ITC Q3 net profit surges 10.8% to Rs 5,572 crore, FMCG giant declares interim dividend

ITC Q3 results: Fast-moving consumer goods (FMCG) major ITC has reported a 10.8 per cent year-on-year (YoY) surge in its profit for the quarter ended December 2023, benefiting from increased demand across its product portfolio, including cigarettes and noodles. The company has declared an interim dividend of Rs 6.25 per ordinary share of Rs 1, each for FY 23-24.

Strong Q3 performance

ITC reported a profit of Rs 5,572 crore for the three months ending December 31, marking a substantial 10.8 per cent increase. This surpassed the average analyst estimate of Rs 5,148 crore, according to LSEG data.

The company's diversified product range played a pivotal role in driving its robust performance. Cigarettes, in particular, continue to be a significant contributor, accounting for over 40 per cent of ITC's total revenue.

Market dynamics and reduced competition

ITC and its industry peers have experienced positive outcomes due to intensified efforts to combat the smuggling of international cigarette brands. This crackdown has, in turn, reduced competition, providing companies like ITC with a more favorable market environment.

In addition to the impressive profit figures, ITC recorded a 2 per cent growth in revenue from operations, reaching Rs 17,665 crore. Notably, the cigarette business demonstrated a notable 3.6 per cent growth during the quarter.

The success of ITC's Q3 results reflects broader trends in the consumer goods sector. The company's ability to navigate market challenges and leverage opportunities has positioned it as a key player in India's competitive consumer goods landscape.

The shares of ITC ended 1.53 per cent lower at Rs 448.70 on the NSE on Monday, January 29, 2024.

(With Reuters inputs.)