A man walks past the ITC logo.
Credit: Reuters File Photo
Bengaluru: Consumer goods major ITC on Thursday reported a rise in its standalone profit before tax and exceptional items for the January-March quarter at Rs 6,417 crore as compared to Rs 6,288 crore in the corresponding period last year on the back of a growing rural demand as well as its cigarette business.
Its peers on the other hand, including Hindustan Unilever and Nestle India had reported weaker fourth quarter results due to continued subdued urban demand as well as a sharp and persistent uptick in input costs including palm oil, coffee among others.
However, its net profit stood at Rs 19,561.57 crore for the quarter under review, propped up by an one-time exceptional item of Rs 15,179 crore gained from the demerger of its hospitality arm into ITC Hotels. Its standalone revenue from operations jumped 9.4 per cent to Rs 18,494 crore for the quarter as compared to Rs 16, 907 crore in the year-ago period.
"The cumulative impact of inflationary pressures on household savings, along with muted wage growth over the last few years, continued to weigh on consumption expenditure, particularly in urban markets. The weakness in consumption was reflected, inter alia, in the muted volume growth of the fast moving consumer goods (FMCG) sector," the company said in a statement.
Its popular household brands including Sunfeast, Bingo and Aashirvaad grew 3.7 per cent to Rs 5,495 crore while its primary revenue churner - tobacco products - clocked a nearly 6 per cent growth.
The Yippee noodles maker is expecting consumption expenditure to pick up progressively on account of a recovery in rural demand, moderation in inflation and tax cuts, followed by a pickup in government capex and interest rate cuts.
The Kolkata-headquartered company’s board has recommended a final dividend of Rs 7.85 per share of Re 1 each for FY25. Its shares fell close to 2 per cent on Thursday, closing at Rs 425.5 on NSE.