ITC announced on Monday that for FY 23–24, it will pay an interim dividend of ₹6.25 per common share, or ₹1. The FMCG behemoth has set February 8 as the record date in order to identify stockholders who qualify for the dividend.
The eligible shareholders will receive payment of the declared dividend between February 26 and February 28. “During the meeting, the Board declared an interim dividend for the fiscal year that ends on March 31, 2024, of ₹6.25 per ordinary share of Rs1 apiece. Members who are eligible to receive this dividend will get it between Monday, February 26, 2024, and Wednesday, February 28, 2024. In order to ascertain the Members’ entitlement to such an interim dividend, the board has designated Thursday, February 8, 2024, as the Record Date,” ITC stated in a stock exchange statement.
For the quarter that ended in December, ITC announced a 6% increase in its consolidated net profit of ₹5,335 crore. In the same period last year, the company reported a net profit of ₹5,006 crore.
ITC reported a 2% yearly increase in its operating revenue to ₹19,484 crore during the reviewed quarter. On Monday, the company’s shares finished at ₹450 per share on the BSE, 1.20% down.
According to ITC, the company’s overall operating revenue increased by 2% year over year to Rs 17,651.85 crore from Rs 17,265 crore.
Segment-wise performance:
- FMCG
Despite weak demand, the company performed well in the FMCG – Others area, with a YoY growth in segment sales of 7.6% and a 2-year CAGR of 12.8 percent. Agarbattis, Notebooks, Personal Wash, Homecare, Fragrances, Beverages, and Staples were some of the categories that contributed to the growth. According to ITC, the segment’s PBIT grew by 24.1 percent YoY, and its EBITDA margin climbed by 100 basis points to 11.0 percent.
- cigarettes
Consolidation in the cigarettes segment happened on a strong foundation after consistent growing momentum. With a 2-year CAGR of +9.3 percent for net segment revenue and +9.4 percent for segment PBIT, the net segment revenue and segment PBIT grew by 2.3 percent year over year. With targeted portfolio/market interventions and quick execution, the market position was strengthened, and premium and distinctive offers outperformed the competition. The segment’s continuous volume recovery from illegal trading was noted as a result of stable taxes and deterrence measures.
- Agribusiness
Trade limitations on agricultural commodities caused difficulties for the Agri Business category (-2.2 percent YoY), but income rose by 14.2 percent YoY excluding Wheat & Rice. Trade restrictions were the outcome of worries about inflation and global food security brought on by geopolitical tensions and climate emergency.
Through a Climate Smart Agriculture program that encompasses over 23 lakh acres and roughly 7.5 lakh farmers, the business is collaborating with farmers to strengthen the resilience of agricultural methods. According to a press statement from the company, a cutting-edge facility for producing and exporting nicotine and items derived from nicotine has been put into service.
- Hotels
With sector revenue and PBIT rising by 18% and 57% YoY, respectively, the hotels segment had its best-ever quarter. Due to increased RevPARs, structural cost interventions, and operating leverage, the segment’s EBITDA margin increased by 470 basis points year over year to 36.2 percent. The Stock Exchanges did not oppose to the demerger plan, according to ITC.
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