ITC Limited, a leading Indian conglomerate, has reported its Q3FY24 results, showcasing impressive growth in net profit and announcing an interim dividend. The company’s diverse segments, including FMCG, Cigarettes, Hotels, Agri Business, and Paperboards, have contributed to its overall success. Despite the challenges posed by trade restrictions and global uncertainties, ITC has demonstrated resilience and strategic initiatives to mitigate pressures and drive growth.
ITC’s Q3FY24 Financial Performance:
ITC Limited has reported a standalone net profit of Rs 5,572 crore for the December quarter, marking a notable 11% growth compared to the same period in the previous financial year. Sequentially, the net profit rose by 13% from the September quarter. The company also announced a 6.5% increase in its consolidated net profit, reaching Rs 5,400.51 crore for the quarter ending in December. Despite the challenging economic environment, ITC’s results surpassed market expectations.
Segment-Wise Performance Highlights:
- FMCG Segment: ITC’s FMCG – Others segment showcased a resilient performance, with a YoY increase of 7.6% in segment revenue and a 2-year CAGR at 12.8%. The growth was driven by various categories, including Staples, Dairy, Beverages, Fragrances, Personal Wash, Homecare, Agarbattis, and Notebooks.
- Cigarettes Segment: The net segment revenue and segment PBIT in the Cigarettes segment increased by 2.3% YoY, with a 2-year CAGR at +9.3% for net segment revenue and +9.4% for segment PBIT. ITC’s focused portfolio and market interventions, along with differentiated and premium offerings, contributed to sustained volume recovery.
- Hotels Segment: ITC’s hotels segment witnessed its best-ever quarter, with segment revenue and PBIT increasing by 18% and 57% YoY, respectively. Operational excellence, cost interventions, and higher Revenue per Available Room (RevPAR) were key drivers of this exceptional performance.
- Agri Business Segment: Despite trade restrictions on agri commodities, ITC’s Agri Business segment reported a 14.2% YoY revenue growth (excluding Wheat & Rice). The company is actively working with farmers to build resilience in agrarian practices and has commissioned a state-of-the-art facility for manufacturing and exporting Nicotine and Nicotine derivative products.
- Paperboards, Paper, and Packaging Segment: The Paperboards, Paper, and Packaging segment faced challenges due to low-priced Chinese supplies, muted domestic demand, and a surge in wood costs. However, ITC’s strategic investments, Industry 4.0 initiatives, and proactive capacity augmentation helped mitigate pressure on margins. The company achieved a record high production of in-house chemical pulp and is set to commission a premium Moulded Fibre Products manufacturing facility.
Dividend Announcement and Future Outlook:
ITC Limited has announced an interim dividend of Rs 6.25 per share for the financial year 2023-2024. This dividend reflects the company’s strong financial performance and commitment to shareholder value. Despite ongoing challenges in various segments, ITC’s strategic initiatives and focus on innovation position it for continued growth in the future.
Conclusion: ITC’s Strengths and Growth Potential
ITC Limited’s Q3FY24 results highlight its ability to navigate challenges and deliver solid financial performance. The company’s diversified business segments, including FMCG, Cigarettes, Hotels, Agri Business, and Paperboards, have demonstrated resilience and growth potential. With its commitment to innovation, operational excellence, and shareholder value, ITC is well-positioned to capitalize on emerging opportunities and drive sustainable growth in the future.
FAQs:
Q: What was ITC Limited’s net profit for Q3FY24?
A: ITC reported a net profit of Rs 5,572 crore for the December quarter, marking an 11% growth.
Q: Which segments contributed to ITC’s growth in Q3FY24?
A: FMCG, Cigarettes, Hotels, Agri Business, and Paperboards segments showcased notable performance during the quarter.
Q: What led to ITC’s resilient growth in the FMCG segment?
A: Despite subdued demand conditions, the FMCG segment witnessed a YoY increase of 7.6% in segment revenue, driven by various categories such as Staples, Dairy, Beverages, Fragrances, and more.
Q: How did ITC’s hotels segment perform in Q3FY24?
A: The hotels segment achieved its best-ever quarter, with segment revenue and PBIT increasing by 18% and 57% YoY, respectively.
Q: What dividend has ITC announced for the financial year 2023-2024?
A: ITC has announced an interim dividend of Rs 6.25 per share for the financial year 2023-2024, reflecting its strong financial performance and commitment to shareholder value.