FMCG major ITC on Friday reported a 27% year-on-year (YoY) fall in standalone net profit at Rs 3,579 crore for the April-June quarter of FY27, as compared to Rs 4,911 crore in the year-ago period.
ITC’s revenue from operations, however, rose 28% YoY to Rs 26,943 crore during the quarter under review, from Rs 21,070 crore in the year-ago period.
The company’s total income rose 27% YoY to Rs 27,589 crore, while total expenses surged over 50% YoY to Rs 22,829 crore. EBITDA meanwhile dropped 28% YoY to Rs 4,514 crore.
ITC said its FMCG segment delivered a robust performance, with revenue rising 12% YoY. Dairy, snacks, noodles and frozen snacks recorded a 20% growth while personal care products saw a mid-teens growth.
Atta performance however tempered, on the back of transient factors such as heat waves, LPG shortage and benign wheat prices. ITC however saw a sharp rebound in notebook sales. The segment’s EBITDA margin increased by 55 bps.
ITC’s cigarette business saw revenue surge of 81% YoY to Rs 15,384 crore. However, its agri business recorded a 17% YoY drop in revenue to Rs 8,082 crore during the first quarter of FY27, reflecting the impact of West Asia conflict led trade disruptions and high base.
“Q1 FY27 was marked by heightened uncertainty in the operating environment due to the ongoing conflict in West Asia, that triggered a sharp increase & volatility in the price of crude oil and crude-linked products along with significant trade & supply chain disruptions,” the company said.
ITC added that consumption demand, both in rural and urban markets, remained resilient during the quarter. However, imported inflation is a key watch-out in the near-term. India is currently experiencing significant deficit in monsoon and lower Kharif sowing levels compared to the same period last year. Additionally, spatial and temporal variations in monsoon would remain a key monitorable. A protracted conflict in West Asia, alongside emerging El Niño conditions that may weaken monsoons and intensify heatwaves, could weigh on growth, inflation and the Current Account,” it added.
