Lower revenues from cigarettes and hotels dragged down diversified conglomerate ITC’s profit after tax (PAT) in the September quarter 18.23 per cent to Rs 3,413.44 crore.
In the June quarter, PAT was once at Rs 2,562.73 crore. Revenues from operations at Rs 13,147.81 crore were higher by 2 per cent in the year ago period; in the June quarter, it was once at Rs 10,478.46 crore.
The company said that the operating surroundings remained extremely challenging all through the quarter with the unabated increase in day by day Covid cases prompting several states to impose localized lockdowns.
“This impacted the recovery momentum, especially in the months of July ’20 and August ’20 and posed remarkable challenges to sales operations. The situation continues to toughen with progressive easing of restrictions from September ’20,” it added.
ITC, on the other hand, pointed to sequential recovery across all operating segments including cigarettes. Segment revenues in cigarettes all through the quarter stood at Rs 5,627.67 crore in comparison to Rs 5,841.91 crore in the year ago period; revenues from hotels were at Rs 87.73 crore all through the quarter.
In comparison to the preceding quarter, on the other hand, revenues from cigarettes and hotels were higher; cigarette revenues in the June quarter had stood at Rs 4330.05 crore and hotels at Rs 24.92 crore.
The hotels trade was once impacted by restrictions on go back and forth and tourism. “While occupancy and revenue continue to toughen month-on-month with leisure locations witnessing a marked uptick, they remain below final year levels,” the company said.
Losses from the hotels segment narrowed all through the quarter to Rs 193.97 crore from Rs 257.39 crore in the preceding quarter. In the year ago period on the other hand it posted a profit of Rs 17.01 crore.
Pre-tax profits from cigarettes – which accounts for the largest share of the company’s profits – were at Rs 3409.20 crore in comparison to Rs 4036.44 crore in the same period final year; in the preceding quarter, it was once at Rs 2535.24 crore.
The non-cigarette FMCG trade, on the other hand, got a boost all through the quarter with revenues at Rs 3930.63 crore in comparison to Rs 3296.22 crore. Pre-tax take advantage of the segment was once at Rs 282.85 crore in comparison to Rs 92.04 crore year-on-year and Rs 129.06 crore quarter-on-quarter.
Segment EBITDA was once up 66 per cent and EBITDA margins expanded 300bps to 9.7 per cent. Staples, convenience foods and health & hygiene products, representing 75 per cent of the portfolio (in base period apart from education and stationery products trade) recorded a growth of 25 per cent.
ITC said that discretionary/’out of home’ categories posted strong sequential recovery to go back almost to pre-Covid levels (down 2 per cent year-on-year).
ITC’s paperboards, paper and packaging segment revenue was once down by 6.8 per cent (year-on-year) to Rs 1,458.67 crore, but was once up 42 per cent sequentially.
Agri trade segment revenue saw a growth of 12.8 per cent driven by trading opportunities in rice, mustard, coffee and higher wheat supplies for Aashirvaad atta; the value added portfolio comprising spices for “food protected” markets, processed fruits, frozen snacks, posted a 25 per cent growth in revenue.
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