ITC Ltd, one of India’s largest conglomerates, has announced its Q4 results for FY24, showing a 3% year-on-year (YoY) increase in adjusted profit after tax (PAT) to ₹5,155 crore. Along with the earnings, the company declared a final dividend of ₹7.85 per share, bringing much-needed cheer to long-term investors.
Let’s take a deep dive into the numbers, segment-wise performance, and what this means for shareholders moving forward.
Key Financial Highlights (Q4 FY24 vs Q4 FY23)
| Metric | Q4 FY24 | Q4 FY23 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹16,368 crore | ₹16,398 crore | -0.18% (flat) |
| Adjusted PAT | ₹5,155 crore | ₹5,004 crore | ▲ 3% |
| EBITDA | ₹6,000+ crore* | (Approximate) | ▲ Moderate growth |
| Dividend Declared (FY25) | ₹7.85 per share | ₹6.00 (previous FY) | ▲ Strong payout |
Note: Exact EBITDA figure is derived from operational performance and analyst estimates.
Segment-Wise Performance Overview
1. Cigarettes Business
ITC’s core revenue driver, the cigarette segment, delivered stable growth with volume and margin resilience. While volume growth was subdued due to regulatory headwinds, the business remains highly profitable.
- Revenue growth: Low single digits
- Margins: Healthy, driven by operational efficiency
Cigarettes continue to contribute over 40% of the company’s profits.
2. FMCG – Others (Non-Tobacco)
This segment continued its upward momentum, driven by brands like Aashirvaad, Bingo!, Yippee!, and Savlon. ITC is rapidly scaling its FMCG presence and gaining market share.
- Growth Drivers: Packaged foods, hygiene products
- Innovation: New product launches and rural expansion
FMCG-Others now contributes a growing portion of ITC’s topline, with a strong double-digit growth trajectory.
3. Hotels Business
The hotels segment posted a solid performance thanks to a surge in domestic travel and strong occupancy rates.
- Revenue growth: Robust YoY
- EBITDA margins: Improved significantly
This segment is also part of ITC’s demerger strategy, with a separate hotel business entity (ITC Hotels Ltd) being created to unlock value.
4. Paperboards, Paper & Packaging
This vertical saw muted performance due to global commodity pressure and weak export demand. However, operational efficiency and capacity upgrades provided some cushion.
- Demand: Soft
- Margins: Pressured by input costs
5. Agri Business
The agri segment saw volatility due to export restrictions on key commodities like wheat and rice. However, ITC’s strategic sourcing and export expertise helped mitigate some impact.
Dividend Boost: ₹7.85 Per Share Declared
ITC declared a final dividend of ₹7.85 per share for FY25, maintaining its reputation as a high-dividend-paying stock. This includes:
- ₹7.00 Final Dividend
- ₹0.85 Interim Dividend
- Dividend Yield (based on current stock price): ~3-4%, among the highest in large-cap Indian stocks
Record date and payment schedule will be announced shortly.
Stock Market Reaction
While the stock showed minor movement post-earnings, investors largely welcomed the consistent growth and generous dividend payout. Analysts continue to view ITC as a stable, value-driven play in uncertain market conditions.
Outlook for FY25 and Beyond
Looking ahead, ITC’s focus remains on:
- Expanding its FMCG footprint
- Unlocking value via demergers (Hotels, IT Services)
- Sustainable earnings from core cigarette business
- Digital and supply chain transformation
With a strong balance sheet, wide brand portfolio, and strategic capital allocation, ITC appears well-positioned to deliver steady returns in the coming quarters.
Conclusion
ITC’s Q4 FY24 results demonstrate resilience and disciplined growth despite macroeconomic challenges. A 3% rise in adjusted PAT, strong dividend declaration, and stable business performance across segments reinforce its image as a safe and rewarding bet for long-term investors.
Whether you’re in it for the dividend or the diversification, ITC remains a stock to watch closely in FY25.
👉 What are your thoughts on ITC’s performance? Will you be buying more shares after this earnings report? Let us know in the comments below!