ITC has reported a net profit Rs 19,562 crore for the fourth quarter of FY25. This however included a one-time exceptional item of Rs 15,179 crore from discontinued operations. Excluding the gains, net profit of the India’s largest cigarette-maker rose marginally, up 0.8 per cent YOY at Rs 4,875 crore, missing estimates, amidst a subdued demand environment and sharp escalation in input cost.
The firm’s standalone revenue from operations meanwhile rose to Rs 18,494 crore from Rs 16907.2 crore in the same quarter last year. Standalone earnings before interest rates, taxes, depreciation and ammoritization (EBITDA) grew 2.5 per cent YOY at Rs 5,986 crore. According to a Moneycontrol poll of nine brokerages, ITC was expected to report revenue of Rs 17,371 crore, rising 4.8 percent year-on-year. Analysts had pegged net profit at Rs 4,906 crore in Q4FY25.
On a consolidated basis, revenue rose 9 per cent to Rs 20,376.4 crore, while net profit attributable to owners stood at Rs 19727.4 crore , boosted by an exceptional gain from the ITC Hotels demerger Along with the Q4 results, ITC announced a final dividend of Rs 7.85 per share for FY25.
"The cumulative impact of inflationary pressures on household savings, along with muted wage growth over the last few years, continued to weigh on consumption expenditure, particularly in urban markets. The weakness in consumption was reflected, inter alia, in the muted volume growth of the FMCG sector," the company said in a statement.
The FMCG-to-cigarettes conglomerate said it expects consumption expenditure is expected to pick up progressively led by continued recovery in rural demand backed by a good monsoon, along with improvement in urban demand amidst lower inflation levels and tax cuts announced in the Union Budget, which is expected to boost disposable incomes.
Segment results
Standalone cigarette business' revenue rose 6 per cent to Rs 8,399.6 crore in the quarter, while profit was up 4 per cent at Rs 5,117.9 crore. ITC said that the premiun products continued to perform well, while the increase in leaf tobacco costs was offset by cost management initiatives and improved product mix.
FMCG business posted revenue of Rs 5494.6 crore, rising 3.7 per cent YOY on the back of strong sales of atta, spices, frozen snacks, dairy, premium personal wash, among others. Notebook sales remain impacted by heightened competitive intensity with opportunistic play by local/regional brands led by sharp drop in paper prices. FMCG business EBITDA declined 20.5 per cent YOY as cost of several major inputs such as edible oil, wheat, maida, potato and cocoa witnessed sharp escalation.
Revenue from agri business rose 18 per cent at Rs 3,649 crore and profit rose 26 per cent YOY at Rs 255 crore.
Revenue from Paperboards, Paper & Packaging business rose 5.5 per cent at Rs 2,188 crore but the segment posted a 31 per cent decline in profit as low priced Chinese & Indonesian supplies, soft domestic demand, lower realisations= continue to impact industry performance, the company said in an investor presentation.
"The business had to contend with sub-optimal domestic wood availability and quality issues even as wood prices witnessed sharp escalation during the year, exacerbated by heavy cyclonic rainfall in core plantation areas and spurt in demand from other wood based industries. The Business continues to focus on accelerating plantations in core areas, developing new areas, collaborating with other wood-based industries and implementing satellite-based plantation monitoring systems, among others," ITC said.
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