ITC posts steady growth in Q3, announces ₹6.50 interim dividend amidst inflationary pressures
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FMCG giant ITC Ltd today reported an 8.45% year-on-year (YoY) increase in revenue for the third quarter of FY25, totalling ₹18,290.24 crore, up from ₹16,864.34 crore in the same period last year. The company’s net profit rose slightly by 1.18% YoY, reaching ₹5,638.25 crore, compared to ₹5,572.07 crore in Q3FY24.
EBITDA increased by 1.55% YoY to ₹5,828.38 crore, although the EBITDA margin contracted to 31.86%, from 34.03% last year. Despite facing inflationary pressures on key raw materials like edible oils, wheat, and cocoa, ITC’s diversified portfolio allowed it to maintain a stable growth trajectory.
ITC noted that its board has declared an interim dividend of ₹6.50 per share for FY25, payable between March 6 and March 8, 2025, to eligible shareholders. With strong revenue and profit growth, this interim dividend will further benefit investors, offering substantial returns on their holdings, the company noted in its statement.
ITC demerged its hotels business into ITC Hotels Limited (ITCHL) effective January 1, 2025, with the segment now reported under discontinued operations in its financial results. The hotels segment posted a 14.6% year-on-year revenue growth, with profit before tax (PBT) surging 43.4% on the back of strong demand from retail, weddings, and food & beverage segments.
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The cigarettes business continued to be a key revenue driver, with net segment revenue rising 8.1% year-on-year, supported by strategic portfolio interventions and premium offerings. Segment profit before interest and tax (PBIT) grew 4.1% as the company countered illicit trade and mitigated rising leaf tobacco costs through product mix enhancements.
ITC’s agri-business posted a 9.7% increase in revenue, with PBIT surging 21.6%, fueled by robust exports of leaf tobacco and value-added agri-products such as coffee and spices.
Meanwhile, its FMCG segment (excluding cigarettes) saw a 4% rise in revenue despite muted demand, with higher contributions from premium personal care, snacks, spices, and frozen foods. The notebooks category faced a high base effect and competition from local brands due to a decline in paper prices.
The paperboards, paper, and packaging segment remained under pressure, impacted by lower-priced imports from China and Indonesia, weak domestic demand, and an unprecedented surge in wood prices. ITC said it is focusing on portfolio augmentation and cost management to navigate these headwinds.
Looking ahead, ITC expects easing commodity prices and strategic pricing actions to support margins, with a positive outlook for the FMCG and cigarettes businesses.