ITC Limited, a leading Indian conglomerate, has reported a rise in quarterly profit, driven by resilient demand in rural areas. The company’s net profit for the quarter ended December 2022 increased by 23% to ₹5,231 crores ($663 million), exceeding analyst estimates. The growth was fueled by a strong performance in its fast-moving consumer goods (FMCG) segment, which includes brands such as Aashirvaad, Bingo, and Sunfeast.
The FMCG segment, which accounts for over 50% of ITC’s revenue, saw a 17% increase in revenue to ₹13,241 crores ($1.68 billion). The company’s cigarette business, which is the largest contributor to its revenue, reported a 10% increase in revenue to ₹7,513 crores ($953 million). ITC’s hotel business also saw a significant recovery, with revenue increasing by 45% to ₹647 crores ($82 million), driven by a surge in domestic tourism.
The company’s agribusiness, which includes commodities such as soya, wheat, and rice, reported a 13% increase in revenue to ₹6,311 crores ($802 million). ITC’s paperboards and packaging business also saw a 14% increase in revenue to ₹1,924 crores ($244 million).
The strong performance was driven by the company’s focus on rural markets, where demand has remained resilient despite the COVID-19 pandemic. ITC has been investing heavily in rural marketing and distribution, which has helped the company to increase its penetration in these areas. The company’s e-commerce platform, ITC e-Store, has also seen significant growth, with sales increasing by 50% during the quarter.
ITC’s management has expressed optimism about the company’s future growth prospects, driven by the increasing demand for its products in rural areas. The company is also focusing on innovation and digital transformation, with plans to launch new products and invest in emerging technologies such as artificial intelligence and blockchain.
Overall, ITC’s quarterly performance is a testament to the company’s diversified business model and its ability to adapt to changing market conditions. The company’s focus on rural markets and digital transformation is expected to drive growth in the coming quarters, making it a promising investment opportunity for investors. With a strong brand portfolio and a wide distribution network, ITC is well-positioned to capitalize on the growing demand for consumer goods in India.