ITC has agreed to invest in Mother Sparsh Baby Care (Mother Sparsh), a premium ayurvedic and natural personal care brand in the D2C space with a focus on the mother and baby care segment. It has a wide range of baby and mother care products that leverages the wisdom and knowledge of Ayurveda for potent product delivery. ITC has agreed to acquire 16% of the share capital of Mother Sparsh on a fully diluted basis. The cost of acquisition is Rs 16 crore for 100 equity shares and 1980 compulsorily convertible preference shares.

This investment is in line with the 'ITC Next' strategy articulated by Chairman Sanjiv Puri which aims to build a future ready organization with a digital first culture. One of the identified pillars of this strategy is to accelerate digital transformation by developing digital first FMCG brands.ITC has also been focusing on strengthening D2C platforms of distribution and has created a vibrant ITC eStore.

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According to the media reports, the nasal spray is developed by scientists at ITC Life Sciences and Technology Centre (LSTC), Bengaluru. The company plans to market the nasal spray under the Savlon brand once it gets all the requisite regulatory approvals, reports added.

ITC has reportedly received approvals from ethics committees and is registered with Clinical Trial Registry-India (CTRI) for clinical trials of the nasal spray which is designed to arrest the virus at the entry point in the nasal cavity itself.

The product has the potential to be effective and safe in preventing infection and transmission of COVID-19 along with the existing measures of hygiene recommended by health authorities, reports suggested.

ITC reported 13.7% rise in standalone net profit to Rs 3,697.18 crore on 11.66% increase in net sales to Rs 12,533.60 crore in Q2 FY22 over Q2 FY21.

ITC is engaged in the marketing of fast-moving consumer goods (FMGC). The firm operates through four segments: FMCG; hotels; paperboards, paper and packaging, and agri business. ITC is the market leader in cigarettes in India. The company also has presence in branded packaged foods, personal care, education and stationery, agarbattis & safety matches, lifestyle retailing, hotels, paperboards & specialty papers, packaging, agri-business & IT.

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ITC has allotted 7,75,760 Ordinary Shares of Rs 1 each, upon exercise of 77,576 Options by Optionees under the Company's Employee Stock Option Schemes.

Consequently, with effect from 16 November 2021, the Issued and Subscribed Share Capital of the Company stands increased to Rs 1232,23,78,0811- divided into 1232,23,78,081 Ordinary Shares of Re 1/- each.

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EBITDA improved by 12.9% to Rs 4,615 crore in Q2 FY22 from Rs 4,088 crore in Q2 FY21.

Profit before tax in the second quarter stood at Rs 4,880 crore, up by 13.5% from Rs 4,301 crore reported in the same period last year.

Total FMCG segment revenue increased by 7% YoY to Rs 9,678 crore during the period under review. In the FMCG segment, cigarettes revenue rose by 10.2% YoY to Rs 5,642 crore while the revenue from other FMCG segment improved by 2.9% YoY to Rs 4,036 crore during the quarter.

Hotel business revenue stood at Rs 295 crore (up 2.6x YoY), agri-business revenue was at Rs 2,776 crore (down 7% YoY) and paperboards, paper & packaging revenues were at Rs 1,830 crore (up 25.4% YoY) in the second quarter of FY22.

ITC said that the quarter witnessed broad-based recovery in sales across markets and channels. However, unprecedented inflation in key input costs coupled with significant disruptions in global supply chains and logistics weighed on the operating environment.

With respect to the cigarettes business, the company said that cigarette volumes witnessed smart recovery with exit volumes at near pre-COVID levels, after segment witnessed significant disruptions in Q1, Broad-based recovery witnessed across markets during the quarter; however, certain markets in Kerala and East remain relatively subdued.

The company's FMCG - Others segment delivered resilient performance, growing on a high base quarter which witnessed exceptional surge in sales. The company witnessed sharp rebound in 'Out-of-Home' consumption on the back of improved mobility even as 'at-home' consumption moderates. However, the closure of educational institutions continues to impact the Education & Stationery Products business.

In the Hotel segment, marked improvement in occupancy (3x of Q2 LY) drover faster recovery in Hotels business. The company said that leisure destinations continue to perform well while Business travel gathers momentum. Structural cost management actions undertaken in the past year aided in reduction of controllable cash fixed costs by 31% over Q2 FY20, ITC said.

The company recorded strong growth in Agri Business external revenue, which was driven mainly by wheat, rice and leaf tobacco exports. The company ensured zero disruptions in supplies to key customers despite significant operational challenges; however, shortage in availability of shipping containers/port congestions and inclement weather delay call-offs.

In the Paperboards, Paper and Packaging Segment, Paperboards volumes were at record high and the business delivered robust performance aided by revival of demand across most end-user segments.

ITC is engaged in the marketing of fast-moving consumer goods (FMGC). The firm operates through four segments: FMCG; hotels; paperboards, paper and packaging, and agri business. ITC is the market leader in cigarettes in India. The company also has presence in branded packaged foods, personal care, education and stationery, agarbattis & safety matches, lifestyle retailing, hotels, paperboards & specialty papers, packaging, agri-business & IT.

The scrip fell 2.06% to currently trade at Rs 233.50 on the BSE.

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