Cigarettes-to-agri-to-hotels conglomerate ITC Ltd. reported a 2% volume growth for the April-June period, sources in the know told CNBC-TV18. This is in-line with the CNBC-TV18 poll, which had pegged the figure to be between 2% and 3%.
The company reported a 0.3% year-on-year (YoY) increase in net profit at ₹4,917.5 crore for the first quarter that ended June 30, 2024. In the corresponding quarter, ITC posted a net profit of ₹4,902.7 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹5,100 crore for the quarter under review.
The company’s revenue from operations increased 7.4% to ₹17,000 crore as against ₹15,828 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA was up 0.7% to ₹6,295.4 crore in the first quarter of this fiscal over ₹6,250 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹6,400 crore for the quarter under review.
EBITDA margin stood at 37% in the reporting quarter as compared to 39.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 38.3% for the quarter under review.
The company’s gross revenue stood at ₹18,077 crore representing a growth of 7.3% year-on-year. Profit Before Tax (before exceptional items) stood at ₹6,555 crore. Earnings Per Share for the quarter stood at ₹3.94.
The FMCG and Others segment revenue and Profit Before Interest and Tax (PBIT) increased by 6.3% and 10.4% year-on-year, respectively, on a high base, with a 2-year CAGR of 11.1% and 52.8%. Growth was driven by categories such as staples, snacks, dairy, personal wash, fragrances, homecare, and agarbatti, with the segment’s EBITDA margin expanding by 25 bps year-on-year to 11.3%. A sequential uptick in prices was observed in certain commodities.
The Cigarettes segment saw a 7% rise in net segment revenue and a 6.5% increase in segment PBIT year-on-year, attributed to focused market interventions, agile execution, and the performance of differentiated and premium offerings. Volume recovery from illicit trade was sustained due to enforcement actions and stable taxes.
The Hotels segment reported a 10.9% increase in revenue and an 11.5% rise in PBIT year-on-year, despite fewer wedding dates and the impact of extreme heatwave and elections on domestic travel and dining.
The newly launched ITC Ratnadipa in Colombo received excellent guest response, and seven managed hotels with approximately 460 keys were operationalised during the quarter. Shareholders approved the demerger Scheme at the NCLT-convened meeting on June 6, 2024, and the petition for the Scheme’s sanction was filed with NCLT on July 22, 2024.
The Agri-Business segment experienced a 22.2% revenue increase, driven by value-added agri products, leaf tobacco, and wheat. Growth in leaf tobacco and value-added agri products was supported by strong customer relationships and agile execution, although cost escalation in leaf tobacco and other agri-commodities impacted margins during the quarter.
The results came after the close of the market hours. Shares of ITC Ltd ended at ₹493.75, down by ₹1.30, or 0.26% on the BSE.
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