ITC Ltd records 10.8 percent YoY increase in net profit at Rs 5,572.1 crore

Diversified entity ITC Ltd reported a 10.8 percent year-on-year (YoY) increase in net profit at Rs 5,572.1 crore for the third quarter that ended December 31, 2023.

In the corresponding quarter last year, ITC posted a net profit of Rs ,031 crore, the company said in a regulatory filing. CNBC-TV18 poll had predicted a profit of ₹5,130 crore for the quarter under review.

The company's revenue from operations increased 1.6 percent to Rs 16,483.3 crore against Rs 16,225.7 crore in the corresponding period of the preceding fiscal. CNBC-TV18 poll had predicted revenue of ₹17,050 crore for the quarter under review.

At the operating level, EBITDA declined 3.2 percent to Rs 6,024.4 crore in the third quarter of this fiscal over Rs 6,223.2 crore in the corresponding period in the previous fiscal. CNBC-TV18 poll had predicted an EBITDA of ₹6,435 crore for the quarter under review.

The EBITDA margin stood at 36.6% in the reporting quarter versus 38.4 percnt in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. CNBC-TV18 poll had predicted a margin of 37.7 percent for the quarter under review.

The board declared an interim dividend of ₹6.25 per ordinary share of Rs 1 each for the financial year ending on March 31, 2024. The dividend will be paid between February 26-28, 2024.

Also, the company has fixed Thursday, February 8, 2024, as the record date for the purpose of determining the entitlement of the members for such interim dividend, it added.

Cigarettes segment

This segment witnessed consolidation on a high base after a period of sustained growth momentum. Net segment revenue and segment PBIT (Profit Before Interest and Taxes) are up 2.3 percent year-on-year. Net segment revenue +9.3% and segment PBIT +9.4 percent.

Hotels segment

The segment revenue and PBIT are up 18% and 57% year-on-year respectively. Segment EBITDA margin is up 470 bps year-on-year to 36.2 percent driven by higher RevPARs (revenue per available rooms), structural cost interventions, and operating leverage. The stock exchanges have given their no-objection to the Scheme of Arrangement for demerger.

Agri business segment This segment was impacted by trade restrictions on agri commodities (-2.2 percent year-on-year), revenue +14.2 percent year-on-year (excluding Wheat & rice). The state-of-the-art facility to manufacture and export Nicotine and Nicotine derivative products has been commissioned.

Paperboards, paper and packaging segment

This segment remains impacted by low-priced Chinese supplies in global markets, muted domestic demand, surge in wood cost, and high base effect. Capacity utilisation of Nadiad packaging and printing unit in Gujarat progressively ramped up. The state-of-the-art premium Moulded Fibre Products manufacturing facility is expected to be commissioned shortly.