NEW DELHI, May 23
ITC Ltd on Thursday recorded fiscal fourth quarter profit at Rs 5120.55 crore, down 4 per cent in comparison to Rs 5335.23 crore during the corresponding quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 19,446.49 crore, marginally lower than Rs 19,484.50 crore during the same period last year.
The company board recommended a final dividend of Rs 7.50 per ordinary share of Re 1 each for the financial year ended 31st March, 2024. The final dividend will be paid between Monday, 29th July, 2024 and Wednesday, 31st July, 2024 to those members entitled thereto. Together with the interim dividend of Rs 6.25 per ordinary share declared by the board on 29th January, 2024, the total dividend for the financial year ended 31st March, 2024 would be Rs 13.75 per ordinary share of Re 1 each, the company said.
ITC delivered a resilient performance during the year “amidst a challenging macroeconomic and operating environment on a high base (FY23 Gross Revenue and EBITDA grew 17.6 per cent and 26.5 per cent respectively)”.
“During the year, the Company reassessed its provisions relating to uncertain tax positions for earlier years based on a favourable order of the Honourable Supreme Court received during the year which resulted in a credit of Rs 468.44 crore in the Current Tax expense for the year. Profit After Tax grew by 8.9 per cent to Rs 20421.97 crore,” it said in a statement.
FMCG: ITC’s FMCG division recorded a full year segment revenue growth of 9.6 per cent on a high base and PBIT growth of 29.4 per cent on-year, and margins expanded by 130 bps YoY. For the quarter, segment revenue was up 7.2 per cent on a high base and segment PBIT up 15 per cent on a comparable basis (base quarter included certain fiscal incentives pertaining to previous periods); margins expanded 60 bps YoY on a comparable basis. ITS said that staples, biscuits, snacks, dairy, homecare, agarbatti are driving the growth.
Cigarettes: After a period of sustained growth momentum, the business witnessed consolidation in volumes on a high base amidst subdued demand conditions in the overall consumption space, even as illicit trade remained at elevated levels.
The full year net segment revenue grew by 7.1 per cent and PBIT was up 6.5 per cent on-year. For the quarter, net segment revenue grew by 10.3 per cent while the PBIT was up 9.4 per cent. Differentiated and premium offerings saw robust traction during the year.
ITC said that sharp escalation in leaf tobacco prices and other inputs, along with increase in taxes were largely mitigated through improved mix, strategic cost management and calibrated pricing.
Hotels: The Hotels segment delivered stellar performance, clocking record highs in revenue and profits. Strong growth in RevPar was driven by retail, MICE (Meeting, Incentives, Conferencing, Exhibition) and marquee events hosted in the country, ITC said. For the full year, the segment revenue came in at Rs 2989.50 crore, up 15.6 per cent on-year and segment EBITDA was at Rs 1049.88 crore, up 26.2 per cent, on a high base. Segment EBITDA margin stood at 35.1 per cent representing an expansion of 295 bps over the previous year.
Agri Business: With the Government having to impose stock limits and restrictions on agri-commodity exports to ensure food security and control inflation, ITC said, the agri business had limited business opportunities during the year in the bulk commodities space.
The segment revenue was down 13.1 per cent in FY24 and declined by 13.4 per cent during the fourth quarter.
Paperboards, Paper and Packaging: The segment remained impacted by low priced Chinese supplies in international markets (including India), muted domestic demand, surge in wood cost and high base effect. Despite the headwinds, the business further strengthened its leadership position in the Value-Added Paperboard (VAP) segment through focused innovations, development of customised solutions for end-use industries and strong end user engagements. “Structural advantages of the integrated business model, Industry 4.0 initiatives, strategic investments in High Pressure Recovery Boiler and proactive capacity augmentation in Value Added Paperboards aided in partly mitigating pressure on margins,” ITC said.
