ITC Net Profit Falls 11% To Rs 3,587 Crore In December Quarter

ITC Limited Q3 Results: FMCG-to-hotel major ITC Limited posted an 11.4 percent year-on-year decline in consolidated profit at Rs 3,587.09 crore in the third quarter of the current financial year, due to slower revenue growth and weak hotel business. The net profit stood at Rs 4,050.4 crore in the year-ago period. According to the company's regulatory filing to BSE, the consolidated revenue from operations grew by 6.1 percent year-on-year to Rs 14,124.48 crore in the October-December quarter of the current fiscal, compared to Rs 13,307 crore in the year-ago period.

According to the company's statement, the revenue from cigarette business was at Rs 6091.17 crore from Rs 5,944.86 crore in the year-ago period, while the non-cigarette FMCG businesses registered a revenue of Rs 3,752.61 crore. The company posted Rs 9,843.78 crore in revenue from the total FMCG business. The revenue from the hotel business declined to Rs 248.8 crore, compared to Rs 574.26 crore in the year-ago period. 

The fast-moving consumer goods (FMCG) segment EBITDA grew by 28 per cent to Rs.326 crores with margins expanding by 150 bps year-on-year to 9.2 per cent. The company registered a growth of 18.5 per cent in agri-segment revenue, driven by higher wheat supplies for Aashirvaad atta as well as trading opportunities in rice, soya, and wheat exports. ITC Limited's total expenses stood at Rs 9,765.56 crore in the December quarter of the financial year, compared to Rs 8,779.1 crore in the year-ago period. 

ITC's board declared an interim dividend of Rs 5 per share for the current financial year, which will be paid on March 10, 2021, to those members entitled.

Shares of ITC Limited settled 0.53 per cent lower to Rs 226.45 on the BSE. The shares of ITC Limited had opened the trading session at Rs 229.20 on the BSE and touched an intraday high of rs 229.30 and a low of Rs 224.50.