India's ITC reports rise in quarterly profit on resilient rural demand

The shaper of "Yippee" instant noodles and "Gold Flake" cigarettes reported a standalone nett earlier taxation and exceptional items of 64.17 cardinal rupees ($746.65 million) for the 4th ended March 31, compared with 62.88 cardinal rupees a twelvemonth earlier.

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ITC's cigarettes business, which generates the highest revenue, grew astir 6%, benefiting from terms hikes, improved volumes successful competitory regions and premium offerings that are mostly margin-boosting.

In the user goods segment, a dependable betterment successful agrarian request backed by bully monsoon has been partially cushioning the interaction from brushed depletion successful municipality areas connected relationship of precocious outgo of surviving successful metros.

ITC said it has been boosting its agrarian marketplace penetration by expanding the web of stockists implicit the past 3 years.

Revenue from the company's user goods segment, which houses fashionable household brands specified arsenic Aashirvaad, Sunfeast and Bingo, roseate 3.7% to 54.95 cardinal rupees.

However, nett earlier taxation successful the conception fell astir 28% owed to "severe inflation" successful costs of staple commodities specified arsenic wheat and cocoa and precocious selling expenses, ITC said.

ITC said it has been expanding prices to combat rising costs.

Its standalone gross from operations grew 9.4% to 184.94 cardinal rupees.

($1 = 85.9440 Indian rupees)

Reporting by Ananta Agarwal and Shivani Tanna successful Bengaluru; Editing by Shilpi Majumdar

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