ITC Ltd., one of India’s largest conglomerates spanning cigarettes, FMCG, hotels, and agribusiness, reported a sharp jump in its net profit for the fourth quarter of FY25, buoyed by a one-time exceptional gain from discontinued operations. The company posted a consolidated net profit of ₹19,562 crore for Q4, significantly higher than the previous year, but this figure included an exceptional gain of ₹15,179 crore, primarily attributed to the demerger of ITC Hotels.
Excluding this extraordinary item, ITC’s standalone net profit stood at ₹4,875 crore, marking a modest 0.8% year-on-year increase and falling short of analyst expectations. According to a Moneycontrol poll of nine brokerages, the market had anticipated a net profit of ₹4,906 crore. The underperformance was largely attributed to subdued demand and escalating input costs, which continued to pressure margins across several business segments.
Standalone revenue from operations for the quarter rose to ₹18,494 crore, up from ₹16,907.2 crore in the same period last year, reflecting a 9% growth on a consolidated basis to ₹20,376.4 crore. Earnings before interest, tax, depreciation, and amortization (EBITDA) grew 2.5% year-on-year to ₹5,986 crore.
ITC’s flagship cigarette business remained resilient, with revenue rising 6% to ₹8,399.6 crore and segment profit up 4% at ₹5,117.9 crore. The company highlighted strong performance in its premium cigarette portfolio and effective cost management, which helped offset rising leaf tobacco costs.
The FMCG segment, a key growth driver in recent years, posted a 3.7% year-on-year revenue increase to ₹5,494.6 crore, led by robust sales in atta, spices, frozen snacks, dairy, and premium personal care products. However, EBITDA for the FMCG business declined 20.5% due to a sharp rise in input costs, particularly edible oil, wheat, and cocoa.
ITC’s agri-business also delivered strong growth, with revenue up 18% to ₹3,649 crore and profit rising 26% to ₹255 crore. The Paperboards, Paper & Packaging segment saw revenue grow 5.5% to ₹2,188 crore, but profit dropped 31% amid soft demand and increased competition from low-priced imports.
The company announced a final dividend of ₹7.85 per share for FY25. Looking ahead, ITC expressed optimism about a gradual pickup in consumption, supported by a good monsoon, rural recovery, and potential boosts from lower inflation and tax cuts in the Union Budget. However, it cautioned that inflationary pressures and muted wage growth could continue to weigh on urban demand in the near term.
