New Delhi: ITC on Friday has reported a rise of 23 per cent in its consolidated net profit to Rs 5,070.09 crore for the third quarter (Q3) ended December 31, 2022 as compared to a net profit of Rs 4,118.80 crore in the October-December quarter a year ago, the company said in a BSE filing.
Its revenue from operations in FMCG category also jumped 16.9 per cent to Rs 12,934.67 crore in Q3 FY23 as against Rs 11,058.26 crore in the corresponding quarter last fiscal.
The company’s EBITDA margin grew to 10.0% in Q3 FY23 as compared to 9.1% in Q3 FY22 in the FMCG segment which includes staples, biscuits, noodles, snacks, dairy, beverages and soaps, as per the regulatory filing.
Its cigarettes net segment revenue rose 16.1% year-on-year (YoY) to Rs 8,085.72 in Q3 FY23 from Rs 6,958.79 crore in the same period previous fiscal.
However, ITC’s total expenses decreased to Rs 12,772.27 crore in Q3 FY23 as against Rs 13,207.28 crore in the same period a year ago.
Segment-wise growth propositions
The company said it continues to scale up its direct-to-consumer (D2C) interventions such as Aashirvaad Atta in the branded packaged foods business, Dermafique in premium skin care and Classmateshop.com in the education & stationery products business.
In the personal care products business, Fiama and Vivel range of personal wash products delivered strong performance in Q3 FY23 while Nimyle continued to scale up in the homecare segment leveraging the Naturals proposition of the brand.
In the education and stationery products business, Classmate notebooks fortified its leadership position leveraging its flagship campaign Learn with Classmate. The premium portfolio comprising Paperkraft, Classmate Pulse and Classmate Interaktiv continued to gain strong consumer traction. The business continues to enhance consumer engagement through its D2C platform – Classmateshop.com with the launch of innovative video-embedded gifting options.
According to the company, the business continues to reinforce market standing by fortifying the product portfolio through innovation, democratising premiumisation across segments and enhancing product availability backed by superior on-ground execution. – Several differentiated variants continue to be launched to further strengthen range of offerings and ensure future-readiness of the product portfolio.
As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, continues to enable volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector.
Further, ITC said in a press statement it continues to engage with policy makers for a framework of equitable, non-discriminatory, pragmatic, evidence-based regulations and taxation policies that dis-incentivise illicit trade in cigarettes, balance the economic imperatives of the country and tobacco control objectives, while cognising for the unique tobacco consumption pattern in India.
Encouraged by the government of India’s initiative of promoting millets and 2023 being declared as the ‘International Year of Millets’, ITC has spearheaded ITC Mission Millets, leveraging the company’s enterprise strengths in agriculture, food and hospitality.