Shares of ITC gains over 4% to intra-day high of Rs 491 on NSE today after the diversified conglomerate announced its financial results for the quarter ended September 2024. ITC Ltd reported a consolidated net profit of Rs 4,993 crore for Q2 FY25, reflecting a modest 2% increase from Rs 4,898 crore in the corresponding quarter last year. However, this profit came slightly below Dalal Street estimates of Rs 5,079 crore.
Revenue Growth Surpasses Expectations
Revenue from operations rose by 15.6% year-on-year (YoY) to Rs 22,282 crore, beating market expectations of Rs 18,068 crore. ITC’s diverse business portfolio, spanning cigarettes, FMCG, hotels, agriculture, and paperboards, contributed to the robust revenue growth.
EBITDA and Margins
The cigarette-to-hotels conglomerate posted an EBITDA of Rs 6,335 crore for the July-September quarter of 2024. Margins stood at 32.8%, reflecting solid operational efficiency despite slightly missing profit forecasts.
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Segment-Wise Performance Of ITC
Cigarettes Business
The cigarettes segment, ITC’s core business, reported a revenue increase of 7% YoY, rising to Rs 8,879 crore from Rs 8,328 crore in the same period last year. Profit before tax (PBT) for the segment also saw a 5% YoY growth, reaching Rs 5,242 crore.
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FMCG-Others Business
ITC’s FMCG-others segment posted revenues of Rs 5,585 crore for the quarter, up 5% from Rs 5,303 crore a year ago. The PBT for this division grew slightly to Rs 444 crore, indicating steady demand in the FMCG sector.
Hotels Business
The hotels division had a strong quarter, with revenue growing 17% YoY to Rs 789 crore, compared to Rs 675 crore in Q2 FY24. Despite the healthy revenue growth, the PBT for the hotels business dipped to Rs 117 crore, down from Rs 133 crore in the same period last year,
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