ITC Ltd, the large consumer packaged goods company, reported 12% growth in net profit to ₹4,195 crores for the period January-March, against ₹3,755 crores a year ago.
Analysts expected net profit to rise 11% to 12%.
The Kolkata-based company’s revenue increased by 15% to reach ₹17,754 crore against ₹15,404 crores in the last period of the year.
On Wednesday, ahead of the results, ITC certificates closed up 0.68% at ₹266.50 on NSE. The stock is up about 21% so far in 2022 (YTD).
The company’s board of directors has also recommended a final dividend of ₹6.25 for the year ended March 31.
In terms of segment, revenues from the FMCG-cigarettes business increased by 10% to reach ₹7,177 crore in the fourth quarter, while that of the non-cigarette sector or FMCG-other segment increased by 12%.
The company said it saw a robust and widespread recovery in cigarettes despite third-wave disruptions and volumes exceeded pre-pandemic levels.
The turnover of the hotel activity amounts to ₹407 crore for the March quarter, up 35% from the same quarter last year.
ITC reported strong fourth-quarter agribusiness revenue growth, up 20%, driven by exports of wheat, rice and leaf tobacco, leveraging strong customer relationships, investments in sustainable value chains, a strong supply network and agile execution.
ITC beat all market estimates and saw growth across the industry. Growth can be seen in all businesses, from cigarettes to FMCG, from hotels to cartons and agribusiness. Growth in sales, revenue, EBIDTA, all figures are above expectations. The results of the strategy reset performed by Chairman Sanjiv Puri are now visible across all verticals as all verticals exceeded expectations. The stock has done well even in the bear market and such results will take it to a new high. Dividends will also add more value to the stock price,” said Rahul Sharma, research analyst at Equity 99.