ITC rose 1.90% to Rs 198.80 after consolidated net profit rose 9.1% to Rs 3856.52 crore on 4.8% decline in net sales to Rs 12,456.45 crore in Q4 March 2020 over Q4 March 2019.
Profit before tax in Q4 FY20 stood at Rs 4,743.47 crore, down by 7.7% from Rs 5,141.94 crore posted in Q4 FY19. Current tax expense fell 42.3% to Rs 952.89 crore in the fourth quarter as against Rs 1,651.81 crore in the same period last fiscal.Cigarettes segment revenue declined 3.3% YoY to Rs 5,750.44 crore while the revenue from other FMCG products segment fell 3.9% YoY to Rs 3,190.34 crore during the quarter.
Hotel business revenue stood at Rs 494.76 crore (down 13.8% YoY), agri-business revenue was at Rs 1899.01 crore (down 15.9% YoY), paperboards, paper & packaging revenues were at Rs 1458.87 crore (down 6.2% YoY) and revenue from other businesses (viz. IT services, branded residences etc.) came in at Rs 575.68 crore (up 2.1% YoY) in the fourth quarter.
The tobacco major's consolidated net profit rose 21.6% to Rs 15,306.23 crore on a 3.3% increase in net sales to Rs 50,968.50 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). Profit before tax stood at Rs 20,026.35 crore in FY20, up 4.6% from Rs 19,138.12 crore in FY19.
The board has recommended a dividend of Rs 10.15 per share (5.11% dividend yield to the current price) for the financial year ended 31 March 2020. It will be paid on Tuesday, 8 September, 2020.
The cigarettes business consolidated its market standing during the year through continued focus on delivering world-class products along with best-in-class execution. However, persistent weakness in the demand environment coupled with growth in illicit cigarette trade weighed on performance. Steep increase in taxes w.e.f. 1st February 2020 and disruptions in operations in March 2020 exacerbated the situation.
In the FMCG-others segment, comparable revenue grew ahead of the industry, amidst subdued demand conditions, while profitability improved significantly.
In the hotels business, while the first three quarters witnessed strong performance, driven largely by excellent response to the company's new iconic properties, the outbreak of COVID-19 pandemic severely impacted performance in the fourth quarter.
Sluggish growth in end-user industries such as FMCG, pharma and liquor resulted in muted customer offtake in the paperboards, paper and packaging segment.
While trading opportunities in oilseeds & pulses and scale-up of the value-added portfolio were the key drivers of revenue growth in the Agri Business segment, subdued demand for leaf tobacco in international markets accentuated by relatively steeper depreciation in currencies of competing origins and adverse business mix weighed on Segment Results.
Exceptional items during the year represent cost of leaf tobacco stocks (including taxes) destroyed at a third party owned warehouse due to fire, for which insurance claim has been filed and is under process, the company said.
ITC is engaged in the marketing of fast-moving consumer goods (FMGC). The firm operates through four segments: FMCG; hotels; paperboards, paper and packaging, and agri business. ITC is the market leader in cigarettes in India. The company also has presence in branded packaged foods, personal care, education and stationery, agarbattis & safety matches, lifestyle retailing, hotels, paperboards & specialty papers, packaging, agri-business & IT.
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