According to unicommerce, the diversified Fast-Moving Consumer Goods (FMCG) industry in India is the fourth largest sector, valued at approximately USD 56.8 billion as of December 2022. It is projected to grow at a CAGR of 27.9%, potentially reaching USD 615.87 billion by 2027, driven by urbanization and rising disposable incomes.
With a market capitalization of Rs 6.44 lakh crore, the shares of ITC Ltd were trading at Rs 515.05 per share, increasing around 0.03 percent as compared to the previous closing of Rs 514.90 apiece.
Financial performance:-
The company’s revenue surged 7.5%, increasing from Rs 70,919 crore in Q1FY24 to Rs 70,866 crore in Q1FY25. However, net profit zoomed by 7%, jumped from Rs 19,477 crore to Rs 20,751 crore, indicating strong revenue growth despite a decrease in profitability during the same period.
Revenue Split:-
In FY23-24, ITC’s total segment revenue reached ₹76,274 crore in FY23-24, a 1% increase from ₹75,826.58 crore in FY22-23. The majority of revenue, 63%, came from the FMCG segment, followed by agribusiness at 19%, paperboards and packaging at 10%, hotels at 4%, and other sources contributing the remaining 4%.
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Future investment & plans:-
ITC aims to capitalize on market potential and achieve leadership across segments, creating value for stakeholders. The company plans to invest ₹20,000 crore over the next five years, primarily in its non-cigarette FMCG business. ITC targets growth surpassing nominal GDP, especially in domestic consumption-driven sectors.
Furthermore, the company is projected to open 27 hotels in the following 24 months, making their current hotel portfolio of over 130 hotels more definite.
Demerger Business:-
ITC Hotels, known for pioneering “responsible luxury,” is officially separating from its parent company, ITC Ltd., following approval from the National Company Law Tribunal. In a shareholder meeting, the demerger received overwhelming support, with 99.6% of shareholders voting in favor of the move.
Moreover, ITC Hotels will be listed on the stock market this fiscal year, with a 10:1 share split. Shareholders will receive 1 share of the newly listed ITC Hotels for every 10 ITC shares they hold. ITC will retain a 40% stake in the hotel business, while 60% will be distributed to shareholders.
Company overview:-
ITC Limited, based in India, operates in FMCG, Hotels, Paperboards, Packaging, and Agri Business. Its FMCG segment includes cigarettes, personal care, and branded foods such as snacks, dairy, and confectionery.
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Written by:- Abhishek Singh
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