5 Takeaways from ITC's Q4 Results

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
Top Ad

Find Out

How to Find One Stock with Crorepati Potential? >> READ MORE

5 Takeaways from ITC's Q4 Results

May 19, 2022

5 Takeaways from ITCs Q4 Results

Cigarette to FMCG major ITC on Wednesday reported its quarterly results for the period ended March 2022.

In the current market environment, where even fundamentally strong stocks and bluechips are taken to cleaners, shares of ITC have outperformed peers and also the benchmark indices.

There are various factors which have led to the recent rally. For digging deep, you can check out this piece: ITC: Load, Aim...Fire!

As ITC has performed well, investors were eager to see what the company has to report this time after the strong show it put in the December quarter.

Here are five takeaways from ITC's March quarter results:

  • ITC's consolidated net profit for the quarter under review rose 11.7% to Rs 42 bn. This compared with a net profit of Rs 37.6 bn posted in the year-ago period.

    Sequentially, net profit rose 3.4%.
  • ITC posted a 16% growth in revenue from operations at Rs 164.3 bn for the quarter under review.

    This was due to strong growth across all businesses despite the third Covid wave.
  • ITC's agri-business registered revenue of Rs 43.8 bn as against Rs 33.8 bn in the year ago quarter.

    The sharp growth was driven by wheat, rice, leaf tobacco exports.
  • In its earnings release, ITC said the operating environment during the year remained extremely challenging due to the pandemic, unprecedented inflation, and the geopolitical tensions towards the end of the year exacerbated the situation.
  • The company's board recommended a final dividend of Rs 6.25 for the financial year ended 31 March, 2022. The dividend will be paid between 22 July 2022 and 26 July 2022.

    It has fixed 28 May 2022 as the record date for payment. This dividend is in addition to the interim dividend of Rs 5.25 per share.

On Wednesday, ITC share price opened the day at Rs 266.9 against its previous close of Rs 264.6.

It traded in a range throughout the day and ended 1% higher.

Ahead of its results on Tuesday, ITC shares surged 4%.

Over the past one year, shares of the company have gained 27%. On a YTD basis, the gains stand at a handsome 22%.

At the current price, the company trades at a price to earnings (P/E) multiple of 21.7 and a price to book (P/BV) value of 5.6 times.

About ITC

Established in 1910, ITC is India's biggest cigarettes & one of the largest fast-moving consumer goods (FMCG) company with 78% market share in cigarettes and presence in staples, biscuits, noodles, snacks, chocolate, dairy, and personal care products.

The company is also present in paperboard, printing & packaging business with revenue of Rs 45.5 bn and agri-business with Rs 80 bn as of fiscal 2021.

The company completed 100 years in 2010 and it employs over 36,500 people at more than 60 locations across India and is part of the Forbes 2000 list.

To know more, check out ITC company fact sheet and quarterly results.

For a sector overview, read our FMCG sector report.

You can also compare ITC with its peers:

ITC vs VST Industries

ITC vs Godfrey Philips

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Equitymaster requests your view! Post a comment on "5 Takeaways from ITC's Q4 Results". Click here!


More Views on News

ITC 2021-22 Annual Report Analysis (Annual Result Update)

Jun 25, 2022

Here's an analysis of the annual report of ITC for 2021-22. It includes a full income statement, balance sheet and cash flow analysis of ITC. Also includes updates on the valuation of ITC.

Is it the Right Time to Invest in Wheat Stocks in India? (Views On News)

Apr 7, 2022

Wheat companies in India are in focus. These companies can potentially deliver good profits even when the market is volatile.

ITC's First-Ever Analyst Meet Disappoints Investors: No Concrete Plan for Demerger (Views On News)

Dec 16, 2021

Key takeaways for investors from much awaited ITC's analyst meet.

Why KRBL Share Price is Falling (Views On News)

May 31, 2022

Here's why the stock has such a volatility bout in the past few months.

Zomato at the price of a Tomato? A Bleak Future for Food Aggregators (Views On News)

Feb 26, 2022

Some analysts believe Zomato is a 'buy' after its recent sell off. But there could be more pain going forward.

More Views on News

Most Popular

What Is Ebitda & Eps

Here's a breakdown of what EBITDA margin means and why it is important as a valuation metric for investors.

4 Sectors to Watch for Future Multibagger Stocks (Views On News)

Jun 17, 2022

With India's economic recovery accelerating, these sectors are likely to give multibagger returns in the future.

Why Tata Power Share Price is Falling (Views On News)

Jun 14, 2022

Here's why shares of Tata Power have fallen in recent days.

Is it Time to Start Buying Stocks Selectively? (Profit Hunter)

Jun 16, 2022

Some sectors have corrected by 50%. Do they merit a look?

Best Monopoly Stocks to Own in 2022 Views On News (Views On News)

Jun 18, 2022

Constant product innovation, latest technology, strong supply chain etc can all help companies enjoy monopoly like fortunes.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Jun 24, 2022 (Close)