Diversified entity ITC Ltd on Thursday reported a 2.61% increase in consolidated profit to ₹5,186.55 crore during the September quarter even as FMCG categories faced short-term disruption following the implementation of net GST slabs and excessive rains in parts of the country.
The Kolkata-headquartered company had posted a consolidated profit of ₹5,054.43 crore in the year-ago period.
Hover ITC's revenue from sales of products was down 1.6% to Rs 21,047.45 crore in the September quarter. It was ₹21,387.15 crore in the corresponding quarter of the previous fiscal year.
"Excessive rains in many parts of the country and transition to new GST rates posed operational challenges, especially for the FMCG categories, causing short-term business disruptions during the quarter," said ITC in its earnings statement.
Revenue from the operations of ITC was also down at ₹21,255.86 crore, while total expenses were at ₹15,016.02 crore, down 2.58%, in the quarter.
Total income of ITC, which includes other income, during the quarter, was at ₹21,840.26 crore, up 1.38%.
Commenting on the overall trend, ITC said high-frequency indicators for the quarter suggest mixed trends.
"While rural demand continued to demonstrate resilience, urban consumption witnessed an uptick. On the other hand, industrial growth, core sector growth, automobile sales, credit growth and electricity & fuel consumption remained relatively subdued," ITC said.
ITC's revenue from total FMCG business, which includes cigarettes, was up 7% at ₹5,473.46 crore.
ITC's revenue from 'cigarettes' was at ₹9,414.34 crore, up 6% in the second quarter of the ongoing fiscal year.
"Strategic portfolio and market interventions with focus on competitive belts and to counter illicit trade, drive volume-led growth and reinforce market standing," it said.
Moreover, differentiated variants and the premium segment registered a strong growth in the cigarette segment.
ITC's revenue from the 'FMCG Others' segment was ₹6,059.12 crore, up 8.48%.
