- ITC Ltd reported a 10% decline in standalone net profit to Rs 5,089 crore in Q3
- Revenue rose 6% to Rs 18,017 crore, slightly below analyst estimates of Rs 18,286 crore
- EBITDA increased 7.6% to Rs 6,271 crore, marginally below estimated Rs 6,273 crore
ITC Ltd. reported a fall in net profit in the third quarter of the current financial year, even as it met street expectations. Standalone net profit fell nearly 10% to Rs 5,089 crore in the October-December quarter, compared to Rs 5,638 crore in the year-ago period, according to a stock exchange filing on Thursday. Analysts consensus estimates compile by Bloomberg projected Rs 5,234 crore.
The company had to make a one-time provision of Rs 273.83 crore with respect to increase in liability of gratuity and compensated absences, primarily arising due to change in definition of wages under the New Labour Codes.
ITC Q3 Results (Standalone, YoY)
- Revenue up 6% at Rs 18,017 crore versus Rs 17,053 crore (Bloomberg Estimate: Rs 18,286 crore)
- EBITDA up 7.6% at Rs 6,271 crore versus Rs 5,828 crore (Estimate: Rs 6,273 crore)
- Margin at 34.8% versus 34.2% (Estimate: 34.3%)
- Profit down 10% at Rs 5,089 crore versus Rs 5,638 crore (Estimate: Rs 5,234 crore)
The FMCG-Others segment delivered robust performance with 12.6% revenue growth along with margin expansion by 145 bps. Income from agri business segment rose 6.3% led by value added agri products and leaf tobacco. The paper segment's profits increased 11% YoY.
ITC also reported sustained volume-led growth momentum in cigarettes business with net segment revenue up 8% YoY. The cigarettes business will continue to invest in its powerful trademarks and well-laddered product portfolio, innovation capacity, manufacturing excellence, integrated seed-to-smoke value chain, and world-class last mile execution capability to reinforce its market standing, the statement said, adding that increase in tax incidence on cigarettes will provide further impetus to illicit trade.
The board approved an interim dividend of Rs 6.5 per share.
Shares of ITC ended 0.8% lower at Rs 318.65 on the BSE, ahead of the results, compared to a 0.3% advance in the benchmark Sensex. The stock is down 26% on a 12-month basis.
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