ITC shares tumble nearly 3% after Q4 earnings

Shares of ITC declined nearly 3 per cent on Wednesday after the company's fourth quarter earnings failed to impress investors.

It dipped 2.88 per cent to close at Rs 209 on the BSE. During the day, it declined 3 per cent to Rs 208.70.

On the NSE, it tumbled 2.90 per cent to close at Rs 209.

In traded volume terms, 24.95 lakh shares were traded at the BSE and over 9.66 crore units at the NSE during the day.

ITC Ltd on Tuesday reported a consolidated net profit of Rs 3,816.84 crore for the fourth quarter ended March 2021.

The cigarette-FMCG-to-hotel major had posted a net profit of Rs 3,926.46 crore during the January-March quarter of the previous fiscal, ITC said in a regulatory filing.

Its revenue from operations was at Rs 15,404.37 crore during the quarter under review. It was Rs 12,560.64 crore in the corresponding period of 2019-20.

Meanwhile, ITC said its results for this quarter are not comparable with the earlier period as it also includes the revenue of Sunrise Foods, which it had acquired on July 27, 2020.

"The financial results of the group and 'FMCG Others' of the quarter and the financial year ended on March 31, 2021 include those of Sunrise from July 27, 2020 and consequently are not comparable with previous periods," it said.

Multi-conglomerate ITC Ltd on Tuesday said constraints in operating outlets and limited hours of operation are posing challenges, though there are no material supply chain bottlenecks during the lockdowns imposed amid the second wave of Covid-19.