ITC and ICICI Bank Q1 – Quarterly Results

Big results were announced on Saturday. We start with ITC Ltd. For Jun-21 quarter, ITC reported 36.39% growth in total sales at Rs.12,959 crore and net profits at Rs.3,013 crore. EBITDA was up 50.8% with cigarettes business giving 37% EBITDA growth and paperboards giving 145% growth on lower base.

Check: Hindustan Unilever Results

In non-cigarette FMCG, hygiene portfolio did very well post-COVID. Of course, food products remained tepid in terms of growth. Interestingly, the share of ecommerce channel doubled market share from 4% of sales to 8% of sales. There was also a 7% cut in other expenses. Cigarette margins improved by 210 bps in Q1.

Net profits for the Jun-21 quarter at Rs.3,013 crore was driven by strong volumes, smart cost cutting measures adopted and portfolio tweaks. The net profit margins for Jun-21 quarter stood at 23.25%, lower than 24.66% NPM in the Jun-20 quarter. Overall Positive.

The other big story was ICICI Bank which reported 2.41% increase in total income at Rs.38,853 crore in Jun-21 quarter. However, sequential revenues were lower by 11% on COVID 2.0 lag impact. Revenue growth was driven by retail banking and life insurance.

Also Read: HDFC Q1 Results

While revenues from retail banking were higher and corporate banking was flat, revenues from treasury were -16.1% down. Life insurance revenues were up 25%. PAT grew by 52.27% at Rs.4,747 crore as loan loss provisions fell 62% from Rs.7,705 crore in Jun-20 quarter to Rs.2,939 crore in Jun-21 quarter. 

Gross NPAs at 5.15% went up from 4.96%. The major concern is the sharp rise in slippages in the quarter, which resulted in higher gross NPAs as the moratorium facility was no longer available. The ROA at 1.54% is among the best in the private banking industry and capital adequacy is comfortable.