ITC – Riding a bullish streak

ITC is the largest cigarette manufacturer and seller in India which was established in 1910. ITC operates in five business segments at present — FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri Business.

Quarterly Growth Walkthrough

FMCG major ITC Ltd. has registered a 23% Year-on-Year growth in its consolidated net profit to ₹5,225 crore for the fourth quarter which ended in March 2023 (Q4FY23). The company had reported a profit of ₹4259 crore in the corresponding year-ago period.

Revenue from operations (excluding excise duty) for the company have risen by 5.6 percent YoY to ₹16,398 crore from ₹15,531 crore in the corresponding year-ago period.

The company’s consolidated total income for Q4FY23 was reported at ₹19,668 crore from ₹18,253 crore in the year ago period.

The company’s EBITDA was computed at ₹6,209 crore during Q4FY23 which is up by 19% Year-on-Year as compared to ₹5,224 crore which was computed during Q4FY22.

The company registered a growth of 430 basis points in its Q4FY23 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin at 38% as compared to 34% on a Year-on-Year basis.

Segment wise Growth

The cigarette business has grown by 14% YoY to achieve a revenue of ₹7,356 crore in the March quarter.

FMCG segment revenue has surged by 20 percent to ₹4,945 crore.

The hotels business revenue has nearly doubled to ₹781 crore.

Declaration of Dividend

FMCG major ITC Ltd has announced a final dividend ₹6.75 and a special dividend of ₹2.75 per ordinary share of ₹1 each for the financial year ended on 31 March 2023.

ITC has fixed 30 May 2023 as the record date for the dividend which will be paid between 14 August 2023 and 17 August 2023.

ITC had declared an interim dividend of ₹6 in February 2023, thus taking the total dividend for the financial year ended 31 March 2023 to Rs 15.50 per ordinary share of ₹1 each.

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