ITC Ltd Reports Modest Profit Growth Amid Rural Demand Surge
ITC Ltd reported a 2% rise in net profit for its March quarter, supported by rising rural demand and cigarette business growth. Despite urban consumption challenges due to inflation, ITC's cigarette and consumer goods businesses showed steady growth. The company's strategic innovations and acquisitions aim for market expansion.
- Country:
- India
Consumer goods giant ITC Ltd has announced a modest increase in its net profit for the March quarter, attributed to a surge in rural demand and the steady performance of its core cigarette business. The firm's standalone net profit grew by 2%, reaching Rs 6,416.85 crore compared to the previous year's Rs 6,287.57 crore.
The earnings account for a one-time gain from the demerger of ITC Hotels, totaling Rs 15,179 crore. Meanwhile, a strong monsoon spurred rural demand, counterbalancing the impact of inflation on urban consumption. The cigarette segment, which remains ITC's major revenue generator, saw a 4% increase, while the consumer goods sector, featuring brands like Aashirvaad and Sunfeast, rose by 3.7%.
ITC's full fiscal year profit amounted to Rs 20,092 crore on a revenue of Rs 73,465 crore, signifying a year-on-year revenue climb of 10.2%. The company also announced several strategic acquisitions and interventions to boost its presence in high-growth markets, aligning with its ITC Next Strategy for enhanced competitiveness.
(With inputs from agencies.)
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