Amid a challenging macro-economic and operating environment, ITC Limited has reported resilient performance for the quarter ending December 31, 2023. The company's gross revenue reached Rs 17,483 crore, showing a growth of 2.1% YoY (excluding Agri Business, which saw a growth of 3.9% YoY). Profit Before Tax (PBT) before exceptional items stood at Rs 6,731 crores, a growth of 0.8% YoY. The Profit After Tax (PAT) grew by 10.8% YoY to Rs 5,572 crore.
Earnings per share for the quarter were Rs 4.47 (compared to Rs 4.06 in the previous year). Exceptional items include expenses of Rs 5.52 crore incurred during the quarter and nine months ended December 31, 2023, related to the demerger of the company's hotels business into ITC Hotels Limited.
The company has recommended an interim dividend of Rs 6.25 per share for the financial year ending March 31, 2024.
In terms of segment performance, the FMCG – Others segment posted a resilient performance amid subdued demand conditions, with segment revenue up 7.6% YoY on a high base and a 2-year CAGR of 12.8%. The Segment EBITDA margin expanded 100 bps YoY to 11%, and the Segment PBIT was up 24.1% YoY.
The cigarettes segment witnessed consolidation on a high base after a sustained period of growth momentum, with net segment revenue and segment PBIT up 2.3% YoY. ITC's differentiated and premium offerings continued to perform well.
The hotels segment posted its best-ever quarter, with segment revenue and PBIT up 18% and 57% YoY, respectively.
Despite the challenging environment, ITC remains confident in navigating short-term challenges and creating sustained value for all stakeholders, focusing on consumer centricity, purposeful innovation, agility, and execution excellence.
(With Agency Inputs)
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