ITC Limited has reported strong growth across its segments for the quarter ended September 30, 2024, with FMCG, Hotels, and Agri Business driving the performance. Here are the key updates:
- FMCG – Others: Segment revenue increased by 5.4% YoY. Excluding notebooks, the growth stands at 7% YoY, driven by staples, biscuits, snacks, frozen snacks, dairy, premium soaps, homecare, and agarbatti. Notebooks were impacted by a high base effect and competitive pressure due to a sharp drop in paper prices. Segment EBITDA rose 2% YoY, with a slight margin contraction of 35 basis points due to inflationary headwinds in input costs. The 2-year CAGR for the segment is up 13%.
- Cigarettes: Net segment revenue grew by 7.3% YoY, with segment PBIT up 5.1% YoY. ITC reinforced its market position through portfolio strategies and market interventions to counter illicit trade. Premium and differentiated offerings performed well. Despite severe cost escalation in leaf tobacco, strategic cost management, an improved mix, and calibrated pricing actions mitigated some impacts.
- Hotels: The Hotels segment saw a 12.1% YoY increase in revenue, driven by food and beverage (F&B), retail, and weddings. Segment PBIT surged by 20.2% YoY. The EBITDA margin expanded by 70 basis points due to higher RevPAR, operating leverage, and strategic cost management. ITC’s first international property, ITC Ratnadipa in Colombo, Sri Lanka, launched in April 2024, received excellent response. Additionally, the demerger of ITC Hotels from ITC Limited has been sanctioned by the NCLT, Kolkata, with the scheme set to take effect soon.
- Agri Business: This segment recorded a 47% YoY growth, led by leaf tobacco exports and value-added agri products such as coffee, fruits, vegetables, and spices. Segment PBIT increased by 27.5% YoY, reflecting ITC’s strong customer relationships and new business development in leaf tobacco.
ITC’s diversified growth across its segments showcases its strategic initiatives and robust operational execution.
