ITC posts 17.58% y-o-y growth in net profit on the back of decline in revenue

16 Aug 2023 , 10:03 AM

ITC Ltd. declared a standalone net profit of Rs 4,902.74 crore for the June quarter of FY24, up 17.58% from Rs 4,169.38 crore in the same quarter last year.

Following this development, the company’s counter was trading 1.25% higher in Wednesday’s early morning session. The stock was trading at Rs 454.80, against the previous close of Rs 449.20 on NSE.

The company’s total revenue stands at Rs 16,995.49 crore, down 7.2% from Rs 18,320.16 crore in the previous corresponding quarter, according to a regulatory filing.

The net profit was mostly in line, although revenue fell short of street estimates.

The Board considered and approved the demerger of the Hotels Business at its meeting on August 14, 2023, subject to necessary approvals, under a scheme of arrangement between ITC Limited and ITC Hotels Limited and their respective shareholders and creditors.

EBITDA was Rs 6,250.10 crore for the June 2023 quarter, up 10.70%. The EBITDA margin came in at 39.5%, up 680 basis points year-on-year.

FMCG – Others segment revenue is up 16.1% year-on-year and to cross Rs 5,000 crore for the first time in a quarter. The Cigarettes Segment continued robust performance with Net Segment Revenue increasing 10.9% y-o-y due to consistent volume. On a strong foundation, segment revenue in the Hotels business increased by 8.1% y-o-y.

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