ITC's Steady Q1 Profit Growth Amidst Varied Market Dynamics

ITC reported a standalone net profit of Rs 4,917.45 crore in the first quarter of FY 2024-25. The company’s total income rose to Rs 18,921.01 crore. The FMCG, hotel, and agri-business segments showed growth, while the paperboard segment faced challenges due to low-priced imports and rising wood prices.

On Thursday, diversified conglomerate ITC reported a standalone net profit of Rs 4,917.45 crore for the first quarter of the fiscal year 2024-25, marginally up from Rs 4,902.74 crore in the same period last year. The company's total income for the April-June period stood at Rs 18,921.01 crore, compared to Rs 17,704.23 crore in the corresponding quarter of the previous fiscal.

Profit before tax also saw a slight increase, reaching Rs 6,551.70 crore in Q1 FY 2025, up from Rs 6,545.59 crore in the same quarter a year ago, according to ITC's recent regulatory filing.

The company's FMCG segment, excluding cigarettes, demonstrated resilient growth despite muted demand conditions and extreme heat waves in parts of India. The FMCG (cigarettes) net segment revenue saw a year-on-year increase of seven percent, driven by market interventions and the introduction of premium products.

The hotel segment's revenue rose by 10.9 percent year-on-year, bolstered by the operationalisation of seven new managed properties during the reviewed period. The agri-business segment also experienced significant growth, with revenues climbing 22.2 percent due to value-added agri-products, leaf tobacco, and wheat.

However, the paperboard, paper, and packaging division faced challenges from low-priced Chinese imports in global and domestic markets, coupled with a surge in wood prices and muted domestic demand.

(With inputs from agencies.)