ITC Ltd on Thursday released its fiscal fourth quarter earnings with consolidated profit at Rs 19,727.37 crore, posting a multi-fold jump of 285.26% per cent in comparison to Rs 5120.55 crore recorded during the corresponding quarter of FY24. The profit surge was boosted by an exceptional gain of Rs 15,129 crore in Q4, arising from the demerger of its Hotels Business into ITC Hotels Limited. This gain was accounted for under profit for the period from discontinued operations in the financial balance sheet of the company. Adjusted for the exceptional gain, the net profit stood at Rs 5,155.2 crore.
The company recorded revenue from operations for the quarter in review at Rs 20,376.36 crore, posting a growth of 9.78 per cent in comparison to Rs 18,561.59 core reported during the fourth quarter of previous financial year.
For the full year, gross revenue and EBITDA from continuing operations stood at Rs 73,464.55 crore and Rs 24,024.83 crore respectively. Profit after tax for FY25 (including profit from discontinued operations) stood at Rs 35,195.61 crore.
Dividend announcement
The company board also recommended a final dividend of Rs 7.85 per ordinary share of Re 1 each for the financial year ended 31st March, 2025. The final dividend, it added, will be paid between Monday, 28th July, 2025 and Thursday, 31st July, 2025. “Together with the Interim Dividend of Rs 6.50 per ordinary share declared by the Board on 6th February, 2025, the total dividend for the financial year ended 31st March, 2025 would be Rs 14.35 per ordinary share of Re 1 each,” it said in a regulatory filing.
The company has fixed Wednesday, 28th May, 2025 as the record date for the purpose of determining entitlement of the members for payment of final dividend.
Total cash outflow on account of dividend (including Interim Dividend of Rs 8,133.11 crore paid in March 2025) will be Rs 17,956.69 crore.
ITC’s Q4 performance across business verticals
FMCG – Others: ITC’s FMCG-Others segment delivered a resilient performance amidst weak demand conditions. While the core FMCG segment, which includes cigarettes and other FMCG products, contributed a revenue of Rs 14,732 crore during the quarter, the other segment reported a revenue of Rs 5,503.33 crore. The company maintained that costs of several major inputs such as edible oil, wheat, maida, potato and cocoa witnessed sharp escalation, especially in the second half of the financial year, weighing on margins.
FMCG -Cigarettes: The segment recorded revenue for the segment at Rs 9,228.66 crore, up from Rs 8,688.92 crore during the fourth quarter of FY24. In a regulatory filing, ITC said that sharp cost escalation in leaf tobacco was partly mitigated through improved mix, calibrated pricing action and focused cost management initiatives.
Agri business: The segment saw robust growth led by leaf tobacco, value added agri products and rice exports. The segment saw a healthy rise, posting revenue of Rs 3,694.64 crore. “Post extensive product development and customer trials, shipments from the state-of-the-art facility to manufacture and export Nicotine and Nicotine derivative products have commenced in Q4 FY25. Progressive scale up is expected in FY26,” it said.
Paperboards, Paper and Packaging: The segment remained impacted due to low priced Chinese & Indonesian supplies in global markets including India, soft domestic demand conditions and unprecedented surge in wood prices. The segment posted revenue at Rs 2,188.69 crore.
Clarification on ITC’s ‘discontinued business‘
ITC’s hotels business demerged into ITC Hotels Limited (ITCHL) with effect from 1st January 2025. Pursuant to the scheme, the Hotels Business (along with all assets and liabilities thereof, excluding ITC Grand Central, Mumbai) and the investments held by the Company in Hospitality entities, have been transferred to ITCHL on a going concern basis.
ITC, in its financial results, reported numbers for its hotels business under ‘Discontinued Operations’. Hotels business posted its highest ever revenue and operating profits on the back of strong growth in RevPar for the 9 months ended 31st December, 2024.