InvestorQ : How was the quarterly performance of ITC in the September quarter?
vidhya Laxmi made post

How was the quarterly performance of ITC in the September quarter?

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sarah Leo answered.
1 month ago
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For the Q2FY23 quarter, India’s largest cigarette manufacturer, ITC Ltd, reported 25.35% growth in sales at Rs18,608 crore. The non-cigarette FMCG business was a big hit in revenue growth while the agri business saw a sharp fall in revenues. Cigarettes still contribute more than 75% of operating profits of ITC. Top line growth was driven by staples and convenience foods as well as the out of home (OOH) categories. Stable GST regime has helped cigarette revenues. For the hotels business, the occupancy and the ARR are well above the pre-pandemic levels reported by ITC, which signals that normalcy is finally returning.

ITC Ltd

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 18,608.00

₹ 14,844.38

25.35%

₹ 19,831.27

-6.17%

Operating Profit (Rs cr)

₹ 6,135.71

₹ 4,904.95

25.09%

₹ 5,815.87

5.50%

Net Profit (Rs cr)

₹ 4,619.77

₹ 3,713.76

24.40%

₹ 4,389.76

5.24%

Diluted EPS (Rs)

₹ 3.72

₹ 3.02

₹ 3.56

OPM

32.97%

33.04%

29.33%

Net Margins

24.83%

25.02%

22.14%

Let me now turn to the profitability. PAT for September 2022 quarter was up 24.4% at Rs4,620 crore helped by steady margins in the cigarette business and robust accretion in the non-cigarette FMCG business. The non-cigarette FMCG saw EBITDA margins growing by 15 bps in the quarter. Overall EBITDA margins were well spread across verticals at 29% for Hotels and 27% for paperboards. For Q2FY23, the PAT margins were lower at 24.83% compared to 25.02% in Sep-21 quarter due to pressure of higher input costs. However, net margins were sequentially higher compared to 22.14% in June 2022 quarter.

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