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Business News/ Companies / Company Results/  ITC Q3 results: Net profit rises 6% YoY; here are five key highlights
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ITC Q3 results: Net profit rises 6% YoY; here are five key highlights

The cigarettes to hotels conglomerate posted a net profit of ₹5,335 crore for the quarter ending in December, recording a 6 percent rise year-on-year against ₹5,006 crore reported in the corresponding period of the previous year.

ITC Q3 FY24 results (REUTERS)Premium
ITC Q3 FY24 results (REUTERS)

FMCG conglomerate ITC, on Monday, announced a 6% increase in its consolidated net profit, reaching 5,335 crore for the quarter ending in December, beating market estimates.

This marks a notable rise from the 5,006 crore reported in the corresponding period of the previous year. Sequentially, net profit grew 13 percent from 4,927 crore in the September quarter.

Also read: Bajaj Finance Q3 results: Net profit rises 22%, NII increases 29% to 7,655 crore

In the December quarter, there was a 2 percent year-on-year (YoY) increase in revenue from operations, amounting to 19,484 crore.

Additionally, the company's board announced an interim dividend of 6.25 per share for the fiscal year ending March 2024. Eligible shareholders can anticipate the dividend distribution to take place between February 26 and February 28.

Here are 5 key highlights from ITC Q3 results FY24 -

Net Profit

The cigarettes to hotels conglomerate posted a net profit of 5,335 crore for the quarter ending in December, recording a 6 percent rise year-on-year against 5,006 crore reported in the corresponding period of the previous year. 

The net profit of the conglomerate also saw a sequential growth of over 13 percent from 4,927 crore in the September quarter.

Revenue from Operations 

ITC's revenue from operations for the December quarter for FY24 reached to 19,484 crore from 19,020 crore same period last year, resulting in a 2 percent rise. Sequentially, it grew 1.11 percent from the September quarter amounting to 19270 crore.

Also read: Vodafone Idea Q3 results: Net loss narrows to 6,985.9 crore, ARPU grows to 145

EBIDTA

In the December quarter, Earnings before Interest, Tax, Depreciation, and Amortization (EBIDTA) amounted to 6,024 crore, reflecting a marginal decrease of 3.2 percent. The EBIDTA margin stood at 36.6 percent, registering a decline of 180 basis points year-on-year (YoY). It's important to note that one basis point is equivalent to one-hundredth of a percentage point.

The EBITDA margin for the segment demonstrated a year-over-year expansion of 100 basis points, reaching 11.0 percent. Additionally, the segment PBIT exhibited significant growth, increasing by 24.1 percent compared to the same period last year.

Segment performance

In terms of business segments, the revenue from the cigarettes business demonstrated a 3 percent year-on-year increase, reaching 8,295 crore, compared to 8,086 crore in the corresponding quarter of the previous year.

The FMCG-others business exhibited robust performance, recording revenues of 5,218 crore in the third quarter, marking an 8 percent growth from the 4,849 crore reported in the same quarter last year. The Profit Before Tax (PBT) for this segment also witnessed a notable 23 percent increase, reaching 433 crore.

Also read: Marico Q3 results: Net profit grows 15.9% to 386 crore

The hotels business experienced a commendable quarter, witnessing an 18 percent surge in revenues to 872 crore. Furthermore, the profit before tax for this segment saw a substantial growth of 56 percent, reaching 233 crore.

Conversely, the agri-business reported revenues of 3,273 crore in the third quarter, reflecting a marginal decline of 0.9 percent year-on-year. The Profit Before Tax for this segment also saw a decrease of 13 percent, settling at 381 crore.

In the paperboards, paper, and packaging segments, a similar trend to that of agri-business was observed, with revenues witnessing a 10 percent year-on-year decline to 2,080 crore in the December quarter, compared to 2,305 crore the previous year.

Also read: ITC Q3 result: FMCG giant declares interim dividend of 6.25 per share; check record date

Interim Dividend

The diversified conglomerate, spanning from cigarettes to hotels, additionally declared an interim dividend of 6.25 per share for the fiscal year 2023-2024. The board has established February 8 as the record date for the aforementioned dividend.

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Published: 29 Jan 2024, 06:55 PM IST
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