Home >Companies >Company Results >ITC Q2 results: Net profit drops 20% to 3,232 cr; revenue from hotel biz fall to 81.96 cr

ITC on Friday reported a 19.65% year-on-year drop in standalone net profit to 3,232.40 crore. The cigarette-to-hotels major posted a net profit of 4,023.10 crore in the same quarter last year. The consolidate net profit in the quarter under review stood at 3,413.44 crore, down by 18.23% year-on-year. Total revenue from aproducts and services rose to 11,891.9 crore in the September quarter from 11,750 crore a year ago. ITC's other operating revenue in Q2 decreased to 84.84 crore from 121.31 crore in the same quarter last year.

The revenue from cigarettes dropped to 5,121.30 crore from 5,326.83 crore a year ago. ITC's revenue from FMCG business rose to 8916.25 crore from 8615.14 crore in the same quarter last year.

Its revenue from hotels business fell sharply to 81.96 crore from 426.63 crore in the year before. The hotel business has been severely impacted due to the coronavirus outbreak and lockdown. India announced a nationwide lockdown in the last week of March to prevent the COVID-19 spread. Revenue from the agri-business surged to 2985.2 crore from 2647.52 crore in the year ago period.

ITC's total expenses stood at 9,164.68 crore in the September quarter, an increase of 8.39% compared to 8,455.16 crore in the same period a year ago.

“The operating environment remained extremely challenging during the quarter with the unabated increase in daily covid cases prompting several states to impose localized lockdowns. This impacted the recovery momentum, particularly in the months of July and August, and posed significant challenges to sales operations. The situation continues to improve with the progressive easing of restrictions from September’20," the Kolkata-headquartered diversified conglomerate said.

Shares of ITC settled at 173.95 on the BSE, marginally down from the previous close.

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