ITC, the consumer goods to hotel conglomerate, reported a 1.06% year-on-year decline in its consolidated net profit to ₹5,120.55 crore in the January to March period of FY24. The company reported a net profit of ₹5,175 crore in the March quarter of FY23.
During the quarter under review, the company’s revenue from operations stood at ₹19,446 crore, up 1.9%, as against ₹19,058.29 crore in the same period last year, down 1.9%. The company’s EBITDA (earnings before interest, tax, depreciation and amortization) stood at ₹6,163 crore, declining by 0.8%, as against ₹6,209 crore in the March quarter of FY23.
Segment-wise, the company’s gross revenue from FMCG business including cigarettes and others stood at ₹13,225 crore, up 7.5% as against ₹12,301 crore reported in the corresponding period of the previous year.
Of this, the revenue from the cigarette business stood at ₹7,925 crore up 7.7%, as against ₹7,356 crore in the corresponding period of the previous year. “After a period of sustained growth momentum, the business witnessed consolidation in volumes on a high base amidst subdued demand conditions in the overall consumption space, even as illicit trade remained at elevated levels. Differentiated and premium offerings saw robust traction during the year. A sharp escalation in leaf tobacco prices and other inputs, along with an increase in taxes were largely mitigated through improved mix, strategic cost management and calibrated pricing. Trade marketing spends were restructured during the year for sharper last mile execution,” says the company.
The revenue from the hotel business stood at ₹898 crore in the March quarter, up 14.9% as against ₹782 crore in the same period last year. “The hotel's Segment delivered a stellar performance, clocking record highs in Revenue and Profits. Strong growth in RevPar was driven by retail, MICE (Meeting, Incentives, Conferencing, Exhibition) and marquee events hosted in the country,” says ITC.
The revenue from agribusiness stood at ₹3,101 crore as against ₹3,579 crore in the March quarter of FY23. “Operating environment remained challenging due to various policy interventions of the Government of India to ensure food security and control inflation,” says the company.
ITC’s revenue from paperboards, paper and packaging stood at ₹2,072 crore, as against ₹2,222.1 crore in the corresponding period of the previous year.
The company’s board has recommended a final dividend of ₹7.50 per ordinary share of ₹1/- each for the financial year ended March 31, 2024. The company will pay the dividend between July 29 and July 31 this year.
The company expects a revival in consumption demand in near term. “While consumption demand remained subdued in Q4 FY24, 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,” says the company.
