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Business EconomyPosted at: May 22 2025 11:24PM


ITC posts resilient Q4 performance despite inflation

Kolkata, May 22 (UNI) ITC Ltd reported a resilient performance for the fourth quarter and full year ended March 31, 2025, navigating a challenging macroeconomic environment marked by subdued consumer demand and sharp inflation in key inputs.
On a standalone basis, gross revenue from continuing operations rose 9.2 per cent year-on-year (YoY) in the January–March quarter, while EBITDA increased by 2.5 per cent.
For the full financial year, gross revenue rose 10.2 per cent and EBITDA was up 2.3 per cent. Excluding the paper segment, which continues to face significant headwinds, revenue growth stood at 4.4 per cent for the year and 4.2 per cent for the quarter. The Board declared a total dividend of Rs 14.35 per share for FY25, which includes an interim dividend of Rs 6.50 already paid.
Despite widespread cost pressures arising from elevated prices of commodities such as edible oil, wheat, potato, cocoa, and pulpwood—particularly in the second half of the year—ITC managed to deliver stable results, driven by focused cost management, portfolio premiumisation, and calibrated pricing strategies.
In a major corporate development, the company completed the demerger of its Hotels business, which now operates as ITC Hotels Ltd (ITCHL), effective January 1, 2025. The Hotels segment has accordingly been reported as ‘Discontinued Operations’ in the annual financials, in line with applicable Indian Accounting Standards.
The FMCG–Others segment continued to perform steadily, despite inflationary stress and intense competition in certain sub-categories.
Full-year revenue in this segment rose 4.8 per cent YoY, while Q4 growth stood at 3.7 per cent. Excluding the Notebooks category, which saw price-led disruptions, growth was stronger at 6.2 per cent for the year and 5.4 per cent for the quarter. Packaged foods such as atta, spices, snacks and frozen items, as well as dairy and personal care products, saw strong traction, especially in premium and alternative retail channels.
ITC also made significant strategic strides during the year, announcing multiple acquisitions in the fast-moving consumer goods (FMCG) space. These included Ample Foods (Prasuma and Meatigo), Sresta Natural Bioproducts (owner of 24 Mantra Organic), and baby care brand Mother Sparsh—moves aimed at expanding its presence in future-facing, high-growth categories.
The Agri Business segment delivered robust growth with full-year revenue increasing by 25 per cent and PBIT by 18 per cent. The final quarter saw revenue up 18 per cent and PBIT surging 26 per cent. The company highlighted continued strength in leaf tobacco and value-added agri exports such as coffee and spices, supported by agile execution and strong global demand.
The Cigarettes business remained stable, with full-year net revenue up 7.1 per cent and Q4 revenue up 6.0 per cent. Segment PBIT grew 4.9 per cent for the year and 4.0 per cent in the quarter. ITC attributed the performance to strategic portfolio interventions, targeted efforts in competitive markets, and product innovation, particularly in the premium and differentiated offerings. While costs related to leaf tobacco were notably higher, the impact was partly offset through product mix enrichment.
The Paperboards, Paper and Packaging segment continued to face pressure due to weak domestic demand, elevated wood prices, and the influx of low-cost imports from China and Indonesia. Despite this, ITC said its integrated business model, capacity augmentation, and investments in advanced technologies helped mitigate some of the margin pressures. Export performance remained strong, especially in the specialty papers category where new capacities have been added.
Looking ahead, the company said it will continue to focus on structural cost initiatives, portfolio sharpening, and sustainability, including plantation development through public-private partnerships. Industry engagements for policy support, such as anti-dumping duties and minimum import price mechanisms, are also being actively pursued.
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