ITC Reports Impressive 6.5% Rise in Q3 Net Profit to ₹5,400.52 Crore

Diversified conglomerate ITC Ltd unveiled its robust financial performance for the third quarter ending December 2023, showcasing a resilient 6.51% increase in consolidated net profit to ₹5,400.52 crore. The company's earnings statement highlighted the continued strength of its Fast-Moving Consumer Goods (FMCG) vertical, contributing significantly to the positive results.

Comparatively, in the same October-December period a year ago, ITC posted a consolidated net profit of ₹5,070.09 crore, marking a notable improvement. Gross revenue from sales also demonstrated growth, rising by 2.3% to ₹19,337.84 crore, compared to ₹18,901.76 crore in the corresponding quarter of the previous year.

ITC's revenue from operations during the quarter reached ₹19,484.50 crore, reflecting a 2.43% increase from ₹19,020.65 crore in the previous year. Despite a challenging macro-economic and operating environment, along with a high base effect in certain operating segments, the company declared its resilience and strong performance.

Total expenses for the Kolkata-based firm increased by 5.33% to ₹13,453.73 crore during the same period. The 'total FMCG' segment, inclusive of the cigarettes business, experienced a 4.47% rise in revenue to ₹13,513.43 crore in Q3 FY24, compared to ₹12,934.67 crore in Q3 FY23.

While the cigarettes business witnessed a modest 2.59% revenue increase to ₹8,295.18 crore, other segments like differentiated variants and the premium category continued to perform well. The FMCG-others segment reported a 7.61% increase in revenue to ₹5,218.25 crore in Q3 FY24, reflecting growth in various product categories despite a slowdown in consumer demand.

ITC's Hotels segment saw a remarkable 18% surge in revenue to ₹872.46 crore, driven by strong growth in average room rents (ARRs), occupancies, and successful events like the ICC Cricket World Cup.

The agribusiness segment, however, experienced a marginal decline to ₹3,273.23 crore in Q3 FY24 due to restrictions on wheat and rice exports. Revenue from the 'paperboards, paper and packaging' segment fell by 9.74% to ₹2,080.91 crore, impacted by subdued consumer demand and challenges in export markets.

Despite these challenges, ITC declared an interim dividend of ₹6.25 per ordinary share for the financial year ending March 31, 2024. Additionally, the board recommended the appointment of Atul Singh as a Non-Executive Director and Pushpa Subrahmanyam as an Independent Director, both for a period of five years starting April 2, 2024.

ITC shares settled at ₹450 apiece on the BSE, registering a 1.20% decline from the previous close.