ITC Q4 Results FY25: Net Profit Surges to ₹19,807 Cr on Demerger Gain; Declares ₹7.85 Dividend
ITC Q4 Results: Diversified conglomerate ITC Ltd released its Q4 FY25 results on Thursday, May 22, revealing a significant spike in net profit, thanks to a one-time exceptional gain. The Kolkata-based company reported a consolidated net profit of ₹19,807 crore, primarily driven by a ₹15,145 crore gain from the demerger of its Hotels Business into ITC Hotels Ltd. This windfall, recorded under discontinued operations, gave a strong boost to the overall quarterly earnings.
However, if we strip out the exceptional gain, ITC’s adjusted net profit came in at ₹4,662 crore, which is down 10% from ₹5,190 crore in Q4 FY24. This indicates a moderation in the company’s underlying profitability despite a resilient topline performance.
Revenue Beats Estimates Despite Profit Decline
ITC reported revenue from operations of ₹20,376 crore, marking a solid 10% year-on-year growth from ₹18,561 crore in the March 2024 quarter. The growth was led by a strong performance in the FMCG, agribusiness, and paperboards divisions. The company beat market expectations, highlighting the robustness of its diversified portfolio in an uncertain economic environment.
On the operating front, EBITDA stood at ₹6,836 crore, showing a modest growth of 3.7% YoY compared to ₹6,590 crore in Q4 FY24. However, EBITDA margin contracted from 35.8% to 33.5%, reflecting input cost pressures and a changing product mix.
Segment-Wise Performance: FMCG Remains Core Strength
ITC’s FMCG segment, the backbone of its business, contributed ₹14,732 crore in revenue this quarter, up from ₹13,996 crore in the same quarter last year.
- Cigarettes, the most profitable part of ITC’s FMCG business, posted a revenue of ₹9,228.66 crore, up from ₹8,688.92 crore.
- The FMCG-Others segment, which includes branded packaged foods, personal care, and lifestyle retailing, reported ₹5,503.33 crore in revenue, compared to ₹5,307.94 crore a year earlier.
The agri-business also showed strong growth, clocking ₹3,694.64 crore in revenue—up significantly from ₹3,136.43 crore. Meanwhile, the Paperboards, Paper, and Packaging segment registered a revenue of ₹2,188.69 crore, slightly higher than ₹2,072.86 crore in Q4 FY24.
Dividend Bonanza for Shareholders
ITC has declared a final dividend of ₹7.85 per share for FY25, adding to the interim dividend of ₹6.50 declared earlier in February. This brings the total dividend for the year to ₹14.35 per share.
“The final dividend will be paid between July 28 and July 31, 2025, subject to shareholder approval at the 114th AGM scheduled for July 25,” ITC said in its regulatory filing.
The record date for the final dividend has been fixed as May 28, 2025.
ITC Financial Snapshot
| Metric | Value |
|---|---|
| Market Cap | ₹5,33,288 Cr |
| Current Price | ₹426 |
| 52-Week High / Low | ₹495 / ₹378 |
| Stock P/E | 26.8 |
| Book Value | ₹56.0 |
| Dividend Yield | 3.23% |
| ROCE (Return on Capital Employed) | 37.0% |
| ROE (Return on Equity) | 27.5% |
| Face Value | ₹1.00 |
Key Takeaways
- Exceptional Gain Boosts Profit: The one-time ₹15,145 crore gain from the hotel business demerger significantly inflated the consolidated net profit.
- Underlying Performance Mixed: Despite robust revenue growth, the core profit declined, and margins saw compression.
- Shareholder-Friendly Move: With a ₹14.35 total dividend for FY25, ITC continues to reward its investors consistently.
- Cigarettes Still King: The tobacco division remains the major revenue and profit contributor.
Q&A Section: ITC Q4 FY25 Results – What You Need to Know
Q1: Why is ITC’s profit so high this quarter?
A: The spike in profit is due to a one-time exceptional gain of ₹15,145 crore from the demerger of its hotel business. Without this, net profit would be ₹4,662 crore.
Q2: How did ITC perform compared to last year?
A: Adjusted for the exceptional gain, net profit was 10% lower YoY. However, revenue grew by 10%, and EBITDA rose by 3.7%.
Q3: How did each segment perform?
A:
- Cigarettes: ₹9,228.66 Cr (up from ₹8,688.92 Cr)
- FMCG-Others: ₹5,503.33 Cr
- Agri-business: ₹3,694.64 Cr (up significantly)
- Paperboards & Packaging: ₹2,188.69 Cr
Q4: What is the total dividend for FY25?
A: ITC declared a final dividend of ₹7.85 and had already paid an interim dividend of ₹6.50, totaling ₹14.35 per share.
Q5: Is ITC still a strong investment option?
A: With high ROCE (37%), ROE (27.5%), a strong dividend yield (3.23%), and consistent performance in core segments, ITC remains a financially sound and shareholder-friendly stock
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