A diversified private sector company operating in FMCG, Hotels and Packaging industries, and India’s largest cigarette manufacturer – ITC Ltd. – posted its earnings report for the second quarter of the Financial Year 2022 on October 27. The company reported a 10% year on year (YoY) increase in its consolidated net profit in the September quarter. The company’s net profit increased to Rs 3,714 crore from Rs 3,366 crore over the last year.
After severe disruptions due to the second wave of COVID-19 in the first quarter for FY22, ITC’s performance across all segments picked pace. Sales and revenue saw faster recovery with the FMCG revenue up 23% YoY over Q2 FY20 at Rs 10,263 crore. The company reported strong growth in its agri business while the revenue from the hotel segment is back to Q4 FY21 levels.
The company’s majority revenue comes from its cigarette business. The revenue from the ITC cigarette segment increased from Rs 5,627 crore to Rs 6,219 crore YoY indicating a steady recovery. The net revenue from the cigarette business in the quarter under review is up by 10.3% YoY on the back of broad-based recovery witnessed across markets during the quarter.
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Research Analyst: Bavadharini KS