ITC Limited shares rose more than 4 per cent on Monday, after the fast-moving consumer goods major reported a 9.05 per cent rise in standalone net profit rose to Rs 3,797.08 crore in quarter ended March 31. The increase in ITC’s profit came on account of a lower corporate tax outgo despite a decline in revenues. In a regulatory filing after market hours on Friday, ITC, the country’s largest cigarette maker, said its net profit had come in at Rs 3,481.90 crore in the corresponding quarter last year. ITC shares jumped as much as 4.1 per cent to Rs 203.10 apiece on the BSE at the strongest level recorded during the session. ITC shares traded 1.72 per cent higher at Rs 198.35 on the bourse, outperforming the benchmark Sensex index which was down 1.2 per cent.

ITC’s revenue from operations, however, declined 6.3 per cent to Rs 11,300 crore in the fourth quarter of financial year 2019-20, from Rs 12,064 crore in the year-ago period.

During the quarter ended March 31, 2020, ITC paid Rs 852.70 crore in taxes, as against Rs 1,574.38 crore in the final quarter of financial year 2018-19, according to the company’s filing. ITC’s board recommended a dividend of Rs 10.15 per share for financial year 2019-20.

“The hotels business posted strong growth in segment revenue and segment results of appx. 19 per cent and 29 per cent respectively during the first nine months of the year. This momentum was sustained in January 2020 and February 2020. However, the business was severely impacted by the outbreak of COVID-19 pandemic towards the end of the year,” ITC said in a statement.

“The cigarettes business consolidated its market standing during the year through continued focus on delivering world-class products along with best-in-class execution. However, persistent weakness in the demand environment coupled with growth in illicit cigarette trade weighed on performance,” ITC added.

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