ITC Q2 FY25 Results: Top-line, Bottom-line, and Key Insights

Few insights from ITC’s Q2 results and investor presentation:

• ITC delivered robust top-line growth in Q2 FY25, with Segment Revenue reaching ₹23,025 crores, a 9.3% YoY increase. This growth was propelled by notable contributions from various segments:

  • FMCG: Both cigarettes and other FMCG products witnessed healthy growth, recording 6.1% and 6.3% YoY increases respectively.
  • Hotels: The segment demonstrated a strong rebound with a 10.9% YoY growth in revenue.
  • Agri Business: A significant 22.2% YoY surge in revenue was observed in this segment.

• Despite this overall growth, the Paperboards, Paper & Packaging segment experienced a decline, with revenue decreasing by 6.8% YoY. The presentation attributes this performance to the impact of low-priced Chinese supplies, subdued domestic demand, and subdued realizations.

• ITC effectively managed inflationary pressures on input costs, resulting in resilient EBITDA margins for Q2 FY25. Key strategies employed included premiumization, supply chain optimization, calibrated pricing actions, digital initiatives, and strategic cost management.

• The Hotels segment, in particular, showcased strong profitability, achieving a 20.2% YoY growth in segment results, reaching ₹151 crores. This impressive performance was fueled by a two-year CAGR of 34.2%.

• Demerger update: Scheme sanctioned by NCLT on 4th October 2024 (certified copy of the Order awaited)

• Overall, the Q2 FY25 results demonstrate ITC’s ability to navigate a challenging market environment while capitalizing on growth opportunities in its diversified portfolio.

Disclaimer: Invested and Biased. Less than 5% of PF. No transactions in the last 30 days. Post purely for study purposes. Consult your advisor before any transactions