ITC Q2FY25: Net profit up 1.9% at Rs 4,992.87 cr, revenue rises 15.6%

Revenue rises 16% in Q2FY25; cigarette segment records 6.6% Y-o-Y growth in revenue

Diversified conglomerate ITC on Thursday reported a 15.6 per cent year-on-year (Y-o-Y) increase in consolidated revenue in the July to September quarter (Q2FY25), while the net profit was up 1.9 per cent amid muted demand conditions.

 

ITC reported a consolidated net profit of Rs 4,992.87 crore in Q2FY25 compared to Rs 4,898.07 crore in the year-ago period, impacted by the profitability of hotels and paperboards, paper and packaging businesses.

 

Consolidated gross revenue at Rs 22,281.89 crore during Q2FY25 was supported by all operating segments, especially the agri business.

 

The revenue net of excise at Rs 20,736 crore beat Bloomberg consensus estimate of Rs 17,999.4 crore. However, the net profit fell short of the Bloomberg estimate of Rs 5,227.6 crore. 

 

ITC said the performance was “resilient” amid a challenging operating environment. Subdued demand conditions, unusually heavy rains in parts of the country, high food inflation and sharp escalation in certain input costs were witnessed during the quarter, it said.

 

Sequentially, gross revenue was higher by 11.2 per cent, and net profit was down by 1.9 per cent.

 

The heavy-lifting cigarette segment recorded a 6.6 per cent Y-o-Y growth in revenue at Rs 8,877.86 crore in Q2FY25 on the back of a volume recovery led by stability in taxes, backed by deterrent actions by enforcement agencies. Pre-tax profit was higher by 4.8 per cent at Rs 5242.29 crore in Q2FY25. 

Inflationary headwinds across several key inputs weighed on the non-cigarette FMCG segment. The company also said that competitive intensity continued to remain high (including from local players) in certain categories such as noodles, snacks, biscuits and popular soaps.  

 

However, the segment clocked in a 5.3 per cent Y-o-Y increase in revenue at Rs 5,585.29 crore in Q2FY25 and pre-tax profit was higher by 0.4 per cent at Rs 444.24 crore.

 

The hospitality segment registered revenue of Rs 789.16 crore, up 16.9 per cent in Q2FY25. At a consolidated level, the newly launched Ratnadipa in Colombo weighed on the profitability as pre-tax profit at Rs 116.67 crore in the reported quarter was down by 12.2 per cent.

 

The agri business segment revenue at Rs 5,845.25 crore in Q2FY25 was up by 46.6 per cent Y-o-Y, led by leaf tobacco and value-added agri products. Pre-tax profit from the segment at Rs 446.84 crore in Q2FY25 was higher by 24.5 per cent Y-o-Y.

 

ITC said the operating environment continued to remain challenging for the paperboards, paper and packaging segment with low-priced Chinese supplies in global markets, including in India, soft domestic demand, unprecedented surge in domestic wood costs and subdued realisations.

 

The segment reported revenue of Rs 2,114.18 crore in Q2FY25, up 2.14 per cent Y-o-Y. Pre-tax profit at Rs 234.91 crore was down by 25.4 per cent Y-o-Y.