Diversified conglomerate ITC has achieved a remarkable 21% surge in standalone net profit, amounting to Rs 5,087 crore for the March quarter. This figure surpasses the market estimates, owing to consistent demand across various sectors. The company’s revenue from operations, on a standalone basis, also witnessed a significant rise of 7% to reach Rs 17,506 crore during the quarter, compared to Rs 16,426 crore in the corresponding period last year.
In a positive move for shareholders, ITC has announced a final dividend of Rs 6.7 per share, along with a special dividend of Rs 2.8 per share. This highlights the company’s commitment to providing value to its investors through attractive dividend payouts.
The revenue generated from the cigarettes business demonstrated substantial growth, with an increase of nearly 14% to Rs 7,356 crore. ITC attributes this positive performance to sustained volume recovery from illicit trade, thanks to the implementation of effective deterrent actions by enforcement agencies. Additionally, the relative stability in taxes has further facilitated the growth of the cigarettes business.
ITC’s fast-moving consumer goods (FMCG) segment also showcased impressive growth, with revenues reaching Rs 4,945 crore during the quarter, representing a robust increase of 19%. This strong performance underscores the company’s ability to meet consumer demands and leverage market opportunities in the FMCG sector.
The hotels division of ITC witnessed an exceptional growth rate of 101%, as revenues reached Rs 782 crore. This surge can be attributed to the fact that the business per available room exceeded pre-pandemic levels. The gradual recovery of the hospitality industry, coupled with ITC’s strategic measures, has contributed to this remarkable achievement.
On the other hand, revenues from the agri business segment experienced a decline of 18%, amounting to Rs 3,579 crore. This downturn is primarily attributed to the restrictions imposed on wheat and rice exports during the period under review. Despite this setback, ITC remains optimistic about the prospects of its agri business in the long run, given the potential for future growth and market expansion.
The outstanding financial performance of ITC reflects the company’s ability to navigate the challenging business environment and capitalize on emerging opportunities. By focusing on diverse business verticals and maintaining a customer-centric approach, ITC has managed to achieve growth and profitability across its portfolio.
ITC’s robust performance in the March quarter highlights the resilience of the conglomerate and its ability to adapt to changing market dynamics. The company’s consistent revenue growth, particularly in the cigarettes and FMCG segments, indicates a strong market position and effective execution of business strategies. Moreover, the notable recovery in the hotel’s segment demonstrates ITC’s capability to capitalize on the revival of the hospitality industry.
As ITC continues to explore new avenues for growth and expand its presence across sectors, the company remains committed to delivering value to its shareholders. The announcement of dividends further underscores ITC’s dedication to rewarding its investors and enhancing shareholder wealth.
Moving forward, ITC is poised to leverage its diverse business portfolio, customer-centric approach, and operational excellence to sustain its growth trajectory and further strengthen its position as a leading player in the Indian market.
On a standalone basis, ITC’s revenue from operations also experienced a healthy growth rate, rising by 7% to reach Rs 17,506 crore during the quarter. In comparison, the revenue for the same period last year stood at Rs 16,426 crore. This growth reflects the company’s ability to capitalize on market opportunities and effectively meet consumer demands.
To reward its shareholders, ITC has announced a final dividend of Rs 6.7 per share and a special dividend of Rs 2.8 per share. This gesture highlights the company’s commitment to providing value and returns to its investors, cementing its position as a shareholder-friendly organization.
