ITC has diversified their businesses and focused growing not only cigarettes business but more on Hotels, Agric Business and Paper boards, Paper and Packaging business.
Their revenue for the last quarter has risen up with better numbers than expected, even though global economic slowdown and inflationary pressure at 8.5% (2022) can be seen all around the globe.
Let us talk numbers :-
2022 Vs 23
- Revenue Growth – 17.6%
- EBITDA – 26.5%
- PAT – 24.5%
- EPS – 24%
- Dividend – 12.75 INR
This company overall seems to be on a trajectory to dominate FMCG, consistent returns and dividend has attracted investors for long terms.
- FMCG segment has shown strong growth of 19.6% Year on Year (YOY) in 2023, which is the fundamental of this business if they have to be non reliant on cigarettes’ business.
- Cigarettes’ business has increased by 20.3%:, though profit after tax is always an issue, as government discourages such business by increasing taxes making cigarettes’ expensive.
- Star of the year was Hotel business, as revenue doubled from year 2022 to 2023. EBITDA at 832cr alone.
- Paper Board and packing business up at 18.8% (Performance driven by strategic interventions (in house pulp manufacturing, pro-active capacity expansion in value-added products, digital) and higher realizations.
Note – This is not an Investment advise, please understand Fundamentals and discuss with your financial advisor before investing.