ITC Q4 net profit rises 11.8% to Rs4,191 crore as revenue soars
19 May 2022
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Diversified FMCG company ITC has reported an 11.8 per cent year-on-year jump in net profit at Rs4,191 crore for fiscal fourth quarter ended 31 March 2022, helped by strong growth across all operating segments..
Gross revenue for FY 2021-22 increased by 22.7 per cent to Rs59,101.09 crore while EBITDA increased by 22 per cent to Rs18,933.66 crore. Profit before tax grew 15.5 per cent to Rs19,829.53 crore year-on-year and after-tax profit stood at Rs15,057.83 crore against Rs13,031.68 crore in the previous year.
Comprehensive income for the year stood at Rs15,631.68 crore against Rs13,277.93 crore in the previous year. Earnings per share for the year rose to Rs12.22 from Rs10.59 in the previous year.
The board of directors of the company has recommend a final dividend of Rs6.25 per ordinary share of Rs1 each for the financial year ended 31 March 2022. Together with the interim dividend of Rs5.25 per share paid on 4 March 2022, the total dividend for the financial year ended 31 March 2022 works out to Rs11.50 per share (Rs10.75 per share in the previous year). Total cash outflow on account of dividend, including interim dividend of Rs6,469.48 crore paid in March 2022, adds up to Rs14,171.51 crore.
ITC said its FMCG-Others segment turned in a resilient performance with segment revenue growing by 8.6 per cent on a relatively high base - up 25 per cent over FY20. After a relatively subdued first half, revenue in the second half of the year witnessed double-digit growth.
Health and Hygiene portfolio witnessed demand volatility in line with Covid caseload intensity while remaining significantly above pre-pandemic levels.
The Education and Stationery Products business witnessed gradual recovery driven by progressive resumption of physical classes at educational institutions. However, sales remained below pre-pandemic levels. Segment EBITDA for the year grew by 10 per cent to Rs1,448.97 crore, with margins being sustained at 9.1 per cent in spite of unprecedented inflationary headwinds.
ITC said the unprecedented increase in prices of key inputs was mitigated through focused cost management interventions across the value chain, premiumisation, product mix enrichment, judicious pricing actions and fiscal incentives, adding that inflation continues to remain a key monitorable for the segment in the near term.
The company said a consumer-centric approach, backed by speed and agility in execution, was at the core of its response to navigate the heightened uncertainty and volatility in the operating environment.
ITC also executed over 110 new product launches across target markets, helped in large measure by the company's Life Sciences and Technology Centre (LSTC).
Powered by state-of-the-art digital technology and robust fulfilment infrastructure, 'ITC e-Store', the company's exclusive Direct to Consumer (D2C) platform is now available in 15 cities and continues to receive excellent consumer response, the company stated, adding that sales through the e-commerce channel increased 1.5 times during the year, taking the channel share to 7 per cent.
After a challenging FY 2020-21, and despite repeated disruptions this year, ITC saw its cigarettes business progressively recover on the back of improved mobility and easing of restrictions, surpassing pre-pandemic levels in the latter half of the year.
The Hotels segment also witnessed smart recovery driven by the domestic leisure and wedding segments; business travel also saw progressive improvement, albeit remaining below pre-pandemic levels.
During the year, nine new properties were added to the Group portfolio, including four in the Welcomhotel portfolio at Bhubaneswar & Guntur (owned), and at Katra & Chail (managed). ITC Narmada project in Ahmedabad is progressing well and the hotel is expected to be commenced shortly.
The Agri Business segment delivered stellar performance with segment revenue and results growing by 28.7 per cent and 25.6 per cent, respectively. ITC said this was driven by strong growth in wheat, rice, spices and leaf tobacco exports on the back of strong customer relationships, robust sourcing network and agile execution.
The company also rapidly scaled up its digitally powered eB2B platform, UNNATI, during the year covering nearly 3 lakh outlets within a short span of time since national launch facilitating sharp and direct engagement with retailers, superior analytics and deeper brand engagement.
ITC has expanded its export footprint tp over 60 countries, leveraging the equity of their world class brands. The company also said it expects the recently announced PLI scheme to provide further fillip to exports of its products across biscuits, cakes, snacks, dairy and ready-to-eat categories. The company also continues to explore opportunities in proximal markets as a potential vector of growth going forward.
During the year, the company completed setting up of two state-of-the-art Ancillary Manufacturing cum Logistics Facilities (AMLF) - at Pudukkottai and Kapurthala. The business implemented several strategic cost management initiatives in areas such as supply chain optimisation, smart procurement and productivity improvement through automation, leveraging new-age tools such as Industry 4.0 and Smart Utilities.
