ITC Q4 results: Net profit zooms 247% on exceptional gain, EBITDA rises 3%; company announces dividend of ₹7.85/share

ITC, the country's leading fast moving consumer goods (FMCG) company, on Thursday, May 22, reported net profit of ₹19,561.57 crore in January-March quarter, marking an increase of 247% from ₹5,638 crore in the same period last year. The sharp surge in profit in March quarter came on the back of an exceptional gain of ₹15,179.43 crore on demerger of hotels business.

"Hotels Business posted its highest ever Revenue and operating profits on the back of strong growth in RevPAR for the 9 months ended 31st December, 2024. Profit Before Exceptional items and Tax stood at ₹573 crore (₹445 crore for the same period in previous year; ₹691 crore for FY24). Profit After Tax from Discontinued operations for FY25 stood at ₹15104 crore (previous year ₹512 crore), including an exceptional gain of ₹15163 crore," ITC said in a press release.

ITC's net profit before tax and exceptional item declined 2% to ₹6,417 crore from ₹6,546 crore in year-ago period.

The company's revenue from operations rose 1.1% to ₹18,494 crore as against ₹18,290 crore in the year-ago period.

ITC reported stable operational performance as its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 3% to ₹5,986 crore and its EBITDA margin expanded by 50 basis points to 32.37%.

Overall profit after tax for FY25 (including profit from discontinued operations) stood at ₹35,196 crore.

ITC reported a 4% year-on-year (YoY) rise in revenue from its FMCG segment, driven by strong performance in categories such as atta, spices, snacks, frozen snacks, dairy, premium personal wash, homecare, and agarbatti. Despite inflationary pressures and intense competition in some areas, the segment showed resilient growth, the company said.

However, the notebooks sub-segment faced challenges due to increased competition from local and regional brands capitalising on the sharp decline in paper prices.

Premium portfolio offerings and alternate distribution channels continued to support overall FMCG growth. The company navigated severe cost inflation in key inputs including edible oils, wheat, maida, potatoes, cocoa, and packaging materials through a combination of cost management, product premiumisation and calibrated price hikes, ITC added.

In the cigarette business, ITC reported a 6% YoY increase in net segment revenue for Q4, with segment profit before interest and tax (PBIT) up 4% YoY. The company attributed the growth to strategic interventions across portfolios and markets, particularly in regions vulnerable to illicit trade.

Premium and differentiated cigarette offerings continued to perform well, bolstered by innovation and brand strength. Cost pressures, especially from rising leaf tobacco prices, were partially offset through a richer product mix, ITC added.

ITC shares ended 1.58% lower at ₹426 ahead of its earnings announcement.