Diversified conglomerate ITC has delivered a stellar performance in the second quarter of fiscal year 2025, reporting a robust 9% year-on-year increase in net profit, significantly outpacing market expectations.
Financial Highlights: Strong Growth Across Metrics
The company announced a consolidated net profit of ₹5,657 crore for the July-September quarter, up from ₹5,175 crore in the same period last year. This impressive growth comes despite challenging market conditions and reflects the company's resilient business model.
Revenue from operations showed healthy momentum, climbing to ₹19,099 crore compared to ₹18,094 crore in Q2 FY24, representing steady top-line expansion across business verticals.
Cigarette Business: Volume Recovery Drives Performance
The flagship cigarettes segment demonstrated remarkable resilience with volume growth in the range of 7-8%, signaling strong consumer demand and effective market positioning. This recovery is particularly noteworthy given the regulatory challenges facing the tobacco industry.
FMCG Division: Emerging Powerhouse
ITC's FMCG businesses continued their impressive trajectory, with revenue scaling up to approximately ₹5,600 crore. The segment has been a key growth driver, showcasing the company's successful diversification strategy beyond traditional tobacco products.
Hotel Business: Luxury Segment Shines
The hospitality vertical reported revenue of ₹760 crore, with the luxury hotels portfolio performing exceptionally well. This indicates strong recovery in business and leisure travel segments post-pandemic.
Market Reaction and Share Performance
Following the earnings announcement, ITC shares showed positive momentum, reflecting investor confidence in the company's strategic direction and operational execution. The better-than-expected results have reinforced ITC's position as a blue-chip performer in the Indian market.
Strategic Outlook and Future Growth
Analysts remain optimistic about ITC's diversified portfolio approach, which has proven effective in navigating market volatility. The company's continued focus on innovation, brand building, and operational efficiency positions it well for sustained growth in the coming quarters.
The Q2 FY2025 results underscore ITC's ability to deliver consistent shareholder value while expanding its footprint across multiple consumer segments, making it one of the most watched stocks in the Indian equity markets.
