Q3FY22: ITC earnings robust led by growth across verticals, PAT rises to Rs4056.73cr, Cigarette biz increases over 14% yoy, declares interim dividend

4 Feb 2022 , 11:26 AM

FMCG major, ITC has surpassed street’s expectations for the quarter ending December 2021 (Q3FY22) by posting stellar growth in consolidated net profit to Rs4056.73cr compared to Rs3526.55cr of the same quarter last year and Rs3713.76cr of the preceding quarter.

Consolidated revenue was also robust at Rs18365.80cr in Q3FY22 against Rs14124.48cr of the corresponding quarter last year. The company’s revenue was at Rs14844.38cr in the previous quarter.

ITC’s Cigarette business posted revenue growth of 14.2% yoy to Rs6,958.8cr. ITC said that “robust recovery continued across markets aided by an increase in mobility and, agile supply chain and market servicing.”

Further, FMCG business logged a revenue growth of 9.2% yoy to Rs4,099.5cr in the quarter under review. In the segment, EBITDA was up 46% over Q3 FY20; EBITDA margin at 9.1% (+140 bps Vs. Q3 FY20; -50 bps y-o-y) in spite of unprecedented inflation in commodity prices. FMCG business recorded robust growth in Discretionary/Out-Of-Home categories; resilient performance in Staples and Convenience Foods. Also, the hygiene portfolio continues to witness demand volatility in line with Covid caseload intensity and thus remains significantly higher than pre-pandemic levels.

Meanwhile, ITC’s hotels business revenue doubled to Rs495.5cr in Q3FY22. ITC outlined that easing of travel restrictions, pickup in leisure travel and onset of the festive/wedding season boosted ARR and Occupancy levels. Revenue augmented through sharply targeted packages (Welcombreak, City Getaways etc.) catering to emerging trends and consumer needs along with focused communication campaigns.

Whereas, agri-business revenue nearly doubled to Rs5,157.4cr and revenue in paperboards, paper & packaging segment increased by 38.5% yoy to Rs 2,046.5cr in Q3FY22.

For agri-business, ITC said that segment Revenue up 100% is driven by strong revenue growth in wheat, rice, spices, leaf tobacco exports leveraging strong customer relationships, robust sourcing network and agile execution. In Paperboards, Paper & Packaging Segment, ITC said that volumes were at a record high during the quarter on the back of demand revival across most end-user segments and exports.

ITC board has recommended an Interim Dividend of Rs. 5.25 per share for the Financial Year ending 31st March 2022.

At around 11.20 am, ITC was trading at Rs234.60 per piece flat compared to the previous closing on BSE. Although, the stock was in a green tone but witnessed lacklustre demand.