ITC Displays Resilience with Modest Profit Rise Amid Challenges

ITC Ltd reported a 1.8% rise in net profit amidst heavy rains and high food inflation. Revenue surged 15.62%, driven by strong performance in Agri-Business and Hotels. Despite challenges, its FMCG and cigarette businesses showed growth, while paper segment faced pressures from low-priced supplies.

ITC Ltd, the diversified conglomerate, announced a slight 1.8% increase in consolidated net profit for the September quarter, totaling Rs 5,054 crore. This modest gain comes despite facing challenges such as subdued demand, heavy rains, and high food inflation, the company revealed in its filings.

The company's revenue saw a substantial rise of 15.62%, reaching Rs 22,281.89 crore for the quarter, driven predominantly by its Agri-Business and Hotels segments, which demonstrated significant resilience. The 'total FMCG' segment, including the cigarette business, also reported a 6.1% increase in revenue.

While ITC's Hotels and Agri-Business segments flourished, the paper segment struggled due to low-priced Chinese supplies and increased wood prices. Despite these hurdles, ITC remains focused on strategic growth endeavors, including a new leadership appointment within its board.

(With inputs from agencies.)