ITC's gains depend on margin recovery and revival in FMCG segment

ITC's Q4FY25 net profit rose 0.8 per cent on strong cigarette volumes but pressure in FMCG and paperboards hit margins, with rural demand holding the key

 

For the fourth quarter of financial year 2024-25 (Q4FY25), FMCG giant ITC reported 9.6 per cent year-on-year (Y-o-Y) growth in revenues, with operating profit soaring 2.5 per cent and net profit by 0.8 per cent.

 

The big gains were made on the back of healthy volumes in the cigarette segment.

 

The FMCG topline grew 3.7 per cent Y-o-Y, but segment profit declined 28 per cent. The paperboards’ segment profit declined 31 per cent despite a low base (profit was down 55 per cent in Mar ’24 versus Mar’23). Inflationary pressure could continue to hurt margins.

 

ITC’s gross