Cigarette-hotel-to-FMCG major ITC on November 6 registered a 19.7 percent year-on-year decline in September quarter profit dented by cigarette and hotel segment. However, FMCG others remained strong for the quarter.
Net profit fell to Rs 3,232.4 crore during the quarter, compared to Rs 4,023.1 crore in the same period last year, meeting street estimates.
Revenue from operations grew by 0.9 percent year on year to Rs 11,976.8 crore in the quarter ended September 2020, ITC said in its BSE filing. It was ahead of CNBC-TV18 poll estimate, which was pegged at Rs 11,220 crore for the quarter.
Cigarette segment reported a 3.9 percent YoY decline in revenue at Rs 5,121.3 crore for the quarter with its earnings before interest and tax (EBIT) falling 15.6 percent as sales hit during July-August; but FMCG others registered a 15.4 percent YoY growth at Rs 3,795 crore in Q2FY21 and its EBIT grew by 179.3 percent YoY to Rs 252.68 crore.
At the operating level, its earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 11 percent year-on-year to Rs 4,060 crore and margin contracted 450 bps YoY to 33.9 percent for the quarter ended September 2020.
EBITDA was largely in line but margin missed CNBC-TV18 poll estimates, which were pegged at Rs 4,000 crore and 35.7 percent respectively for the quarter.
The hotel segment reported an 80.8 percent YoY decline in revenue at Rs 81.96 crore with loss at EBIT level at Rs 184.90 crore against EBIT profit at Rs 17.43 crore in the same period last year.
Agri-business registered a 12.8 percent YoY increase in revenue at Rs 2,985.crore with its EBIT rising 2.7 percent, while paper and packaging business declined 6.8 percent YoY to Rs 1,458.7 crore in Q2FY21 with EBIT declining 7.2 percent YoY.
