ITC Ltd Reports Slight Dip in Q1 Net Profit Amidst Economic Challenges

Diversified group ITC Ltd reported a minor decline in its net profit to Rs 5,176.99 crore in Q1 2024, amidst challenging economic conditions. Revenue grew 7.45% to Rs 20,029.60 crore, driven by Hotels, Agri products, and Tobacco. However, rising costs and increased competitive intensity impacted overall performance.

Diversified conglomerate ITC Ltd reported a slight dip in its consolidated net profit for the first quarter ending June 30, 2024, amidst a challenging macroeconomic environment. The net profit stood at Rs 5,176.99 crore, marginally down from Rs 5,189.61 crore in the same period the previous year.

Revenue from operations increased by 7.45% to Rs 20,029.60 crore, driven largely by the Hotels, Value Added Agri products, and Leaf Tobacco segments despite overall subdued demand. Total expenses for the quarter rose 11.02% to Rs 13,791.01 crore.

ITC's FMCG, cigarette, and agribusiness segments demonstrated resilience, with the latter growing by 22.2% due to robust exports of Spices and Coffee. Despite these gains, ITC faced challenges due to rising input costs and competitive pressures, particularly in the Paperboards, Paper & Packaging segment.