ITC reports loss of 20% in the net profit of Q2

Indian multinational conglomerate company ITC registered a loss of 20% in the net profit for the second quarter of the FY21. ITC reported a net profit of Rs 3232.40 crores in the Q2 of FY21 against Rs 4023 crore in the previous year.

The company occurred a decline of 3.81% in the net sales worth Rs 11,098.24 crores against the same quarter last year. EBITDA declined by 11% and stood at Rs 4,061 crore against the 4,562 crores reported in Q2 of previous year. While the Profit before tax also witnessed a decline of 11% to Rs 4,274.32 crores. The company, however, reported a rise in Tax expense of 33% in Q2 this year on a Y-o-Y basis.

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ITC said “The operating environment remained extremely challenging during the quarter with the unabated increase in daily Covid cases prompting several states to impose localized lockdowns. This impacted the recovery momentum, particularly in the months of July’20 and August’20, and posed significant challenges to sales operations. The situation continues to improve with the progressive easing of restrictions from September 2020.”

However, the company reported a 3.5% rise in total FMCG revenue to Rs 8916 cores while reporting a strong sequential recovery in volumes and revenue with progressive normalization of market operations.

 

“The hotels business continues to remain adversely impacted due to restrictions on travel and tourism while the closure of educational institutions across the country weighed on the performance of the education and stationery products business,” the company said.