Q1 Results: ITC’s Profit Rises, Meets Estimates
ITC Ltd.'s profit in the June quarter met estimates as its operating margin rose.
Net profit increased 12.6 percent year-on-year to Rs 3,174 crore in the quarter ended June 30, the cigarettes-to-hotel conglomerate said in an exchange filing. That compares with Rs 3,154-crore consensus estimate of analysts tracked by Bloomberg. Revenue rose 5.8 percent over last year to Rs 11,503 crore—analysts had estimated Rs 11,759 crore.
Operating profit rose 8.7 percent year-on-year to Rs 4,566 crore—against the Rs 4,622 crore forecast. Operating margin expanded 110 basis points on a yearly basis to 39.7 percent in the three-month period.
That comes at a time Indians are purchasing fewer biscuits to cars, indicating a slowdown in the economy. Growth of India's fast-moving consumer goods industry, according to Nielsen India, declined for the second straight quarter in the April-June period. Slowing rural spends were a drag on domestic consumer goods makers. Larger rival Hindustan Unilever Ltd.'s volume for the June quarter, too, rose at the slowest pace in seven quarters as rural growth moderated.
ITC Q1 Results 2019-20: Other Highlights (YoY)
- Revenue from cigarettes business rose 6 percent to Rs 5,433.40 crore.
- FMCG segment revenue increased 6.19 percent to Rs 8,493 crore.
- Agri-business revenue rose 15 percent to Rs 3,611.23 crore.
- Hotel business segment's revenue up 15 percent at Rs 392.6 crore.
- Paper and packaging business' revenue jumped 13 percent to Rs 1,527.5 crore.
On Friday, ITC shares fell 1.12 percent to Rs 264.60 apiece on the BSE while the benchmark Sensex gained 0.27 percent to end the day at 37,118.22 points. The ITC Q1 results were announced after market hours.
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