ITC Q1 Results Highlights: Net Profit Rises Up to ₹4,917 Cr

ITC Ltd announced an increase in its standalone net profit for the June quarter, reaching ₹4,917 crore. The company's revenue from operations saw a 7% increase, rising to ₹18,220 crore in Q1FY25. The company's margin was 37% in Q1FY25, compared to 39.5% in Q1FY24.  The FMCG businesses achieved a 6.3% year-on-year revenue growth, reaching ₹5,491 crore.

ITC Q1 Results Highlights

On August 1, ITC Ltd announced a slight increase in its standalone net profit for the June quarter, reaching ₹4,917 crore compared to ₹4,903 crore in the same quarter the previous year, falling short of market predictions.

A Moneycontrol survey of seven brokerage firms had estimated ITC’s net profit for the fiscal first quarter to be ₹5,137 crore, with revenue projected at ₹17,171 crore.

The company's revenue from operations saw a 7% increase, rising to ₹18,220 crore in Q1FY25 from ₹16,995 crore in Q1FY24. The FMCG EBITDA margin increased to 11.3%, reflecting a 25 basis points year-on-year rise, with certain commodities experiencing a sequential price uptick. 

According to the company, despite muted demand, the FMCG businesses achieved a 6.3% year-on-year revenue growth, reaching ₹5,491 crore on a high base (with a two-year CAGR of +11.1%).

Staples, snacks, dairy, personal wash, fragrances, homecare, and agarbatti were the primary growth drivers. However, the company noted in their statement that an "extreme heatwave adversely impacted categories with higher salience of discretionary and out-of-home consumption."

The cigarette segment experienced a 7% increase in net segment revenue and a 6.5% rise in PBIT year-over-year. The company attributed this to "a sharp escalation in costs of leaf tobacco and certain other inputs were largely mitigated through improved mix, strategic cost management, and calibrated pricing." The increased costs of leaf tobacco and other agricultural commodities put pressure on margins during the quarter.

In the hotel sector, ITC reported a revenue growth of 10.9% year-over-year, with PBIT increasing by 11.5% YoY. The ITC Ratnadipa in Colombo, which opened in April 2024, is now operational with 225 rooms and eight F&B outlets. Agri-Business revenues saw a 22.2% increase, fueled by value-added agricultural products, leaf tobacco, and wheat.

On August 1, ITC’s stock on the NSE closed 0.46% lower at ₹493.05 per share. The company's margin was 37% in Q1FY25, compared to 39.5% in Q1FY24.

ITC Management Commentary

In a statement, the company said, "While private consumption expenditure remains relatively subdued, the Indian economy continues to be extremely resilient amidst a global growth slowdown due to multi-dimensional and purposeful policy interventions by the Government, with sustained public expenditure in creating physical, digital, agri, and rural infrastructure."

About ITC

ITC Ltd is a diversified conglomerate involved in fast-moving consumer goods, hotels, paperboards and specialty papers, packaging, agri-business, and information technology. The company's product range includes cigarettes, cigars, leaf tobacco, foods, personal care items, stationery goods, safety matches, incense sticks, paperboards, packaging materials, educational products, specialty papers, and agri commodities.

Major brands under ITC include Aashirvaad, Sunfeast, Yippee!, Bingo, Farmland, Sunrise, John Players, Gold Flake, Classmate, Aim, Engage, Superfine Printing, Mangaldeep, and i Kno. ITC also provides digital solutions through its wholly-owned subsidiary, ITC Infotech. Their products serve a broad customer base across B2C, B2B, and D2C segments. The company operates in North America, Europe, and Southeast Asia, and is headquartered in Kolkata, West Bengal, India.