New Delhi Diversified conglomerate ITC Ltd on Thursday beat estimates on the road to post a 20.7% rise in September quarter net profit, as it sold more cigarettes and its hotel business benefited from more domestic travel.
Country’s largest cigarette maker’s net profit increased 4,466.06 crore in the three months ended September 30 3,697.18 crore a year ago. Bloomberg poll of analysts had forecast net profit 4,095.60 crore.
Manufacturer of Ashirwad Wheat Flour and Savlon Soap registers standalone revenue 17,159.56 crore in the quarter, up 26.6% 13,553.52 crore in the year-ago period. The company has registered revenue growth across all verticals.
However, there was a decline in revenue from the June quarter.
Company reported earnings before interest, taxes, depreciation and amortization (EBITDA) 5,860 crore, up 27% from a year ago.
ITC said in a filing to stock exchanges that pick-up in demand linked to the festive season helped offset the headwinds of inflation, which were weighted on consumption expenditure.
ITC expects consumption expenditure to pick up in the second half of the year due to a normal monsoon over most parts of the country as well as moderation in inflation and proactive intervention by the government and central bank.
Cigarette business improves further in September quarter, up 23.2% in revenue 6,953.80 crore from 5641.72 crore a year ago. Volumes also rose, which analysts have dubbed a “positive surprise”.
Avneesh Roy, executive director, Nuvama Institutional Equities, said, “ITC cigarette volumes have grown 22% year-on-year against our and street estimates.”
FMCG (non-cigarette) business grew 21% year over year; The company said strong growth was registered in staples and convenience foods, primarily driven by biscuits, flour and noodles. In the personal care portfolio, fragrances posted strong growth, while the Fiama and Vivel range of personal wash products performed well.
It has been said that the sanitation segment was subdued, well ahead of pre-pandemic levels.
Revenue in the company’s hotel business, an area that has benefited from the lifting of restrictions on mobility, jumped 81.8% during the quarter.
“Average room rates and occupancy ahead of pre-pandemic levels, driven by the Retail (Package), Leisure, Weddings and MICE segments. Progressive normalization continues in domestic business travel; Inbound overseas travel has also increased,” according to the company. Meanwhile, revenue for the company’s paperboard, paper and packaging segment was up 25% during the quarter. Revenue for the agribusiness grew 44.0% year-over-year, driven by wheat , rice and leaf tobacco exports.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,