Discover the triumphant rise of ITC as it posts a remarkable 6.5% surge in Q3 profits, reaching an impressive consolidated net profit of Rs 5,335 crore. Dive into the financial highlights, dividend declaration, and segment-wise performance. Uncover ITC’s resilience in challenging business landscapes.
In a triumphant announcement on Monday, ITC Ltd revealed a robust performance in its third-quarter financial results for the fiscal year 2023-24. The conglomerate reported a 6.5% increase in consolidated net profit, reaching an impressive Rs 5,335 crore compared to Rs 5,007 crore in the same period the previous year. This positive outcome was attributed to heightened demand across a spectrum of products, ranging from cigarettes to noodles.
Financial Highlights and Dividend Declaration
The consolidated revenue from operations experienced a 2% upswing, totaling Rs 19,485 crore in Q3FY24, compared to Rs 19,021 crore in Q3FY23. ITC’s unwavering commitment to delivering value to its stakeholders is further exemplified by the declaration of an interim dividend of Rs 6.25 per share for FY24. The dividend payout is scheduled between February 26 and February 28, with February 8 marked as the record date, according to the company’s stock exchange filing.
Despite these remarkable achievements, ITC’s scrip on BSE witnessed a 1.2% dip in trading, closing at Rs 450 on Monday. This fluctuation in share prices is reflective of the dynamic nature of the market.
Segment-wise Performance
Breaking down the performance across its diverse business segments, ITC reported a 2.5% increase in revenue from the cigarettes business, amounting to Rs 8,295 crore in Q3FY24, compared to Rs 8,086 crore in the corresponding period of the previous year. The FMCG-others business also displayed notable growth, with revenues reaching Rs 5,218 crore, marking an 8% increase from the Q3FY23 figure of Rs 4,849 crore.
In a statement, ITC acknowledged the challenging macro-economic and operating environment but expressed confidence in its ability to navigate short-term challenges. The company attributes its resilient performance to a focus on consumer centricity, purposeful innovation, agility, and execution excellence.
Business Segments: Challenges and Triumphs
While ITC’s hotels business, slated for demerger into a separate entity, recorded an impressive 18% jump in revenue, fueled by a robust revival in domestic tourism and increased demand from corporate bookings, its paperboards, paper, and packaging business faced headwinds. This segment experienced a nearly 10% decline in revenue, impacted by competition from cheaper Chinese brands and a slowdown in international sales due to sluggish economic conditions.
In summary, ITC’s Q3 results underscore its ability to navigate challenges and deliver commendable performance across various business segments.
Conclusion
As ITC continues to focus on consumer satisfaction, innovation, and operational excellence, the Q3 results stand as a testament to the company’s resilience in the face of a dynamic economic landscape. The positive trajectory in net profit and revenue growth across key segments positions ITC as a formidable player in the market. With strategic moves such as the demerger of its hotels business, the company remains committed to creating sustained value for its stakeholders.
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