ITC Q3 Results and Dividend Announcement Today

Kolkata: FMCG giant ITC Ltd is set to announce its December quarter (Q3) results today, along with a decision on the interim dividend for the financial year 2024-25. Market analysts expect moderate revenue growth but a decline in profit due to higher costs and last year’s lower tax rate of 17%.

According to brokerage firm Nuvama, ITC’s net profit is expected to fall 11.4% year-on-year (YoY) to ₹4,942 crore from ₹5,578 crore last year. However, sales are projected to rise 8% YoY to ₹17,794 crore. Elara Securities, another research firm, has a slightly different estimate, predicting a 5.6% drop in profit to ₹5,259 crore and 6.8% revenue growth to ₹17,603 crore.

ITC’s cigarette business is expected to show a 3.5% growth in sales, but rising raw material costs may slightly affect margins. The FMCG segment may see a 3-5% increase in sales, though profits could be impacted by rising costs of palm oil and other raw materials.

The agri business is expected to perform well, with sales increasing by 20% due to strong tobacco exports, while the paper segment may see muted growth with a 22% drop in profit due to stiff competition and operational challenges.

A major focus this quarter is ITC Hotels, which became a separate entity from January 1, 2025. Analysts expect 12% revenue growth in this segment due to increased occupancy rates and expansion efforts.

Overall, while ITC’s revenue is expected to rise, higher costs may pressure profits. Investors are keenly awaiting the dividend announcement, which could impact the company’s stock performance.