Mostly in line with analyst estimates, diversified conglomerate ITC on Tuesday reported a 1.28% year-on-year (y-o-y) fall in its standalone net profit to Rs 3,748.41 crore for the fourth quarter ended March 31, as its gross revenue from sale rose 24.10% y-o-y.
The cigarette-to-FMCG-to-hotel major had posted a Rs 3,797.08 crore net profit for the fourth quarter of FY20. Gross revenue from sale for the period January-March this year stood at Rs 14,023.41 crore as against Rs 11,300.05 crore for the same period last year, according to the company’s stock exchange filing. The revenue growth beat analysts’ estimates.
During the period under review, the conglomerate’s tax expenses rose 54.66% y-o-y at Rs 1,105.49 crore.
ITC in a statement said it witnessed “strong sequential recovery” across all operating segments. “The operating environment during the year (financial year ended March 31, 2021) was rendered extremely challenging by the outbreak of the pandemic, which caused unprecedented disruptions across the company’s operating segments. The company pivoted smartly to address these dynamic challenges demonstrating agility and speed in adapting to the ‘new normal’ by resuming operations expeditiously and launching innovative products in record time to address emergent consumer needs,” it said.
During the fourth quarter last fiscal, revenue from the company’s cigarette business rose 14.21% y-o-y at Rs 5,859.60 crore, while operating profit from the segment increased by 7.74% y-o-y at Rs 3,666.49 crore during the period, according to the stock exchange filing.
“Continued recovery in cigarettes business with the progressive easing of restrictions and improved mobility; volumes touched nearly pre-Covid levels towards the close of the year,” the company said.
During the quarter under review, the non-cigarette FMCG business registered a 15.83% y-o-y growth in its revenue to Rs 3,687.50 crore, while the segment posted a 28.36% y-o-y growth in operating profit at Rs 28.36 crore during this period. The company said its FMCG-other’s segment sustained strong growth momentum, and Segment Ebitda grew at a robust pace of 44.1% (y-o-y) to Rs 1,316.83 crore with significant margin expansion of ~180 bps to 8.9%.
“Staples, Convenience Foods and Health & Hygiene sales up 13%; Staples & Convenience Foods witnessed normalisation in demand, Hygiene segment remained elevated albeit settling at lower levels compared to H1,” it said.
The hotel business posted a 38.21% y-o-y decrease in its revenue at Rs 287.77 crore, while the segment posted a Rs 40.10 crore operating loss in Q4 last fiscal. “After an extremely challenging first half, the Hotels Segment witnessed progressive improvement in revenues driven by focused interventions including the introduction of special packages for target segments, the launch of curated food delivery/takeaway menus,” the company added.