ITC Q4 results: Net profit falls 1.3% to Rs 5,020 crore, final dividend declared

itc q4 results: net profit falls 1.3% to rs 5,020 crore, final dividend declared

ITC Q4 results: Net profit falls 1.3% to Rs 5,020 crore, final dividend declared

ITC Ltd has reported a standalone net profit of Rs 5,020.2 crore for the March quarter, down 1.31 percent from the year-ago quarter, hit by flattish cigarette volumes and lower FMCG margins.

The profit fell short of expectations. A Moneycontrol poll of six brokerages pegged ITC’s consolidated net profit at Rs 5,114 crore, up 0.5 percent.

Revenue came in at Rs 17,752.87crore, rising 1.40 percent, the tobacco and FMCG major said in a regulatory filing on May 23.

Revenue was expected to grow 4.9 percent to Rs 16,945 crore.

The company recommended a final dividend of Rs 7.50 per ordinary share for the financial year ending March 31, 2024. Combined with the interim dividend of Rs 6.25 per share declared on January 29, 2024, the total dividend for the year will be Rs 13.75 per ordinary share.

Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 6,162.6 crore declining by 0.8 percent. EBITDA margins have fallen by 70 bps YoY to 37.2 percent.

FMCG-Others segment

The FMCG-Others segment performed well despite weak demand and increased competition from local players. The company achieved strong profit growth through premiumisation, cost management, and strategic pricing. Segment revenue grew by 9.6 percent, with EBITDA increasing by 19.7 percent to Rs 2338.50 crores, and EBITDA margins improved to 11.2 percent, up 94 basis points.

Digital strategies enhanced consumer insights, engagement, and brand loyalty. The product portfolio was strengthened with over 100 new launches focusing on Health & Nutrition, Hygiene, and Convenience. Market coverage doubled compared to pre-pandemic levels, with significant growth in rural areas and digital sales.

The UNNATI eB2B platform now reaches nearly 7 lakh outlets, and digitally enabled sales account for 31 percent of total sales. The ITC e-Store and other D2C platforms are operational in over 24,000 pin codes, enhancing consumer insights and commerce. The FMCG export footprint expanded to over 70 countries, boosted by the PLI scheme for categories like Biscuits, Cakes, Snacks, Dairy, and Ready-to-Eat foods.

The Branded Packaged Foods Businesses are focused on addressing consumer needs with innovations in health, nutrition, wellness, immunity, and convenience. The company's mission is to "Help India Eat Better" by creating a sustainable ecosystem with healthier, affordable, and accessible products.

ITC's 'Mission Millets' promotes a millet-based product portfolio, sustainable farming, and consumer awareness. Products like 'Gluten Free Flour,' 'Multi-Millet Batter Mix,' and 'Ragi Flour' are being scaled up under brands like 'Aashirvaad' and 'Sunfeast.

The company has invested in 11 Integrated Consumer Goods Manufacturing and Logistics facilities to enhance product freshness, market agility, and cost efficiency. Strategic cost management initiatives, including supply chain optimization and automation, have helped counter input cost pressures and support new initiatives.

The Personal Care Products Business focused on building purposeful brands, introducing innovative products, and expanding in emerging channels, leading to strong growth in its premium portfolio.

In the Personal Wash segment, 'Fiama' achieved significant growth with new offerings like 'Fiama Sandalwood Oil & Patchouli' and 'Fiama Men’s Charcoal,' and partnered with Filmfare to raise mental health awareness. 'Vivel' continued to grow with a focus on women’s empowerment through a collaboration with Azad Foundation.

The 'Engage' brand launched a premium EDP range, including a 'gender neutral' variant 'One Soul,' and performed well despite intense competition. The 'Nimyle' brand in Home Care saw strong growth in modern trade and e-commerce, maintaining market leadership with new packaging and better penetration, and collaborated with 'Pet Fed' to promote eco-friendly floor cleaners.

The premium skincare brand 'Dermafique' expanded its product range with new items like 'Hydra Soft Nourishing Body Wash' and 'Aqua Cloud Shower Mousse,' leveraging AI for personalized skin analysis. Additionally, a new manufacturing unit in Uluberia, West Bengal, is set to enhance supply chain agility and reduce costs.

