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ITC Q3 PAT rises 21% YoY to Rs 5,031 cr; dividend declared at Rs 6/share

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Capital Market
Last Updated : Feb 04 2023 | 12:31 PM IST

The company's standalone net profit rose 21.05% to Rs 5,031.01 crore on 2.51% increase in net sales to Rs 16,082.40 crore in Q3 December 2022 over Q3 December 2021.

EBITDA improved 22% to Rs 6,223 crore in Q3 FY23 from Rs 5,102 crore in Q3 FY22.

Profit before tax in the first quarter stood at Rs 6,678 crore, up by 21.6% from Rs 5,492 crore reported in the same period last year.

Total expenses during the quarter stood at Rs 10,002.51 crore, down 7.04% as against Rs 10,760.22 crore in the corresponding period last year.

The company sustained its strong growth momentum across all operating segments during the quarter driven by focus on accelerated digital adoption, customer centricity, execution excellence and agility.

Total FMCG segment revenue increased 17.4% YoY to Rs 12130 crore during the period under review. In the FMCG segment, cigarettes revenue rose by 16.7% YoY to Rs 7288 crore while the revenue from other FMCG segment improved by 18.4% YoY to Rs 4841 crore during the quarter.

The FMCG business witnessed strong growth in staples, biscuits, noodles, snacks, dairy, beverages and frozen foods. It witnessed robust growth in 'Fiama' & 'Vivel' range of Personal Wash products. Meanwhile, hygiene portfolio continued to witness moderation in demand. Education & stationery products business continued to witness strong traction.

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Hotel business revenue stood at Rs 712 crore (up 50.5% YoY). Revenue per available room (RevPAR) was well ahead of pre-pandemic levels. Segment EBITDA was at Rs 224 crore (up 107 crore YoY and 67 crore over Q3 FY20).

Paperboards, paper & packaging revenues were at Rs 2306 crore (up 12.7% YoY) in the third quarter of FY23. Higher realisations drove growth in the segment.

However, agri-business revenue tumbled 37.1% YoY to Rs 3124 crore in Q3FY23. Restrictions imposed on wheat & rice export impacted the segment revenue.

ITC Infotech reported revenue of Rs 872 crore in Q3 FY23, up 6.21% QoQ. EBITDA stood at Rs 166 crore (up 22.96% QoQ).

The board recommended an interim dividend of Rs 6 per share for the financial year ending 31st March 2023.

The company said that economic activity in India continued to gather momentum with sequential moderation in commodity inflation, even as core inflation remained elevated. Rural demand continued to be relatively subdued, while improving sequentially. Consumer sentiments improved during the quarter but remained below pre-pandemic levels. However, potential risks arising from the anticipated slowdown in the global economy and continuing geo-political tensions remain the key monitorables.

ITC is a diversified conglomerate with businesses spanning fast-moving consumer goods, hotels, paperboards and packaging, agribusiness and information technology.

Shares of ITC rose 0.50% to Rs 380.50 on Friday, 3 February 2023.

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First Published: Feb 04 2023 | 12:20 PM IST

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