ITC Q3FY25 Results: Standalone profit rises 1% to Rs 5,638 cr, beats estimates; FMCG growth muted
Mumbai: Diversified conglomerate ITC Ltd posted a 1% year-on-year rise in standalone net profit to Rs 5,638 crore for the quarter ended December 31, 2024, reported Moneycontrol.
The growth was primarily fuelled by its agriculture, hotels, and cigarettes businesses, while its FMCG segment saw muted growth amid a challenging demand environment.
The company had reported a net profit of Rs 5,572 crore in the same period last year.
On a consolidated basis, net profit declined 7% YoY to Rs 5,013.2 crore, while revenue from operations grew to Rs 20,350 crore from Rs 18,880.4 crore a year ago.
Standalone revenue for the quarter rose 8% to Rs 18,290 crore from Rs 16,864 crore in Q3FY24.
ITC also announced an interim dividend of Rs 6.5 per share, according to its filing on February 6.
Key Business Segment Performance
Cigarettes: Net segment revenue rose 7.8% YoY to Rs 8,136.3 crore, with profit before interest and tax (PBIT) up 4.1% to Rs 4,924 crore. ITC noted strong performance in premium products, while higher leaf tobacco costs were offset by an improved product mix and calibrated pricing.
FMCG (Ex-Cigarettes): Revenue increased 4% to Rs 5,418.2 crore, led by sales in atta, spices, snacks, frozen snacks, and dairy. However, segment profit fell 26% YoY to Rs 317 crore, impacted by inflation in edible oil, wheat, cocoa, and packaging costs. The notebooks segment also saw weakness due to a high base effect and competition from local brands.
Hotels: The business posted 14.6% revenue growth to Rs 922 crore, with PBIT surging 43.4% to Rs 302 crore, driven by strong retail, wedding, and F&B segments. EBITDA margin expanded by 450 basis points YoY, aided by higher revenue per available room (RevPAR), operating leverage, and cost management.
Agri-Business: Revenue grew 9.7% YoY, supported by strong leaf tobacco demand and robust growth in value-added agri-products, particularly coffee exports.
Paperboards, Paper & Packaging: The segment faced pressure from low-cost Chinese and Indonesian imports, weak domestic demand, and rising wood costs, limiting revenue growth to 3% YoY. Export growth provided some support.
ITC highlighted cost escalations in key inputs, including edible oil, wheat, potato, leaf tobacco, and wood, as challenges during the quarter. EBITDA increased 3% to Rs 6,197 crore, reflecting resilience in core segments despite cost pressures.
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