FMCG conglomerate ITC has delivered a robust performance in the third quarter of fiscal year 2023-2024, surpassing market expectations.

The key highlights from the company’s recent financial results are as follows:

1) Net Profit Surge: 

ITC announced a consolidated net profit of ₹5,335 crore for the quarter ending in December, marking a 6% increase from the previous year’s corresponding period.

Sequentially, the net profit witnessed a notable growth of over 13% from the September quarter.

2) Revenue Growth: 

Revenue from operations saw a 2% year-on-year increase, amounting to ₹19,484 crore in the December quarter.

Sequentially, revenue grew by 1.11% from the previous quarter, reaching ₹19,270 crore.

3) EBITDA Margin and Performance: 

Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) stood at ₹6,024 crore, with a margin of 36.6%, reflecting a slight decrease.

Segment-wise, the Profit Before Tax (PBT) for FMCG-others saw significant growth, increasing by 23%.

4) Segment Performance: 

While the cigarettes business reported a modest increase in revenue, the FMCG-others segment demonstrated robust performance, recording an 8% growth.

The hotels business witnessed a substantial surge in both revenue and profit before tax, indicating a commendable quarter.

Conversely, the agri-business and paperboards segments faced challenges with marginal declines in revenue.

5) Interim Dividend Declaration: 

The company declared an interim dividend of ₹6.25 per share for the fiscal year ending March 2024, indicating confidence in its financial position.

Additionally, ITC’s strategic cost management and calibrated pricing actions across its cigarettes and FMCG portfolio have contributed to the strong financial performance. Despite subdued demand for cigarettes and escalated leaf tobacco prices, the company’s FMCG and hotels segments reported strong growth.

Looking ahead, ITC remains optimistic about the outlook, citing improving farm terms of trade and higher government spending as favorable factors. However, it remains cautious about agri-commodity inflation and other macroeconomic challenges.

ITC’s Q3 FY24 results underscore its resilience in navigating a challenging operating environment while demonstrating solid growth across key business segments.