 "ITC")
Consumer goods maker ITC on Thursday reported a 1 per cent dip in consolidated net profit to Rs 5,120.55 crore for the quarter ending on March 31 (Q4) in financial year 2023-24 (FY24). The company's net profit during the same period last year was Rs 5,335.23 crore. Sequentially, net profit dropped 4 per cent from Rs 5,175.48 crore in Q3.
The company reported a consolidated revenue from operations of Rs 19,446.49 crore for the January-March quarter. Revenue rose 2 per cent from Rs 19,058.29 crore, reported in the year-ago period. Sequentially, this was a 0.2 per cent dip in revenue compared to Rs 19,484.50 reported in the last quarter.
ITC's total expenses for the quarter grew marginally by 3 per cent to Rs 13,294.30 crore year-on-year (Y-o-Y) from Rs 12,907.84 crore. Compared to last quarter, however, expenses went down 1.2 per cent , from Rs 13,453.73 crore.
ITC segment-wise growth for Q4
In the March quarter, ITC reported a 7 per cent Y-o-Y increase in revenue from its cigarettes business, reaching Rs 8,689 crore, up from Rs 8,092 crore in the same period last year. The company noted that the cigarettes business has witnessed a consolidation of volumes on a high base following a period of sustained growth momentum. The profit before tax (PBT) for this segment rose by 5 per cent Y-o-Y to Rs 5,157 crore.
The Fast-Moving Consumer Goods (FMCG) - others segment posted revenues of Rs 5,308 crore in the fourth quarter, marking a 7 per cent increase from Rs 4,951 crore in the corresponding quarter of the previous year. However, the PBT for this segment declined by 5 per cent to Rs 480 crore.
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On a comparable basis, excluding certain financial incentives from the base quarter, the FMCG-others profit before interest and tax (PBIT) grew by 15 per cent Y-o-Y, with margins expanding by 60 basis points (bps).
ITC segment-wise growth for FY24
For the full financial year, the FMCG-others segment delivered a resilient performance despite weak demand conditions and heightened competition from regional players. The segment's revenue grew by 10 per cent on a high base, while segment earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by 19.7 per cent.
The hotels business continued its strong performance, with Q4 revenue and PBIT up by 15 per cent and 34 per cent Y-o-Y, respectively. The segment's Ebitda margin improved by 340 bps Y-o-Y to 38.2 per cent, driven by higher revenue per available room (RevPAR), structural cost interventions, and operating leverage. For the full year, the hotels segment saw revenue and PBIT increase by 15.6 per cent and 39.1 per cent Y-o-Y, respectively.
In contrast, the agribusiness segment was impacted by trade restrictions on agricultural commodities. Fourth-quarter revenues fell by 13 per cent Y-o-Y to Rs 3,136 crore, and PBIT declined by 39 per cent Y-o-Y to Rs 187 crore. ITC attributed these declines to geopolitical tensions and climate emergencies, which have raised concerns over food security and inflation, as well as government-imposed trade restrictions limiting business opportunities.
The paperboards, paper, and packaging segment also faced challenges due to low-priced Chinese supplies in international markets, including India, muted domestic demand, rising wood costs, and a high base effect. The segment's revenue fell by 13 per cent Y-o-Y to Rs 3,316 crore, with PBIT decreasing by 34 per cent to Rs 291 crore.
For the entire financial year, the company witnessed a 6.6 per cent growth Y-o-Y in net profit at Rs 20,458.78 crore, from Rs 19,191.66 crore. Revenue increased marginally by 0.4 per cent Y-o-Y at Rs 76,840.49 crore, from Rs 76,518.21 crore. Meanwhile, expenses for the year dropped by 0.5 per cent to Rs 52,448.49 crore, compared to Rs 52,705.49 crore at the end of FY23.
The company board recommended a final dividend of Rs 7.50 per ordinary share of Rs 1 each for the financial year that ended on March 31, 2024. The final dividend, if declared, will be paid between July 29-31, 2024.
Shares of ITC closed trading 0.33 per cent higher at Rs 441.20 on the BSE on Thursday following the release of the company's fourth quarter earnings report.
