Operating profit, calculated as earnings before interest, taxes, depreciation, and amortisation (EBITDA), rose 10% YoY to Rs 5,083 crore in the quarter. Operating margin expanded sharply by 541 basis points to 32.11%.
The higher growth in the profit despite a muted topline is primarily due to ITCs higher dependence on the cigarette business. Despite a scale-up in the FMCG business, cigarettes constitute close to 70% of ITCs profit and about 45% of its revenue.