New Delhi: ITC Ltd, a diversified entity, reported a 7.27% decrease in consolidated net profit, amounting to ₹5,013.16 crore for the December quarter, attributed to weak demand and a significant rise in input costs. In the same period last year, the company recorded a consolidated net profit of ₹5,406.52 crore, as stated in a regulatory filing.
The company’s revenue from operations increased by 9.05% to ₹20,349.96 crore in the December quarter, compared to ₹18,660.37 crore in the corresponding quarter of the previous fiscal year. ITC described its performance as “resilient amidst a subdued demand environment and sharp escalation in input costs.” The firm noted that key input materials, including edible oil, wheat, potato, leaf tobacco, wood, and packaging inputs, experienced significant cost increases during the quarter.
ITC’s revenue from the gross sale of products and services reached ₹20,140.15 crore, reflecting an 8.74% rise in the December quarter. Total expenses for the company rose by 12.18% to ₹14,413.66 crore. Total income, which includes other income, increased by 8.47% to ₹20,945.82 crore, up from ₹19,308.85 crore a year ago.
In the ‘total FMCG’ segment, which encompasses the cigarettes business, revenue grew by 6.35% to ₹14,372.53 crore, compared to ₹13,513.43 crore in the previous September quarter. Revenue from the cigarette segment rose by 7.83% to ₹8,944.83 crore during this fiscal quarter, up from ₹8,295.18 crore in the same quarter last year.
ITC attributed its growth to strategic portfolio and market interventions aimed at enhancing competitive positioning and combating illicit trade, which helped drive volume-led growth and strengthen market presence. The company partially offset cost increases in leaf tobacco through product-mix enrichment.
Revenue from the FMCG-others segment also saw a 4% increase, reaching ₹5,427.7 crore during the quarter, driven by products such as atta, spices, snacks, frozen snacks, dairy, premium personal wash, homecare, and agarbatti. However, the notebooks business faced challenges due to a high base effect and competition from local brands following a sharp decline in paper prices. Despite this, ITC reported strong performance in its premium portfolio and alternative channels.
The company faced significant inflationary pressures in the prices of edible oil, wheat, maida, potato, cocoa, and packaging inputs, which were partially mitigated through focused cost management initiatives, calibrated pricing actions, and premiumization strategies.
ITC’s agri business grew by 10.77% to ₹3,626.01 crore in the December quarter, driven by leaf tobacco and value-added agri products such as coffee and spices. Revenue from the “paperboards, paper, and packaging” segment reached ₹2,144.86 crore, marking a 3.07% increase.
