ITC shares surged 4.6% to ₹493.50 on the NSE, standing out in a weak market after announcing a 1.8% increase in Q2 consolidated net profit to ₹5,054.43 crore. This growth comes despite a modest financial environment and outshines the performance of FMCG peers like HUL and Nestle India.
The company’s year-on-year net profit slightly rose from the previous year’s ₹4,964.52 crore. This marginal increase highlights ITC’s resilience and effective management strategies in challenging market conditions.
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Revenue from operations for ITC saw a significant rise of 15.62% reaching ₹22,281.89 crore in the September quarter, compared to ₹19,270.02 crore in the same quarter last year. This robust growth is indicative of strong operational performance across its diverse business segments.
The total income of ITC, including other income, grew by 14.86% to ₹22,897.85 crore from ₹19,934.9 crore a year ago. This financial strengthening was particularly driven by substantial gains in the agribusiness sector, which saw a 47% revenue increase from leaf tobacco and value-added agricultural products.
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The company’s hotel segment also reported impressive results, with revenue growing 12.1% year-over-year, driven by higher RevPAR, operating leverage, and strategic cost management. This indicates a strong recovery and operational efficiency in the hospitality sector.
The quarter was marked by challenges such as excessive rainfall and rising food inflation, leading to a 9-month high in CPI. These factors, combined with rising commodity prices, pressured consumer spending and impacted the broader FMCG sector. Despite these headwinds, ITC maintained solid performance and profitability.
