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Diversified conglomerate ITC Ltd reported an over one per cent drop in net profit for the quarter ended March 31to ₹3,748 crore, against ₹3,797 crore reported in the year ago period. The decline was on account of higher taxes and a rise in purchase of stock-in-trade.
The company, in a statement, said, the “comparable Q4 PAT was up 8.4 per cent after adjusting for one-time benefit (of ₹340 crore) in the corresponding quarter of the previous year (Q4FY20)”.
Revenue from operations for the quarter under review stood at ₹14,157 crore, up 24 per cent. In Q4 FY20, the revenue from operations was at ₹11,420 crore.
The tax expense for the quarter stood at ₹1,105 crore against ₹715 crore. For FY21, the company saw profit fall y-o-y by nearly 14 per cent to ₹13,032 crore; while revenue from operations stood at ₹48,525 crore, a 4 per cent growth. ITC board recommended a final dividend of ₹5.75 per equity share. It has earlier declared an interim dividend of ₹5.00 per equity share. The total dividend for FY21 stood at ₹10.75 per share.
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Sequential recoveries
The company added that there was strong sequential recovery across all operating segments.
Easing of restrictions and improved mobility helped recovery in the cigarette business which “touched nearly pre-Covid levels” towards the close of the year.
The cigarette business, which contributed 41 percent to total business, clocked 14.2 per cent year-on-year growth at ₹5,859.6 crore and its EBIT (earnings before interest and tax) grew by 7.7 per cent to ₹3,666.49 crore during the quarter.
The “FMCG-Others sustained a strong growth momentum” while “smart recovery” was witnessed in discretionary or ‘out-of-home’ categories. The latter category saw a 23 per cent rise in sales. Offerings in staples, convenience foods and health & hygiene sales were up 13 per cent with “normalisation in demand”. The hygiene segment remained elevated albeit settling at lower levels compared to H1FY21, ITC said in the statement.
The hotels business continued to witness a sequential improvement in revenue aided by higher occupancy and the food and beverages business. On a y-o-y comparison, there was an over 38 decline in revenue at ₹288 crore and an EBIT loss of ₹40 crore for Q4FY21.
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