ITC Q1 Results: 17.6% YoY increase in net profit at Rs 4,902.7 crore
ITC Ltd., a diversified company, announced a standalone net profit increase of 17.6% YoY to Rs. 4,902.7 crore for the first quarter ended June 30, 2023.
ITC Ltd had a net profit of Rs 4,169.4 crore for the same time period last year, the company said in a regulatory filing.
The standalone total revenue for the period under review was Rs 15,828.2 crore, down 8.5% from Rs 17,289.7 crore for the same period of the previous fiscal.
Operating-level EBITDA climbed by 10.7%, from Rs 5,647.5 crore in the first quarter of the previous fiscal to Rs 6,250.1 crore in the first quarter of the current period.
In the reporting quarter, the EBITDA margin was 39.5%, up from 32.7% in the same period of the previous fiscal year.
In the first quarter of 2023, which ended in June, the company reported an increase in consolidated net profit of 16.08% to Rs. 5,180.12 crore. In the same quarter a year prior, it reported a consolidated net profit of Rs 4,462.25 crore.
Its consolidated operating revenue as a whole decreased by 6% to Rs 18,639.48 crore. In the first quarter of FY 2022–23, it was Rs 19,831.27 crore. ITC's overall costs for the quarter were Rs 12,421.77 crore, which is a 12.53% decrease from the same period last year. ITC's total income decreased by 3.92% to Rs 19,361.78 crore in the June quarter.
Approval by the Board of Directors
The acquisition of a 45.36% stake in International Travel House Ltd (ITHL) and a 25% stake in Maharaja Heritage Resorts Ltd (MHRL) from Russell Credit Ltd, a wholly-owned subsidiary of ITC, has been approved by the board of directors of ITC.
FMCG - other segment
The company's FMCG - other segment revenue increased 16.1% YoY and surpassed Rs 5,000 crore for the first time in a quarter, indicating strong development for the sector.
The EBITDA margin for the segment increased 325 basis points YoY to 11.0%. The segment is expanding due to staples, biscuits, noodles, drinks, dairy, agarbatti, and high-end soaps.
Cigarettes segment
Net revenue increased 10.9% YoY in the cigarettes segment, where the company continues to perform well, according to IT. This was caused due to a persistent amount of illegal trade clawback as a result of enforcement agencies' deterrent actions and relatively stable tax rates. PBIT for the segment increased 11.2% YoY.
Hotel segment
In terms of the hotel business, the corporation achieved its best-ever first quarter. On a strong basis, the segment's revenue increased by 8.1% YoY.
Profit before Interest and Taxes (PBIT) increased by 17% YoY, driven mostly by robust ARR growth. The EBITDA margin increased 140 bps YoY to 33.9%.
Source: Media Reports