ITC Q2 PAT declines 20% to Rs 3,232 cr

ITC posted a 20% fall in standalone net profit to Rs 3232.40 crore in Q2 September 2020 from Rs 4023 crore reported in Q2 September 2019.

Net sales fell 3.81% to Rs 11,098.24 crore in Q2 September 2020 over Q2 September 2019. Profit before tax (PBT) declined 11% to Rs 4,274.32 crore during the period under review. EBITDA fell by 11% year on year to Rs 4,061 crore in Q2 September 2020 from Rs 4,562 crore in Q2 September 2019. Tax expense rose 33% YoY to Rs 1042 crore in Q2 September 2020. The result was announced after market hours yesterday, 6 November 2020.

ITC said "The operating environment remained extremely challenging during the quarter with the unabated increase in daily Covid cases prompting several states to impose localised lockdowns. This impacted the recovery momentum, particularly in the months of July'20 and August'20, and posed significant challenges to sales operations. The situation continues to improve with the progressive easing of restrictions from September 2020.

Total FMCG revenue rose 3.5% to Rs 8916 crore in Q2 FY21 over Q2 FY20. Revenue from sale of cigarettes stood at Rs 5121 crore (down 3.9% YoY) and revenue from FMCG-Others was at Rs 3795 crore (up 15.4% YoY).

The cigarettes business reported strong sequential recovery in volumes and revenue with progressive normalization of market operations.

Revenue from hotel business tumbled 80.8% year on year to Rs 82 crore in Q2 September 2020. Revenue from paperboards, paper & packaging business fell by 6.8% YoY to Rs 1,459 crore in Q2 September 2020.

"The hotels business continues to remain adversely impacted due to restrictions on travel and tourism while closure of educational institutions across the country weighed on the performance of the education and stationery products business," the company said.

Revenue from agri business grew by 12.8% YoY to Rs 2985 crore in Q2 September 2020. The segment revenue was driven by trading opportunities in rice, mustard, coffee and higher wheat supplies for Aashirvaad atta.

Shares of ITC fell 0.49% at Rs 173.95 on Friday.

ITC is engaged in the marketing of fast-moving consumer goods (FMGC). The firm operates through four segments: FMCG; hotels; paperboards, paper and packaging, and agri business. ITC is the market leader in cigarettes in India.

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