ITC Q1 profit rises 28.6% to Rs 3,013.5 crore, revenue jumps 36.4% to Rs 12,959 crore

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26 Aug, 2025 12:21

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Cigarette-FMCG-to-hotel major ITC on July 24 has reported a 28.6 percent year-on-year growth in standalone profit at Rs 3,013.5 crore in the quarter ended June 2021, partly driven by low base in the year-ago quarter. The Q1FY21 quarter was impacted by first wave of Covid-19.

Profit was at Rs 2,342.76 crore in corresponding period previous fiscal.

Revenue from operations in Q1FY22 increased 36.4 percent year-on-year to Rs 12,959.15 crore, and revenue (excluding excise duty) jumped 37.1 percent YoY to Rs 12,217.13 crore during the quarter. The topline was led by cigarettes, FMCG and paper segments.

"Localised lockdowns and mobility restrictions imposed by States in a bid to contain the sharp increase in daily Covid-19 infections in the second wave rendered the operating environment during the quarter extremely challenging and impacted the strong recovery momentum witnessed in recent quarters. The situation continues to improve with the progressive easing of restrictions and increased mobility from mid-June 2021," said ITC.

Segmentwise Update

ITC said cigarette business registered a 32.9 percent year-on-year growth at Rs 5,122.19 crore and its earnings before interest & tax (EBIT) jumped 36.7 percent to Rs 3,220.94 crore in Q1FY22.

"Strong sequential recovery momentum in cigarettes led to volumes reaching nearly pre-Covid levels in Q4 FY21, and the second wave caused disruptions in convenience store operations during the quarter," said ITC.

The company further said certain markets in Kerala, Odisha and North East remained partially impacted.

FMCG-Others segment's revenue grew by 10.4 percent to Rs 3,725.55 crore driven mainly by hygiene products, fragrances, spices, snacks, dairy and agarbattis, and EBIT shot up 38.3 percent to Rs 173 crore in Q1FY22, compared to corresponding period last fiscal.

"In respect of FMCG-Others segment, EBITDA for the quarter ended June 2021 is Rs 298.73 crore, against Rs 257.34 crore in June quarter 2020," said ITC.

Hotels business reported a massive 463.5 percent year-on-year growth in revenue at Rs 127.24 crore as year-ago quarter impacted the business badly. ITC has narrowed its EBIT loss of hotels business to Rs 151.45 crore from Rs 242.58 crore in the same period.

"After severe disruptions during the quarter, hotels business is rebounding with the easing of restrictions led by leisure destinations, staycations and weekend getaways. Structural cost management actions aid in mitigating impact," ITC reasoned.

Agri business segment revenue in Q1FY22 at Rs 4,091.27 crore grew by 9.2 percent driven by wheat, rice and leaf tobacco exports, leveraging strong customer relationships and robust sourcing network, YoY. And its EBIT at Rs 195.74 crore increased by 9.5 percent compared to corresponding period last fiscal.

Paperboards, paper and packaging segment registered a 54.2 percent year-on-year growth in revenue at Rs 1,582.65 crore and 145.3 percent increase in EBIT at Rs 392.83 crore in the quarter ended June 2021.

The growth in paper business was driven by value added paperboards, décor paper and carton packaging, said ITC, adding significant improvement in profitability was driven by richer product mix, higher realisations on the back of surge in global pulp prices and structural cost saving interventions.

ITC said there was strong rebound across operating segments despite operational constraints in the wake of the second wave. Standalone earnings before interest, tax, depreciation and amortisation (EBITDA) shot up 50.8 percent to Rs 3,992.16 crore compared to year-ago quarter.

Other income during the quarter fell 52.2 percent to Rs 428.99 crore.

ITC shares gained 1.6 percent in the current calendar year 2021, and climbed 6.4 percent in last one year to close at Rs 212.4.

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