ITC said that its income for the quarter was Rs 16,995,40 crore, which was 7.23 percent lower than the same quarter last year, when it was Rs 18,320,16 crore.
ITC reported on Monday that its independent net profit for the June quarter was Rs 4,902.74 crore, up 17.58 percent from Rs 4,169.38 crore in the same quarter last year. This was more than the 11–13% profit growth that analysts had forecast before the quarterly report.
The revenue for the quarter was Rs 16,995,40 crore, which is 7.23 percent less than the same quarter last year, when it was Rs 18,320,16 crore. Analysts had expected sales increase to be about the same.
ITC said that its FMCG-Others segment had strong growth, with sales going up 16.1% year over year and going over Rs 5,000 crore for the first time in a quarter. The segment’s Ebitda margin grew by 325 basis points from the previous year to 11%. The growth was driven by staples, biscuits, noodles, drinks, dairy, agarbatti, and luxury soaps.
The sales of cigarettes went up by 10.9% compared to the same time last year. This was because police agencies took steps to stop illegal trade and taxes stayed about the same. The segment’s PBIT went up by 11.2% from the previous year. –
ITC said that focused portfolio/market actions and quick execution strengthened its position in the market. It said it was the best first quarter for its Hotels business ever. On a high start, the segment’s income went up 8.1% year over year. The segment’s profit before interest and taxes (PBIT) was up 17% year over year, which was driven by strong growth in ARRs. The Ebitda margin for this section went up 140 bps year over year to 33.9 percent. If you take out wheat exports, the Agri Business segment’s sales went up 31% year over year. The segment’s PBIT went up by 25.3% YoY.
“Strong customer relationships and quick delivery drive growth and margins in leaf tobacco and value-added agri-products. Geopolitical tensions have made people worried about food security and food inflation around the world. So that India has enough food to eat, the government has had to put limits on wheat and rice exports. ITC said that because of these rules, the Agri Business had fewer chances to make money during the quarter.
ITC said that its board had approved the plan of arrangement between ITC and ITC Hotels and their respective shareholders and creditors, as required by Sections 230 to 232 of the Companies Act, 2013.
In a filing with the BSE, ITC said that the plan involves the demerger of the demerged undertaking, which includes the Hotels Business of the demerged company, into the new company as a going concern and in exchange. ITC said that the resulting company would give equity shares to all the shareholders of the demerged company based on the share entitlement ratio, which is “for every 10 ordinary shares of face and paid-up value of Re 1 each held in the demerged company, one equity share of face and paid-up value of Re. 1 in the resulting company.”
After the Scheme is put into place, ITC owners will directly own about 60% of the new company, based on how many shares they own in ITC. ITC will own the other 40% of the new company. Overall, the owners of ITC will own all of the economic interest in the Hotels business. They will own about 60% of it directly and about 40% of it indirectly through ITC.