ITC Q3 results: Profit up 13% on-year; interim dividend of Rs 5.25

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Revenue rises: ITC’s total revenues increased 31.3% on-year to Rs 16,633.86 crore in Oct-Dec 21 period, beating street estimates. Analysts were earlier expecting a revenue of about Rs 14,169.9 crore. The cigarette segment which is the maximum contributor in revenue reported a 14.2% YoY rise in topline. 

Profit beats estimates: ITC’s net profit jumped 15% YoY to Rs 4,056.7 crore in the quarter ended December 21. Analysts had earlier anticipated a net profit of about Rs 3,951 crore. ITC noted that the quarter witnessed a broad-based recovery in sales across markets and channels. The economic activity gathered further momentum during the quarter with the decline in Covid caseload intensity and it led to higher profits for the company.

Margins stable: Operating profit rose 17% YoY to Rs 5,597.7 crore higher than the street estimate of Rs 5,349.8 crore. The operating margin stood at 30.5% versus 33.8% in the previous quarter.

ITC results: Highlights

ITC results: Segment-wise performance 

FMCG - Others

The FMCG-others segment saw a 9.3% YoY rise in revenues. Segment Revenue and Segment EBITDA up 23.5% and 46% respectively over Q3FY20. Discretionary/Out-of-Home categories such as Snacks, Beverages, and Frozen Snacks recorded strong growth. Segment EBITDA margins were at 9.1% (+140 bps Vs Q3FY20, -50 bps YoY) despite unprecedented commodity inflation, a sharp escalation in input costs largely offset through strategic cost management programs, premiumization, judicious pricing actions, fiscal incentives, and favorable business mix. 

Cigarette: Mainstay business

ITC saw robust recovery across markets aided by an increase in mobility and, agile supply chain and market servicing. The wide availability of smuggled cigarettes continues despite strong deterrent actions by enforcement agencies, leading to significant revenue loss to the Government and adversely impacting the legal cigarette industry. The net revenue for this business segment increased by 13.6% on year to Rs 6,244 crore and EBIT for the businesses was higher by 14.4% YoY at Rs 3,951 crore. 


Easing of travel restrictions, pickup in leisure travel and the onset of the festive/wedding season boosted ARR and Occupancy levels. Digital investments continue to be leveraged towards facilitating guest acquisition, enhancing the guest experience, augmenting revenue generation, and driving operational efficiency. The business turned positive at the EBIT level with an EBIT of Rs 51 crore compared to an EBIT loss of Rs 67 crore in the same period a year ago. In the preceding quarter, the business had a loss of Rs 48 crore at the EBIT level. 


Segment Revenue was up 100% driven by strong revenue growth in wheat, rice, spices, leaf tobacco exports leveraging strong customer relationships, robust sourcing network, and agile execution. The Business leveraged the e-Choupal network to provide strategic sourcing support to the Branded Packaged Foods Businesses with sharply aligned procurement strategies in line with category-relevant market dynamics.

Paper & Paperboards

Revenues for this business were up 38.5% on-year along with a margin expansion of 260 bps. Paperboard volumes were at a record high during the quarter on the back of demand revival across most end-user segments and exports. Also, the Packaging and Printing Business witnessed robust growth in domestic and exports segments across technology platforms.  

Dividend - ITC will pay an interim dividend of Rs 5.25 per ordinary share of Re 1/- each for FY22. The record date for the payment of a dividend has been fixed at February 15, 2022, and the dividend will be paid to the eligible shareholders on March 04, 2022. 

ITC quarterly results: review 

ITC has reported a good set of numbers in the Oct-Dec 21 period beating street estimates in both topline and bottomline. Recovery in cigarette sales, FMCG-others business, and a rebound in its hospitality segment as footfalls rose aided the performance during the quarter. However, unprecedented inflation in commodity prices, increase in energy costs, and persistent global supply chain disruptions weighed on the macroeconomic environment. Despite the above factors, ITC delivered strong performance across all operating segments during the quarter.