ITC Ltd has posted a 2.98 per cent rise in profit at ₹5,155.27 crore from continuing operations in the quarter ended March, with the company attributing the modest growth to the subdued demand conditions in the country amidst a sharp escalation in input costs. The company had clocked a profit of ₹5,006.14 crore in Q4FY24
Revenue from operations, however, rose 9.78 per cent to ₹20,376.36 crore in Q4FY25, compared with ₹18,561.59 crore in the same period of FY24. The ITC board has recommended a final dividend of ₹7.85 per share, taking the total annual payout, including interim dividend, to ₹14.35 a share against ₹13.75 per share in FY24.
For the full year, ITC recorded a 10.5 per cent rise in revenue at ₹81,612.78 crore against ₹73,891.43 crore in FY24. However, profit from the continuing operations was down 0.76 per cent on a consolidated basis to ₹20,036.47 crore in FY25 from ₹20,190.82 crore in FY24, hit by lower profit before tax from non-tobacco FMCG and paperboards, paper and packaging segments.
On January 1, 2025, ITC demerged the hospitality business to ITC Hotels, which has now been listed on the bourses. ITC booked a one-time non-cash fair value gain of ₹15,128.81 crore following the demerger. Consequently, reported profit in Q4FY25 and FY25 stood at ₹19,807.88 crore and ₹35,052.48 crore, respectively.
Commenting on the macro-economic context which impacted the operating environment, ITC said the cumulative impact of inflationary pressures on household savings, along with muted wage growth over the last few years, weighed on consumption expenditure, particularly in urban markets.
However, the company said consumption may pick up, led by continued recovery in rural demand backed by a good monsoon, along with an improvement in urban demand amidst lower inflation levels, tax cuts announced in the Union Budget and the RBI’s interest rate cut, which would be supportive of growth.
The weakness in consumption was reflected in the muted volume growth of the FMCG sector. ITC also acknowledged a significant increase in competitive intensity from regional/local players.
The company pointed out that costs of several major inputs such as edible oil, wheat, maida, potato and cocoa witnessed a sharp escalation, especially in the second half of the financial year, weighing on margins.
While revenue from non-tobacco FMCG business (food, personal care) grew 3.7 per cent to ₹5,503.33 crore, profit before tax slipped 27.8 per cent to ₹346.18 crore.
However, the cigarette division came to the rescue of the company as always with revenue growing 6.2 per cent to ₹9,228.66 crore and PBT growing 4.8 per cent to ₹5,402.57 crore in Q4. Abneesh Roy of Nuvama noted that cigarette volume growth at 5 per cent year-on-year was ‘slightly ahead’ of their estimate of 4 per cent.
ITC’s agri business reported a 17.8 per cent rise in revenue and a 35.4 per cent jump in PBT to ₹3,694.64 crore and ₹252.71 crore, respectively.
The paperboards, paper and packaging division reported a 5.58 per cent rise in revenue but a 33 per cent fall in PBT to ₹2,188.69 crore and ₹194.96 crore, respectively.