Tobacco-to-hotels conglomerate ITC missed first quarter profit estimates on Thursday, as higher expenses and challenges at its paperboards and packaging business hurt margins.
Demand in ITC's paperboards, paper and packaging business, which makes up roughly a tenth of its revenue, has fallen in recent quarters due to competition with cheaper Chinese products, squeezing its overall sales and earnings.
The Sunfeast biscuits maker posted a profit of ₹4,917 crore ($587.4 million) for the first quarter ended June 30, from ₹4,902 crore a year earlier.
Analysts, on average, had projected ₹5,162 crore, according to data from LSEG.
Revenue from operations for the company increased 7.2 crore to ₹18,220 crore, mainly helped by growth in its cigarettes segment, even as its paperboards, paper and packaging business declined nearly 7 per cent.
Total expenses rose nearly 11 per cent.