Tobacco-to-hotels conglomerate ITC, on Thursday, reported a 10.3 per cent increase in year-on-year (YoY) net profit for the September quarter to Rs 4,927 crore, beating estimates.
Revenue from operations increased 2.6 per to ₹16,550 crore. This was 16,129.9 crore in the year ago period.
This was the first quarterly results for the fast-moving consumer goods (FMCG) major after its board approved the demerger of ITC hotels.
The company witnessed strong year-on-year growth in atta, spices, personal wash, notebooks, pens and agarbatti.
The cigarettes segment saw revenues go up by 8.5 per cent year on year while the hotel segment reported an impressive 21 per cent increase in revenue and 50 per cent increase in PBIT (profit before interest and taxes) year on yer. The agri business revenue too was up by 26.4 per cent.
"Sharp escalation in costs of leaf tobacco and certain other inputs, along with increase in taxes, (were) largely mitigated through improved mix, strategic cost management and calibrated pricing," ITC said in its earning statement.
"Amidst a challenging operating environment and high base effect in some of its operating segments, the company sustained its strong growth momentum during the quarter, driven by focus on customer centricity, accelerated digital adoption, execution excellence and agility."
"Green shoots of recovery are visible, with prospects of improved agri output, the onset of the festive season, increase in rural wages and government spending on infrastructure auguring well for a recovery in rural markets," it said.
Shares of ITC closed at Rs 450.05 a piece on Thursday, down 0.35 per cent