ITC Q3 RESULTS 2024: NET PROFIT INCREASES IN DOUBLE-DIGIT

ITC Limited reported its Q3FY24 numbers on Monday evening after the market closing. Earlier in the day, ITC's share price closed 1.28% lower at Rs 449.80 on NSE. Let us look at ITC's Q3FY24 quarter result in detail.

About ITC

ITC Limited is a diversified Indian conglomerate with interests in various sectors, including FMCG (Fast-Moving Consumer Goods), agribusiness, hotels, and information technology. Founded in 1910, ITC is known for its iconic brands, sustainable practices, and contributions to India's economic growth.

Crucial parameters

• 52-week high: Rs 499.60
• 52-week low: Rs 329.00
• Market Cap: Rs 5,61,560.18 crore
• ROE: 29.66

Share price movement

In the last six months, ITC's shares have fallen nearly 3%. However, despite the fall, the ITC share price is up by 32.59% in the last one year. In the five-year time frame, the ITC returns below the benchmark - 60%.

How has ITC performed in Q3FY24?

Below are the topline and bottomline numbers from ITC's December quarter:

Revenue: For Q3FY24, ITC reported a revenue of Rs 17,651 crore. In the year-ago period, the company had reported a revenue of Rs 17,425 crore, the YoY revenue growth of 2%.

Net Profit: The company has reported a standalone net profit of Rs 5,572 crore for the October to December quarter. The profits have increased by 11% over the same period in the last financial year. Sequentially, net profit increased 13% from Rs 4,927 crore.

How have different segments performed under ITC?

Below is the performance of different segments in Q3FY24:

FMCG - Others

The FMCG businesses continue to deliver robust performance, with segment revenue growing 7.6% YoY to Rs 5,209 crore on a high base. The segment's EBITDA margins expanded 100 bps YoY to 11%. Growth in both traditional and emerging channels (viz. Modern Trade, e-commerce, and Quick Commerce) continued to be driven by the sharp execution of channel-specific business plans, collaborations, format-based assortments, and category-specific sell-out strategies. 

FMCG - Cigarettes

The business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratizing premiumization across segments, and enhancing product availability backed by superior on-ground execution. The cigarette business witnessed consolidation on a high base after a period of sustained growth momentum. The two-year CAGR of Net Segment Revenue was +9.3%, while PBIT was +9.4%.

Hotels

The company reported stellar performance in the hotel business, with record highs in revenue and profits. Segment Revenue and PBIT are up 18.2% and 57.1% YoY, respectively. Strong growth in ARRs and Occupancies was witnessed across properties driven by retail, MICE segments, and marquee events like the ICC Cricket World Cup. Segment EBITDA margin expanded by 470 bps YoY to 36.2%, driven mainly by higher RevPAR, operating leverage, and strategic cost management initiatives.   

Paperboard, Paper & Packaging

The segment remains impacted by low-priced Chinese supplies in global markets, muted domestic demand, unprecedented increase in domestic wood costs, and high base effect. The revenue for this segment declined 9.7% YoY. Margins were impacted largely by a sharp drop in realizations and an unprecedented surge in domestic wood costs due to increased demand from competing industries.

Agri-Business 

Agri-business revenue grew by 14.2% YoY (excl. Wheat & Rice), driven by Value Added Agri products & 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 Agri-Business. 

Has ITC announced a dividend in Q3FY24?

The company has announced an interim dividend of Rs 6.25 per share. The dividend will be paid between Monday, 26th February 2024 and Wednesday, 28th February, 2024. The record date is fixed as 8 February 2024.