Excluding its agriculture business, which was severely affected by government restrictions on agricultural trade, the company said its fourth-quarter total revenue increased 6% from the same period last year and pre-tax profit reached a record high.
However, while the hotel business posted its best performance ever, the cigarette business’ volume growth slowed. The revenue and profitability of the Agribusiness and Paperboard, Paper and Packaging businesses were both affected in the last quarter and FY24, impacting the company’s overall performance.
In its earnings release, the conglomerate said consumer demand remained weak in the fourth quarter, but improvements in macroeconomic indicators, a near-normal monsoon outlook and signs of rural demand recovery for the first time in several quarters are expected to improve the short-term outlook. said it would lead to a recovery in demand.
ITC standalone net profit for FY 2023-24 increased by 8.9% year-on-year to Rs 20,421.97 crore, but operating income decreased by just 0.2% to Rs 70,152.90 crore. ITC re-evaluated its provisions regarding uncertain tax positions for the past few years based on a favorable order of the Supreme Court received in the same year, resulting in deduction of Rs 468.44 million from current tax expense for the year said that it was done. ITC stock ended 0.33 per cent higher at Rs 441.2 on Thursday, while Sensex ended 1.61 per cent higher. The company’s board has recommended a final dividend of 7.5 rupees per share, which brings the total dividend for FY24 to 13.75 rupees per share, including the interim dividend. ITC, which has more than 75% share of India’s legal cigarette market, said its cigarette businesses would be consolidated. After sustained growth momentum, sales volume is on an increasing trend. However, the company said its differentiated premium products showed solid traction throughout the year. ITC said it has improved its mix, implemented strategic cost management and adjusted prices to offset the sharp rise in tobacco leaf prices and other inputs. Cigarette business unit revenue in the fourth quarter increased by 7.7% to Rs 7,924.84 crore. It increased by 8.5% to Rs 30,596.59 million. Business profitability also improved. In the previous quarter, it increased by 5% to Rs 4,923.10 crore and in FY24, it increased by 6.5% to Rs 19,089.17 crore.
In its non-tobacco consumer goods business, ITC posted revenues up 7% to Rs 5,300.17 crore in Q4 and up 9.6% to Rs 2,096.68 crore in FY24. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) fell 6.4% to Rs 616.42 crore in the quarter but grew 19.6% to Rs 2,338.5 crore in FY24. ITC said it had received certain financial incentives in the base period of Q4FY23.
The company said performance in categories such as staple foods, biscuits, snacks, dairy products, household products and agarbatti was “strong”, while its education and stationery products business remained strong.
In the hotels business, which is in the process of being demerged into a separate company, segment revenue grew 15% to Rs 8,979.1 crore in the fourth quarter and 15.6% for the year to Rs 2,989.5 crore. Segment profit grew 34% to Rs 2,670.7 crore in the March quarter and 39% to Rs 7,537.7 crore for FY24.
ITC said the government’s imposition of trade restrictions on agricultural commodities to ensure food security in India amid global food inflation has impacted the performance of its agribusiness business. Its board, paper and packaging business also continues to be impacted by low prices for supplies from China to India, weak domestic demand, high lumber prices and high base effects.
