ITC Q4 profit down 1.3% on subdued demand
₹5,020.20 crore in the three months ended March amid weak demand during the quarter. Net profit for the maker of Gold Flake cigarettes and Bingo chips was slightly below the ₹5,150 crore estimated by a Bloomberg poll of 20 analysts.Revenue from operations grew 1.4% to ₹17,752.87 crore from ₹17,506.08 crore a year earlier.
The company saw a decline in revenues in its agriculture and paperboards, paper and packaging businesses. The revenue figure exceeded Street estimates of ₹17,191 crore.The company's expenses jumped 2.4% to ₹12,017.71 crore year-on-year during the quarter.The FMCG major expects a recovery in rural demand in line with market forecast by NIQ in its March quarter commentary.
Rural markets had outpaced urban markets for the first time in 15 months, NIQ said earlier this month.“While consumption demand remained subdued in Q4 FY24, improving macro-economic indicators, prospects of a normal monsoon and green shoots witnessed in rural demand recovery after several quarters, augur well for revival in consumption demand in the near-term," the company said in its earnings statement released Thursday. “With its focus on consumer centricity, purposeful innovation, agility, and execution excellence, the company remains confident of navigating the short-term challenges and creating sustained value for all stakeholders."For the full year the company’s gross revenue remained flat at ₹69,446.20 crore, while profit was up 8.9% to ₹20,422 crore.“During the year, the company reassessed its provisions relating to uncertain tax positions for earlier years based on a favourable order of the Honourable Supreme Court received during the year which resulted in a credit of Rs.
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