ITC Q1 Results: Net Profit Jumps 16 Per Cent to Rs 5,180 Crore, Revenue Dips 6 Per Cent

ITC's consolidated revenue from operations stood at Rs 18,639.48 crore, down 6 per cent. It was Rs 19,831.27 crore in Q1 of FY22-23

ITC also announced acquisition of 45.36 per cent stake in International Travel House Limited and 25 per cent stake in Maharaja Heritage Resorts Limited from Russell Credit Limited, a wholly owned subsidiary ITC. 

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Indian diversified conglomerate and FMCG major ITC Ltd on Monday logged a 16.08 per cent rise in consolidated net profit at Rs 5,180.12 crore in the first quarter (Q1) ended June 2023. In a regulatory filing, the company said that it had posted a consolidated net profit of Rs 4,462.25 crore in the year-ago period. ITC's consolidated revenue from operations stood at Rs 18,639.48 crore, down 6 per cent. It was Rs 19,831.27 crore in Q1 of FY22-23. Sequentially, the revenue was down 2.19 per cent from Rs 19,058.29 crore. 

ITC's total expenses in the quarter was at Rs 12,421.77 crore, down 12.53 per cent from the first quarter of FY22-23, while its total income in the June quarter was down 3.92 per cent to Rs 19,361.78 crore.

Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 6250.1 crore growing by 10.7 per cent. EBIDTA margin was at 39.5 per cent and grew by 680 basis points YoY. One basis point is one-hundredth of a percentage point.

ITC also announced acquisition of 45.36 per cent stake in International Travel House Limited (ITHL) and 25 per cent stake in Maharaja Heritage Resorts Limited (MHRL), an unlisted company, from Russell Credit Limited, a wholly owned subsidiary ITC. 

The Board at its meeting held on Monday subject to necessary approvals, considered and approved demerger of Hotels Business under a scheme of arrangement amongst ITC Limited and ITC Hotels Limited and their respective shareholders and creditors under Sections 230-232 and other applicable provisions of the Companies Act, 2013.

"The proposed acquisitions by the company, as stated above, shall be subject to obtaining relevant approvals from the board of directors of RCL, and execution of transaction documents in due course," the regulatory filing said. The board of ITC also approved the scheme of arrangement after the demeger of its Hotel business. 

Shares of ITC on Monday settled at Rs 448.95 on the BSE, up 0.06 per cent from the previous close.