ITC Ltd has announced its standalone net profit for the March quarter, reporting a figure of Rs 5,020.2 crore. This represents a 1.31 percent decrease compared to the same quarter last year, attributed to stagnant cigarette volumes and reduced FMCG margins. The reported profit falls below market expectations, marking a challenging period for the tobacco and FMCG major.
Despite the decline in net profit, revenue for the quarter stood at Rs 17,752.87 crore, reflecting a marginal increase of 1.40 percent. However, this figure falls short of anticipated growth, as analysts had projected revenue to reach Rs 16,945 crore, a 4.9 percent increase.
In response to the Q4 results, ITC has recommended a final dividend of Rs 7.50 per ordinary share for the financial year ending March 31, 2024. When combined with the interim dividend of Rs 6.25 per share declared earlier in the year, the total dividend for the fiscal year will amount to Rs 13.75 per ordinary share.
The company’s Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter totaled Rs 6,162.6 crore, representing a decrease of 0.8 percent. Notably, EBITDA margins have fallen by 70 basis points year-on-year to 37.2 percent.
FMCG-Others Segment
Amidst weak demand and intensified competition from local players, ITC’s FMCG-Others segment delivered a commendable performance. The company achieved robust profit growth through strategic initiatives such as premiumization, cost management, and strategic pricing. Segment revenue witnessed a healthy growth of 9.6 percent, with EBITDA increasing by 19.7 percent to Rs 2338.50 crore. EBITDA margins improved to 11.2 percent, up 94 basis points.
Digital Strategies and Expansion Efforts
ITC’s digital strategies have played a pivotal role in enhancing consumer insights, engagement, and brand loyalty. With over 100 new product launches focusing on Health & Nutrition, Hygiene, and Convenience, the company has significantly strengthened its product portfolio. Market coverage has doubled compared to pre-pandemic levels, with substantial growth observed in rural areas and digital sales.
Moreover, the UNNATI eB2B platform now reaches nearly 7 lakh outlets, while digitally enabled sales account for 31 percent of total sales. ITC’s FMCG export footprint has expanded to over 70 countries, driven by the PLI scheme for categories like Biscuits, Cakes, Snacks, Dairy, and Ready-to-Eat foods.
Sustainable Initiatives and Future Outlook
In line with its mission to “Help India Eat Better,” ITC continues to focus on creating a sustainable ecosystem with healthier, affordable, and accessible products. Initiatives such as ‘Mission Millets’ promote a millet-based product portfolio and sustainable farming practices. The company has invested in 11 Integrated Consumer Goods Manufacturing and Logistics facilities to enhance product freshness, market agility, and cost efficiency.
Despite facing challenges in various segments, ITC remains committed to innovation, sustainability, and growth. With a strong focus on digital transformation and consumer-centric strategies, the company is poised to navigate the evolving market landscape and drive value for its stakeholders in the coming quarters.
