The company had posted a net profit of Rs 4,259.68 crore a year ago, ITC said in a regulatory filing
ITC reported a 22.66% year-on-year rise in consolidated net profit at Rs 5,225.02 crore in the fourth quarter ended March 2023, led by a strong growth momentum across operating segments.
The company had posted a net profit of Rs 4,259.68 crore a year ago, ITC said in a regulatory filing.
Its revenue from operations increased 7% to Rs 18,799.18 crore in the period under review against Rs 17,754.02 crore in the year-ago period.
ITC’s total expenses increased 2.18% to 12,907.84 crores during the fourth quarter. It was Rs 12,632.29 crore in Q4 FY22.
The total income of ITC in the March quarter grew 7.75% to Rs 19,667.94 crore.
The Kolkata-headquartered company sustained “strong growth momentum” across its operating segments, said ITC in its earning statement.
For the fiscal ended March 2023, ITC’s consolidated net profit surged 25.45% to Rs 19,427.68 crore. It had reported a net profit of Rs 15,485.65 crore in the year-ago period.
Its consolidated revenue from operations climbed 17.34% to Rs 75,826.58 crore in FY23.
This is the first time ITC’s operational revenue crossed Rs 75,000 crore and its total segment revenue crossed Rs 83,897.14 crore, almost $10 billion (without deducting Inter-segment revenue of Rs 8,070.56 crore).
According to ITC, after two years of pandemic-led disruptions, FY2022-23 marked a return to normalcy in operations. However, geopolitical tensions, continued supply chain dislocations and climate crisis resulted in unprecedented inflation and volatility in global commodity and energy prices.
“Against the backdrop of a challenging operating environment as aforestated, the company’s consumer centricity, agility in seizing market opportunities, focus on execution excellence and proactive strategic interventions enabled it to post strong performance across all operating segments,” it said.
During the quarter, revenue from the “total FMCG” segment, which also includes cigarettes, surged 15.07% to Rs 13,033.43 crore. It was Rs 11,325.63 crore in Q4 FY22.
Its revenue from the cigarette business increased 12.61% to Rs 8,082.26 crore in the January-March quarter of this fiscal. It was Rs 7,177.01 crore in the year-ago period.
The segment witnessed a sustained volume clawback from illicit trade on the back of deterrent actions by enforcement agencies and relative stability in taxes, it added.
The company’s revenue from the FMCG-others segment also rose 19.34% to Rs 4,951.17 crore against Rs 4,148.62 crore.
ITC’s FMCG-others segment consists of branded packaged foods, such as staples, snacks, meals, dairy and beverages, apparel, education and stationery products, personal care products, safety matches and incense sticks.
“Staples, Biscuits, Snacks, Noodles, Dairy, Beverages, Soaps, Fragrances, Agarbatti drive growth,” ITC said, adding education and stationery products business continues to witness strong traction.
Moreover, FMCG-others segment EBITDA in the March quarter grew 76%, led by margin expansion driven by premiumisation, judicious pricing actions, digital initiatives, strategic cost management, supply chain agility and fiscal incentives (including PLI), it said.
Revenue from ITC’s hotel segment jumped nearly two-fold to Rs 808.72 crore from Rs 407.42 crore in Q4 FY22.
Terming hotels business as “stellar”, ITC said its RevPAR (Revenue per available room) was well ahead of pre-pandemic levels.
However, ITC’s agribusiness revenue declined 17.55% to Rs 3,607.30 crore as it was impacted by restrictions on wheat and rice exports. It was Rs 4,375.42 crore in the October-December quarter of the preceding fiscal.
ITC’s revenue from the “paperboards, paper and packaging” segment was Rs 2,221.01 crore, up 1.75% from Rs 2,182.77 crore earlier. This also had the impact of the planned shutdown of pulp mills for capacity expansion.
“Softening of pulp prices, muted demand mainly in global markets and relatively higher base impacted YoY Segment Revenue growth,” it said.
Revenue from other segments, which include its information technology services, branded residences etc, surged 31.88% to Rs 868.29 crore against Rs 658.35 crore in Q4 FY22.
Meanwhile, in a separate filing, ITC said its board in a meeting held on Thursday recommended a final dividend of Rs 6.75 and a special dividend of Rs 2.75 per ordinary share of Re 1 each for the financial year ended March 31, 2023. Together with the interim dividend of Rs 6 per ordinary share declared by the board, the final amount would be Rs 15.50.
Besides, the board has also approved the appointment of Alka Marezban Bharucha as an Independent Director and Hemant Malik as a Wholetime Director for five and three years, respectively.
