Diversified conglomerate ITC on June 1 reported a 1.3 percent year-on-year (YoY) decline in standalone profit for March 2021 quarter, impacted by higher tax cost compared to lower tax expenses in the base quarter (Q4FY21). The company's last 10 days of March 2020 quarter was impacted by the nationwide lockdown to contain the virus spread.
The standalone profit declined to Rs 3,748.4 crore, compared to Rs 3,797 crore reported in the year-ago quarter, meeting analysts' expectations.
Standalone revenue from operations (excluding excise duty) in Q4FY21 grew by 22.6 percent to Rs 13,294.7 crore YoY, beating expectations. Revenue (including excise duty) rose 24 percent YoY to Rs 14,156.96 crore during the quarter.
Profit was estimated at Rs 3,765 crore on revenue (excluding excise duty) of Rs 12,200 crore the quarter, according to the average estimates of analysts polled by CNBC-TV18.
The operating performance missed analysts' expectations as the EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 7.4 percent to Rs 4,473 crore and margin contracted 480 bps YoY to 33.6 percent in the quarter ended March 2021, against CNBC-TV18 poll estimates of Rs 4,585 crore and 37.6 percent, respectively.
The total expenses at Rs 10,075.03 crore increased 31.5 percent compared to year-ago period, ITC said in its BSE filing.
Cigarette business, which contributed 41 percent to total business, clocked 14.2 percent YoY growth in Q4FY21 at Rs 5,859.6 crore and its EBIT (earnings before interest and tax) grew by 7.7 percent to Rs 3,666.49 crore during the quarter.
FMCG (others) revenue at Rs 3,687.5 crore, grew by 15.8 percent in March 2021 quarter YoY and at operating level, its EBIT increased 28.4 percent to Rs 188.63 crore during the quarter, said ITC.
Hotels segment remained impacted by the pandemic, reporting a 38.2 percent YoY decline in revenue at Rs 287.77 crore and posting EBIT loss of Rs 40.1 crore in Q4FY21 against EBIT at Rs 42.6 crore in Q4FY20.
Agri business (including soya, spices, coffee and leaf tobacco) delivered strong numbers during the quarter with revenue rising 78.5 percent YoY to Rs 3,368.92 crore and EBIT climbing 54.2 percent to Rs 189.85 crore YoY.
ITC said its paperboards, paper & packaging business registered a 13.5 percent YoY growth in revenue at Rs 1,655.91 crore and 13.1 percent rise in EBIT at Rs 323.25 crore in the quarter ended March 2021.
The company's board has also recommended a final dividend of Rs 5.75 apiece.
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