NEW DELHI: Beating street estimate, FMCG major ITC on Thursday reported a 21.4% year-on-year (YoY) rise in standalone net profit at Rs 5,087 crore for the March quarter (Q4FY23) compared with 14,191 crore reported in the same quarter last year (Q4FY22).
Growth in the company’s bottom line can be attributed to solid numbers raked in by its cigarette, FMCG (others) and hotel business. ITC’s revenue for the quarter rose over 6% YoY to Rs 17,224 crore, a bit lower than the street estimate.
ITC’s largest contributor, the Cigarette businesses, witnessed a 14% YoY growth in revenue to Rs 7,356 crore in Q4FY23. The segment’s profit before exceptional items and tax was up 14% to Rs 4,689 crore.
“The recent stability in taxes on cigarettes has enabled the legal cigarette industry to partially claw back volumes lost to illicit trade, thereby engendering domestic demand for Indian tobaccos, while also mitigating loss of tax revenue to the Exchequer due to illicit trade,” said ITC in a regulatory filing. FMCG (others) segment reported revenue of Rs 4,945 crore (up 19% YoY) in Q4FY23 while revenue from hotel business doubled to Rs 782 crore. Agri-business, however, reported a fall of 19% in revenue to Rs 3,579 crore. Paperboard segment revenue remained flattish at Rs 2,221 crore.
ITC noted that steep inflation is eating into household budgets and consumption demand remained subdued, particularly in rural markets, and for discretionary categories in urban markets.
“Against the backdrop of a challenging operating environment, the company’s proactive strategic interventions enabled it to post strong performance across all operating segments,” noted the company. ITC announced a final dividend of Rs 6.75 and a special dividend of Rs 2.75 per ordinary for FY23. Preeyam Toila, senior research analyst - FMCG & Retail, Axis Securities, said ITC is firing on all cylinders as all its businesses are on the right track.
