The Indian Wire » Business » ITC’s net profit for fourth quarter in FY20 rises 9.05 percent
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ITC’s net profit for fourth quarter in FY20 rises 9.05 percent

ITC’s net profit rose by 9.05 per cent to Rs 3,797.08 crore for the quarter ending March as reported by the company. While the company’s net profit last FY was Rs 3,481.90 in the same quarter. The company’s quarterly revenue decreased to Rs 11,420.04 crore from Rs 12,206.03 year on year basis. The revenue from its cigarette business is at Rs 5,130.5 crore for the quarter while in the same quarter last FY, it was Rs 5,485.92 crore.

ITC has recommended a dividend of Rs 10.15 for FY20. The company reported the EBITDA for the quarter to be at Rs 4,163.50 crore and margins at 36.5 per cent.

ITC said, “Just as the business environment was showing signs of an incipient recovery at the beginning of the fourth quarter, the onset of Covid-19 pandemic changed the situation dramatically”.

It added, “In the initial stages, the contagion had a significant impact on the hotels, education and stationery products businesses as it coincided with the peak period and the onset of the school season, respectively”.

In its release, ITC said, ” Education and stationery products business (ESPB), which reported strong growth till February, was severely impacted in the peak month of March due to closure of educational institutions and deferment of new academic sessions across states pursuant to nationwide lockdown”.

It added that its “comparable revenue growth, excluding ESPB and lifestyle retailing business, stood at around 5 per cent during the fourth quarter”.

According to the company,  “While strong momentum has been witnessed in essential consumer goods and the company has ramped up capacity to service surge in demand across categories, the demand in the ESPB segment continued to be a subdued pending resumption of the educational institutes”.

The company has been witnessing strong growth in revenue of its hotels business which got severely impacted after the COVID outbreak. ITC shares declined by 3.54 per cent to close at Rs 195.10 ahead of the company releasing these statements.

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