New Delhi,may 23
Diversified entity ITC Ltd on Thursday reported a marginal decline in consolidated net profit at Rs 5,190.71 crore for the fourth quarter ended March 31, 2024 as consumption demand remained subdued. The company had logged a net profit of Rs 5,242.59 crore in the same period of the previous fiscal, ITC said in a regulatory filing.Revenue from operations in the quarter was at Rs 19,446.49 crore as against Rs 19,058.29 crore in the year-ago period, up 2 per cent.Gross revenue from the sale of products stood at Rs 19,291.40 crore, up 2.61 per cent year-on-year. It was at Rs 18,799.18 crore in the same period last year.Total expenses of ITC were up 3 per cent in the March quarter at Rs 13,294.30 crore. Total income, which includes other income, was up 2.35 per cent to Rs 20,130.32 crore in the quarter.”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,” said an ITC earning statement.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, it said.During the quarter, ITC’s revenue from the ‘total FMCG’ segment, which also includes the cigarettes business, was up 7.4 per cent to Rs 13,996.86 crore. It was Rs 13,033.43 crore in Q4 FY23.Revenue from the cigarette business was up 7.5 per cent to Rs 8,688.92 crore in March quarter FY24, sustaining growth momentum. It was Rs 8,082.26 crore in the corresponding quarter last fiscal.In the segment, ITC’s “market standing reinforced through focused portfolio/market interventions and agile execution,” the company said adding differentiated and premium offerings continued to perform well.
Moreover, escalation in leaf tobacco prices and other inputs, along with increase in taxes was largely mitigated through improved mix, strategic cost management and calibrated pricing, the company added.
ITC’s revenue from the ‘FMCG-others segment’ was also up 7.61 per cent to Rs 5,307.94 crore in Q4 FY24 as against Rs 4,951.17 crore in the year-ago period.According to ITC, it had a “resilient performance in FMCG – others segment amid marked slowdown in consumption”. In the segment, staples, biscuits, snacks, dairy, homecare, agarbatti drove the growth.Education and stationery products business continued to witness strong traction.Revenue from ITC’s Hotels segment was up 15.12 per cent to Rs 931.03 crore in the March quarter. It was at Rs 808.72 crore in the year-ago period.The hotel business had a “record high performance” as it had margin improvement driven by higher RevPARs (revenue per available room), structural cost interventions and operating leverage.The agri business was down 13.05 per cent to Rs 3,136.43 crore in the March quarter as it remained impacted by trade restrictions on agri commodities. It was at Rs 3,607.30 crore in the year-ago quarter.
Similarly, revenue from ‘paperboards, paper and packaging’ segment was down 6.67 per cent at Rs 2,072.86 crore. It was at Rs 2,221.01 crore in Q4 FY23.”Paperboards, Paper and Packaging Segment remains impacted by low priced Chinese supplies in international markets (including India), muted domestic demand, surge in wood cost and high base effect,” it said.Revenue from other segments, which includes its information technology services, branded residences etc, was up 11.46 per cent to Rs 967.80 crore as against Rs 868.29 crore of Q4 FY23.In FY24, ITC’s consolidated net profit was up 6.54 per cent to Rs 20,751.36 crore. It was at Rs 19,476.72 crore a year ago.Revenue from operations in FY24 was up marginally to Rs 76,840.49 crore. It was at Rs 76,518.21 crore in FY23.”The company delivered a resilient performance during the year amidst a challenging macroeconomic and operating environment on a high base (FY23 Gross Revenue and EBITDA grew 17.6 per cent and 26.5 per cent, respectively),” said ITC.ITC in a separate filing informed that its board in a meeting held on Thursday recommended a final dividend of Rs 7.50 per ordinary share of Re 1 each for FY24.”Together with the interim dividend of Rs 6.25 per ordinary share declared by the board on January 29, 2024, the total dividend for the financial year ended March 31, 2024 would be Rs 13.75 per ordinary share of Re 1 each,” it said.
