ITC reported a slightly better-than-expected first-quarter profit on Friday, buoyed by higher sales of cigarettes and packaged food, particularly in rural areas.

A recovery in rural demand, which started two years ago, has cushioned the impact of sluggish urban sales.

“Rural demand continued to demonstrate resilience,” ITC said in a statement, adding it is also seeing early signs of revival in consumer goods demand in urban areas as inflation has eased in recent months.

ITC has been steadily expanding its rural presence over the last three years,
growing its network of local distributors by nearly 40 per cent.

Standalone profit stood at ₹4,912 crore, marginally lower than the ₹4,918 crore reported a year earlier. This was just above analysts’ estimate of ₹4,910 crore, according to data compiled by LSEG.

Revenue from its cigarettes division, its largest, grew 8 per cent although ITC did not disclose volume growth. Its other consumer goods business grew 5 per cent, supported by steady demand for packaged food such as Sunfeast biscuits and cakes and Aashirvaad wheat flour.

ITC also said it raised prices across key products to offset rising raw material costs, including edible oil, wheat, and cocoa, but did not disclose the extent of the hikes.

These factors, coupled with a 39 per cent jump in revenue in its agri business, boosted its standalone topline by nearly 20 per cent year-on-year to ₹21,059 crore.

On Thursday, ITC peer and Dove soapmaker Hindustan Unilever reported an 8 per cent increase in quarterly profit, driven by an ongoing recovery in rural sales.

ITC also pointed to better quarters ahead for India’s consumer goods sector, betting on easing inflation, lower interest rates, and personal income tax cuts to bolster growth.

Adani Power

Adani Power Ltd on Friday reported 15.53 per cent decline in consolidated net profit at ₹3,305 crore for June quarter, mainly impacted by lower merchant tariffs and elevated operating expenses.

The Adani Group entity had a net profit (profit after tax) of ₹3,913 crore in April-June period of 2024-25.

The profit in the quarter slipped “on account of lower merchant tariffs and elevated operating expenses following acquisitions”, it said.

Tata Power

Tata Power on Friday posted over 6 per cent on-year rise in consolidated net profit at ₹1,262 crore in June quarter mainly due to higher revenues from the renewable as well as transmission and distribution business.

The company had a net profit of ₹1,189 crore in the quarter ended June 30, 2024, a statement stated.