ITC profit rises 2% in June qtr; cigarettes, agri drive revenue

The conglomerate's expenses during the quarter grew 13% to ₹12,872.66 crore

- Suneera Tandon

ITC Ltd on Friday reported a near 2% rise in its standalone June quarter profit at ₹14,912.36 crore, up from ₹14,819.93 crore a year ago, but lower than street expectations. The conglomerate's expenses during the quarter grew 12.7% to ₹12,872.66 crore. A poll of 17 analysts had estimated ITC to report a standalone profit of ₹5,080 crore for the first quarter of the fiscal year.

Standalone revenue from operations grew 19.7% to ₹21,058.98 crore during the reporting quarter, up from ₹17,593.02 crore a year ago, helped by strong performance in the agri and cigarettes business.

Earnings before interest, taxes, depreciation, and amortization, EBITDA, for the June quarter was ₹6,292.3 crore.

The company's cigarette business reported a 7.7% year-on-year (y-o-y) rise in revenue and a 3.7% increase in profit before interest and taxes (PBIT), driven by interventions to counter illicit trade, though the margins were hit by high-cost leaf inventory.