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ITC FY21 net profit falls 14% to Rs 13,032 cr

For January-March quarter, the company's net profit declined 1.3 per cent to Rs 3,748 crore, while gross revenue rose 24.1 per cent to Rs 14,023 crore.

ITC said its cigarettes business continued recovery in line with the progressive easing of restrictions and improved mobility. ITC said its cigarettes business continued recovery in line with the progressive easing of restrictions and improved mobility.

ITC on Tuesday reported a 13.9 per cent decline in net profit at Rs 13,032 crore for financial year 2020-21 as the disruptions due to COVID-19 pandemic during the first half weighed on its performance.

Gross revenue rose 3.9 per cent to Rs 48,151 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) declined 13.3 per cent to Rs 15,522 crore.

"While sequential pick-up in all operating segments in the second half of the year mitigated the impact (of pandemic), the disruptions in the first half weighed on the overall performance for the year," ITC said.

The FMCG-others segment delivered robust performance, with comparable segment revenue growing by 15.8 per cent. This was driven by a surge in demand for staples, convenience foods and health and hygiene products in the first half of the year and strong recovery in discretionary/out-of-home portfolio in the second half.

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The cigarette-FMCG-to-hotel major said EBITDA margin of FMCG-others segment expanded by about 180 basis points on the back of higher operating leverage, enhanced operational efficiencies, product mix enrichment, delayering of operations, reduced distance-to market and other structural interventions.

For January-March quarter, the company's net profit declined 1.3 per cent to Rs 3,748 crore. However, gross revenue rose 24.1 per cent to Rs 14,023 crore, while EBITDA rose 7.4 per cent to Rs 4,473 crore.

ITC said its cigarettes business continued recovery in line with the progressive easing of restrictions and improved mobility, with volumes touching nearly pre-Covid levels towards the close of the year.

The company's board also declared a final dividend of Rs 5.75 per share for FY21. Shares of ITC on Tuesday closed 0.65 per cent lower at Rs 215.20 on the BSE.

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