ITC posted a consolidated net profit of Rs 4,993 crore for the quarter ending September 2024, a 2 per cent rise from Rs 4,898 crore in the same quarter last year. Although the profit figures came in slightly below market expectations, the company's revenue from operations surged by 15.6 per cent year-on-year (YoY) to Rs 22,282 crore, exceeding analyst forecasts.
ITC's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 6,335 crore, with healthy margins at 32.8 per cent for the reporting period.
In a strategic move to consolidate its holdings, the company’s board approved the acquisition of 1.52 crore shares of EIH Ltd and 34.6 lakh shares of HLV Ltd from its wholly-owned subsidiary, Russell Credit. This acquisition is expected to strengthen ITC's presence in the hospitality sector.
The company's cigarette segment, a key driver of its revenue, saw a 7 per cent YoY growth, with revenue reaching Rs 8,879 crore, while the segment’s profit before tax (PBT) increased by 5 per cent to Rs 5,242 crore. ITC's FMCG-others division also delivered steady growth, with revenues rising 5 per cent to Rs 5,585 crore, although the PBT grew only marginally to Rs 444 crore.
The hotels division recorded an impressive 17 per cent YoY increase in revenue to Rs 789 crore. However, the segment's profit before tax dipped to Rs 117 crore, compared to Rs 133 crore in the same quarter last year. In contrast, ITC’s agribusiness posted strong results, with revenues jumping 47 per cent to Rs 5,845 crore, while the PBT surged 25 per cent to Rs 447 crore.
The paperboards business, however, faced challenges, with only a 2 per cent growth in revenue and a 25 per cent decline in profit before tax, which dropped to Rs 235 crore. Despite this, ITC's overall performance for the quarter highlighted robust growth across key sectors, notably in agribusiness and hospitality, while maintaining stable progress in its core cigarette and FMCG divisions.
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