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Last Updated : Jan 23, 2019 03:26 PM IST | Source:

ITC Q3 profit up 4%, margin misses estimates; FMCG, cigarette drive revenues

Revenue from operations in Q3 grew by 15 percent year-on-year to Rs 11,227.66 crore, driven by gross across segments.

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Cigarette-hotel-to-FMCG major ITC has reported a 4 percent on year growth in profit at Rs 3,209 crore, which was on expected lines but margin missed estimates.

Profit was largely driven by other income that increased 30 percent YoY to Rs 836.4 crore in Q3.

Profit in the corresponding quarter of last fiscal stood at Rs 3,090 crore, which included an exceptional gain of Rs 413 crore.


Revenue from operations in Q3 grew by 15 percent year-on-year to Rs 11,227.66 crore, driven by growth across segments.

Cigarette business, which contributed over 40 percent to total revenue, increased 9.6 percent to Rs 5,074 crore in Q3FY19 with its EBIT (earnings before interest and tax) rising 8.8 percent YoY but margin contracted to 70.1 percent against 70.6 percent in same period last year.

Overall, EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 11.2 percent to Rs 4,325.8 crore YoY, but margin dipped to 38.5 percent against 39.8 percent year-ago that was also below the CNBC-TV18 poll estimates of 40 percent due to higher expenses.


Other FMCG, the second biggest segment under ITC, registered a 10.3 percent on year growth in revenue at Rs 8,274 crore. At operating level, its EBIT grew by 9.6 percent, but margin contracted to 43.9 percent against 44.2 percent YoY.

Other FMCG includes packaged foods, apparel, education and stationary products and personal care products.

Hotels business recorded 11.7 percent growth year-on-year in the third quarter revenue at Rs 452 crore and its EBIT increased 10 percent but margin dropped 30 bps to 13.3 percent YoY.

ITC said its agri segment registered a whopping 25.7 percent growth in revenue at Rs 1,925 crore YoY, but EBIT fell sharply by 14.8 percent in the quarter ended December 2018.

Paper business also showed an excellent performance during the quarter, growing 20.5 percent year-on-year to Rs 1,543 crore. Its operational earnings, too, were strong in Q3 as EBIT jumped 23.8 percent YoY to Rs 332 crore and margin improved by 50 bps.

At 1447 hours IST, the stock was quoting at Rs 282.00, down Rs 7.75, or 2.67 percent on the BSE.

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First Published on Jan 23, 2019 02:30 pm

tags #ITC #Results

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