ITC: Q3 2024 Results

Share on facebook
Share on twitter
Share on email
Share on whatsapp
Share on linkedin

Key Business Metrics1

Gross Revenue is up +2.1%. Gross Revenue (ex-Agri Business) is up +3.9%.

Profit (before exceptional items & tax) is up +0.8%. Profit (after tax) is up +10.8%. Quarterly EPS is up +10% (year-on-year basis) to ₹4.47.

Cigarette Segment: 40% weight in gross revenue, 78.5% weight in operating profit

Consolidation on a high base after a period of sustained growth momentum:

– Gross segment revenue is up +3.6%. Net segment revenue and operating profit are up +2.3% (2-yr CAGR: 9.3% and +9.4%, respectively)

– Market position reinforced through focused product portfolio & commercial interventions (i.e. differentiated and premium offerings) and agile execution
– Sustained volume claw back from illicit trade (relative stability in taxes coupled with effective enforcement)

– Sharp cost increases (leaf tobacco & certain other inputs) and taxes increases are largely mitigated through improved mix, strategic cost management and calibrated pricing

Other Highlights:

– Interim Dividend of ₹6.25/share for the FY ending March 31, 2024
– FMCG (revenue is up +7.6%): margin expansion (+100bps to 11%) driven by premiumization, supply chain agility, pricing actions, digital initiatives and strategic cost management

– Agri Business segment (revenue is down -2.2%): negatively impacted by trade restrictions imposed by the Government on agricultural commodities (stock limits on wheat, ban on non-basmati rice exports and export duty on parboiled rice) as the geopolitical tensions & climate emergencies raise concerns on food security. Excluding the wheat & rice exports, the agricultural revenue is up +14.2% as the strong customer relationships and agile execution in Leaf Tobacco & Value Added Agri products continue to drive growth in these categories.

– Mysuru factory (to manufacture and export of nicotine & nicotine derivative products conforming to US & EU pharma standards) is expected to commence exports in the current quarter.

– Paperboard, Paper & Packaging (revenue is down -9.7%): negatively impacted by low-priced Chinese supplies in global markets, muted domestic demand and surge in wood cost as well as a high base in Q3 2023.

References:

  1. https://www.itcportal.com/about-itc/shareholder-value/key-financials/quarterly-results.aspx ↩︎

Call Request:
Reports

We will reach out to you within 24 hours to discuss your request. Please note that we only respond to requests with a valid business e-mail address
Disclaimer: The content in our Market Pulse section is/shall not be construed as investment advice. It is for informative purposes only and does not take into account the individual needs, investment objectives and specific financial circumstances. Any action taken upon the information in our Market Pulse section is strictly at the reader’s own risk. We assume no responsibility or liability for the actions taken. Moreover, we also assume no responsibility or liability for any errors or omissions in our content – which is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness even if we only depend on the infromation sources that are believed to be accurate.

Consultation
Session Request

We will reach out to you within 24 hours to discuss your request. Please note that we only respond to requests with a valid business e-mail address