ITC Ltd Annual Report FY24-25: Financial Performance and Business Growth

ITC Ltd's annual report for FY24-25 highlights a significant increase in revenue, with the company's revenue growth reaching 12.5% year-over-year.

This growth can be attributed to the company's diversified business portfolio, which includes FMCG, hotels, and paperboards.

ITC Ltd's FMCG business witnessed a 15% increase in revenue, driven by strong demand for its packaged foods and personal care products.

The company's hotels segment also reported a notable increase in revenue, with a 20% growth in occupancy rates.

ITC Ltd's Annual Report FY24-25 shows a gross revenue of ₹81,612.78 crore, a 10.2% increase from the previous year.

The company's PAT from Continuing Operations stands at ₹20,036.47 crore.

Operating Profit Margin has decreased to 35.4% from 38%, likely due to inflationary pressures, increased freight and labor costs, and elevated raw material prices.

Net Profit Margin has also decreased to 26.7% from 29.4%.

ROCE has increased to 37% from 36%, indicating a slight improvement in the company's profitability.

Readers also liked: Increased Limit Factor

Inventory Turnover has decreased to 5.3 times from 6.0 times, indicating a slower inventory turnover.

Here's a summary of ITC Ltd's key financial metrics:

ITC Ltd's non-cigarette FMCG business is a strong performer, with a portfolio of well-known brands like Aashirvaad, Sunfeast, and Bingo! driving significant revenue.

The company's revenue from packaged foods was ₹18,282.42 crore, a 6.1% increase from the previous year. In contrast, revenue from personal care, stationery, matches, and agarbattis was ₹3,722.85 crore, a 1.1% decline.

ITC has been actively pursuing inorganic growth through acquisitions, including 24 Mantra Organic, Prasuma, Mother Sparsh, and Sproutlife (Yoga Bar). This strategy aims to bolster its presence in the competitive packaged food and personal care sectors.

Here's a breakdown of ITC's non-cigarette FMCG revenue:

ITC's Agri Business segment also demonstrated robust growth, with revenue from tobacco increasing by 38.15% to ₹3,380.76 crore.

ITC's non-cigarette FMCG business is built on a portfolio of strong, well-known brands that have resonated with Indian consumers. These brands include Aashirvaad, Sunfeast, Bingo!, Yippee, B Natural, and Candyman in Packaged Foods, and Fiama, Savlon, Vivel, and Engage in Personal Care.

The company's Packaged Foods segment generated ₹18,282.42 crore in revenue, a 6.1% increase from the previous year. In contrast, the combined gross revenue from Education and Stationery Products, Personal Care Products, Safety Matches, and Agarbattis was ₹3,722.85 crore, a 1.1% decline from the previous year.

ITC has maintained 18 packaged food factories and 4 personal care units, with a new facility underway in Hardoi, Uttar Pradesh. This expansion is likely to boost the company's production capacity and competitiveness in the market.

Here are some key statistics on ITC's non-cigarette FMCG business:

ITC's Agri Business segment is a strong performer, with a robust financial year in FY24-25. Revenue and profitability saw commendable growth.

Tobacco revenue jumped by 38.15% to ₹3,380.76 crore, while other agri-trading revenue increased by 45.86% to ₹8,863.24 crore. EBIT also rose by 20.49% to ₹1,540.3 crore.

Key contributors to this growth include wheat, spices, rice, potatoes, coffee, and soya. These products support ITC's backward integration and export competitiveness.

A network of 24 Choupal Sagars serves as rural service centers, providing farmers with services, market linkages, and access to products.

A fresh viewpoint: Chase Bank 24 Hour Customer Service

In ITC's paper & packaging segment, revenue from paperboard actually increased by 1.5% to ₹5,957.90 crore.

The segment faced challenges like a surge in wood prices, import pressure from China and Indonesia, weak domestic demand, and rising competition.

Here are some key numbers for the segment:

ITC signed a Business Transfer Agreement to acquire Aditya Birla Real Estate's pulp & paper assets, likely aiming for scale and backward integration.

ITC Ltd's annual report highlights its growth strategy in various sectors, including FMCG.

ITC's technology arm, ITC Infotech, showed strong growth in revenue and profit after tax. Revenue grew by 11.68% to ₹3,204.32 crore, while PAT increased by 22.10% to ₹466.62 crore.

The company's focus on expansion is evident, with entry into new markets such as KSA, Abu Dhabi, New Zealand, Canada, Europe, and Southeast Asia.

ITC Infotech made a significant acquisition, purchasing Blazeclan Technologies, a cloud solutions firm, for ₹296.98 crore.

