The hike in excise duty on cigarettes and nationwide lockdown for more than a week in March to limit the novel coronavirus spread impacted its cigarette business
Cigarette major ITC on June 26 reported a standalone profit of Rs 3,797 crore for the quarter-ended March, a year-on-year growth of 6.5 percent, partly supported by lower tax cost, following the decline in tax rate, and robust operating performance in FMCG-others segment.
Revenue from operations fell 6.4 percent YoY to Rs 11,420 crore due to nationwide lockdown for more than a week in March. Revenue (excluding excise duty) dropped 9.6 percent to Rs 10,842.2 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 8.9 percent to Rs 4,163.5 crore.
In the case of FMCG-others segment, EBITDA stood at Rs 256.47 crore versus Rs 228.27 crore in the same period last year. For the full year, EBITDA jumped to Rs 914 crore as against Rs 688.2 crore YoY.
Revenue from its cigarettes business, which contributes 45 percent to total revenue, declined 6.5 percent to Rs 5,130.53 crore in Q4FY20. Earnings before interest and tax (EBIT) dropped 11.7 percent to Rs 3,403 crore compared to the same quarter last year.
FMCG-others business registered a 2.8 percent YoY decline in revenue at Rs 3,183.55 crore, but its EBIT jumped 12.6 percent to Rs 146.95 crore.
For FY20, profit grew by 21.4 percent to Rs 15,136.05 crore due to lower tax cost and revenue (excluding excise duty) increased 1.4 percent YoY to Rs 45,619.7 crore.
During the lockdown period, which started from March 22, ITC launched two products under the Savlon brand -- advanced hand sanitiser Savlon Hexa and a surface disinfectant spray.Fore all earnings-related news, click here