ITC Q3 Results: Net Profit Rises 6.5 Per Cent To Rs 5,400 Crore, Announces Interim Dividend

Diversified entity ITC Ltd on Monday clocked a 6.51 per cent rise in consolidated net profit to Rs 5,400.51 crore for the December 2023 quarter (Q3). The company had posted a consolidated net profit of Rs 5,070.09 crore in the year-ago period, ITC said in a regulatory filing.

ITC’s gross revenue from the sale of products inched up 2.3 per cent at Rs 19,337.84 crore during the quarter. It was Rs 18,901.76 crore a year ago. Its revenue from operations rose 2.43 per cent to Rs 19,484.50 crore in the quarter against Rs 19,020.65 crore in the year-ago period. The total expenses in the quarter rose 5.33 per cent to Rs 13,453.73 crore.

ITC’s earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 6,024 crore down 3.2 per cent. EBIDTA margin was at 36.6 per cent and fell by 180 basis points YoY. One basis point is one-hundredth of a percentage point.

The cigarettes-to-hotel conglomerate also announced an interim dividend of Rs 6.25 per share for the financial year 2023-2024. The board fixed the record date for the same on February 8. Cigarettes account for more than 40 per cent of ITC’s top line. 

ITC’s hotels segment saw its best-ever quarter, with segment revenue and PBIT increasing by 18 per cent and 57 per cent YoY, respectively. The segment EBITDA margin rose by 470 bps YoY to 36.2 per cent, driven by higher RevPARs, structural cost interventions, and operating leverage. The demerger plan received no-objection from the Stock Exchanges, said ITC.

The conglomerate had a resilient performance in the FMCG. Others segment despite subdued demand conditions, with a YoY increase of 7.6 per cent in segment revenue and a two-year CAGR at 12.8 per cent. The growth was driven by various categories including staples, dairy, beverages, fragrances, personal wash, homecare, agarbattis, and notebooks. The segment’s EBITDA margin expanded by 100 bps YoY to 11.0 per cent, and the segment PBIT increased by 24.1 per cent YoY, said ITC.

Shares of ITC on Monday closed at Rs 450 apiece on the BSE, down 1.20 per cent from the previous close. 

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