For more insights, see: 3i Infotech

The management team at ITC Ltd is led by Mr. Sanjiv Puri, the Chairman and Managing Director, and Mr. Sumant Bhargavan, the Executive Director. Their remuneration is substantial, with Mr. Puri earning ₹28.63 crore as gross remuneration and ₹13.12 crore as net remuneration in FY23-23, while Mr. Bhargavan earned ₹13.60 crore as gross remuneration.

Mr. Sanjiv Puri's compensation in FY24-25 included a fixed salary of ₹3.54 crore and a bonus of ₹21.39 crore, as well as stock options for 134,500 equity shares. This is part of ITC Ltd's structured and performance-linked remuneration framework.

The company has a diverse group of key shareholders, including British American Tobacco, which holds 25.51% of shares, and insurance companies like GIC, LIC, and New India Assurance, which hold 20.15% of shares.

Here are the key personnel with total remuneration exceeding ₹1 crore in FY24-25:

The median annual salary of employees (excluding Directors and KMP) during FY24-25 was ₹10,32,129, while the median compensation for workers (blue-collar workforce) was ₹5,10,990.

Related reading: Median Income

ITC Ltd's financial performance is a mixed bag. Gross revenue grew by 10.2% YoY to ₹81,612.78 crore, a notable increase.

The company's operating profit margin, however, saw a decline to 35.4% from 38%, likely due to inflationary pressures and increased costs. PAT from continuing operations was ₹20,036.47 crore.

ITC's FMCG-Cigarettes segment remains its cash-cow, contributing 77.6% to EBIT. The segment's EBIT was ₹20,071.04 crore in FY23-24.

Here's a comparison of ITC's financials with its peers:

ITC's financial performance is a mixed bag. Gross Revenue increased by 10.2% YoY to ₹81,612.78 crore.

The company's PAT from Continuing Operations was ₹20,036.47 crore. Operating Profit Margin declined to 35.4% from 38%, likely due to inflationary pressures and increased costs.

Net Profit Margin also decreased to 26.7% from 29.4%. ROCE, however, improved to 37% from 36%. Inventory Turnover decreased to 5.3 times from 6.0 times.

The FMCG-Cigarettes segment remains the biggest revenue contributor, accounting for less than 50% of the revenue in FY23-24. On a standalone basis, this segment contributed about 79% to EBIT.

Here's a breakdown of the revenue contribution from different segments:

ITC's IT business, ITC Infotech, has been doing well despite the challenging environment. Its Total Income on a standalone and consolidated basis was ₹2,941.96 crore and ₹3,784.17 crore respectively.

Explore further: Inr 1 Crore to Usd

In this section, we'll take a closer look at the peers comparison of these companies. The price of one of these stocks is 411.65.

This is significantly lower than the price of another stock, which is 2,776.10. The market capitalization of the first stock is 515,660, while the second stock has a market capitalization of 185,859.

The first stock has an earnings per share (EPS) of 4.19, while the second stock has an EPS of 20.91. The estimated EPS for the first stock is 4, while for the second stock it's 20.

Here's a comparison of some key financial metrics for these stocks:

The revenue growth year-over-year for the first stock is 16.46%, while for the second stock it's 18.48%. The net profit for the first stock is 5,274, with a net profit year-over-year growth of 2.04%.

ITC Ltd has a diverse portfolio of brands across various segments.

Aashirvaad is the biggest FMCG brand built by ITC, and it's the number one brand in packaged Atta. Aashirvaad has expanded its product range to include pulses, vermicelli, dairy products, rava, salt, frozen breads and parathas, millets, instant mixes, and ready-to-eat meals.

Some of the major mother FMCG brands that ITC currently owns include Aashirvaad, Sunfeast, Yippee, Bingo, Fiama, Engage, Savlon, Classmate, Fabelle, B Natural, Candyman, Sunrise, Nimyle, and Vivel.

Here are some of the notable brands owned by ITC:

ITC Brands has a strong presence in the FMCG market with several market-leading brands. Aashirvaad is the biggest FMCG brand built by ITC and is the number one brand in packaged Atta.

Aashirvaad has a wide range of products under its wing, including Atta, pulses, vermicelli, dairy products, rava, salt, frozen breads and parathas, millets, instant mixes, and ready-to-eat meals.

ITC has also acquired several brands to expand its presence in the FMCG market. Some of the major mother FMCG brands owned by ITC include:

ITC's personal care segment is also a significant area of focus for the company.

ITC Ltd. reported a net profit of Rs 5,274. This is a significant financial milestone for the company.

The company has declared a dividend of Rs 7.85 on 28 May, 2025. This shows that ITC Ltd. is committed to rewarding its shareholders.

The last bonus declared by ITC Ltd. was on 20 May, 2016. This is a notable corporate action that demonstrates the company's history of rewarding its stakeholders.

Here are some examples of corporate actions taken by ITC Ltd.: