong exports of wheat, rice, and leaf tobacco, whereas the paper and packaging industry benefited from greater demand across end-user categories and a sustainable product portfolio during the quarter.

Average room rates and occupancy levels in the hotel industry went above pre-pandemic levels. The operating margin increased to 29.0% from 20.4% in the same period of FY20 due to structural cost interventions and higher revenue per available room.

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