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New Delhi: The cigarettes-to-hotels conglomerate ITC, on Monday, has reported a 16 per cent rise in consolidated net profit at Rs 5,180.12 crore in the quarter ended June 30, 2023 as against the consolidated net profit of Rs 4,462.25 crore in the corresponding quarter of FY23, according to a BSE filing.
However, the company’s revenue from operations declined to Rs 18,639.48 crore in Q1 FY24 as against Rs 19,831.27 crore in Q1 FY23.
Its consolidated total expenses reduced to Rs 12,421.77 crore in Q1 FY24 compared to the total expenses of Rs 14,201.51 crore in Q1 FY23, as per the regulatory filing.
Business growth
Overall, input costs remained elevated compared to pre-pandemic levels, even as certain commodities witnessed moderation in prices on a high base of the previous year, the company said in a media statement.
The company’s businesses continued to drive improvement in profitability through multi-pronged interventions viz. premiumization, supply chain optimisation, judicious pricing actions, digital initiatives, strategic cost management and fiscal incentives.
ITC’s FMCG businesses have witnessed robust growth in both urban and rural markets driven by superior consumer insights, purposeful innovation, portfolio premiumization, enhanced distribution footprint, last-mile execution and leveraging digital initiatives.
Its both traditional and emerging channels including modern trade (MT), e-commerce, and quick commerce witnessed strong traction driven by sharp execution of channel-specific business plans, collaborations, format-based assortments catering to the needs of a diverse set of shoppers, and category-specific sell-out strategies, the company said in a media statement.
ITC’s trade marketing & distribution highway has transformed into a smart omnichannel network including 6 direct to consumer (D2C) platforms. Also, ITC e-Store, the company’s exclusive D2C platform, has also become operational in over 24,000 pin codes during the period.
The firm’s digitally powered eB2B platform, UNNATI is covering over 5.7 lakh outlets, facilitating direct engagement with retailers, analytics, personalized recommendations of hyperlocal baskets based on consumer purchase insights, and deeper brand engagement.
In line with its strategy to address value-added adjacencies leveraging mother brands, the branded packaged foods business of ITC launched a number of differentiated variants of Rava and various other products.
Encouraged by the Government of India’s initiative of promoting millets and 2023 being declared as the ‘International Year of Millets’, ITC has implemented a focused strategy to craft a millet-based product portfolio for every occasion, age and format.
During the quarter, Mangaldeep Agarbattis and Dhoop has recorded robust growth by leveraging a portfolio anchored on a wide range of differentiated products.
Cigarettes business
ITC’s net segment revenue and segment PBIT grew 10.9 per cent and 11.2 per cent YoY respectively. Its cigarettes business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratizing premiumization across segments, and enhancing product availability backed by superior on-ground execution. It also launched differentiated variants recently to continue performing well in the segment.
As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, continues to enable volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobacco and helping revenue to the exchequer from the tobacco sector, the company shared in the media presentation.
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