ITC Q4FY19 PAT up by 19 pct, cigarette biz shines; Sanjiv Puri appointed chairman

FMCG-major ITC surprised by posting better than expected top-line and bottom-line growth during March 2019(Q4FY19) quarter. The company bagged a standalone net profit of Rs 3,481.9 crore in Q4FY19, rising by 18.72% from Rs 2,932.71 crore in Q4FY18. The latest PAT was also up by 8.50% from Rs 3,209.07 crore in the preceding quarter. A Bloomberg poll of experts had predicted ITC's Q4FY19 PAT to come in at Rs 3,240 crore. ITC's revenue from operation increased by 12.88% against Rs 10,813.24 crore in the corresponding period of previous year. However, on quarterly comparison, the growth was single-digit up by 6.78% versus Rs 11,431.26 crore in Q3FY19. The poll had estimated revenue of Rs 11,820 crore in Q4FY19.

On segment-wise revenue breakup, the cigarette business recorded jump of 11.13% with revenue of Rs 5,485.92 crore in Q4FY19 from Rs 4,936.45 crore in Q4FY18. Meanwhile, revenue from hotel business rose by 24.94% YoY to Rs 509.79 crore, while revenue from agri business increased by 16.18% YoY to Rs 2,100.93 crore. Additionally, revenue from paperboards, paper and packaging business grew by 18.18% yoy to Rs 1,537.36 crore in Q4FY19. 

During the quarter, total cost rose by 14.23% to Rs 7,992.3 crore versus Rs 6,996.46 crore in Q4FY18. 

For the fiscal year end March 2019, ITC registed a standalone net profit of Rs 12,464.32 crore up by 11.05% compared to Rs 11,223.25 crore  in FY18. While revenue saw gradual rise of 3.28% to Rs 45,784.39 crore in FY19 versus Rs 44,329.77 crore in FY18. 

On consolidated basis, FY19 PAT jumped by 11.68% YoY to Rs 12,835.9 crore, whereas revenue came in at Rs 49,862.11 crore higher by 4.55% YoY. Gross sales for the company as on March 2019, stood at Rs 79854.69 crore. 

In its meeting held on Monday, ITC appointed Sanjiv Puri, Managing Director, also as the Chairman of the Company with effect from May 13, 2019. Consequently, Puri's new designation is Chairman & Managing Director of the Company. 

Apart from this, ITC also recommended dividend of Rs. 5.75 per Ordinary Share of Re. 1/- each for the financial year ended 31st March, 2019. Despite booking profit, ITC shares plunged to an intraday low of Rs 288.50 per piece. At around 1513 hours, the stock was trading at Rs 289.35 per piece down by Rs 8.35 or 2.80% on Sensex.