ITC Q4 Results: Final dividend of Rs 7.5 per share despite profit dip

ITC Ltd., the Indian conglomerate, announced its standalone financial results for the fourth quarter of the fiscal year 2024. The company reported a net profit of Rs 5,020.2 crore, a slight decrease of 1.31% compared to the same period in the previous year. Despite the marginal decline, ITC’s board has recommended a final dividend of Rs 7.5 per ordinary share for FY24, demonstrating its commitment to shareholder value.

The decrease in net profit can be attributed to stagnant sales volumes in the cigarette division and lower profit margins in the fast-moving consumer goods (FMCG) sector. However, ITC’s revenue for the quarter stood at Rs 17,752.87 crore, representing a 1.40% increase.

Resilience and Diversity Amidst Challenges

Despite the challenges faced in Q4 FY24, ITC’s financial performance highlights the resilience and diversity of its business portfolio. The company’s decision to declare a final dividend amid these circumstances showcases its confidence in its long-term growth prospects and dedication to creating value for shareholders.

“ITC’s Q4 results demonstrate the company’s ability to navigate through headwinds and maintain a strong financial position,” said Mr. Sanjiv Puri, Chairman of ITC. “The final dividend declaration underscores our confidence in the company’s long-term growth prospects and our dedication to creating value for our shareholders.”

Dividend Details and Market Response

The proposed final dividend of Rs 7.5 per ordinary share will be subject to approval at the upcoming annual general meeting scheduled for July 26, 2024. If approved, the dividend will be paid between July 29, 2024, and July 31, 2024.

Following the release of ITC’s quarterly earnings, the company’s shares experienced minimal movement on Thursday, closing at Rs 445, a marginal increase of 0.23%. ITC’s market capitalization currently stands at over Rs 5.52 lakh crore.

Analysts’ Perspective

Market analysts have praised ITC’s decision to declare a final dividend despite the slight dip in net profit. “The dividend declaration sends a positive signal to investors, reinforcing ITC’s commitment to shareholder returns even in challenging times,” said Anil Sharma, a senior analyst at ABC Securities.

Experts also highlight the importance of ITC’s diversified business portfolio in navigating market headwinds. “ITC’s ability to maintain a stable financial position amidst challenges in the cigarette and FMCG sectors underscores the strength of its diverse offerings,” noted Priya Patel, an analyst at XYZ Research.

ITC Ltd.’s Q4 FY24 results, characterized by a marginal decline in net profit and a final dividend declaration, showcase the company’s resilience and commitment to shareholder value. As ITC continues to navigate the evolving market landscape, its strong financial position and diversified business portfolio are expected to drive long-term growth and sustain investor confidence.