| Highlights |
| • Resilient performance amidst a challenging operating environment |
| - Gross Revenue records strong growth; up 16% YoY driven by Agri-Business and Hotels |
| - EBITDA up 5% YoY; ex-Paper up 6.3% YoY |
| - Subdued demand conditions, unusually heavy rains in parts of the country, high food inflation and sharp escalation in certain input costs (leaf, wood etc.) witnessed during the quarter.
|
| • FMCG - Others Segment Revenue up 5.4% YoY; up 7% YoY ex-Notebooks |
| - Staples, Biscuits, Snacks, Frozen Snacks, Dairy, Premium Soaps, Homecare and Agarbatti drive growth |
| - Notebooks impacted by high base effect and opportunistic play by local brands led by a sharp drop in paper prices |
| - Segment EBITDA up c.2% YoY; the marginal drop of 35 bps in margins amidst inflationary headwinds in input costs; 2-year CAGR up 13%.
|
| • Cigarettes Net Segment Revenue up 7.3% YoY, Segment PBIT up 5.1% YoY |
| - Market standing continues to be re-inforced through strategic portfolio and market interventions with a focus on competitive belts and counter illicit trade |
| - Differentiated and premium offerings continue to perform well |
| - Severe cost escalation in leaf tobacco partially mitigated through improved mix, strategic cost management and calibrated pricing actions.
|
| • Hotels Segment delivered a strong performance on a high base (LY includes G20-related business); Segment Revenue up 12.1% YoY (2-yr CAGR +16.5%); Segment PBIT up 20.2% YoY |
| - F&B, Retail & Wedding segments drive growth |
| - EBITDA margin expands 70 bps YoY driven by higher RevPAR, operating leverage and strategic cost management |
| - The Company's first international property ITC Ratnadipa, which opened in April 2024 in Colombo, Sri Lanka continues to garner excellent response and widespread appreciation |
| - Hotels Demerger Update: The Hon'ble National Company Law Tribunal, Kolkata Bench (NCLT), vide Order dated 4th October 2024, has sanctioned the Scheme of Arrangement amongst ITC Limited and ITC Hotels Limited and their respective shareholders and creditors under Sections 230 to 232 read with the other applicable provisions of the Companies Act, 2013 (the Scheme); certified copy of the NCLT Order is awaited. The Scheme will be effective on the first day of the following month after filing of certified copy of the aforesaid NCLT Order with the Registrar of Companies, West Bengal, and fulfilling other conditions & matters referred to in the Scheme.
|
| • Agri-Business Segment Revenue up 47% YoY led by Leaf Tobacco & Value Added Agri products; Segment PBIT up 27.5% YoY |
| - Strong growth in Leaf Tobacco exports leveraging strong customer relationships and new business development |
| - Value-added agri portfolio (e.g. Coffee, Fruits & Vegetables, Spices) performed well |
| - The Company continues to engage with farmers to build crop resilience against extreme weather events through customised agronomy practices. The Climate Smart Agriculture programme covers over 28 lakh acres and about 7.5 lakh farmers in the country.
|
| • Paperboards, Paper and Packaging Segment remains impacted due to low-priced Chinese
supplies in global markets including India, soft domestic demand conditions and unprecedented surge in wood prices |
| - Segment Revenue up 2.1% YoY driven by exports; up 7% QoQ |
| - Subdued realisation, the surge in domestic wood prices and ocean freight continue to weigh on margins. Unseasonal rains adversely impact wood availability, quality and procurement price |
| - Strategic interventions, including a sharp focus on portfolio augmentation, export customer/market development & structural cost management, continue to be made to mitigate near-term challenges. |
