Hit by Covid-19 and lockdown, ITC Q4 pre-tax profit declines by 7.75%

Rural markets, which account for around one-third of the industry and have been the key driver of growth in recent years, witnessed a steep fall in growth rates

Diversified group ITC on Friday reported a 7.75 per cent drop in its profit before tax at Rs 4,743.47 crore for quarter ended March 31, owing to a sharp decline in consumption, especially in rural areas due to the Covid-19 pandemic.

It posted a 4.93 per cent decline in its revenue from operations at Rs 12,560.64 crore during the quarter.

However, owing to tax adjustments following the reduction in corporate tax rates last year, the company received a credit of Rs 340.94 crore, which pulled up its net profit by 9.18 per cent to Rs 3,926.72 crore.  

Abneesh Roy, executive