Kolkata: ITC Ltd has reported a 5% year-on-year rise in standalone net profit from continuing operations for the fourth quarter of the last fiscal, at Rs 5,113.3 crore. The growth came despite a higher GST rate and a steep increase in excise duties, while the West Asia conflict weighed on profitability.
Financial Performance Highlights
The Kolkata-headquartered company had seen a net profit of Rs 4,874.9 crore in Q4FY25 from continuing operations. Its hotel business was demerged into ITC Hotels with effect from January 1, 2025.
Revenue from operations in the quarter grew 17.3% year-on-year to Rs 21,694.6 crore, compared with Rs 18,494.5 crore, supported by strong performance in the cigarette and non-cigarette FMCG segments. The new FMCG business recorded a 15% year-on-year increase in revenue.
Operational Resilience Amid Challenges
In a statement, the company said it delivered a strong performance despite supply-chain disruptions and logistical challenges arising from the West Asia conflict. EBITDA for the quarter rose 7.3% year-on-year.
Tax Impact on Cigarettes
The country's largest cigarette-maker said the GST rate increase from 28% of transaction value to 40% of retail sale price, along with a sharp hike in excise duties effective February 1 following the phase-out of the compensation cess, led to an unprecedented rise in the tax incidence on cigarettes.
FMCG Business Expansion
On its new FMCG business, ITC said it launched nearly 100 new products during the year. The company continues to focus on innovation and market expansion to drive growth in the competitive consumer goods space.
