ITC set to report Q4 results today: Earnings, dividend payout in focus

Source : INDIA TODAY NEWS

ITC Ltd is set to announce its March quarter earnings and consider a final dividend for FY25 on Thursday, continuing its reputation as one of India’s most reliable dividend-paying companies.

So far this financial year, the diversified FMCG and cigarette giant has already handed out an interim dividend of Rs 6.50 per share. Given its track record, investors are now eyeing another generous payout.

EARNINGS AND DIVIDEND EXPECTATIONS

ITC paid a total dividend of Rs 13.75 per share in FY24, amounting to Rs 7,799.45 crore, with a yield of 3.21%, according to AceEquity data quoted in a Business Today report. In FY23, the company distributed Rs 15.50 per share (Rs 7,448.41 crore), and in FY22, the payout stood at Rs 11.50 per share (Rs 6,469.48 crore). FY21 saw a dividend of Rs 10.75 per share, totalling Rs 6,152.68 crore.

As investors await the final dividend decision, market attention is also on ITC’s quarterly performance. Analysts expect a lukewarm set of numbers, with cigarette volumes projected to grow between 3-6% year-on-year.

While the core cigarette business is expected to remain stable, challenges are likely in the non-cigarette FMCG and Paper and Packaging divisions.

The FMCG, which includes packaged foods, personal care and other consumer products, may see margin pressures amid high input costs and rising competition. Similarly, the Paperboards and Packaging business is forecast to remain underwhelming due to muted demand and pricing issues.

According to Sharekhan, ITC is likely to report a net profit of Rs 4,944 crore for the March quarter, slightly down from Rs 5,022 crore in the same quarter last year. Revenue is expected to rise 3% year-on-year to Rs 17,078 crore, while operating profit margin is seen at 35%—down 213 basis points from a year ago.

Beyond the numbers, analysts will closely track management’s commentary on margin outlook, volume growth and the status of the proposed hotel business demerger—seen as a key re-rating trigger for the stock.

Shares of ITC were trading 1.7% lower at Rs 425.55 around 10:30 am on the Bombay Stock Exchange (BSE).

SOURCE :- TIMES OF INDIA