ITC's standalone net profit declined 1.3% to Rs 3,748.41 crore on 22.7% jump in net sales to Rs 13,161.11 crore in Q4 FY21 over Q4 FY20.
Profit before tax increased 7.6% to Rs 4,853.90 crore in Q4 FY21 compared with Rs 4,511 crore in Q4 FY20. EBITDA grew 7.4% year on year to Rs 4,473 crore in Q4 FY21 over Q4 FY20. The company said strong sequential recovery momentum continued.Total FMCG segment revenue rose 14.8% to Rs 9547 crore during Q4 FY21 over Q4 FY20. In the FMCG segment, cigarettes revenue increased 14.2% YoY to Rs 5860 crore while the revenue from other FMCG segment fell 15.8% YoY to Rs 3688 crore in Q4 FY21 over Q4 FY20.
The FMCG major witnessed continued recovery in cigarettes business with progressive easing of restrictions and improved mobility. Volumes touched nearly pre-Covid levels towards the close of the year.
Hotel business revenue stood at Rs 288 crore (down 38.2% YoY), agri-business revenue was at Rs 3,369 crore (up 78.5% YoY) and paperboards, paper & packaging revenues were at Rs 1,656 crore (up 13.5% YoY) in the fourth quarter.
Sequential improvement in Hotels revenue was aided by higher occupancy and F&B business. After breaking even in Q3, segment EBITDA improved further to Rs 25 crore in Q4. Structural cost management interventions and revenue augmentation measures helped in mitigating the impact of negative operating leverage.
ITC said that wheat, rice, oilseeds, exports of value-added food safe spices and higher supplies will support enhanced scale in Branded Packaged Foods Businesses. Paperboards, Paper & Packaging Segment continued its strong sequential recovery momentum with improvement in offtake across most end-user industries. Higher operational efficiencies partially mitigated impact of softer realisations. The company witnessed robust growth in cartons and flexibles packaging.
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While the constraints in number of operating outlets and limited hours of operation are posing challenges at the front-end for the company, there are no material supply chain bottlenecks. Recent learnings in dealing with the pandemic, spanning sales and distribution, supply chain operations, innovation and product development, are being leveraged in this regard. The company continues to monitor the developments closely and is well geared to respond with agility to the evolving situation while managing risks associated with the dynamic environment. Cost reduction measures remain firmly in focus.
On a standalone basis, the company posted a 13.9% fall in net profit to Rs 13,031.64 crore on 0.1% decline in net sales to Rs 45,111.81 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20).
Meanwhile, the FMCG company has recommended a final dividend of Rs 5.75 per share for the financial year ended 31 March 2021. The company has fixed 11 June 2021 as the record date for the payment of dividend.
Shares of ITC were down 1.91% at Rs 211.10 on BSE.
ITC is the market leader in cigarettes in India. It is also engaged in four other segments: FMCG; hotels; paperboards, paper and packaging, and agri business.
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