ITC Ltd reported a marginal 2.18% rise in the Sep-20 quarter top line sales revenues at Rs13,147.81cr. The cigarette business took a hit on account of the lockdown and the ban on sales of cigarettes.
For the Sep-20 quarter, the operating profits were down 9.71% at Rs3,996.40cr. This is largely on the back of higher pressure on the cigarettes business. This resulted in the operating margin or OPM contracting from 42.24% to 30.40% in the Sep-20 quarter.
Net profits for the Sep-20 quarter as measured by PAT were lower by 18.09% at Rs3,418.69cr. The operating profit challenges got carried forward to the bottom line and lower other income also contributed. This led to the net margins contracting from 39.83% to 26% in Q2.
Financial highlights for Sep-20 compared yoy and sequentially
|
|
ITC Ltd |
|
|
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
13,147.81 |
12,867.39 |
2.18% |
10,478.46 |
25.47% |
|
Operating Profit |
3,996.40 |
4,426.22 |
-9.71% |
2,526.57 |
58.17% |
|
Net Profits |
3,418.69 |
4,173.72 |
-18.09% |
2,567.07 |
33.17% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
2.74 |
3.34 |
|
2.04 |
|
|
OPM |
30.40% |
42.24% |
|
19.64% |
|
|
Net Margins |
26.00% |
39.83% |
|
19.95% |
|
Key takeaways from the Sep-20 quarter results
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In terms of overall revenues of ITC, cigarettes accounted for 38%, FMCG at 27%, agri-business at 21% and paperboards at 10%. The balance sales were accounted for by hotels and other lines of businesses. However, cigarettes still account for 81% of the total profits of ITC, showing how concentrated its profitability is. That was the reason the overall numbers took a hit.
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