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ITC Q2 Results: Net Profit Declines 18.45% to ₹4,229 Crore, Revenue Up 44%
Sentiment: NeutralHigh Priority
What Happened?
ITC Ltd reported an 18.45% decline in consolidated profit to ₹4,229 crore for Q2 FY27, despite a 44% increase in revenue to ₹30,578 crore. The company cited higher expenses as a key factor.
Key points
- ITC's consolidated profit for Q2 FY27 was ₹4,229.33 crore, down from ₹5,186.55 crore in the same quarter last year.
- Revenue from operations increased to ₹30,578.4 crore, up 43.85% from ₹21,255.86 crore a year ago.
- The FMCG segment reported double-digit revenue growth for the fourth consecutive quarter.
- Total expenses rose to ₹25,462.44 crore, a 69.6% increase year-on-year.
- ITC noted strong growth in its Non-Cigarette Business segments despite inflationary pressures.
Key insights
- ITC's profit decline may prompt a reevaluation of its cost management strategies.
- The strong performance in the FMCG segment could indicate resilience against inflationary pressures.
- Continued geopolitical tensions may affect future operational costs and supply chains.
Why it matters
The decline in profit amidst rising revenue highlights the challenges ITC faces in managing costs and inflation.
Entities
ITC Ltd· CompanyIndia· Country
Source
Business Standard
