$ITC

ITC Ltd shares declined more than 1 per cent on May 22 despite the company reporting a slight increase in adjusted quarterly profit, as higher taxes and rising raw material costs weighed on investor sentiment. The company said prices of key inputs such as edible oil, soap noodles, and packaging materials surged sharply toward the end of the March quarter. The increase was attributed to supply chain disruptions and logistical issues arising from the conflict in the Middle East and the Iran war. An excise duty hike on cigarettes also impacted the profitability of the maker of Gold Flake cigarettes. However, ITC managed to offset some of the pressure through cost-control initiatives, calibrated price hikes aimed at protecting volumes, and changes in product mix. Profit before exceptional items and tax rose 4.3 per cent year-on-year to Rs 6,692 crore in the March quarter. In the corresponding quarter last year, the company had recorded a one-time gain of Rs 15,179 crore following the demerger of its hotels business. ITC’s consumer goods segment, which includes brands such as Aashirvaad, Sunfeast, and Bingo, posted a 15 per cent rise in revenue, driven by broad-based growth across categories. The segment’s EBITDA margin improved by more than 200 basis points to 11 per cent. Meanwhile, the company’s agri business reported a nearly 16 per cent decline in revenue, as operations faced significant disruptions during the year due to U.S. tariff measures and challenges linked to the Iran conflict.