The operating environment during the year was rendered extremely challenging by the outbreak of the pandemic, which caused unprecedented disruptions across the company’s operating segments, ITC Ltd said in its FY21 earnings statement released on June 1.
The company pivoted smartly to address these dynamic challenges demonstrating agility and speed in adapting to the ‘new normal’ by resuming operations expeditiously and launching innovative products in record time to address emergent consumer needs, the statement said.
Strategic partnerships, innovative delivery models and enhanced usage of digital technologies for efficient market servicing were deployed to respond quickly and efficiently to the challenging market conditions. While sequential pick-up in all operating segments in the second half of the year mitigated the impact, the disruptions in the first half weighed on the overall performance for the year, it added.
The FMCG-Others Segment delivered robust performance, with FY21 segment revenue up 16% on YoY basis. This was driven by a surge in demand for Staples, Convenience Foods and Health & Hygiene products in the first half of the year and strong recovery in the discretionary/out-of-home portfolio — with sales up by 23% — in the latter half, the company said.
Staples, Convenience Foods and Health & Hygiene sales were up 13%; Staples & Convenience Foods witnessed normalisation in demand, Hygiene segment remained elevated albeit settling at lower levels compared to first half FY21, ITC said.
The Agri Business Segment posted robust growth in revenue driven by opportunities in wheat, rice and oilseeds, scale up of the value-added portfolio and higher supplies to the Branded Packaged Foods Businesses to support enhanced scale. Q4 Revenue & Results Agri Business Segment were up 78.5% & 54.2% respectively.
Overall for FY 2020-21, Gross Revenue for ITC Ltd at Rs. 48,151.24 crores increased by 3.9%, while PBT (before exceptional items) at Rs. 17,164.15 crores de-grew by 11.1% over FY 2019-20. Profit After Tax stood at Rs. 13,031.64 crores (Rs. 15,136.05 crores in FY20).