ITC Q4 Results 2022: Net profit jumps 11.8%

On 18th May 2022,  ITC announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- ITC reported a Profit Before Tax at Rs.5442 Crores for Q4FY22 from Rs.4854 Crores in Q4FY21, with a growth of 12.1%

- The company's revenue from operations rose 16.2% to Rs.15307 Crores in the quarter under review from Rs.13176 Crores in the same quarter last fiscal.

- ITC reported a net profit of Rs.4191 Crores from Rs.3748 Crores in Q4FY21, jump by 11.8% 

FY2022: 

- The company reported PBT at Rs.19830 Crores for FY2022 from Rs.17164 Crores in FY2021, with a growth of 15.5%

- The company's revenue from operations rose by 23.2% to Rs.55724 Crores for the year from Rs.45216 Crores in FY2022.

- ITC reported a Net profit of Rs.15058 Crores with a growth of 15.5% YoY.

Segment Highlights:

FMCG

Cigarette: The Cigarette segment reported revenue at Rs.6443 Crore with a growth of 10.% YoY for Q4FY22.

The cigarette volume for the company has now reached pre-pandemic levels.

Other FMCG Products: The other FMCG products segment reported revenue at Rs.4142 Crore with a growth of 12.3% YoY for Q4FY22.

The FMCG business, despite an unprecedented increase in prices of key inputs, performed well through focused cost management interventions across the value chain, premiumization, product mix enrichment, and judicious pricing actions.

The Company executed over 110 new product launches across target markets.

Hotels:

The hotels' segment reported revenue at Rs.390 Crore with a growth of 35.4% YoY for Q4FY22.

Consequently, the business incurred a loss of Rs 29 crore at the EBITDA level compared to a loss of Rs 40 crore during the same quarter last year. The business had an EBITDA of Rs 53 crore in the quarter that ended December 2021.

“There was a sequential improvement in ARRs (average room rates); however, remain below pre-pandemic levels”, the company said in its release. “Domestic leisure and wedding segments drive recovery; progressive improvement in business travel; the nascent revival of international travel”.

Agri-Business:

The Agri-Business segment reported revenue at Rs.4366 Crore with a growth of 29.6% YoY for Q4FY22.

“The growth was driven by wheat, rice, leaf tobacco exports leveraging strong customer relationships, investments in sustainable value chains, robust sourcing network and agile execution”, the company said in its release.

Paperboards, Paper, and Packaging: 

The Paperboards, Paper, and Packaging segment reported revenue at Rs.2183 Crore with a growth of 31.8% YoY for Q4FY22.

“Paperboard volumes were at record high aided by demand revival across most end-user segments”, the company said. It continued to scale up its sustainable product portfolio. “Integrated business model, Digital & Industry 4.0 initiatives and proactive strategic interventions enable margin expansion amidst commodity price escalation”.

The company recommended a final dividend of Rs 6.25 per ordinary share of 1/- each for the financial year ended March 31, 2022.