ITC reported a sharp 26% fall in standalone net profits for the Jun-20 quarter to Rs.2343 crore. This is quite disappointing when compared with the other big FMCG players, Hindustan Unilever. ITC reported total revenues from operations at 9502 crore, a YOY fall of 17.4%. Due to the lockdown, revenues from cigarettes were down 29% at Rs.3854 crore.

Even the EBIT of cigarettes business fell by 38.8% to Rs.2356 crore. Total revenues for the FMCG segment also dropped around 15% to Rs.7228 crore in the Jun-20 quarter. ITC reported an overall 42% fall in EBITDA with EBITDA margins lower by 1200 bps at 27.8%. It is this margin, more than the de-growth, that actually spooked the profits of ITC.