On a bleeding day on D-Street, this conglomerate was rallying!
Yesterday, this conglomerate posted its robust Q4 results that managed to beat the market expectations. Let’s dig deeper into this.
ITC, which is a part of the S&P BSE Sensex, operates in five business segments at present; FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri-Business.
ITC reported an 11.80% YoY rise in the standalone net profit at Rs 4,190.96 crore for the quarter ended March 2022 compared to Rs 3,748.42 crore in the same quarter the previous year. This quarter, revenue from operations saw a rise of 16% YoY to Rs 16,426 crore from Rs 14,156.98 in the same quarter the previous year.
Despite the challenging environment that was initially caused by the pandemic and followed by geopolitical tensions, the conglomerate succeeded in overcoming them and delivered exceptional returns. A consumer-centric approach, backed by speed and agility in execution, was at the core of the company’s response to navigate the heightened uncertainty and volatility in the operating environment.
In terms of segmental growth, FMCG revenue grew 12.3% during the quarter to Rs 4,141.97 crore and the revenue of the cigarette business grew by 10% to Rs 6443.37. In its report, it said that the cigarette business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratizing premiumization across segments, and enhancing product availability backed by superior on-ground execution.
The hotel business also saw a recovery regardless of the issues created by the third wave of the pandemic. It reported revenue growth of 35.3% to Rs 389.64. The business responded with agility focusing on alternate customer segments and revenue streams, such as domestic leisure, staycations and long weekends, and weddings.
The agriculture business reported a 29% growth in revenue. This was due to strong growth in wheat, rice, spices, and leaf tobacco exports on the back of strong customer relationships, a robust sourcing network, and agile executions, the company said.
The paperboards, paper, and packaging segment revenue grew 31.8% because of demand revival across most end-user segments, higher realisations, product mix enrichment, and exports. Overall, the company has not only recovered the losses caused by the pandemic in all the segments, but also has managed to give a stellar performance. Post the Q4 results, the stock price of ITC has rallied by 3.53% in today’s trading session and the scrip ended at Rs 275.90. The stock hit its fresh 52-week high of Rs 279.15 and has a 52-week low of Rs 200.85.
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