The Education and Stationery Products industry saw strong growth due to higher enrolment and literacy rates, despite increased competition from regional players. The business maintained its leadership through innovative product launches and premiumisation. 'Classmate Interaktiv' notebooks and 'Classmate Pulse' spirals saw strong consumer traction. 'Paperkraft' expanded with new notebook designs, and the Writing Instruments portfolio performed well. The business also strengthened its e-commerce presence and enhanced manufacturing capacity at its Vijayawada facility to support growth and cost reduction.

The Incense Sticks (Agarbatti) category saw strong growth with the 'Mangaldeep' brand launching new products like the 'Scent' sub-brand, offering unique, long-lasting fragrances. Mangaldeep refreshed its Floral and Sandal ranges and continues to promote devotion and wellbeing. The brand co-created superior fragrances with 150 visually impaired evaluators. In Safety Matches, 'Homelites' strengthened its market leadership with its unique positioning of stronger, longer, and karborised sticks.

FMCG – Cigarettes

After a period of sustained growth, the Business saw volume consolidation due to subdued demand and high illicit trade levels. Premium offerings performed well, and increased costs from leaf tobacco prices and taxes were managed through improved product mix, cost management, and pricing strategies. Trade marketing was restructured for better execution.

The Business fought illicit trade by innovating and expanding its premium product portfolio with launches like ‘Classic Alphatec’, ‘Classic Icon’, and ‘Gold Flake Indie Mint’, achieving sequential Net Segment Revenue and Segment PBIT growth of 5.2 percent and 4.1 percent, respectively. Manufacturing facilities were modernized with technologies like Industry 4.0 and Data Sciences to enhance productivity and product excellence.

India's high taxes on legal cigarettes have boosted illicit trade, making it the 3rd largest illicit cigarette market globally. This has led to revenue loss, poor quality products, and a negative impact on tobacco farmers. Recent tax stability has helped the legal industry regain some volume, boosting demand for Indian tobacco and reducing tax losses. The Company advocates for balanced, evidence-based regulations and taxation to support the legal cigarette market while considering India's unique tobacco consumption patterns.

ITC Hotels

The Hotels Segment achieved record highs in Revenue and Profits, driven by strong RevPar growth from retail, MICE, and marquee events. Segment Revenue reached Rs. 2989.50 crores and Segment EBITDA was Rs. 1049.88 crores, growing by 15.6 percent and 26.2 percent respectively, with an EBITDA margin of 35.1%. Renovations, including the reopening of Welcomhotel Chennai, leveraged high season opportunities. The first international property, ITC Ratnadipa in Colombo, Sri Lanka, opened in April 2024, enhancing the luxury hospitality market.

Digital investments continued to improve guest experience and operational efficiency through the ITC Hotels App, which offers food delivery, reservations, room automation, loyalty benefits, and more. The ‘asset-right’ strategy focused on management contracts, with 24 out of 25 new hotels in the last 24 months being managed properties. The business sees growing interest from property owners for partnerships, building a strong pipeline of management contracts.

ITC Hotels maintained its leadership in green hoteliering and sustainability, with 23 USGBC LEED Platinum certified properties. Additionally, 12 hotels received LEED Zero Carbon Certification, and 4 hotels received LEED Zero Water Certification, the first in the world to do so.

Paperboards, Paper and Packaging

The Paperboards, Paper & Packaging Segment faced challenges from weak domestic and export demand, low net realizations, cheap Chinese supplies, rising domestic wood costs, and a high base effect. Despite these obstacles, the Business reinforced its leadership in the Value-Added Paperboard (VAP) segment through focused innovations, customized solutions for end-use industries, and strong end-user engagement. The integrated business model's structural advantages, Industry 4.0 initiatives, strategic investments in a High Pressure Recovery Boiler, and proactive capacity augmentation in Value Added Paperboards helped partially mitigate margin pressures.

Following the results, shares of ITC were trading 0.58 percent up at Rs 442.30 on BSE at 3:02 pm.

OTHER NEWS

3 hrs ago

Rahul Gandhi pens emotional letter to people of Wayanad: ‘When I faced abuse…’

3 hrs ago

NEET-UG: 17 candidates from Bihar, 30 from Gujarat debarred for malpractices

3 hrs ago

Ashadha 2024 Begins: What This Auspicious Month Means for Your Zodiac Sign

3 hrs ago

The GOAT Bday Shots: Action-packed first glimpse of Vijay in a dual role released on his birthday. Watch

3 hrs ago

Mallika Dua Shares The Importance Of Choosing A Right Therapist - Here's How It Can Affect Your Mental Health

3 hrs ago

I would like him to show...: Ashley Cole on Phil Foden's performance in EURO 2024

3 hrs ago

Upcoming IPOs: Ten new public issues, eleven new listings to hit primary market; check full list here

3 hrs ago

After 2001, Aftab Shivdasani to star in movie named Kasoor, again: Exclusive!

