ITC sees 5% Y-o-Y net profit rise at over Rs 5k cr despite West Asia conflict

Kolkata: ITC Ltd has reported a 5% year-on-year rise in standalone net profit from continuing operations for the fourth quarter of the last fiscal, at Rs 5,113.3 crore. The growth came despite a higher GST rate and a steep increase in excise duties, while West Asia conflict weighed on profitability.

The Kolkata-headquartered company had seen a net profit of Rs 4,874.9 crore in Q4FY25 from continuing operations. Its hotel business was demerged into ITC Hotels with effect from Jan 1, 2025.

Revenue from operations in the quarter grew 17.3% year-on-year to Rs 21,694.6 crore, compared with Rs 18,494.5 crore, supported by strong performance in the cigarette and non-cigarette FMCG segments. The new FMCG business recorded a 15% Y-o-Y increase in revenue.

In a statement, the company said it delivered a strong performance despite supply-chain disruptions and logistical challenges arising from the West Asia conflict. EBITDA for the quarter rose 7.3% year-on-year.

The country's largest cigarette-maker said the GST rate increase from 28% of transaction value to 40% of retail sale price, along with a sharp hike in excise duties effective Feb 1 following the phase-out of the compensation cess, led to an unprecedented rise in the tax incidence on cigarettes.

On its new FMCG business, ITC said it launched nearly 100 new products during the year.