ITC Ltd's Profit Boost: A Surge Driven by Rural Demand and Cigarettes
ITC Ltd experienced a near 3% rise in share prices after a 2% increase in March quarter net profit. This growth is attributed to rising rural demand and steady cigarette sales, alongside a hotel business demerger. Full fiscal profit reached Rs 20,092 crore, marking a 10.2% revenue growth.
- Country:
- India
Shares of the renowned consumer goods giant ITC Ltd surged nearly 3 percent following a reported 2 percent increase in its net profit for the March quarter.
The company's stocks rose by 2.81 percent to Rs 438.10 on the Bombay Stock Exchange, and by 2.83 percent to Rs 438.20 on the National Stock Exchange.
This profit increase was primarily facilitated by the rising demand in rural areas and strong performance in its mainstay cigarettes business. Notably, ITC posted a net profit of Rs 6,416.85 crore before tax and exception items for January-March, compared to Rs 6,287.57 crore the prior year.
These positive earnings come despite the hotel business demerser, which provided a substantial one-time gain of Rs 15,179 crore. The impact of reduced urban consumption due to inflation was mitigated by the improved rural demand, helped by favorable monsoon effects.
The company's cigarette sector, a major revenue driver, reported a 4 percent increase in earnings, totaling Rs 5,118 crore. Meanwhile, revenue from ITC's consumer goods segment, comprising popular household brands like Aashirvaad, Sunfeast, and Bingo, grew by 3.7 percent to Rs 5,495 crore.
Moreover, gross revenue for the fourth quarter rose by 9.2 percent year-on-year to Rs 18,266 crore, with an EBITDA increase of 2.5 percent to Rs 5,986 crore.
For the complete fiscal year, ITC Ltd reported a profit of Rs 20,092 crore and a revenue of Rs 73,465 crore, reflecting a 10.2 percent climb in gross revenue and a 2.3 percent rise in EBITDA.
(With inputs from agencies.)
Google News