ITC Q2 FY25 Results: Cigarettes-to-hotels conglomerate clinches Rs 5,078 crore profit, in line with estimates

ITC Q2 FY25 Results: Cigarettes-to-hotels conglomerate ITC on Thursday registered a net profit of Rs 5,078.3 crore for the quarter ended September 30, marking a year-on-year rise of 3.1 per cent that was along expected lines. Zee Business analysts had estimated the Kolkata-headquartered company's quarterly net profit at Rs 5,079 crore. The company—whose popular cigarette brands include Classic and Gold Flake—said it staged a resilient performance amid a challenging operating environment owing to subdued demand conditions, unusually heavy rains in parts of the country, high food inflation and sharp escalation in certain input costs. 

ITC Q2 FY25 Earnings | Top-line beats estimates 

ITC reported revenue of Rs 19,328 crore for the second quarter of the current financial year, up 16.8 per cent over the corresponding period a year ago driven by its agri and hotels units, according to a regulatory filing. 

According to Zee Business research, ITC was estimated to register revenue of Rs 17,772 crore for the July-September period.

Here's how the company's various business segments fared in terms of revenue: 

• Cigarettes: up 7.3 per cent
• Other FMCG products: up 5.4 per cent 
• Hotels: up 12.1 per cent 
• Agri: up 47 per cent

ITC Q2 FY25 Results | How the cigarettes-to-hotels conglomerate fared on the operational front 

ITC logged Rs 6,335 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the September quarter, up 4.8 per cent on a year-on-year basis. 

Its margin, a key measure of profitability, contracted to 32.7 per cent for the fiscal second quarter of FY25 from 36.5 per cent a year ago. That meant a fall of 380 basis points (bps) on a year-on-year basis.

ITC Outlook

ITC's management said the company staged a resilient performance during the fiscal second quarter despite a challenging operating environment. "Despite the near-term headwinds, the Indian economy continues to be extremely resilient amidst a sluggish global economy on the back of multi-dimensional and purposeful policy interventions by the Government and its thrust on creating physical, digital, agri and rural infrastructure. India continues to be acknowledged as one of the fastest growing major economies in the world with significant headroom for growth over the medium and long-term," said ITC.

It also noted that a favourable demographic profile, increasing affluence, rapid urbanisation and accelerated digital adoption represent some of the key structural drivers of growth in the economy.

"Expectations of a good crop output, anticipated moderation in inflation, improving agri terms of trade, and the Government's thrust on public infrastructure & the rural sector augur well for a pick-up in consumption demand," ITC added. 

ITC Share Price 

Earlier on Thursday, ITC shares ended stronger by Rs 8.7, or 1.8 per cent, at Rs 471.9 apiece on BSE.

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