ITC shares gain 2% after Q4 results; check earnings, brokerage review here

ITC's stock rose as much as 1.98 per cent after it reported a multifold increase in its profit for the fourth quarter

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Shares of ITC advanced nearly 2 per cent on Friday after the consumer goods giant posted multifold increase in its profit for the fourth quarter of the financial year 2024-25 (Q4FY25), boosted by an exceptional gain. 

 

ITC's stock rose as much as 1.98 per cent during the day to ₹434.4 per share, the biggest intraday gain since May 12 this year. The stock pared gains to trade 1.3 per cent higher at ₹431.8 apiece, compared to a 0.75 per cent advance in Nifty 50 as of 9:48 AM. 

 

Shares of the company have been trading range-bound since the beginning of the month. The counter has fallen 5.5 per cent this year, compared to a 4.8 per cent advance in the benchmark Nifty 50. ITC has a total market capitalisation of ₹5.4 trillion.  Track LIVE Stock Market Updates Here

ITC Q4FY25 results

ITC reported a sharp increase in consolidated net profit for Q4FY25, reaching ₹19,727.37 crore, nearly four times higher than ₹4,934.80 crore recorded in the same quarter last year. On a sequential basis, profit also rose significantly from Rs 5,120.55 crore reported in the quarter ended December 2024.

 

The significant surge in profit is attributed to the exceptional gain from discontinued operations, specifically related to the demerger of the company’s hotels business. Cigarette-to-soap conglomerate saw its adjusted profit rise 3 per cent to ₹5,155.27 crore during the quarter. 

 

Revenue from operations rose marginally to ₹20,376.36 crore in Q4FY25, compared to ₹20,349.96 crore a year earlier. On a quarter-on-quarter basis, revenue rose from ₹18,561.59 crore in Q3FY25. 

ITC management commentary 

ITC described its performance as “resilient” amid a subdued demand environment and sharp escalation in input costs.

 

The company noted that the cumulative impact of inflationary pressures on household savings, coupled with muted wage growth in recent years, continued to weigh on consumption expenditure, particularly in urban markets. The weakness in consumption was reflected in the muted volume growth of the FMCG sector.

 

However, ITC expects consumption expenditure to improve progressively, led by a recovery in rural demand backed by a good monsoon, along with improvement in urban demand amid lower inflation and tax cuts announced in the Union Budget. 

ITC dividend declared

Moreover, the board of directors of the company recommended a dividend of ₹7.85 per share, subject to the approval of shareholders. Together with the interim dividend of ₹6.50 per share announced in February 2025, the total dividend for the financial year 2024-25 stands at ₹14.25 per share.

Nuvama's view on ITC Q4 results

According to the brokerage, palm oil prices have started to correct, and the benefits of this trend could be seen in the financial year ending March 2026. Agricultural exports are expected to remain strong, supported by a favourable monsoon and ongoing capacity expansion. 

 

Nuvama has retained its ‘buy’ rating on the stock with a revised sum-of-the-parts (SoTP) target price of ₹532, down from the earlier ₹571.