ITC Ltd. posted its quarterly results for Q3 FY22 (October to December quarter) on February 3, 2022. The company reported a 14.8% year on year (YoY) jump in its consolidated profit after tax (PAT) which came in at Rs 4,118 crore from Rs 3,587 crore in the year ago period. On a sequential basis, the PAT increased by 9.4% quarter on quarter (QoQ) from Rs 3,763 crore in the previous quarter. This was despite an increase of 35.2% YoY in the total expenses that increased to Rs 13,207 crore from Rs 9,765 crore in the corresponding quarter in the previous financial year. The cost of raw materials, excise duty, depreciation and amortization expenses has increased.
The FMCG company’s revenue from operations climbed 30% YoY to Rs 18,365 crore from Rs 14,124 crore in Q3 FY21 while the revenue from operations increased by 23.7% QoQ from Rs 14,844 crore in the previous quarter. However, ITC Ltd’s other income for the quarter under review declined by 22.7% YoY to Rs 421 crore from Rs 545 crore in Q3 FY21.
ITC also announced an interim dividend of Rs 5.25 per ordinary share of Rs 1 each.
ITC’s stock opened in the red at Rs 237.80 per share at 9:15 AM on February 4 after the company released its quarterly results.
The company said, “Enhanced vaccination coverage coupled with an uptick in business and consumer sentiments led to broad-based growth across markets and channels even as leading indicators reflected a deceleration in the pace of rural demand recovery”, the company said in its statement on the performance for the quarter. “However, unprecedented inflation in commodity prices, increase in energy costs and persistent global supply chain disruptions weighed on the macroeconomic environment.”
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Research Analyst: Bavadharini KS