ITC share price, ITC Ltd’s Strong Financial Performance in Q3 FY24

ITC Ltd’s Financial Performance in Q3 FY24 : ITC Ltd, a leading conglomerate, has reported a standalone net profit of Rs 5,572 crore for the December quarter of the fiscal year 2023-2024. This marks an impressive 11 percent growth from the Rs 5,031 crore reported in the same quarter of the previous financial year, surpassing market expectations.

Key Financial Highlights:

1. Sequentially, the net profit saw a robust 13 percent increase from Rs 4,927 crore in the September quarter.
2. The consolidated net profit for the quarter ending in December recorded a 6.5 percent rise, reaching Rs 5,400.51 crore.
3. Total revenue from operations increased by 2 percent on a year-on-year basis, standing at Rs 17,651.85 crore.
4. The consolidated revenue witnessed a 2.4 percent uptick, reaching Rs 19,484.50 crore.

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EBIDTA and Dividend Announcement:

1. Earnings before interest, tax, depreciation, and amortization (EBIDTA) for the quarter was at Rs 6,024 crore, experiencing a 3.2 percent decline. The EBIDTA margin stood at 36.6 percent, reflecting a YoY decrease of 180 basis points.
2. The company declared an interim dividend of Rs 6.25 per share for the financial year 2023-2024, with the record date set for February 8.

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Performance in Key Segments:

1. Despite subdued demand conditions, ITC displayed resilience in the FMCG segment, recording a YoY increase of 7.6 percent in segment revenue. Various categories, including Staples, Dairy, Beverages, Fragrances, Personal Wash, Homecare, Agarbattis, and Notebooks, contributed to this growth.
2. The Cigarettes segment saw consolidation on a high base, achieving a 2.3 percent YoY increase in net segment revenue and segment PBIT. The sustained volume recovery from illicit trade was noted due to deterrent actions and tax stability.
3. ITC’s Hotels segment had its best-ever quarter, with segment revenue and PBIT increasing by 18 percent and 57 percent YoY, respectively. The segment EBITDA margin rose to 36.2 percent, driven by higher RevPARs, structural cost interventions, and operating leverage.
4. Despite challenges, the Agri Business segment saw a 14.2 percent YoY increase in revenue, excluding Wheat & Rice. The company is actively working with farmers to build resilience in agrarian practices, including a Climate Smart Agriculture program covering a significant agricultural area.
5. This segment faced challenges from various factors, including low-priced Chinese supplies, muted domestic demand, a surge in wood cost, and a high base effect. However, strategic initiatives and investments helped partially mitigate the pressure on margins.

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Future Outlook: The company achieved a record high production of in-house chemical pulp and is set to commission a premium Moulded Fibre Products manufacturing facility shortly, showcasing a commitment to innovation and growth.