Shares of ITC Ltd have remained flat today with a gain of around 0.4 percent. It opened its trading session at Rs 387.35 and currently trades at Rs 388.90. The scrip has been observed to move consistently since the start of this year. In the past six months, the stock has provided returns of around 20 percent to its shareholders.
In a recent filing with the exchange, it announced the divestment of its entire shareholding (4,65,09,200 Equity Shares of Rs. 10/- each) equivalent to 26% of the paid-up share capital held in its Joint Venture Company ‘Espirit Hotels Private Limited’. Adding on to the same, it mentioned that Espirit ceases to be its Joint Venture Company.
ITC Ltd is an Indian conglomerate that primarily operates in the consumer goods space, particularly cigarettes. The company’s operations are basically performed in four main business segments such as Fast Moving Consumer Goods, Hotels, Paperboards, Paper and Packaging, and Agri-Business.
Majority of the company’s total revenue comes from the Fast Moving Consumer Goods Business, which is further dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories.
Digging into the financials of the company, the revenues and net profit numbers have gone up on a QoQ basis. Revenues increased from Rs 18,608 crores in Q2 to Rs 19,021 crores in Q3. Moreover, the net profits reported show an upward movement from Rs 4,670 crores in Q2 to Rs 5,070 crores in Q3.
Coming onto the profitability aspects, the ROE as well as ROCE percentages have increased on a YoY basis. ROE moved from 21.96 percent in FY20-21 to 25.89 percent in FY21-22. ROCE too went up from 28.65 percent in FY20-21 to 33.87 percent in FY21-22.
Factoring in the tax impact, the net profit margins of the company have reduced from 25.18 percent in FY20-21 to 23.78 percent in FY21-22.
Written by Amit Madnani
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