ITC Q3: 11% Profit to Rs 5,572 Cr; Dividend Announced!

Discover ITC’s impressive financial growth with a 2% YoY increase in total revenue, now at Rs 17,651.85 crore, compared to Rs 17,265 crore. Gain insights into ITC’s stellar performance.

ITC Ltd impressively reported a standalone net profit of Rs 5,572 crore for Q3FY24, showcasing an impressive 11% growth from the previous financial year’s Rs 5,031 crore. These outstanding results surpassed Street estimates.

In sequential terms, the net profit witnessed a remarkable 13% increase from Rs 4,927 crore in the preceding September quarter.

The company achieved a commendable 6.5% surge in its consolidated net profit, reaching Rs 5,400.51 crore for the quarter ending in December.

In alignment with market expectations, a poll of six brokerages predicted a net profit of Rs 5,183 crore and revenue of Rs 17,425 crore. ITC continues to demonstrate robust financial performance.

The company reported a 2% YoY increase in total revenue from operations, reaching Rs 17,651.85 crore from Rs 17,265 crore, as stated in a regulatory filing on January 29. Additionally, consolidated revenue saw a 2.4% rise, totaling Rs 19,484.50 crore.

In the quarter, Earnings before interest, tax, depreciation, and amortization (EBIDTA) amounted to Rs 6,024 crore, experiencing a 3.2% decline. The EBIDTA margin stood at 36.6%, showing a YoY decrease of 180 basis points. (One basis point equals one-hundredth of a percentage point.)

The diversified conglomerate, known for its presence in cigarettes and hotels, declared an interim dividend of Rs 6.25 per share for the financial year 2023-2024. The board has set February 8 as the record date for this dividend.

Performance Breakdown by Segments:

FMCG :

Despite challenging demand conditions, the company showcased robust performance in the FMCG – Others segment, achieving a notable 7.6% YoY growth in segment revenue and a 2-year CAGR of 12.8%. This growth is propelled by diverse categories such as Staples, Dairy, Beverages, Fragrances, Personal Wash, Homecare, Agarbattis, and Notebooks. The segment’s EBITDA margin saw a YoY expansion of 100 bps, reaching 11.0%, while the Segment PBIT recorded an impressive 24.1% YoY increase. Explore our resilient performance in FMCG – Others.

Cigarettes:

Explore there Cigarettes Segment, where consolidation on a robust base is evident after continuous growth. Witness a 2.3% YoY increase in both Net Segment Revenue and Segment PBIT, featuring a 2-year CAGR of +9.3% for Net Segment Revenue and +9.4% for Segment PBIT. Our market standing is strengthened by strategic portfolio/market interventions and agile execution, with outstanding performance from differentiated and premium offerings. Experience sustained volume recovery from illicit trade, attributed to deterrent actions and tax stability. Uncover the dynamic landscape of our Cigarettes Segment.

Hotels:

Discover our Hotels Segment, achieving its record-breaking quarter, with an impressive 18% YoY growth in segment revenue and a remarkable 57% increase in PBIT. Experience a substantial YoY rise of 470 bps in the Segment EBITDA margin, reaching 36.2%, fueled by elevated RevPARs, strategic cost interventions, and operational leverage. Excitingly, the demerger plan received unanimous approval from Stock Exchanges. Explore the exceptional performance and growth trajectory of our Hotels Segment.

Agri Business:

Explore there Agri Business Segment, navigating challenges amidst trade restrictions on agri commodities (-2.2% YoY). However, excluding Wheat & Rice, witness a substantial 14.2% YoY revenue increase. Geopolitical tensions and climate emergencies have heightened concerns about global food security and inflation, prompting trade restrictions.

They are actively collaborating with farmers to enhance agrarian resilience through our Climate Smart Agriculture program, spanning over 23 lakh acres and involving approximately 7.5 lakh farmers. Additionally, a cutting-edge facility for manufacturing and exporting Nicotine and Nicotine derivative products has been successfully commissioned. Uncover how we’re addressing challenges and driving sustainable practices in our Agri Business Segment.

Paperboards, Paper, and Packaging Segment:

Explore the dynamics of our Paperboards, Paper, and Packaging Segment, facing challenges from inexpensive Chinese supplies, subdued domestic demand, rising wood costs, and a high base effect. The global demand remains restrained, and post-festive season, domestic demand recovery has slowed.

Despite these hurdles, ITC’s integrated business model, Industry 4.0 initiatives, strategic investments, and proactive capacity augmentation have played a crucial role in partially alleviating margin pressures. Dive into how our strategic approach and innovations contribute to resilience in the Paperboards, Paper, and Packaging landscape.

Witness the company’s historic milestone with peak in-house chemical pulp production and the continuous scaling of capacity utilization at the Nadiad packaging and printing unit in Gujarat. Stay tuned for the imminent launch of a state-of-the-art facility for premium Moulded Fibre Products manufacturing.

As of January 29, ITC shares concluded 1.20% lower at Rs 450 each on BSE. Delve into the latest developments shaping our production capabilities and market performance.

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Source: Google, Money Control

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