ITC Q1FY24 results: Net profit rises 16% to Rs 5,180 cr, revenue down 6%

The company also announced acquisition of 45.36% stake in International Travel House Limited and 25% stake in Maharaja Heritage Resorts Limited

FMCG giant ITC Ltd on Monday reported a 16 per cent rise in its consolidated net profit to Rs 5,180 crore in the quarter that ended on June 30, as compared to Rs 4,462 crore in the corresponding year last year. Sequentially, the net profit was down marginally by 0.8 per cent from Rs 5,225.02 crore. 

The company's revenue from operations was down 6 per cent year-on-year (y-o-y) to Rs 18,639.48 crore from Rs 19,831.27 crore last year. Sequentially, the revenue was down 2.19 per cent from Rs 19,058.29 crore. 

The cigarettes-to-hotels conglomerate's standalone profit rose 17.6 per cent to 4,902.7 crore in the June quarter from 4,169.38 crore a year earlier, it said in an exchange filing.

The company also announced acquisition of 45.36 per cent stake in International Travel House Limited (ITHL) and 25 per cent stake in Maharaja Heritage Resorts Limited (MHRL), an unlisted company, from Russell Credit Limited, a wholly owned subsidiary ITC. 

"The proposed acquisitions by the company, as stated above, shall be subject to obtaining relevant approvals from the board of directors of RCL, and execution of transaction documents in due course," the regulatory filing said.  

Moreover, the board of ITC also approved the scheme of arrangement after the demeger of its Hotel business. 

The scheme says that for every 10 ordinary shares of face and paid-up value of Rs 1 each held in the ITC Ltd, 1 equity share of face and paid-up value of Rs 1 in ITC Hotels will be given to shareholders.