ITC Q4 Results: Net profit slightly down to Rs 5,020 crore.
Excluding the agricultural sector, which was severely impacted by government restrictions on trade in agricultural products, the company said total revenue in the fourth quarter rose 6% year-on-year, marking its highest fourth-quarter profit on record. Before tax.
However, volume growth in the tobacco business slowed, and the hotel business recorded record-high performance. Both the agriculture business and the cardboard, paper and packaging business revenue and profitability were impacted last quarter, and the company’s overall performance deteriorated in FY24.
In its earnings call, the conglomerate said that macroeconomic indicators are improving amidst sluggish consumer demand in the fourth quarter, and that the normal monsoon outlook and recent green shoots witnessed in rural demand recovery after a few quarters will help demand recovery in the near term. Terms.
During the financial year 2023-24, ITC’s standalone net profit increased 8.9% year-on-year to Rs 20,421.97 billion, while revenue from operations decreased marginally by 0.2% to Rs 70,105.29 billion. ITC said that based on the favorable orders of the Supreme Court received during the year, it has deducted Rs 468.44 crore from current tax expense for the current year by reassessing provisions related to uncertain tax situation of previous years. On Thursday, ITC shares closed 0.33 per cent higher at Rs 441.2, while Sensex closed 1.61 per cent higher. The company’s board of directors has recommended a final dividend of Rs 7.5 per share, resulting in a total dividend of Rs 13.75 per share for FY24, including interim dividend. ITC, which has over 75% share of India’s legal cigarette market, said its tobacco business has been consolidated. We have a high level of volume after continued growth momentum. However, it said differentiated premium products have seen strong traction this year. ITC said it had improved its mix, undertaken strategic cost management and adjusted prices to offset sharp increases in leaf tobacco prices and other inputs. Tobacco segment revenue grew 7.7 per cent to Rs 7,924.84 crore in Q4 and grew 8.5 per cent to Rs 30,596.59 crore in FY24. Business profitability also improved. It rose 5 per cent to Rs 4,923.31 crore in the last quarter and rose 6.5 per cent to Rs 19,089.17 crore in FY24.
In the fast-moving non-tobacco consumer goods business, ITC recorded a 7% rise in segment revenue to Rs 5300.17 crore in Q4 and 9.6% growth to Rs 20,966.83 crore in FY24. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter declined 6.4 per cent to Rs 616.42 crore, while it rose 19.6 per cent to Rs 2338.5 crore in FY 24. ITC said it received certain financial incentives in the fourth quarter reference period of FY23.
The company said business performance was “resilient” in categories such as staples, biscuits, snacks, dairy products, home care and agarbatti, while its education and stationery products business continued to see strong traction.
The hotel business, which is in the process of being spun off into a separate entity, reported fourth-quarter segment revenue of ₹897.91 billion, up 15%, while full-year revenue rose 15.6% to ₹2,989.5 billion. Segment profit rose 34 per cent to Rs 267.07 crore in the March quarter and 39 per cent to Rs 753.77 crore in FY24.
ITC said the government’s agricultural trade restrictions aimed at ensuring India’s food security amid global food inflation have impacted the performance of India’s agricultural businesses. The cardboard, paper and packaging business also remained impacted by low-cost supplies from China to India, slowing domestic demand, surge in lumber prices and high base effect.
