Results: ITC Q3 net profit at Rs 3,587.20 crore; revenue from operations at Rs 14,124.48 crore

ITC Ltd on Thursday reported a consolidated net profit of Rs 3,587.20 crore for the third quarter ended December 2020.

The company had posted a net profit of Rs 4,047.87 crore during the October-December period of the previous fiscal, ITC said in a regulatory filing.

Its revenue from operations was at Rs 14,124.48 crore during the quarter under review. It was Rs 13,307.54 crore in the corresponding period of the previous fiscal.

"The operating environment remained challenging even as economic activity picked up pace progressively during the quarter with the easing of restrictions and increased mobility.

"High frequency lead economic indicators pointed to green shoots of recovery in aggregate demand and supply, leading to upward revisions in GDP growth estimates for FY 2020-21," it said.

Meanwhile, ITC said its results for the quarter are not comparable to the year-ago period as it also includes the revenue of Sunrise Foods, which it had acquired on July 27, 2020.

"Accordingly, the results of the quarter and nine months ended 31.12.2020 are not comparable with previous periods," it said.

The firm's total expenses were at Rs 9,765.56 crore in Q3 FY 2020-21.

During the quarter, revenue from ITC's total FMCG business was Rs 9,843.78 crore. It was Rs 9,265.31 crore in the year-ago period.

Revenue from its cigarettes business came in at Rs 6,091.17 crore, compared to Rs 5,944.86 crore earlier.

"Volumes and revenue witnessed strong sequential recovery led mainly by metros and large town markets on the back of progressive easing of restrictions and enhanced mobility. On a y-o-y basis, Net Revenue was lower by 7.6 per cent compared to 14.4 per cent y-o-y in Q2," the company said.

FMCG Others - segment revenue stood at Rs 3,752.61 crore. It was Rs 3,320.45 crore in the corresponding period last fiscal. "FMCG-Others Segment sustains double-digit revenue growth despite demand moderation in certain categories with consumers broadening their purchase assortment and lower 'at-home' consumption on the back of increased mobility," it said.

The FMCG-Others segment of ITC consists of branded packaged foods like staples, snacks, meals, dairy and beverages, confections, apparel, education and stationery products, personal care products, safety matches and incense sticks.

Revenue from its hotels business was at Rs 248.87 crore. It was Rs 574.26 crore in the same quarter last fiscal.

"Segment Revenue witnessed progressive recovery with improvement in Room and F&B business. Turned EBITDA positive in December'20 and break-even for the quarter," said ITC.

Its agri business revenue stood at Rs 2,694.27 crore during the October-December quarter. It was Rs 2,258.87 crore in the corresponding quarter a year ago.

"Robust growth of 18.5 per cent in Segment Revenue driven by higher wheat supplies for Aashirvaad atta and trading opportunities in rice, soya and wheat exports," said ITC.

Paperboards, paper and packaging vertical reported a revenue of Rs 1,477.53 crore. It was Rs 1,555.36 crore in the same period last year.

"Paperboards and Specialty Papers business recorded strong recovery in volumes with exports continuing to grow at a rapid pace. Softer realisations weighed on revenue growth," said ITC.

Revenue from others segment was at Rs 616.12 crore.

The board of the company has also recommended an interim dividend of Rs 5 per share for FY 2020-21.

Shares of ITC on Thursday settled at Rs 226.45 on BSE, down 0.53 per cent from its previous close.

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