ITC Q2 results: Net profit rises 14% to Rs 3,697 crore; cigarette volumes near pre-Covid levels

Standalone revenue from operation grew 11.97 per cent YoY to Rs 13,553.52 crore compared with Rs 12,103.75 crore in the corresponding quarter last year.

The margin for the quarter came in at 36.2 per cent.

After significant disruptions in Q1, cigarette volumes witnessed smart recovery with exit volumes at near pre-Covid levels, ITC said.

“The quarter witnessed broad-based recovery in sales across markets and channels. Reduction in the intensity of the pandemic along with a pick-up in the pace of vaccination led to improvement in the demand environment and consumer sentiment during the quarter. However, unprecedented inflation in key input costs coupled with significant disruptions in global supply chains and logistics weighed on the operating environment,” ITC said in a press release.

The cigarette segment reported a 10.2 per cent growth in revenue at Rs 5,642 crore compared with Rs 5,121 crore in the same quarter last year.

In the case of FMCG-other segment, ITC said there was a sharp rebound in ‘out-of-home’ consumption on the back of improved mobility even as ‘at-home’ consumption moderates. The segment reported 2.9 per cent rise in sales at Rs 4,036 crore from Rs 3,922 crore YoY. Ebitda came in at Rs 403 crore while Ebitda margin for the segment stood at 10 per cent.

Discretionary portfolio posted sharp recovery both on sequential and YoY basis. Staples and convenience foods witness moderation in YoY y growth on a high base but remained well above pre-Covid levels, ITC said.

Hotel business reported a 2.6 times jump in revenues at Rs 295 crore compared with Rs 82 crore YoY. Agribusiness revenues fell 7 per cent to Rs 2,776 crore from Rs 2,985 crore YoY.

Paperboards volumes hit a record high while revenue for the segment rose 25.4 per cent.to Rs 1,830 crore from Rs 1,459 crore YoY.