ITC profit rises 2.6 pc to Rs 5,186 cr in Q2

Diversified entity ITC Ltd on Thursday reported a 2.61 per cent increase in consolidated profit to Rs 5,186.55 crore during the September quarter even as FMCG categories faced short-term disruption following the implementation of net GST slabs and excessive rains in parts of the country.

The Kolkata-headquartered company had posted a consolidated profit of Rs 5,054.43 crore in the year-ago period.

Hover ITC's revenue from sales of products was down 1.6 per cent to Rs 21,047.45 crore in the September quarter. It was Rs 21,387.15 crore in the corresponding quarter of the previous fiscal year.

''Excessive rains in many parts of the country and transition to new GST rates posed operational challenges, especially for the FMCG categories, causing short-term business disruptions during the quarter,'' said ITC in its earnings statement.

Revenue from the operations of ITC was also down at Rs 21,255.86 crore, while total expenses were at Rs 15,016.02 crore, down 2.58 per cent, in the quarter.

Total income of ITC, which includes other income, during the quarter, was at Rs 21,840.26 crore, up 1.38 per cent.

Commenting on the overall trend, ITC said high-frequency indicators for the quarter suggest mixed trends. ''While rural demand continued to demonstrate resilience, urban consumption witnessed an uptick. On the other hand, industrial growth, core sector growth, automobile sales, credit growth and electricity & fuel consumption remained relatively subdued,'' ITC said. ITC's revenue from total FMCG business, which includes cigarettes, was up 7 per cent at Rs 5,473.46 crore.

ITC's revenue from 'cigarettes' was at Rs 9,414.34 crore, up 6 per cent in the second quarter of the ongoing fiscal year.

''Strategic portfolio and market interventions with focus on competitive belts and to counter illicit trade, drive volume-led growth and reinforce market standing,'' it said.

Moreover, differentiated variants and the premium segment registered a strong growth in the cigarette segment.

ITC's revenue from the 'FMCG Others' segment was Rs 6,059.12 crore, up 8.48 per cent.

FMCG other business includes branded packaged foods businesses in staples, meals, snacks, dairy & beverages, biscuits & cakes, chocolates, coffee & confectionery, education and stationery products, personal care products, safety matches and agarbattis.

According to ITC, the ''businesses continued to mitigate the impact through focused cost management initiatives, portfolio premiumisation and calibrated pricing actions''.

However, its revenue from the agri business was down 31 per cent to Rs 4,037.8 crore. This was impacted by ''timing difference (of crops)and high base effect''.

ITC's revenue from paperboards, paper & packaging was at Rs 2,220.32 crore, up 5 per cent.

Its revenue from 'others', which include IT services, ITC Grand Central Hotel, Mumbai and FoodTech, was Rs 1,244.62 crore, up 20.6 per cent.

Meanwhile, in a separate filing, ITC on Thursday informed its board in a meeting on Thursday, that it has recommended the appointment of Amitabh Kant as a Director and an Independent Director.

It has also confirmed the re-appointment of Hemant Mallik as the director of the company for two years. Mallik, who heads the food division of ITC, tenure would be effective from August 12, 2026.

On the outlook, it said, ''Lower inflation, reduction in interest rates & liquidity support by the RBI, income tax cuts announced in the recent Union Budget along with front loading of government expenditure, and the recent reduction in GST rates across a wide range of products are expected to progressively bolster consumption.'' Shares of ITC Ltd on Thursday settled at Rs 418.70, down 0.69 per cent from the previous close.