ITC Q3 net profit rises 15%, firm declares interim dividend of Rs 5.25

The e-commerce sales continued to grow rapidly during the year with sales at nearly 3x of FY20 level, says ITC

Fast-moving consumer goods (FMCG) company ITC on Thursday reported 15% rise in consolidated net profit at Rs 4,056 crore  for the quarter ending December 31, 2021. The company reported consolidated net profit of Rs 3,526 crore in the year-ago period. 

The Board of Directors of the company, India's biggest cigarette maker, has declared an interim dividend of Rs 5.25 per share. The record date for the interim dividend is February 15 and will be paid on March 4. 

Consolidated revenue from operations rose 30% to Rs 18,366 crore as against Rs 14,125 crore a year ago. 

On Thursday, ITC's scrip on BSE closed trading 0.58% higher at Rs 233.50.

ITC said that a sharp escalation in input costs was largely offset through strategic cost management programmes, premiumisation, judicious pricing actions, fiscal incentives and favourable business mix.

In rural markets, the branded packaged foods businesses grew well ahead of industry, said the company, which also makes Sunfeast biscuits and Classmate stationery. The e-commerce sales continued to grow rapidly during the year with sales at nearly 3x of FY20 level, it added.

Total expenses were higher at Rs 13,207.28 crore as compared with Rs 9,765.56 crore in the corresponding period last fiscal, the company said.

During the third quarter, the cigarettes segment clocked a revenue of Rs 6,958.79 crore as compared to Rs 6,091.17 crore in the same period last fiscal.

ITC said its other FMCG division had a revenue of Rs 4,099.47 crore as against Rs 3,752.61 crore in the year-ago quarter.

There has been robust growth in discretionary, out-of-home categories such as snacks, frozen snacks and beverages, while staples and convenience foods showed resilient performance, it added.

The hygiene portfolio continues to witness demand volatility in line with COVID-19 caseload intensity and remains significantly higher than pre-pandemic levels, the company said.

The hotels segment registered a revenue of Rs 495.53 crore, up from Rs 248.87 crore in the third quarter last fiscal. Occupancy has recovered to pre-pandemic levels and there is also a strong sequential improvement in the average room rate but is still below pre-pandemic levels.

Although domestic leisure travel and the festive, wedding season boosted demand along with progressive improvement in business travel, the Omicron wave has impacted recovery momentum in January 2022, ITC said.

Its agri business revenue jumped to Rs 5,157.36 crore in the third quarter, up from Rs 2,694.27 crore in the same period a year ago. It was driven by wheat, rice, spices, leaf tobacco exports by leveraging on strong customer relationships, robust sourcing network and agile execution, it added.

Revenue from paperboards, paper and packaging vertical also improved to Rs 2,046.48 crore from Rs 1,477.53 crore in the third quarter previous year, the company said.

With inputs from PTI