ITC Q4FY24 results – Net Profit dips 1.3%

ITC announced its Q4 FY24 results today, the company’s revenue surged by 1.1% to reach Rs.16,579 crore, reflecting a growth trajectory. However, net profit witnessed a marginal decline of 1.3% to Rs.5,020 crore, because of flattened cigarette sales. Similarly, EBITDA figures also exhibited a slight reduction, down by 0.8% to Rs 6,162 crore along with 70 bps decline in EBITDA margin from 37.9% to 37.2%

Financial Highlights 

Dividend Declaration

ITC proposed a year-end dividend of Rs.7.50 per regular share for Q4FY24. When coupled with the interim dividend of Rs.6.25 per share announced on January 29, 2024, the total dividend for FY24 will amount to Rs.13.75 per regular share.

ITC’s Profit Dips 

ITC faced a setback in its profit for the fourth quarter due to tough competition from smaller rivals, which hurt demand. The drop in profit came mainly from fewer cigarette sales and lower profits in its FMCG business.

Going Digital 

ITC used digital strategies to learn more about its customers and keep them interested in its products. It also launched over 100 new products focused on health, hygiene, and convenience. ITC expanded its reach by selling in more places, especially in rural areas and online. Their online platform, UNNATI eB2B, now serves almost 7 lakh outlets, and digital sales make up 31% of total sales.

Conclusion: ITC Ltd’s Q4FY24 saw a slight dip in standalone net profit and EBITDA, yet consolidated net profit rose marginally. Revenue growth, though below expectations, remained positive. The dividend declaration of Rs.13.75 per regular share for FY24 underscores the company’s shareholder commitment. Strategic digital initiatives and expanded rural market presence showcase ITC’s adaptability and innovation.

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.