ITC Q4 results: Profit jumps 21% to Rs 5,087 crore; firm declares Rs 9.50 in total dividend

FMCG major ITC on Thursday reported a 21.37 per cent year-on-year (YoY) rise in standalone net profit at Rs 5,086.90 crore for the March quarter compared with Rs 4,190.96 crore in the same quarter last year. Anlaysts were expecting profit growth in the 13-21 per cent range.

Revenue for the quarter rose 6.14 per cent YoY to Rs 17,224 crore compared with Rs 16,226.63 crore in the same quarter last year. This was largely in line with analyst estimates. Cigarette segment revenue for the quarter came in at Rs 7,355.83 crore, up 14 per cent compared with Rs 6,443.37 crore in the same quarter last year. The segment's PBIT was up 14 per cent YoY.

FMCG (Others) segment reported revenue of Rs 4,944.95 crore against Rs 4,141.97 crore YoY.

Hotels segment revenue doubled to Rs 781.71 crore from Rs 389.64 crore YoY. Agri-business reported a fall in sales at Rs 3,578.60 crore from Rs 4,366.34 crore YoY. Paperboard segment revenue remained flattish at Rs 2,221 crore against Rs 2,182.77 crore YoY.

Ebitda margin for the quarter stood at 36.1, up 385 basis points YoY.

After two years of pandemic-led disruptions, FY23 marked a return to normalcy in operations, ITC said.

"However, geopolitical tensions, continued supply chain dislocations and climate crisis resulted in unprecedented inflation and volatility in global commodity and energy prices. Central banks across the world responded swiftly with sharp increase in interest rates within a relatively short time frame. The Indian economy remained a bright spot in FY 2022-23 amidst the global slowdown," it said.

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With steep inflation eating into household budgets, consumption demand remained subdued particularly in rural markets and for discretionary categories in urban markets, ITC said. Against the backdrop of a challenging operating environment, the company’s proactive strategic interventions enabled it to post strong performance across all operating segments.

The Kolkata-based company announced a final dividend of Rs 6.75 and special dividend of Rs 2.75 per ordinary for FY23. If declared, the dividend will be paid between August14 and August August 17, the company said in a NSE filing.

The FMCG company fixed May 30 as the record date for the purpose of determining entitlement of the members for payment of dividend.

"Together with the interim dividend of Rs 6 per share declared by the board on February 3, the total dividend for FY23 would be Rs 15.50 per share. The company will announce the date for its 112th AGM shortly. At 3 pm, shares of ITC were trading 1.84 per cent lower at Rs 419.80 on BSE. The stock has been second-best Nifty performer in 2023 so far.

Total cash outflow on account of dividend, including interim dividend of Rs 7,448.41 crores paid in March 2023, will be Rs 19,255.02 crore for the year.

(More to come)

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