ITC adjusted profit falls 3.7% to Rs 3,662 crore, declares interim dividend

Diversified conglomerate ITC recorded an 11.4 per cent drop year-on-year (YoY) in its consolidated profit to Rs 3,587.09 crore in the December quarter. However, the company said profit after tax stood at Rs 3,662.85 crore, representing a decline of 3.7 per cent, on a comparable basis, after adjusting for a one-time benefit of Rs 340 crore in base period due to reduction of corporate tax rate.
 
Revenues from operations was up by 6 per cent to Rs 14,124.48 crore from Rs 13,307.54 crore in the year-ago period.  A strong sequential recovery momentum continues across segments, including cigarettes, the company said. The board has declared an interim dividend of Rs 5 per share.
 
Segment revenues from cigarettes business grew 2.4 per cent YoY to Rs 6,091.17 crore. Sequentially, segment revenues were up from Rs 5,627.64 crore to Rs 6,091.17 crore. However, pre-tax profits from cigarettes was down YoY by 8.7 per cent, but up sequentially 7.3 per cent.
 
Segment revenues from non-cigarettes FMCG business was at Rs 3,752.61 crore against Rs 3,320.45 crore in the year-ago period. However, in the September quarter, revenues from the segment was higher at Rs 3,930.63 crore.
 
ITC said the “FMCG Others” revenue was up 11 per cent on a comparable basis and sustained doubled-digit despite demand moderation in certain categories with consumers broadening their purchase assortment and lower ‘at-home’ consumption on the back of increased mobility. Pre-tax profits from FMCG Others saw a 124 per cent jump to Rs 243.17 crore over the same period last year. In the September quarter, profits were higher at Rs 282.85 crore.
 
Segment Ebitda was up 28 per cent (YTD up 44 per cent) and margins expanded 150 basis points to 9.2 per cent (YTD +210 bps), the company said. The company is likely to make a record number of launches in the non-cigarettes FMCG space, as during the first nine months, it has launched over 100 new products.