Shares of ITC rose 2% to hit a new high of Rs 388.20 a share in intraday trade on Monday after the tobacco-to-hotels specialist reported a 23.4% year-on-year rise in net profit to Rs 5,007 crore in the December quarter (Q3FY23) from Rs 4,057 crore in the same period last year.

ITC traded 1.3% higher at Rs 385.30 at 9:37 am, while the S&P BSE Sensex fell 0.52%. The stock has outperformed the market over the past week, surging 13% compared with a 1.8% gain for the benchmark index.

ITC’s operating income rose 3.56% YoY to Rs 19,021 crore in Q3FY23. That was followed by an 8.4% rise in net profit on a 2.2% rise in revenue. The board has recommended an interim dividend of Rs 6 per share for the financial year ending March 31, 2023 (previous year: Rs 5.25 per share).

The economic activity gathered momentum, and commodity inflation continued to moderate, even as core inflation remained elevated, ITC said. However, they said rural demand remained relatively subdued but improved quarter-on-quarter.

Meanwhile, while improving during the quarter, consumer confidence remains below pre-pandemic levels.

“Stable volumes of cigarette taxes, backed by deterrent actions by law enforcement agencies, continue to enable the legal cigarette industry to recover volumes from illicit trade, leading to higher demand for Indian tobacco,” management added.