Last Updated on January 30, 2024 by ethinos
On January 29, 2024, ITC Limited (BSE, NSE: ITC) announced its Q3 2023-24 results, with PAT up, Gross Revenue at a high, and the cigarette and FMCG segmens riding a wave of sustained growth momentum.
Table of Content
ITC Limited Q3 Result Key Result Takeaways
Here are the main highlights of the results for Q3 FY24:
- The Company’s Board recommended an Interim Dividend of ₹6.25 per equity share for FY24.
- In Q3 FY24, the Company’s Gross Revenue rose by 2.1% YoY with PAT at ₹5,572 Cr, a rise of 10.8% on a YoY basis.
- The Gross Revenue (ex-Agri Business) of the Company grew by 3.9% YoY and the 2-yr CAGR increased by 10.5%.
- Robust performance trends were seen in the segment of Resilient FMCG – Other Company segments performed under a muted demand atmosphere. The FMCG segment Revenue was up by 7.6% YoY.
- Within segments, the main drivers of growth were Dairy, Staples, Beverages, Personal Washes, Agarbattis, Fragrances, Homecare, and Notebooks.
- The Segment EBITDA margin increased 100 bps YoY, to 11.0% and the segment PBIT was up 24.1% YoY.
- Regarding sustained momentum growth, the segment of Cigarettes had a stellar run with segment Revenue and PBIT up by 2.3% YoY.
Additional Read: Q3 Results Dashboard
Other Relevant Q3 Highlights
ITC has posted a rise in Net Profit for Q3 FY24 and the Company’s growth is a reflection of its strong operational capabilities and other business achievements. Here are some pertinent details of the conglomerate:
- ITC Limited retained its market position as a result of its market interventions and focused portfolio executed with agility.
- Premium and differentiated offerings continued their healthy quarterly performance. This was reinforced by a relative stability in taxes.
- In terms of the Hotel segment, Q3 was the best-ever quarter, with segment Revenue at an impressive high up by 18% YoY.
- The stock exchanges have approved the demerger of the Hotel business in Q3 FY24.
- The Company’s Agri business was adversely impacted due to trade restrictions on agri commodities.
- The Company continues to be involved with farmers to build strength in agrarian practices to combat extreme weather conditions with its Climate Smart Agriculture Programme (covering 7.5 lakh Indian farmers and 23 lakh acres of land).
- In the Agri Product segment, robust client relationships and flexible execution in Leaf Tobacco & Value Added Agri products have driven growth.
- The Company has witnessed, as part of its expansion trajectory, the commissioning of a state-of-the-art facility for the manufacture and export of nicotine-derivatives and nicotine products. Shipments for export are estimated to start in Q4 FY24.
- The segment of Paper, Paperboards, and Packaging remains affected by low-priced Chinese supplies in international markets, sluggish domestic demand, and a rise in wood cost.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Cr as expressed by the Company’s Q3 results, except where indicated otherwise):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | YoY Growth % |
| Gross Revenue | 17,483 | 17,122 | 2.1% |
| EBITDA | 6,024 | 6,223 | -3.2% |
| PBT | 6,725 | 6,678 | 0.7% |
| PAT | 5,572 | 5,031 | 10.8% |
Additional Check: ITC Share Price
Q3 FY24 Result Summary
ITC limited is India’s top FMCG marketer, and has risen as a market leader in the Indian sector of Paperboard and Packaging, besides having the distinction of being internationally acknowledged as a pioneer in farmer empowerment via its far-reaching Agri Business. ITC is a trailblazing conglomerate with its business involved in the Hotel, IT, FMCG, Packaging, Paper, and Agribusiness industries. In the past decade, the conglomerate has displayed a vital portfolio of more than 25 premier brands that create value in India. ITC’s popular FMCG brands comprise Sunfeast, Bingo!, ITC Master Chef, Fiama, Classmate, to name a few. While many of these brands lead in the Indian market of consumer goods, others are making headway with each new quarter of the Company’s growth.
While the international demand for goods remains muted, in Q3 FY24, ITC witnessed domestic demand, although this was a bit slow post the festive period. For the most part, boiler and proactive capacity augmentation in Value Added Paperboards boosted the Company in partly lessening the pressure on margins. With a record-high manufacture of in-house chemical pulp, the Company has managed to leverage its recent expansion in capacity and cut costs. Furthermore, the Company has utilised its capacity at its Nadiad printing and packaging plant in Gujarat and has progressively ramped it up to suit the Company’s requirements for production. Additionally, in Q3 FY24, the Company estimated that its facility to manufacture premium moulded finre products would be commissioned soon. With its Agri business showing sustainable growth, new hotels in the pipeline, and the Company’s FMCG brands displaying the promise of growth and innovation, not to mention its cigarette segment, ITC has delivered a largely positive quarter amidst challenges in a characteristically weak season.
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Source: ITC Investor Presentation on BSE
