ITC : First-Quarter Net Profit Fell 25% on Weak Cigarette Earnings

By Kosaku Narioka

ITC Ltd.'s first-quarter net profit fell 25% due to weaker cigarettes earnings and a loss from hotel operations, it said late Friday.

Net profit for the quarter ended June fell to 25.11 billion rupees ($335.9 million) from INR33.55 billion a year earlier, the Indian tobacco conglomerate said. On a standalone basis, net profit was INR23.43 billion, beating the estimate of INR22.76 billion from a FactSet poll of analysts.

Segment profit fell 39% for the group's cigarettes business to INR25.35 billion due partly to weaker sales, while its hotel business swung to a loss.

The group's first-quarter revenue declined 17% to INR104.78 billion.

ITC said it doesn't expect the Covid-19 pandemic to have any significant impact on the value of its assets.

Write to Kosaku Narioka at [e-mail]