ITC share price slips over 1.6% post Q3 results; check key details you need to know

The company had posted a consolidated net profit of ₹5,406.52 crore in the year-ago period.

Shares of the company was trading at ₹434 on BSE, falling 1.68% during the morning trade. However, on NSE, the scrip was down 1.54%.

However, the company’s revenue from operations increased 9.05% to ₹20,349.96 crore during the reporting quarter as compared to ₹18,660.37 crore in the corresponding quarter of the previous fiscal year.

The company had a "resilient performance amidst a subdued demand environment & sharp escalation in input costs", ITC said in an earnings statement.

In a separate filing, ITC said its board in a meeting held on Thursday declared an interim dividend of ₹6.50 per share of ₹1 each for 2024-25.

Key input materials as edible oil, wheat, potato, leaf tobacco, wood and packaging inputs witnessed a sharp cost escalation during the quarter, the Kolkata-headquartered firm added.

ITC’s revenue from gross sale of products and services was ₹20,140.15 crore, up 8.74%, in Q3FY25.

Its total expenses were 12.18% higher during the quarter to ₹14,413.66 crore.

During the quarter, ITC's revenue from the 'total FMCG' segment, which also includes the cigarettes business, was up 6.35% to ₹14,372.53 crore. It was ₹13,513.43 crore in the corresponding September quarter.

Revenue from the cigarette business was up 7.83% to ₹8,944.83 crore during the quarter of this fiscal year. It was ₹8,295.18 crore in the corresponding quarter of the previous fiscal year.

"Strategic portfolio and market interventions, with focus on competitive belts and to counter illicit trade, drive volume-led growth and reinforce market standing," ITC said, adding that it partially mitigated cost escalation in leaf tobacco "through product-mix enrichment".

ITC's revenue from the FMCG-others segment was also up 4% to ₹5,427.7 crore during the quarter under review. The growth in the segment was driven by atta, spices, snacks, frozen snacks, dairy, premium personal wash, homecare and agarbatti.

Moreover, "subdued realisation and surge in domestic wood prices continue to weigh on margins," ITC said, adding that it continues to mitigate the near-term challenges in the segment through sharp focus on portfolio augmentation, export customer/market development and structural cost management interventions.

ITC has demerged its hotel business into a separate entity ITC Hotels Ltd.

Updating the performance of the demerged business, ITC said it also has "best-ever quarterly performance" with a strong growth of 14.6% in revenue to ₹922 crore.

The conglomerate also announced to acquire ‘Prasuma’ and ‘Meatigo’ brands expanding its presence in frozen, chilled and ready-to-cook foods.

ITC has signed definitive agreements for the acquisition of Prasuma1, a leading player in the frozen, chilled and ready-to-cook foods space in India. It operates through ‘Prasuma’, ‘Meatigo by Prasuma’ and ‘Prasuma Momo Kitchen’ brands.

It will acquire a 100% stake in Prasuma over three years, said a joint statement.