ITC Limited has released its Q4 results for the financial year 2024-25, reporting an impressive 7% year-on-year increase in net profit. This performance underscores the strength of its diversified business model and strategic execution across segments like FMCG, Hotels, Paperboards, and Agri.
Despite challenges in the broader economic landscape, ITC has managed to stay resilient, focusing on innovation, sustainability, and digital transformation to keep up its momentum.
Financial Performance Snapshot
In the fourth quarter of FY25, ITC delivered a solid financial performance that further solidifies its status as one of India’s most trusted blue-chip companies.
- Revenue from Operations: ₹19,420 crore (up 7.8% YoY)
- Net Profit: ₹5,200 crore (up 6.4% YoY)
- EBITDA: ₹6,200 crore
- EBITDA Margin: 32%
The company has also declared a final dividend of ₹7 per share. Combined with the interim dividend, the total dividend payout for FY25 now stands at ₹13 per share. The dividend will be paid on or before June 5, 2025.
FMCG Segment Continues to Drive Growth
The FMCG division remained a key growth engine in Q4, achieving double-digit growth despite intense market competition. ITC’s consumer-centric strategy, combined with strong brand equity and premium product offerings, has played a significant role.
- Popular brands like Aashirvaad, Fabelle, and Fiama showed increased market penetration.
- Lower input costs, thanks to smoother supply chains, helped enhance profit margins.
- Personal care, ready-to-eat, and seasonal product categories performed particularly well.
- The company’s entry into new categories like premium packaged foods, pet care, and rural-centric SKUs further strengthened its position.
- Increasing sales via e-commerce and digital-first channels showed positive momentum.
Hotels, Paperboards, and Agri Business: Balanced Performance
Hotels Division
ITC’s Hotels segment recorded an impressive 23% YoY growth in revenue for Q4. This was fueled by:
- Higher occupancy rates across properties
- Premium room tariffs and growth in MICE (Meetings, Incentives, Conferences, Exhibitions) and wedding events
- Expansion of luxury offerings and guest experience enhancements
With domestic tourism on the rise, ITC Hotels is poised for further growth, especially with new properties planned in Tier-2 cities.
Paperboards & Packaging
This segment managed to maintain stability despite global macroeconomic pressures. Key drivers included:
- Innovation in sustainable, eco-friendly packaging solutions
- Strong demand in domestic and export markets
- Strategic investments in product quality and efficiency
Agri Business
While revenue saw a slight dip due to a decline in leaf tobacco exports, the division stayed resilient with:
- Growing sales in value-added agri products
- Diversification into non-tobacco agri categories
- Agile sourcing practices to manage volatility in global commodity markets
Dividend and Shareholder Value Creation
ITC has remained consistent in rewarding its shareholders. With a final dividend of ₹7 per share, the total dividend payout for FY25 touches ₹13 per share—a testament to its sound cash flows and long-term financial health.
The positive investor sentiment following the results has led to a slight uptick in stock price, reinforcing ITC’s image as a dependable investment in uncertain times.
Future Outlook: Growth Anchored in Innovation and Sustainability
ITC has laid out a clear roadmap for sustained long-term growth, aligning with emerging consumer trends and global sustainability goals:
✅ Petcare and Rural Reach: Focus on pet wellness, along with enhancing digital infrastructure in rural markets to tap into underserved demographics.
✅ Green Tech and Responsible Business: Investments in eco-friendly packaging, renewable energy, and climate-resilient sourcing will continue to define ITC’s sustainable business model.
✅ Tier-2 Hotel Expansion: With domestic tourism gaining traction, ITC plans to launch more hotels in Tier-2 cities to tap into India’s growing travel economy.
✅ FMCG Premiumization: The company aims to further grow its high-margin FMCG portfolio by introducing new products and entering emerging categories.
Final Thoughts: A Strong Blue-Chip with Long-Term Promise
ITC Ltd continues to stand out as a reliable and innovative player in the Indian market. Its multi-sector approach, solid governance, and strong fundamentals make it a preferred pick for both retail and institutional investors. The Q4 FY25 results reflect not only financial growth but also the company’s ability to adapt and innovate in a dynamic market.
With a clear vision, robust dividend policy, and expanding presence across key sectors, ITC is well on track to sustain growth and deliver long-term value in FY26 and beyond.
