ITC Q3 results: An interim dividend is issued, and net profit increases 11% to Rs 5,572 crore

ITC Q3 results: An interim dividend is issued, and net profit increases 11% to Rs 5,572 crore

ITC Q3 results: An interim dividend is issued, and net profit increases 11% to Rs 5,572 crore

According to ITC, the company's overall operating income rose by 2% annually to Rs 17,651.85 crore from Rs 17,265 crore.

In the December quarter of FY24, ITC Ltd. recorded a standalone net profit of Rs 5,572 crore, up 11% from Rs 5,031 crore in the same period of the previous fiscal year. The outcomes exceeded Street projections.

In the September quarter, net profit increased 13% sequentially to Rs 4,927 crore.

The business said that its consolidated net profit for the quarter ended in December increased by 6.5% to Rs 5400.51 crore.

Six brokerages were surveyed, and the predicted net profit was Rs 5,183 crore and revenue was Rs 17,425 crore.

In a regulatory filing on January 29, the business said that its total income from operations increased by 2% year over year to Rs 17,651.85 crore from Rs 17,265 crore. The total income of Rs 19,484.50 crore increased by 2.4 percent.

For the quarter, earnings before interest, taxes, depreciation, and amortization (EBIDTA) decreased 3.2% to Rs 6,024 crore. The EBIDTA margin decreased 180 basis points from the previous year to 36.6 percent. One tenth of a percentage point is equal to one basis point.

For the fiscal year 2023–2024, the cigarette–to–hotel company has announced an interim dividend of Rs 6.25 per share. The record date for this has been set by the board as February 8.

Performance by segment:

FMCG

Despite low demand, the firm performed well in the FMCG - Other area, with segment sales increasing at a YoY rate of 7.6% and a compound annual growth rate of 12.8% over the course of two years. Agarbatti, notebooks, personal wash, homecare, dairy, drinks, and perfumes were among the categories that contributed to the development. According to ITC, segment PBIT grew by 24.1 percent annually and segment EBITDA margin climbed by 100 basis points to 11.0 percent.

Lighter

Following consistent growth momentum, there was consolidation in the cigarette industry at a higher base. With a two-year compound annual growth rate of +9.3 percent for net segment revenue and +9.4 percent for segment PBIT, net segment revenue and segment PBIT both increased by 2.3 percent year over year. Position in the market enhanced by targeted portfolio/market involvement, quick execution, and strong results from premium and distinctive offers. The sector had a steady increase in volume from illegal commerce as a result of preventative measures and stable taxation.

lodging

With sector sales and PBIT expanding by 18% and 57% year over year, respectively, the hotel segment had its greatest quarter ever. Due to increased RevPARs, structural cost intervention, and operational leverage, the segment's EBITDA margin increased 470 basis points year over year to 36.2%. According to ITC, stock markets have not objected to the demerger proposal.

agriculture enterprise

Trade limitations on agricultural commodities caused the agriculture industry to experience difficulties (-2.2 percent YoY), while revenues climbed by 14.2 percent excluding wheat and rice. Trade restrictions are the outcome of worries about inflation and global food security brought on by geopolitical conflicts and the climate catastrophe.

With a climate smart agricultural initiative encompassing over 23 lakh acres and over 7.5 lakh farmers, the firm is collaborating with farmers to enhance the resilience of farming techniques. According to a press statement from the corporation, a cutting-edge facility has been opened for the production and export of nicotine and items derived from it.

Paper, Paperboard, and Packaging

A number of factors, including cheap Chinese supply, poor local demand, increasing wood prices, and the high base effect, are having an influence on the paperboard, paper, and packaging industry. Following the holidays, local demand recovered more slowly while global demand was weak.

Integrated business models, Industry 4.0 efforts, strategic investments, and active capacity expansions, according to ITC, helped somewhat alleviate the pressure on margins despite the obstacles.

The business gradually boosted the capacity utilization of its Nadiad packaging and printing facility in Gujarat and reached record high output of in-house chemical pulp. It further said that the production facility for premium molded fiber goods is anticipated to be operational shortly.

ITC's shares ended the day on January 29 at Rs 450, down 1.20 percent on the BSE.