ITC Profit Drops To ₹4,137 Crore As Cigarette Sales Come Under Pressure
What Happened
ITC reported a 20% year-on-year fall in standalone quarterly profit to ₹4,137 crore for the September quarter, as higher cigarette prices weighed on demand. Raw-material inflation linked to the fallout from the Middle East conflict also pressured earnings. On a consolidated basis, net profit fell 18.5% to ₹4,229 crore, while net revenue increased 5% to ₹20,454 crore. Cigarette segment profit declined 27.2%, although the company’s non-cigarette FMCG business posted strong growth.
Key Takeaways
Higher taxes and consequent cigarette price increases are putting pressure on ITC’s biggest profit-generating business, although growth in FMCG and other segments is helping cushion the impact.