The share price of India’s leading FMCG company fell by 2.8% to an intraday low of ₹437.25 per share from its previous close of ₹450 on Tuesday, following the company’s quarterly results for December.
ITC Ltd has announced its financial results for the December quarter, along with an investor presentation and interim dividend update for the fiscal year ending 2024 on Monday, in the exchange filing.
Looking at its financials the company’s net revenue increased by 1.7% YoY from ₹17,705 crores in Q3FY23 to ₹18,019 crores in Q3FY24 and on the QoQ basis its net revenue rose by 1.3% from ₹17,774 crores in Q2FY24.
The net profit of the company rose by 6.4% YoY from ₹5,080 crores in Q3FY23 to ₹5,407 crores in Q3FY24 and on the QoQ basis, their net profit rose by 9% from ₹4,965 crores in Q2FY24.
Additionally, the board of directors approved an Interim Dividend of ₹6.25 per share for the Financial Year ending 31st March 2024.
ITC Ltd in its FMCG segment, posted a 7.6% YoY revenue increase. In the cigarette segment, there was a 2.3% YoY growth in both revenue and PBIT, consolidating market standing.
In the Hotels segment, the company delivered, 18% and 57% YoY growth in revenue and PBIT. Agri-business faced challenges due to trade restrictions by the government, but excluding Wheat & Rice, it achieved a 14.2% YoY revenue increase.
ITC actively promotes Climate Smart Agriculture in collaboration with farmers. Despite challenges, the integrated model helped mitigate margin pressure in Paperboards, Paper, and Packaging.
Additionally, the company has achieved record-high production of in-house chemical pulp and anticipates the commissioning of a premium Moulded Fibre Products facility soon.
ITC Ltd is a large-cap company with a market capitalization of ₹5,46,830 crores, the share price of the company rose by 25% in the last year.
The company has a low price-to-earnings ratio of 27 compared to its competitors, it is a debt-free company with a return on equity of 29%, a return on capital employed of 39%, and a net profit margin of 27%.
ITC, which was founded in 1910, is the country’s largest cigarette manufacturer and seller. At the moment, ITC is active in five business segments: FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri-Business.
Written by Sriram KV
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