ITC Announces Quarterly Results (3QFY21); Net Profit Down 11.6%

Fri, 12 Feb

ITC has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

ITC Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	120,130	119,768	124,916	4.3%	4.0%
Other income	Rs m	9,836	6,100	9,710	59.2%	-1.3%
Turnover	Rs m	129,966	125,867	134,626	7.0%	3.6%
Expenses	Rs m	74,003	79,161	82,991	4.8%	12.1%
Gross profit	Rs m	44,806	40,606	42,814	5.4%	-4.4%
Depreciation	Rs m	4,162	3,825	3,909	2.2%	-6.1%
Interest	Rs m	124	138	138	0.1%	10.8%
Profit before tax	Rs m	50,355	42,743	48,476	13.4%	-3.7%
Tax	Rs m	8,936	10,419	11,848	13.7%	32.6%
Profit after tax	Rs m	41,419	32,324	36,629	13.3%	-11.6%
Gross profit margin	%	37.3	33.9	34.3
Effective tax rate	%	17.7	24.4	24.4
Net profit margin	%	31.9	25.7	27.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 4.0% on a year-on-year (YoY) basis. The expenses were up by 12.1% YoY during the same period.
• The company's operating profit declined by 4.4% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 34.3% in 3QFY21 as against 37.3% in 3QFY20.
• Depreciation charges declined by 6.1% and finance costs increased by 10.8% YoY, respectively.
• Other income declined by 1.3% YoY during the quarter.
• Net profit for the quarter declined by 11.6% YoY. Net profit margins during the quarter declined from 31.9% in 3QFY20 to 27.2% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 4.3% on a quarter-on-quarter (QoQ) basis. The expenses were up by 4.8% QoQ during the same period.
• The company's operating profit increased by 5.4% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 34.3% in 3QFY21 as against 33.9% in 2QFY20.
• Net profit for the quarter increased by 13.3% QoQ, while net profit margins increased from 25.7% in 2QFY20 to 27.2% in 3QFY21.

To see how ITC has performed over the last eight quarters,please visit here.

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ITC Share Price Performance

Over the last one year, ITC share price has moved up from Rs 213.0 to Rs 215.9, registering a Gain of Rs 2.9 or around 1.3%.

Overall, the S&P BSE SENSEX is up 25.3% over the year.

Current Valuations

At the current price of Rs 215.9, the price to earnings (P/E) ratio of ITC stands at 20.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.1 times.