ITC Q2 net profit falls 20% as high taxes keep margins in check

What happened: ITC reported a 20% decline in standalone net profit for the September quarter even as revenue rose 45%. Higher cigarette taxation weighed on profitability, and ITC absorbed part of the price hikes. Key numbers: Net profit down 20%. Revenue up 45%. Non-cigarette businesses posted their highest revenue growth in 14 quarters. Why it matters: The tax-driven margin pressure offset strong top-line growth, while non-cigarette segments showed the strongest revenue growth in 14 quarters. Inflation and geopolitical tensions continue to affect the operating environment.

ITC reported a 20% decline in standalone net profit for the September quarter even as revenue rose 45%. Higher cigarette taxation weighed on profitability, and ITC absorbed part of the price hikes.

The tax-driven margin pressure offset strong top-line growth, while non-cigarette segments showed the strongest revenue growth in 14 quarters. Inflation and geopolitical tensions continue to affect the operating environment.