 "ITC limited")
The company’s board has recommended a final dividend of Rs 7.50 per share
Conglomerate ITC on Thursday reported a 1.06 per cent year-on-year (Y-o-Y) drop in consolidated net profit during the January to March quarter (Q4 FY24) to Rs 5,120.55 crore from Rs 5,175.48 crore, dragged primarily by the agri and paperboards, paper, and packaging businesses.
The company reported consolidated revenue from operations of Rs 19,446.49 crore for the January-March quarter. This was a 2.03 per cent increase compared to Rs 19,058.29 crore in the year-ago period. Revenue net of excise at Rs 17,923 crore came in a tad below Bloomberg consensus estimate at Rs 18,105.5 crore.
However, net profit was ahead of the Bloomberg estimate, which had pegged net adjusted income at Rs 5,066.3 crore.
Sequentially, gross revenue in Q4 FY24 was down by 0.19 per cent, and net profit was down by 4.02 per cent.
For the full year (FY24), revenue from operations at Rs 76,840.49 crore was up by 0.42 per cent, and net profit at Rs 20,458.78 crore was up 6.6 per cent.
ITC pointed to subdued consumption demand in Q4 FY24 but said improving macro-economic indicators, prospects of a normal monsoon, and green shoots witnessed in rural demand recovery after several quarters augur well for revival in consumption demand in the near term.
With its focus on consumer centricity, purposeful innovation, agility, and execution excellence, the company remains confident of navigating the short-term challenges and creating sustained value for all stakeholders, it said.
The heavy-lifting cigarettes segment clocked a 7.5 per cent Y-o-Y growth in revenue at Rs 8,688.92 crore in Q4 FY24. Pre-tax profits from the segment at Rs 5,157.57 crore in Q4 FY24 were higher by 4.9 per cent compared to the year-ago period.
The cigarettes segment, ITC said, witnessed consolidation of volumes on a high base after a period of sustained growth momentum.
On the non-cigarettes fast-moving consumer goods (FMCG) segment, the company said, despite weak demand conditions and a significant increase in competitive intensity from regional/local players, it delivered a ‘resilient’ performance.
Revenue from the segment at Rs 5,307.94 crore was 7.2 per cent higher Y-o-Y. Pre-tax profit for Q4 FY24 at Rs 479.84 crore was down by 4.74 per cent Y-o-Y.
But the company said that the base quarter included certain fiscal incentives (production-linked incentives (PLI)) pertaining to the previous period and excluding it, segment profit before interest and tax (PBIT) was up 15 per cent.
The hotels segment delivered yet another record performance in Q4 FY24. The segment clocked a 15 per cent Y-o-Y increase in revenue at Rs 931.03 crore. Pre-tax profit from the segment in Q4 FY24 was at Rs 264.22 crore, higher by 28.9 per cent Y-o-Y.
On the demerger of hotels, the company said that the scheme of arrangement for demerger was filed with the National Company Law Tribunal (NCLT). The NCLT has directed convening a meeting of shareholders of ITC on June 6, 2024, to consider and approve the scheme.
ITC’s showing in the agri-business was impacted by trade restrictions on agri commodities imposed by the government. Revenue from the segment at Rs 3,136.43 crore in Q4 FY24 was lower by 13.05 per cent. Pre-tax profit stood at Rs 186.52 crore in Q4 FY24, down by 38.75 per cent.
The company said that the paperboards, paper, and packaging segment remained impacted by low-priced Chinese supplies in international markets (including India), muted domestic demand, surge in wood cost, and high base effect. Revenue from the segment in Q4 FY24 was at Rs 2,072.86 crore, down by 6.67 per cent Y-o-Y. Pre-tax profit from the segment at Rs 291.06 crore was down by 34.59 per cent Y-o-Y.
First Published: May 23 2024 | 7:52 PM IST
