ITC on Monday reported a 6.51 per cent increase in consolidated net profit to Rs 5,400.51 crore for the December 2023 quarter due to a resilient performance by the FMCG vertical compared to a consolidated net profit of Rs 5,070.09 crore in the October-December period a year ago, according to the regulatory filing.
Its gross revenue from sales was up 2.3 per cent to Rs 19,337.84 crore during the quarter under review. It was Rs 18,901.76 crore in the corresponding quarter a year ago.
ITC’s revenue from operations in the December quarter stood at Rs 19,484.50 crore, up 2.43 per cent. It was Rs 19,020.65 crore a year ago.
“Amidst a challenging macro-economic and operating environment, as stated above, and high base effect in some of its operating segments, the company delivered a resilient performance during the quarter,” said ITC in an earning statement.
The overall costs of the Kolkata-based company rose 5.33 per cent to Rs 13,453.73 crore.
During the quarter, ITC sales from the ‘total FMCG’ sector, which includes the cigarettes business, increased by 4.47 percent to Rs 13,513.43 crore. It was Rs 12,934.67 crore in the third quarter of fiscal year 2023.
Its cigarette income increased 2.59 per cent to Rs 8,295.18 crore in the October-December quarter. It was Rs 8,085.72 crore in the same period previous year.
Its distinct versions and premium category performed well throughout the quarter.
“The cigarettes business witnessed consolidation on a high base after a period of sustained growth momentum,” said ITC.
ITC’s revenue from the FMCG-others segment also rose 7.61 per cent at Rs 5,218.25 crore in Q3 FY24 against Rs 4,848.95 crore in the year-ago period.
“The FMCG Businesses delivered resilient performance amidst a slowdown in consumer demand; staples, dairy, beverages, fragrances, personal wash, homecare, agarbattis, classmate notebooks and pens drive growth,” it said.
Certain categories, such biscuits, snacks, noodles, and popular soaps, remained highly competitive, with both local and regional businesses participating.ITC’s FMCG-others business includes branded packaged goods such as staples, snacks, meals, dairy and drinks, confections, clothes, education and stationery products, personal care items, safety matches, and incense sticks.
Revenues from ITC’s Hotels division increased 18 per cent to Rs 872.46 crore.
It reported good growth in ARRs (average room rentals) and occupancies across properties, owing to packages, MICE (Meetings, Incentives, Conferences, and Exhibitions) sectors, and marquee events such as the ICC Cricket World Cup.
“Segment EBITDA margin expanded by 470 bps year-on-year to 36.2 per cent driven mainly by higher RevPAR (revenue per available room) operating leverage and strategic cost management initiatives,” it noted.
ITC’s agribusiness was marginally down to Rs 3,273.23 crore in the December quarter of FY24 as restrictions impacted wheat and rice exports. It was Rs 3,305.21 crore in the year-ago quarter.
“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 the agribusiness,” it said.
ITC’s sales from the ‘paperboards, paper, and packaging’ business declined 9.74 percent to Rs 2,080.91 crore due to lower consumer demand and a relatively quiet Christmas season.
Chinese supply at cheap prices continues to influence the segment’s export markets.
“Margins were impacted largely by a sharp drop in realisations and unprecedented surge in domestic wood costs due to increased demand from competing industries,” it said.
Revenue from other divisions, such as information technology services and branded houses, increased 10.86 percent to Rs 950.04 crore from Rs 856.91 crore in Q3 FY22.
Meanwhile, in a separate filing, ITC stated that its board announced an interim dividend of Rs 6.25 per ordinary share of Re 1 for the fiscal year ending 31 March 2024.
The board also proposed the nomination of Atul Singh as a Non-Executive Director and Pushpa Subrahmanyam as an Independent Director for a five-year term beginning 2 April 2024.
