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ITC Ltd, one of India's leading diversified conglomerates, recorded an impressive financial performance for the quarter and fiscal year that concluded recently. The company's consolidated net profit for the final quarter saw a nearly four-fold increase year-on-year, while its annual profit surged close to 69%. Although quarterly revenue growth remained subdued, annual revenue witnessed a healthy 10.4% rise. The board has recommended a final dividend of INR 7.85 per ordinary share, reflecting confidence in the company's financial strength. Interestingly, ITC's shares closed lower on the day the results were declared, as the announcement came after trading hours.
ITC Ltd, the well-established Indian conglomerate with a diverse business portfolio spanning FMCG, hotels, paperboards, and agri-business, delivered an exceptional financial performance for the quarter ended recently. The company reported a consolidated net profit of INR 19,807.8 crore, marking a sharp rise from INR 5,013.18 crore posted during the same period a year ago. This nearly four-fold increase underscores a robust recovery and enhanced profitability across its verticals. Advertisement
Despite the sharp rise in profit, the company?s revenue from operations for the quarter remained nearly unchanged, standing at INR 20,376.3 crore compared to INR 20,349.9 crore in the corresponding quarter of the previous financial year. The flat revenue performance suggests stable operational activity, even as the company significantly improved its margin efficiency.
On a full-year basis, ITC reported a consolidated profit of INR 35,052 crore for the fiscal year that concluded recently, a notable 68.9% increase from INR 20,751 crore in the previous year. The revenue from operations for the year rose 10.4%, reaching INR 81,612.78 crore. This uptick is attributed to consistent performance across the conglomerate?s core business segments, especially the FMCG and hotel divisions, which have seen steady post-pandemic recovery.
In line with its strong financials, the company?s board recommended a final dividend of INR 7.85 per ordinary share of INR 1 each. This move signals confidence in the company?s financial health and is likely to benefit long-term shareholders.
Earlier this week, shares of ITC closed 1.58% lower at INR 426.10 on the BSE. The financial results were released after market hours, which may have prompted cautious trading sentiment despite the stellar profit growth.
Historically, ITC has maintained a balanced strategy of strengthening its FMCG segment while continuing to derive substantial earnings from its traditional tobacco business. Over recent quarters, the company has also accelerated investments in newer categories such as digital commerce and sustainable packaging, which could contribute to long-term growth.
The company's ability to generate high margins and offer strong dividends positions it well in the eyes of investors looking for stability and yield. While the market?s initial reaction was muted, possibly due to timing of the announcement, ITC's fundamentals continue to indicate long-term growth potential. Going forward, its focus on innovation, sustainability, and consumer-centric growth could serve as key drivers in an increasingly competitive landscape.
Source - PTI
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