ITC’s Q3 FY25 results shows a 7% decline in net profit to ₹4,935 crore. Revenue rose 8% to ₹20,350 crore. Growth in agriculture, FMCG, cigarettes, and hotels segment offset challenges in paperboard and packaging segments.
The Board has also proposed an interim dividend of ₹6.5 per share for the financial year ending March 2025.
The cigarettes segment recorded an 8% growth in revenue and a 4% increase in profit before tax (PBT). ITC focused on portfolio management and tackling illicit trade, contributing to volume-driven growth.
Cost escalations in leaf tobacco were partially offset by improved mix, pricing, and focused cost management. Trade marketing spends were also restructured for more effective execution.
The FMCG segment saw a 4% increase in revenue, reaching ₹5,418 crore. The growth was driven by atta, spices, snacks, frozen snacks, dairy, premium personal wash, homecare, and agarbatti products.
Despite inflationary pressures on key inputs like edible oil, wheat, and cocoa, ITC managed to mitigate the impact through cost management, strategic pricing, and premiumization. Competitive marketing investments continued during the quarter.
The agri business segment’s revenue grew 10% YoY, driven by leaf tobacco and value-added agri exports. Profit before interest and tax (PBIT) increased 22% YoY.
The value-added agri portfolio saw strong growth, especially in coffee exports, with continued expansion of the state-of-the-art value-added spices processing facility in Guntur.
The paperboards and packaging segment experienced a 3% increase in revenue, primarily due to strong export growth. The operating environment remained challenging due to low-priced imports from China and Indonesia, high domestic wood costs, and soft domestic demand.
However, ITC’s strategic focus on portfolio development, export markets, and cost management helped mitigate the challenges.
The hotels segment showed exceptional performance with a 15% YoY increase in revenue, totaling ₹922 crore. Profit before tax surged 43% YoY to ₹302 crore. EBITDA margins expanded by 450 bps, driven by higher revenue per available room (RevPAR), operating leverage, and strategic cost management.
Following the demerger on January 1, 2025, ITC Hotels became a separate entity.
As of February 7, 2025, ITC Limited’s share price traded at ₹437.40, marking a decline of ₹3.70 or 0.84% at 9:20 AM on the NSE from the previous close of ₹441.10. The stock opened at ₹440.00 and reached a high of ₹445.50 and a low of ₹436.00 during the trading session.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 7, 2025, 9:30 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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