ITC Q1 Results: Profit rises 18% YoY to Rs 4,903 cr, beats estimates

ITC Ltd has announced its financial results for the first quarter of the fiscal year ending in June 2024 on 14 August. 

During the quarter ending in June, the company witnessed a 7.2% year-on-year decline in its revenue from operations, amounting to Rs 16,995.49 crores, down from Rs 18,320.16 crore in Q1FY23. The total income for the first quarter reached Rs 17,704.23 crore, in comparison to Rs 18,632.85 crore in the corresponding period of the previous year. 

As per the regulatory filing, the company’s operating profit for Q1FY24 amounted to Rs 6,250 crore, reflecting year-on-year growth of 10.7% in comparison to the Rs 5,648 crore reported during the corresponding period of the previous year. 

The company’s net profit for this period has increased by 17.6% compared to the same period in the previous year, reaching Rs 4,902.74 crore. In the corresponding period last year, the company reported a profit of Rs 4,169.38 crore. 

However, the net profit has decreased by 3.6% sequentially when compared to the fourth quarter of FY23, where it stood at Rs 5,086.86 crore. 

When examining the revenue by segments, it becomes evident that the Cigarette business experienced a growth of 13%, rising from Rs 6,609 crore to Rs 7,465 crore. Similarly, the FMCG business also demonstrated a 16% increase, reaching Rs 5,166 crore. 

The Hotel business displayed an 8% growth, moving from Rs 555 crore to Rs 600 crore. In contrast, Agribusiness witnessed a decline of 24%, going from Rs 7,473 crore to Rs 5,705 crore. Lastly, the Paperboards, Paper, and Packaging segment reported a decrease of 6%, amounting to Rs 2,121 crore. 

The ITC board approved the acquisition of a 25% stake in Maharaja Heritage from Russel Credit. Shareholders will receive one share of the hotel company for every 10 shares held in the company, as stated by the company. The tentative timeline for the listing of ITC Hotels is estimated to be around 15 months. 

The shares of ITC opened the day at Rs 451.90, showing a nearly flat opening compared to the previous day’s closing price of Rs 448.95 each on the BSE. Currently, they are trading around Rs 453.55, reflecting an increase of 4.60 or 1.02% from the previous trading day’s closing price. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.