3 hrs ago

Arvind Kejriwal Moves Supreme Court Against Delhi HC Stay On Bail Order In Money Laundering Case

3 hrs ago

'Exceeded their limits': Kamal Haasan blames hooch tragedy victims, BJP hits back

3 hrs ago

IND vs AUS, Super 8, Saint Lucia Weather Report: Rain Threat Looms Large

3 hrs ago

Britain’s Wealthiest Family, Hindujas 'Appalled' By Swiss Court's Jail Term Order; File Appeal

3 hrs ago

Block Deals News: Over Rs 40,543 cr! THESE companies among D-street dons last week - Do you own any?

3 hrs ago

Jammu And Kashmir Police To Deploy Stringent Enemies Agents Act To Crush Pakistan Terror Aides

3 hrs ago

NEET Result Row: Government in Action Mode, Takes These 3 Major Decisions | ABP News

3 hrs ago

'Kalki 2898 AD': Prabhas, Amitabh Bachchan, Deepika Padukone, Kamal Haasan starrer FIRST show to begin at THIS time

3 hrs ago

Delhi Metro Update: DMRC’s New Delhi metro station set to become triple interchange hub with Green Line expansion

3 hrs ago

"Our journey starts now": Afghanistan match-winner Naib after historic win over Australia

3 hrs ago

Portugal head coach Roberto Martinez believes pitch invading 'should not happen' in football games

3 hrs ago

This T20 World Cup, adapt to the wind in the Windies

4 hrs ago

Gautam Adani’s salary in FY24: At Rs 9.26 cr, Asia’s 2nd richest man’s pay is less than Sunil Mittal, Rajiv Bajaj and other peers

4 hrs ago

Shark Tank India 3 pitcher Pathik Patel sends legal notice to Sony TV, claims show caused him 10x losses: ’70 plus brands facing same challenges’

4 hrs ago

There's a lot of hurt: Maharaj on South Africa grinding out wins in T20 World Cup

4 hrs ago

On this day in 2013, India solidified ODI supremacy with Champions Trophy title win

4 hrs ago

"He wants to play next match": Tchouameni provides major update on Kylian Mbappe's injury

4 hrs ago

Bajaj CNG Bike to Arrive in Indian Market on July 5, Here's What to Expect

4 hrs ago

T20 WC: Viv Richards presents Suryakumar with 'Fielder of the Match' award, gives special message to Team India

4 hrs ago

T20 WC: 'The President' Nabi secures Afghanistan's biggest win in 400th T20 match, makes valuable contributions

4 hrs ago

How Are Sara Ali Khan, Amrita Singh Related To Dilip Kumar? Know The Truth Here

4 hrs ago

'People having Rs 50 lakh liquid net worth are Lower Middle Class...': Investor's social media post sparks outrage

4 hrs ago

India's electronic manufacturing may reach $500 billion by 2030: CII report

4 hrs ago

750 of 1,563 students skipped NEET-UG retest: NTA

5 hrs ago

Passenger claims Rail Madad app complaint led to train attendant's salary cut, Reddit reacts

5 hrs ago

NTA chief Subodh Kumar Singh removed amid uproar over NEET, UGC-NET controversies

5 hrs ago

'People Try To Cut the Finger Today... That Era of Loyalty Was Different': Vasundhara Raje

5 hrs ago

They were really good and outplayed us: Aussie skipper Marsh after conceding defeat against Afghanistan

5 hrs ago

Traffic Sub-inspector Suspended for Misbehaving with BJP Spokesperson Rakesh Tripathi

5 hrs ago

Delhi Water Crisis | Delhi Minister Releases A Video On Her Third Day Of Paani Satyagraha | News18

5 hrs ago

Naveen-ul-Haq does a Jasprit Bumrah after Afghanistan's incredible win, shares cryptic 'Support vs Congratulations' post

5 hrs ago

Communal spirit shouldn’t enter institutions. Don’t call AMU Muslim university, BHU Hindu—Nehru