ITC Ltd on Monday posted its third quarter earnings for the financial year 2023-24 with profit at Rs 5335.23 crore, up 8.9 per cent in comparison to Rs 4898.07 crore during the corresponding quarter of last year, surpassing estimates. It posted revenue from operations at Rs 19,484.50 crore, marginally higher than Rs 19,270.02 crore during the third quarter of FY23. According to a CNBC TV18 poll, ITC was expected to report Q3FY24 profit at Rs 5130 crore and revenue was estimated at Rs 17,050 crore.
While the total income reported by the firm during the quarter in review was at Rs 20,141.33 crore, total expenses incurred by ITC Ltd was at Rs 13,453.73 crore. “Amidst a challenging macro-economic and operating environment, and high base effect in some of its operating segments, the Company delivered resilient performance during the quarter,” ITC said in a statement.
The conglomerate also declared an interim dividend Rs 6.25 per Ordinary Share of Re 1 for the financial year ending on 31st March, 2024. “Such dividend will be paid between Monday, 26th February, 2024 and Wednesday, 28th February, 2024 to those members entitled thereto,” it said in a regulatory filing. The company has fixed 8th February, 2023 as the record date for the purpose of determining entitlement of the members for such interim dividend.
ITC Ltd’s Q3 performance across business verticals
ITC’s FMCG businesses posted revenue at Rs 5,209 crore, up 7.6 per cent YoY, on a high base (2-yr CAGR +12.8 per cent). The segment EBITDA margins expanded 100 bps YoY to 11 per cent. The company stated that staples, dairy, beverages, fragrances, personal wash, homecare, agarbattis, classmate notebooks and pens drove growth during Q3. “Growth in both traditional and emerging channels (viz. modern trade, e-commerce, quick commerce) continued to be driven by sharp execution of channel-specific business plans, collaborations, format-based assortments and category-specific sell-out strategies. Competitive intensity remained high in certain categories such as biscuits, snacks, noodles, popular soaps, including from local/regional players,” it said.
The FMCG – Cigarettes Business witnessed consolidation on a high base after a period of sustained growth momentum, with net segment revenue +9.3 per cent, and segment PBIT +9.4 per cent.
Stellar performance in Hotels Business continues with record highs in revenue and profits. The segment revenue was up 18.2 per cent YoY (2-yr CAGR +33 per cent) and segment PBIT was up 57.1 per cent YoY. Segment EBITDA margin expanded by 470 bps YoY to 36.2 per cent driven mainly by higher RevPAR, operating leverage and strategic cost management initiatives.
Agri Business revenue grew by 14.2 per cent YoY (excl. wheat & rice) driven by value added agri products and leaf tobacco. “The operating environment remained challenging due to various policy interventions of the Government of India to ensure food security and control inflation which limited business opportunities for the Agri Business,” it said.
The Paperboards, Paper & Packaging segment, ITC said, remained impacted by low-priced Chinese supplies in global markets, muted domestic demand, unprecedented increase in domestic wood costs and high base effect. The segment revenue declined 9.7 per cent YoY. Margins, meanwhile, were impacted largely by sharp drop in realisations and unprecedented surge in domestic wood costs due to increased demand from competing industries. The segment PBIT declined 51.2 per cent YoY.