ITC Q4 results 2021 - ITC share latest news updates | Quarterly results of ITC - YouTube

Hello, I Jagdeep Singh welcome you to the Groww youtube channel and today we will discuss ITC

and the impact of the quarter's result on ITC as well as you as an investor or a potential investor

So let us start today's video by talking about ITC

ITC was incorporated in 1910 and is still one of the biggest cigarette manufacturing and selling company in India

Its business is divided into 5 segments, FMCG others, FMCG others, Hotels, Paperboards, Paper, and packaging, and Agri-business

It is said that they are focusing on the FMCG sector to increase their market share

45% of their revenue came from the cigarette business in FY20 and today also they are dependent on it

If we see their profit before tax, the FMCG cigarettes have a contribution of 84%

The company owns 25 major brands in FMCG others where they are focussing more

Let me tell you some of their brands

If we see the packaged food segment, Aashirwad, Sunfeast, Bingo, Yipee, Candyman

And the personal care which saw a rise in demand after covid is Savlon, along with Fiama, Vivel

With Classmate and Paperclip in stationary and Mangaldeep and AIM in agarbattis

The interesting fact here is that the names I discussed are either at number 1 or 2 in their segments

For example, Aashiwad is the market leader in atta segment, Yipee in the noodle segment, Sunfeast in the biscuit segment

ITC has created their brands in such a way to become a market leader in the particular segment

The next is their hotels segment which was started in 1975 and is India's 2nd largest hotel chain

They have a total of 108 hotels running in 70 locations and with total revenue of 4%

Its Agri-business is the 2nd largest exporter with total revenue of 13%

Lastly, the Paperboard and packaging business has a total revenue of 10% with recent expansions

Till now you would have got to know about ITC, its businesses, and their revenue contributions

And they have recently been trying to diversify their business to reduce the dependency on the cigarette business

because the cigarette business is heavily regulated and any change in policy or tax impacts their revenues and profits

due to which they want to focus on those segments which will create more revenue in the coming times

We have collated the main financial numbers, total and net revenue, EBITDA, PBT, PAT.

PAT is the company's total net profit after paying everything

The company has recorded a good gross revenue of Rs.14,023 Crore in this quarter

and has jumped by 24.1% as compared to the same quarter last year

Similarly, net revenue rose by 215 to Rs.13,176 Crores

If we see its EBITDA, operating profit, it recorded a jump of 7.4% at Rs.4,473 Crores

A jump of 7.6% in PBT, but in Net profit saw a drop of 1.3%

The company made a net profit of Rs.3,797 Crore last year as compared to this year at Rs.3,748 Crores

Let us now compare results of annual returns, taking the last and latest FY

If you see the company recorded a jump of 3.9% in gross revenue at Rs.48,151 Crores

The EBITDA saw a fall of 13.3% from Rs.17.904 Crores to Rs.15,522 Crores in FY21

The Net profit also saw a drop of 13.9% from Rs.15,136 Crores to Rs.13,032 Crore in FY21

Now there can be multiple reasons for this fall, especially covid has impacted most of their businesses and still haven't recovered

The company also booked some extra benefits, and if we exclude that

and directly compare them. The PAT has seen a YoY drop of 1.3%

and if I remove those additional benefits, it also saw a 8.4%

and if see this on a comparable basis, this number is reduced from 13.9% to 10.6%

Let us now access their segment-wise revenue

The cigarette segment saw a jump of 14.2% and the others saw a jump of 15.8%

The hotels segment as we all know suffered the most reported a fall of 38.2%

The company's agri-business which has shown outstanding performance, the revenue rose from 1,887 to 3,369 crores with a jump of 78.5%

The paper and packaging also rose by 13.5%, and the overall business saw a growth of 24.1%

Let us now see the segment-wise net profit of the company

The profit before exceptional items and tax in the cigarette segment rose by 7.7%

FMCG others rose by 28.4% where they have a high focus

Whereas the hotel segment whose profit was 43 crores has reduced to a loss of 40 crore

The agri-business has risen by 54.2% and the paper business by 33.3%

Let me now tell you some interesting figures about the last years 4 quarters

Here would be able to see the different revenue according to different segments

If we see the numbers of the last 4 quarters of the cigarette segment from 3854 cr to 5860 cr

The FMCG others revenue has gone up and down but has been almost constant with Q1 at 3375 cr to 3688 cr currently

The hotel segment has seen the worst impact at 23 cr in Q1 to 288 cr but still the company has booked a loss

In the agri-business, the revenue decreased from 3746 crores to 3369 crores

The paper segment saw a continuous rise from 1026 crores to 1656 crores

Another important update is that the ITC board has approved a final dividend of Rs.5.75 per share

and prior to this they gave an interim dividend of Rs.5 per share, amounting to a total of Rs.10.75