Diversified conglomerate ITC is likely to remain on investors’ radar on Tuesday, November 3, after the company reported another set of weak numbers for the September quarter, weighed down by higher input costs and increased taxes on cigarettes, which hit profitability.
The company reported a consolidated net profit of ₹4,229.33 crore after market hours on Monday, down 18.45% from ₹5,186.55 crore in the July-September quarter a year ago. However, revenue from operations rose 43.85% to ₹30,578.4 crore in the second quarter of FY27, compared with ₹21,255.86 crore in the year-ago period.
The cigarettes business continued to face pressure from unprecedented tax increases, which affected legal industry volumes and raised the risk of consumers shifting to illicit products.
Operating profit from its cigarettes business, which brings in the bulk of the group's earnings, fell more than 27% year on year to ₹3,813 crore. ITC said it has introduced new variants and strengthened its portfolio to protect its market position.
The FMCG business sustained strong double-digit revenue growth of 19%, led by biscuits, snacks, noodles, spices and homecare products. However, sharp input cost increases weighed on the business, although improved product mix, cost management and calibrated price hikes helped expand segment EBITDA margins by over 50 basis points year-on-year.