Shares of the Indian conglomerate ITC Limited closed today at Rs, 475.10, gaining nearly 2 percent compared to the previous closing levels of Rs 466.35. The scrip hits its all-time high level at a price of Rs 480.65. The company has a market capitalization of Rs 5,91,000 crores.
Such movements in stock prices are witnessed after sources responded to CNBC-TV18 that the demerger of ITC’s Hotel business is underway. Further, it was also known that the conglomerate company is exploring alternate structures which are in line with the industry dynamics.
Digging into the consolidated financials, ITC’s operating revenues as well as net profits, portraying a smooth flow of business, have gone up with the former increasing from Rs 60,668 crores during FY21-22 to Rs 70,936 crores in FY22-23 and, the latter, moving from Rs 15,485 crores to Rs 19,427 crores.
Moreover, the net profit margins have shown decent growth shifting from 25.52 percent during FY21-22 to 27.38 percent in FY22-23. Profitability metrics such as the return on capital employed (RoCE), keeping the timeframe the same, moved up from 31.89 percent to 35.81 percent.
The company has paid a total dividend of Rs 12.75 per equity share during FY22-23, thereby, making the dividend yield of 2.70 percent. Moreover, it paid out a special dividend of Rs 2.75 per equity share during the same period.
ITC Limited is primarily operating in the ‘consumer goods’ with the majority of its revenue coming from the sale of cigarettes. The company, broadly, has four business segments including Fast Moving Consumer Goods (FMCG), Paper & Packaging, Hotels, and Agri-Business.
Written by Amit Madnani
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