ITC’s Q4 Profit Skyrockets on Exceptional Gain; Announces Generous Dividend for FY25

ITC Ltd has delivered a blockbuster performance for the March 2025 quarter, reporting a consolidated net profit of ₹195.62 billion—nearly quadrupling analyst estimates—thanks to a one-time exceptional gain of ₹151.79 billion from discontinued operations. The company’s revenue from operations stood at ₹184.94 billion, reflecting a solid 9.3% year-on-year increase, and comfortably beating market expectations.

Key Highlights:

Stellar Profit Surge: ITC’s Q4 net profit soared to ₹195.62 billion, far exceeding the IBES estimate of ₹49.41 billion. The extraordinary profit was driven by an exceptional gain of ₹151.79 billion, primarily from discontinued operations.

Robust Revenue Growth: Revenue from operations reached ₹184.94 billion, up 9.3% year-on-year and surpassing analyst projections. Growth was led by the cigarettes and agri-business segments, while FMCG and paperboards faced margin pressures due to input costs and subdued demand.

Dividend Bonanza: The board recommended a final dividend of ₹7.85 per share, bringing the total dividend for FY25 to ₹14.35 per share, continuing ITC’s tradition of rewarding shareholders handsomely.

Cost and Margin Dynamics: Total costs for the quarter rose 13% to ₹128.7 billion, reflecting higher input and operating expenses. Despite this, the company maintained healthy operating margins in its core businesses.

Market and Analyst Reaction: The results have been met with optimism from the investment community, with a strong consensus of buy recommendations and positive outlook on ITC’s strategic moves, including the anticipated hotel business demerger.

ITC’s record-breaking quarter, powered by a significant one-off gain and robust operational performance, underscores its resilience and ability to deliver value to shareholders even amid sectoral challenges.

Sources: Moneycontrol, Economic Times, Smartkarma, Business Today