ITC Ltd's Q3FY25 Quarterly Results

Result Summary

• ITC Ltd reported a 9.2% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 3.8%.
• Its expenses for the quarter were down by 11.4% QoQ and up 7.2% YoY.
• The net profit decreased 6.3% QoQ and decreased 12.4% YoY.
• The earnings per share (EPS) of ITC Ltd stood at 3.9 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

ITC Ltd is a diversified conglomerate based in India with a significant presence across various sectors including Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards and Packaging, Agri-Business, and Information Technology. Established in 1910, ITC has grown to become one of India's foremost private sector companies. The company is well-known for its brands such as Aashirvaad, Sunfeast, Bingo, and Classmate, which are leaders in their respective markets. ITC has also been focusing on sustainability and innovation as integral parts of its corporate strategy. The company has not publicly announced any major developments recently, based on the most current information available.

Revenue

In the third quarter of the fiscal year 2025 (Q3FY25), ITC Ltd reported a total income of ₹19,386.03 crores. This represents a 9.2% decrease from the previous quarter (Q2FY25) where the total income was ₹21,351.83 crores. However, when compared to the same quarter in the previous year (Q3FY24), there is a 3.8% increase in total income, which stood at ₹18,676.20 crores. The quarter-over-quarter decline in revenue may be indicative of seasonal or market fluctuations, whereas the year-over-year growth could reflect the company's overall expansion or increased market penetration in its industry sectors.

Profitability

The profitability of ITC Ltd in Q3FY25 showed a mixed performance. The Profit Before Tax (PBT) for this quarter was ₹6,531.96 crores, which is a decrease of 4.5% from the previous quarter's ₹6,839.84 crores, and a slight decrease of 2.2% from ₹6,682.08 crores in Q3FY24. The company incurred a tax expense of ₹1,726.32 crores in Q3FY25, slightly down by 3.7% from ₹1,793.52 crores in Q2FY25 but significantly higher by 34.7% over the same quarter last year when the tax was ₹1,281.57 crores. Consequently, the Profit After Tax (PAT) for Q3FY25 amounted to ₹4,734.95 crores, reflecting a decline of 6.3% quarter-over-quarter and a 12.4% drop year-over-year. Earnings Per Share (EPS) also decreased to ₹3.90 from ₹4.00 in Q2FY25 and from ₹4.30 in Q3FY24, aligning with the trends observed in net profitability.

Operating Metrics

The operating metrics for ITC Ltd in Q3FY25 reveal a total expenses figure of ₹12,854.07 crores, which is a decrease of 11.4% compared to ₹14,510.84 crores in the previous quarter. Year-over-year, there has been an increase of 7.2% from ₹11,988.60 crores in Q3FY24. The reduction in quarterly expenses could be attributed to cost management or reduced operational activities, while the year-over-year increase might reflect inflationary pressures or strategic investments in growth. The company's taxation rate has seen a notable increase on an annual basis, which could impact the net profitability margins. The current analysis does not include any calculation of financial ratios such as the P/E ratio, debt-to-equity ratio, or current ratio due to the absence of necessary data elements like market capitalization, total debt, or current assets and liabilities in the provided dataset.