ITC Q2 results: Profit rises 2% YoY to Rs 4,993 crore, revenue rises 16%

Diversified conglomerate ITC Ltd on Thursday reported a consolidated net profit of Rs 4,993 crore (attributable to shareholders) for the quarter ended September 2024. This is up 2% from Rs 4,898 crore in the year-ago quarter.

Operating revenue increased 15.6% year-on-year to Rs 22,282 crore during the period under review. Profit was slightly below ET Now poll estimates of Rs 5,079 crore, while revenue beat expectations of Rs 18,068 crore.

The company’s board has approved acquisition of 1.52 crore shares of EIH Ltd and 34.6 lakh shares of HLV Ltd from Russell Credit, a wholly owned subsidiary of the company.

This is done to consolidate EIH and HLV’s shares under the company.

The cigarettes-to-hotels conglomerate reported an EBITDA of Rs 6,335 crore in the July-September 2024 quarter, while the margin was 32.8%.

Segment-wise, cigarette revenue increased 7% year-on-year to Rs 8,879 crore in the quarter under review compared to Rs 8,328 crore in the year-ago quarter.

Profit before tax (PBT) for the cigarette business rose 5% year-on-year to Rs 5,242 crore in the second quarter.

The FMCG Others business reported a revenue of Rs 5,585 crore in the quarter ended September 2024, up 5% from Rs 5,303 crore in the corresponding quarter last year. The PBT for the same rose marginally to Rs 444 crore.

The hotel business performed well, with revenue rising 17% year-on-year to Rs 789 crore in the second quarter, compared to Rs 675 crore in the year-ago period.

Meanwhile, PBT for the company declined to Rs 117 crore in the same period as compared to Rs 133 crore in the corresponding period last year.

Agribusiness recorded 25% year-on-year PBT growth to Rs 447 crore in the second quarter. The same amount was Rs 359 crore in the year-ago quarter. The segment’s revenue grew 47% year-on-year to Rs 5,845 crore.

Meanwhile, the paperboard segment posted marginal revenue growth of 2% in the quarter under review. Profit before tax fell 25% year-on-year to Rs 235 crore.

On Thursday, ITC shares closed 2.01% lower at Rs 470.7 on the NSE.