ITC Q1 FY25 Results: Net profit grows marginally to Rs 4,917 crore, cigarette revenue up 6%; catch key takeaways here
ITC Q1 FY25 Results: Kolkata-headquartered cigarettes-to-hotels conglomerate ITC has reported a 0.3 per cent increase in its standalone net profit to Rs 4,917.5 crore for the quarter ended June 30, missing analysts' expectations. Read on to know about the latest earnings report of ITC, whose popular cigarette brands include Classic and Gold Flake.
ITC Q1 FY25 Results: Cigarettes-to-hotels conglomerate ITC reported a standalone net profit of Rs 4,917.5 crore for the April-June period, up 0.3 per cent over the corresponding period a year ago and below analysts' expectations.
According to Zee Business research, ITC was estimated to log a standalone net profit of Rs 5,020 crore for the quarter ended June 30.
ITC Q1 FY25 Results: Revenue up 7.3%
Kolkata-headquartered ITC - whose popular cigarette brands include Classic and Gold Flake - registered revenue of Rs 18,077.2 crore for the first quarter of the current financial year, as against Rs 16,842.9 crore for the year-ago period, according to a regulatory filing.
The company said the growth in revenue, amidst a challenging operating environment, was driven by hotels, value- added agri products, and leaf tobacco.
ITC Q1 FY25 Results: Cigarette revenue at Rs 7,918 crore
Revenue from ITC's cigarettes business increased 6.1 per cent to Rs 7,918.1 crore on a year-on-year basis, according to the filing.
ITC Q1 FY25 Results: Other FMCG products revenue
Revenue from FMCG products other than cigarettes increased 6.3 per cent to Rs 5,491 crore.
What ITC management said about cigarette and other FMCG business segments
Both businesses staged resilient performances amidst subdued demand conditions, according to ITC.
ITC Q1 FY25 Results: Hotels revenue at Rs 666 crore
Revenue from ITC's hotels unit increased 10.9 per cent to Rs 665.6 crore, according to the conglomerate.
ITC Q1 FY25 Results: Agri business revenue at Rs 6,973 crore
Revenue from ITC's agri business came in at Rs 6,973.3 crore, up 22.2 per cent over the year-ago period.
ITC Q1 FY25 Results: The only segment that saw its revenue drop
Revenue from its paperboards, paper and packaging unit declined 6.8 per cent to Rs 1,976.7 crore.
According to ITC, while green shoots were visible in demand recovery during the quarter, cheap Chinese supplies in international markets including India and a surge in domestic wood prices impacted the segment.
ITC Shares | Operational miss
ITC logged Rs 6,296 crore in June-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), as against Rs 6,249 crore in the year-ago period. Its margin - a key measure of profitability - came in at 37 per cent, down 250 bps.
Zee Business analysts had pegged the cigarettes-to-hotels firm's EBITDA at Rs 6,365 crore and margin at 38 per cent.
Outlook on domestic market
While private consumption expenditure remains relatively subdued, the Indian economy continues to be extremely resilient amidst a global growth slowdown on the back of multi-dimensional and purposeful policy interventions by the government, with sustained public expenditure in creating physical, digital, agri and rural infrastructure, according to ITC.
ITC Shares | Historical performance
Earlier on Thursday, ITC shares ended 0.3 per cent lower at Rs 493.8 apiece on BSE.
The stock has risen 5.3 per cent so far in 2024, underperforming gains of 15 and 9.1 per cent in Nifty50 and Nifty FMCG respectively.