ITC net profit rises 12% to Rs 4,191 crore

Beating street estimates, diversified conglomerate ITC on Wednesday reported an 11.81% year-on-year rise in its standalone net profit to Rs 4,190.96 crore for the fourth quarter last fiscal, aided by a 15.71% y-o-y growth in its gross revenue from sale.

ITC, in a statement, said it posted strong growth across all operating segments despite impact of the third wave. During the fourth quarter of FY22, Ebitda was up 16.8% y-o-y at around Rs 5,220 crore.

Beating street estimates, diversified conglomerate ITC on Wednesday reported an 11.81% year-on-year rise in its standalone net profit to Rs 4,190.96 crore for the fourth quarter last fiscal, aided by a 15.71% y-o-y growth in its gross revenue from sale.

The cigarette-to-FMCG-to-hotel major had posted a net profit of Rs 3,748.42 crore for the fourth quarter of FY21. Gross revenue from sales stood at Rs 16,226.63 crore for the period under review against Rs 14,023.43 crore for the same period previous fiscal, according to the company’s stock exchange filing. During the period under review, the conglomerate’s tax expenses rose 13.17% y-o-y at Rs 1,251.07 crore.

ITC, in a statement, said it posted strong growth across all operating segments despite impact of the third wave. During the fourth quarter of FY22, Ebitda was up 16.8% y-o-y at around Rs 5,220 crore.

Abneesh Roy, executive director, institutional equities, Edelweiss Securities, said all key businesses did well during Q4FY22.

During Q4 last fiscal, revenue from the cigarette business rose 9.96% y-o-y at Rs 6,443.37 crore, while operating profit increased 12.21% y-o-y at Rs 4,114.27 crore, according to the stock exchange filing.

During the quarter under review, the non-cigarette FMCG business registered 12.32% y-o-y growth in its revenue to Rs 4,141.97 crore, while the segment posted a 24.75% y-o-y growth in operating profit at Rs 235.99 crore during this period. There was a 58 basis points y-o-y Ebit margin expansion. ITC said its non-cigarette FMCG segment “turned in a resilient performance” on a relatively high base. “After a relatively subdued first half, revenue in the second half of the year (FY22) witnessed double-digit growth. Staples and Convenience Foods remained resilient even as the pace of revenue growth witnessed moderation on a relatively high base,” the company said, adding that discretionary/out-of-home categories recorded strong growth surpassing pre-pandemic levels, driven by progressive improvement in mobility and favourable comparables.

The hotels business posted a 35.39% y-o-y increase in its revenue at Rs 389.64 crore.

The ITC board recommended a final dividend of Rs 6.25 per share, including an interim dividend of Rs 5.25 per share. Total dividend for FY22 is Rs 11.50 per share.

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