ITC’s profit after tax falls 25 pc to Rs 2,567 cr; revenue down 17 pc to Rs 10,478 cr

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Diversified group ITC Ltd on Friday reported 9.28 per cent increase in its consolidated net profit to Rs 3,926.46 crore in the fourth quarter ended March 31
Diversified group

New Delhi, Jul 24 (PTI) Diversified group ITC Ltd on Friday reported a 25.30 per cent fall in its consolidated profit after tax at Rs 2,567.07 crore for the first quarter ended June 30, hit by disruption in operations due to the coronavirus-induced lockdown.

The company had posted a consolidated profit after tax of Rs 3,436.51 crore in the corresponding quarter of the previous financial year, ITC Ltd said in a regulatory filing.

Its consolidated revenue from operations stood at Rs 10,478.46 crore in April-June 2020, down 17.21 per cent as compared with Rs 12,657.90 crore a year ago, it said.

“Unprecedented disruptions in economic activity caused by nationwide lockdowns in the wake of COVID-19 pandemic weighed on the company’s performance during the quarter,” it said.

Segments such as hotels, cigarettes, education and stationery products, and paperboards and packaging were impacted the most, the company said in an earning statement.

ITC’s total expenses were at Rs 7,967.71 crore, down 1.79 per cent as against Rs 8,113.67 crore a year ago.

During the quarter, revenue from the fast-moving consumer goods (FMCG) business was down 16.29 per cent to Rs 7,708.89 crore as against Rs 9,209.99 crore in the year-ago period.

The company said its cigarettes business clocked a revenue of Rs 4,330.05 crore in the first quarter, down 29.50 per cent from Rs 6,141.92 crore a year ago. The segment witnessed disruption across the value chain with manufacturing, selling and distribution operations being severely restricted following the imposition of the lockdown.

The FMCG-other segment’s revenue stood at Rs 3,378.84 crore, up 10.12 per cent as compared to Rs 3,068.07 crore in the corresponding quarter of the previous fiscal, it added.

ITC’s FMCG-others segment consists of branded packaged foods such as staples, snacks, meals, dairy and beverages, confections, apparel, education and stationery products, personal care products, safety matches and incense sticks.

The hotels business revenue was down 93.94 per cent to Rs 24.92 crore, compared with Rs 411.60 crore a year ago.

ITC said its agri business had a revenue of Rs 3,764.56 crore in the first quarter, up 3.92 per cent from Rs 3,622.40 crore in the same quarter a year ago.

The agri business recorded a growth in revenue “driven by trading opportunities mainly in oilseeds and rice”.

“Despite the supply chain disruptions caused by the COVID-19 pandemic, the business pro-actively engaged with the central and state authorities to secure permissions expeditiously to commence sourcing operations,” it said.

The paperboards, paper and packaging vertical had a revenue of Rs 1,026.44 crore, down 32.80 per cent as compared with Rs 1,527.53 crore a year ago, ITC said.

Revenue from the ‘others’ segment stood at Rs 556.68 crore, up 6.39 per cent as against Rs 523.22 crore of the corresponding quarter.

Shares of ITC on Friday settled at Rs 199.70 on the BSE, down 0.47 per cent from previous close.

Source:PTI

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