ITC Ltd has reported a 6% rise in net profit to Rs 5,088 crore for the December quarter, supported by strong performance across its FMCG, hotels, paperboards, and agribusiness segments. The company also announced an interim dividend, reflecting its commitment to shareholder value creation. The results highlight ITC’s resilience in a competitive market and its ability to balance traditional businesses with new growth drivers.
Key Highlights of Q3 Results
- Net profit rises 6% YoY to Rs 5,088 crore.
- Revenue growth driven by FMCG and hotels segment.
- Interim dividend announced, rewarding shareholders.
- Cigarettes business stable, despite regulatory challenges.
- Hotels and FMCG expansion continues to boost margins.
- Paperboards and packaging segment shows steady growth.
Financial Snapshot
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Net Profit (₹ crore) | 5,088 | 4,800 | +6% |
| Revenue (₹ crore) | 20,500 | 19,200 | +7% |
| EBITDA (₹ crore) | 6,200 | 5,800 | +7% |
| Cigarettes Revenue (₹ crore) | 7,800 | 7,500 | +4% |
| FMCG Revenue (₹ crore) | 5,200 | 4,700 | +11% |
| Hotels Revenue (₹ crore) | 1,200 | 950 | +26% |
This snapshot highlights ITC’s diversified growth across multiple segments.
Segment-Wise Performance
| Segment | Growth (%) | Contribution to Revenue |
|---|---|---|
| Cigarettes | 4 | 38% |
| FMCG | 11 | 25% |
| Hotels | 26 | 6% |
| Paperboards | 8 | 18% |
| Agribusiness | 7 | 13% |
The FMCG and hotels segments continue to be the fastest-growing areas, while cigarettes remain a stable contributor.
Interim Dividend Announcement
ITC Ltd has declared an interim dividend, reinforcing its commitment to rewarding shareholders. The dividend reflects the company’s strong cash flow and confidence in sustaining growth across businesses.
Comparative Analysis with Peers
| Company | Net Profit Growth (%) | Revenue Growth (%) | Dividend Status |
|---|---|---|---|
| ITC Ltd | +6 | +7 | Interim dividend announced |
| Hindustan Unilever | +5 | +6 | Dividend declared |
| Nestle India | +8 | +9 | Dividend declared |
| Britannia | +4 | +5 | Dividend declared |
ITC’s performance remains competitive with peers, particularly in FMCG growth and shareholder returns.
Strategic Initiatives
- FMCG expansion: Launch of new packaged food and personal care products.
- Hotels growth: Aggressive expansion in premium and mid-market segments.
- Digital transformation: Leveraging e-commerce and digital platforms for FMCG.
- Sustainability focus: Investments in renewable energy and eco-friendly packaging.
- Agribusiness strengthening: Enhancing supply chain efficiency and exports.
Market Reaction
Investors have responded positively to ITC’s Q3 results, with the stock witnessing upward momentum. Analysts highlight ITC’s ability to balance traditional cigarette business with growth in FMCG and hotels, ensuring long-term sustainability.
Future Outlook
- FMCG growth: Expected to remain strong with new product launches.
- Hotels segment: Continued expansion to benefit from rising domestic tourism.
- Cigarettes business: Stable contribution despite regulatory challenges.
- Sustainability initiatives: Focus on renewable energy and eco-friendly packaging.
- Shareholder value: Continued dividend payouts and strong cash generation.
Conclusion
ITC Ltd’s Q3 results reflect resilience and growth, with net profit rising 6% to Rs 5,088 crore and an interim dividend announced. The company’s diversified portfolio across FMCG, hotels, paperboards, and agribusiness ensures balanced growth, while its strategic initiatives in sustainability and digital transformation position it strongly for the future.
Disclaimer
This article is intended for informational and analytical purposes only. It highlights ITC Ltd’s Q3 results and their implications for the business and shareholders. Readers should not interpret this content as investment advice or an official financial statement. For precise details, consult official company filings and financial reports.
