
ITC Limited has reported robust growth across its key segments for the quarter ended September 30, 2024, driven by strong performances in its FMCG, Hotels, and Agri Business divisions. Below are the key updates:
- FMCG – Others: Segment revenue increased by 5.4% YoY, excluding notebooks, which were impacted by a high base effect and competitive pricing pressures due to a drop in paper prices. Staples, biscuits, snacks, frozen foods, dairy, and premium products drove the 7% YoY growth (excluding notebooks). Segment EBITDA rose by 2% YoY, despite a 35 basis points margin contraction due to inflationary pressures.
- Cigarettes: Net revenue from the Cigarettes segment grew 7.3% YoY, while segment PBIT increased by 5.1% YoY. ITC maintained its market leadership by focusing on portfolio differentiation and strategies to counter illicit trade. Despite escalating costs in leaf tobacco, cost management strategies helped offset the impact.
- Hotels: ITC’s Hotels division delivered a 12.1% YoY increase in revenue, driven by strong demand in food & beverage, retail, and weddings. Segment PBIT surged by 20.2% YoY, and EBITDA margins expanded by 70 basis points due to higher RevPAR and operational efficiency. The successful launch of ITC’s first international property in Colombo and the sanctioned demerger of the Hotels segment from ITC Limited are set to further strengthen the business.
- Agri Business: This segment saw exceptional growth, with revenue increasing 47% YoY, largely fueled by leaf tobacco exports and value-added products like coffee, fruits, vegetables, and spices. Segment PBIT grew by 27.5% YoY, reflecting ITC’s expansion into new markets and products.
Outlook: ITC’s strong diversification and strategic focus on premium segments, cost management, and international expansion position it well for continued growth. Investors should keep an eye on ITC for its balanced growth across diverse sectors, and upcoming structural changes like the demerger of its Hotels business could add value to its stock performance.