ITC Ltd Q4 PAT down -2.62% at Rs3,755cr as non-cigarette FMCG business faces margin pressure

ITC Ltd reported 21.76% yoy rise in consolidated sales revenues for the Mar-21 quarter at Rs14,342.27cr

Jun 01, 2021 07:06 IST India Infoline News Service

ITC Ltd reported 21.76% yoy rise in consolidated sales revenues for the Mar-21 quarter at Rs14,342.27cr. On a sequential basis, the top line income was up by modest 9.65% as compared to Rs13,079.72cr in the sequential Dec-20 quarter. The gross sales have been adjusted for the excise duties to reflect the net sales revenues to the company.

Among the various diversified verticals of ITC, the cigarettes business saw higher sales on a yoy an sequential basis. While FMCG sales were up yoy, they were actually down sequentially due to COVID 2.0. The hotels business saw revenues falling by 37% yoy but the agri-business saw good growth on yoy basis. Paperboards also showed 13% yoy growth.

The operating profits were up by 9.10% at Rs4,462.61cr. The yoy growth in EBITDA came principally from cigarettes, agri-business and paper verticals. Hotels was the one segment that dipped into EBITDA loss in the quarter due to weak occupancy rates. Operating margins at 31.12% in Mar-21 quarter were lower than 34.72% in Mar-20 quarter.

The consolidated Profit after tax (PAT) for the Mar-21 quarter was down -2.62% at Rs3,755.47cr, largely on account of a 50% spike in the tax bill in the Mar-21 quarter. Net margins at 26.18% were lower than 32.73% in the Mar-20 quarter.

Financial highlights for Mar-21 compared yoy and sequentially

Rs in Crore Mar-21 Mar-20 YOY Dec-20 QOQ
Total Income (Rs cr) ₹ 14,342.27 ₹ 11,782.16 21.73% ₹ 13,079.72 9.65%
Operating Profits (Rs cr) ₹ 4,462.61 ₹ 4,090.39 9.10% ₹ 4,371.53 2.08%
Net Profit (Rs cr) ₹ 3,755.47 ₹ 3,856.52 -2.62% ₹ 3,526.55 6.49%
Diluted EPS (Rs) ₹ 3.05 ₹ 3.13 ₹ 2.87
Operating Margins 31.12% 34.72% 33.42%
Net Margins 26.18% 32.73% 26.96%

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