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Amidst a challenging operating environment and high base effect in some of its operating segments, ITC sustained its strong growth momentum during the quarter driven by focus on customer centricity, accelerated digital adoption, execution excellence and agility.

Gross Revenue stood at Rs. 16,843 crores representing a de-growth of 7.3% YoY (ex-Agri Business: up 10.6%) while PBT at Rs. 6,546 crores grew by 18.2% YoY. PAT grew by 17.6% YoY to Rs. 4,903 crores. Earnings Per Share for the quarter stood at Rs. 3.9 (previous year Rs. 3.4).

The global economy is witnessing a marked slowdown with high inflation and interest rates taking a toll on economic activity, especially in Advanced Economies. The Chinese economy too, after a relatively promising start post re-opening after the end of its ‘zero covid’ policy, appears to be on a structurally weaker growth trajectory.

Against this backdrop, the Indian economy remains resilient, with buoyant tax collections, moderating inflation, credit growth uptick being some of the key positives amongst high frequency indicators. Consumer demand is witnessing incipient signs of recovery. However, risks from the external sector; consumer price inflation (especially Food); commodity price volatility; El Nino impact on monsoons and agri output – would be the key monitorables in the near term.

The FMCG Businesses continue to deliver robust performance with Segment Revenue growing 16.1% YoY to Rs. 5,166 crores.  The company witnessed strong growth in Staples, Biscuits, Noodles, Beverages, Dairy, Agarbatti and premium Soaps. Education and Stationery Products Business continued to witness strong traction.

In the cigarettes segment, Net Segment Revenue and Segment PBIT was up 10.9% and 11.2% YoY respectively. The Business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratising premiumisation across segments and enhancing product availability backed by superior on-ground execution.

Several differentiated variants launched recently continued to perform well. As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, continues to enable volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector.

This was the best-ever Q1 for the Hotels Business as segment Revenue grew 8.1% YoY, on a high base, segment PBIT grew by 17.0% YoY and Segment EBITDA grew 12.9% YoY.

The Paperboards, Paper & Packaging Segment reflects the impact of subdued demand (domestic and exports), sharp reduction in global pulp prices and high base effect. Segment Revenue declined 6.5% and PBT declined 22.9% YoY.

Agri Business Revenue grew by 31% YoY (ex-Wheat exports) driven by Value Added Agri products & Leaf Tobacco; Segment PBIT grew by 25.3% YoY.

Restrictions imposed on wheat and rice exports by the Government in the backdrop of inflationary headwinds and food security concerns weighed on Segment Revenue during the quarter.

ITC is a global exemplar in ‘Triple Bottom Line’ performance and is the only enterprise in the world of comparable dimensions to have achieved and sustained the three key global indices of environmental sustainability of being ‘water positive’ (for 21 years), ‘carbon positive’ (for 18 years), and ‘solid waste recycling positive’ (for 16 years). The Company sustained its ‘AA’ rating by MSCI-ESG for the 5th successive year - the highest amongst global tobacco companies. The Company has also been included in the Dow Jones Sustainability Emerging Markets Index for the third year in a row - a reflection of being a sustainability leader in the industry and a recognition of its continued commitment to people and planet.