ITC Ltd on Thursday reported 11.6 per cent year-on-year decline in net profit at Rs 3,663 crore for October-December quarter. Total income rose 4.3 per cent to Rs 13,551 crore, while total expenses increased 11.2 per cent to Rs 8,704 crore.
ITC's earnings before interest, tax, depreciation and amortisation (EBITDA) declined 7.2 per cent to Rs 4,281 crore during the quarter.
Revenue from cigarette segment rose 3.5 per cent to Rs 5,498 crore, while that from FMCG - Others segment, which excludes cigarette business, rose 7.5 per cent to Rs 3,562 crore.
On cigarettes, ITC said, "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."
However, it said availability of smuggled cigarettes continues despite deterrent actions and heightened levels of seizures by concerned authorities, and remains a key challenge for the legal cigarette industry which has witnessed significant reduction in volumes in recent years.
The EBITDA of FMCG - Others segment rose 28 per cent to Rs 326 crore, while its margin expanded 150 basis points to 9.2 per cent on higher operating leverage, enhanced operational efficiencies, portfolio premiumisation and product mix enrichment.
"The significant surge in demand for staples and convenience foods witnessed during the lockdown phase ebbed during the quarter with consumers broadening their purchase assortment and lower 'at-home' consumption on the back of increased mobility," ITC said.
The demand for health and hygiene products remained elevated during the quarter even as the pace of growth moderated as compared to the first half of the year, the company said.
While revenue from hotels segment, hit severely by the coronavirus pandemic, declined 57.4 per cent to Rs 235 crore, paperboard, paper and packaging segment saw a 5 per cent fall in revenue at Rs 1,478 crore. However, agri business revenue jumped 18.5 per cent to Rs 2,482 crore, driven by higher wheat supplies for Aashirvaad atta and trading opportunities in rice, soya and wheat exports.
On a consolidated basis, ITC's net profit declined 11.3 per cent to Rs 3,527 crore. The company's board also declared an interim dividend of Rs 5 per share.