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ITC Limited Q4FY21 Result Analysis | Yadnya Investment Academy

ITC Limited Q4FY21 Result Analysis | Yadnya Investment Academy

Published on 04 June 2021 Views 213 Comments 0

ITC Limited recently published its Q4FY21 Results, the company posted a net profit of Rs. 3,748 Cr. this quarter. Let’s find out its other parameters through our analysis:

Introduction

ITC Limited is an Indian company headquartered in Kolkata, West Bengal. ITC has a diversified presence across industries such as cigarettes, FMCG, hotels, packaging, paperboards and specialty papers, and agribusiness. The company has a total of 13 businesses in 5 segments

We have done a 5 point analysis on the Q4FY21 Results of ITC Limited, namely:

ITC Limited Result- 6 point analysis

1. ITC Limited:

i) Q4FY21 Results:

  • The Gross Revenue from Sales has shown significant growth of 24.1% (YoY) to Rs. 14,023 Cr. in the Q4 of FY21 as compared to Rs. 11,300 Cr. in Q4 of the previous year. Whereas, the revenues have increased by 10.6% QoQ from Rs. 12,673 Cr.
  • The Revenue from Operations has shown growth of 24% (YoY) to Rs. 14,157 Cr. in the Q4 of FY21 as compared to Rs. 11,420 Cr. in Q4 of the previous year. Whereas, the revenues have increased by 11% QoQ from Rs. 12,762 Cr.
  • The EBITDA of ITC Limited has delivered a growth of 7.4% (YoY) from Rs. 4,164 Cr. In Q4 FY20 to Rs. 4,473 Cr. in the Q4 of FY21. The profits have shown a rise in QoQ by 3.7 % from Rs. 4,315 Cr. in Q3 FY21.
  • The EBITDA Margins have shown a fall due to a Rise in Input Prices by 430 basis points (bps) YoY from 38.3% in Q4 FY20 to 34% in Q4 of FY21. And on a QoQ basis, the OPM % has fallen by 230 basis points (bps) from 36.3% in Q3 FY21.
  • ITC Limited has delivered a rise in Profit before Tax (PBT) of 7.6% YoY, from Rs. 4,512 Cr. in the Q4 of FY20 to Rs. 4,854 Cr. in the Q4 of FY21. Whereas, the QoQ showed a fall in profits by 0.5% from Rs. 4,880 Cr. in Q3 FY21.
  • The profit after tax (PAT) has shown a fall of 1.3% (YoY) from Rs. 3,797 Cr. in the Q4 of FY20 to Rs. 3,748 Cr. in the Q4 of FY21. Net Profit on a QoQ basis has shown a rise of 1.6% from Rs. 3,688 Cr. in Q3 FY21.

ITC Limited- Q4FY21 Results

ITC Limited- Q4FY21 Results

ii) FY21 Performance:

  • The Gross Revenue from Sales has shown growth of 3.9% (YoY) to Rs. 48,151 Cr. in the Q4 of FY21 as compared to Rs. 46,324 Cr. in Q4 of the previous year.
  • The Revenue from Operations has shown a good growth of 4.3% (YoY) from Rs. 46,507 Cr. in FY 20 to Rs. 48,524 Cr. in FY21.
  • The EBITDA of ITC Limited has delivered a marginal fall of 13.3% (YoY) from Rs. 17,904 Cr. in FY20 to Rs. 15,522 Cr. in the FY21.
  • The EBITDA Margins % has also shown a falling trend by 520 basis points (bps) YoY from 39.5% in FY20 to 34.3% in FY21.
  • ITC Limited delivered a decrease in Profit before Tax (PBT) of 10.4% YoY, from Rs. 19,167 Cr. in the FY20 to Rs. 17,164 Cr. in the Financial Year 2021.
  • The Net Profit of ITC Limited has shown a steep fall of 13.9% (YoY) from Rs. 15,136 Cr. in FY20 to Rs. 13,032 Cr. in FY21.

ITC Limited-FY21 Performance

ITC Limited-FY21 Performance

2. Segment wise

i. Revenue Growth:

a) Cigarettes:

  • The revenue from Cigarettes has increased by 14% (YoY) from 5,131 Cr. in the Q4 of FY20 to Rs. 5,860 Cr. in the Q4 of FY21.
  • Quarterly, the revenue from Cigarettes has also increased by 7% (QoQ) from 5,498 Cr. in the Q3.
  • The revenue has shown a fall of 4% from Rs. 21,202 Cr. in FY20 to Rs. 20,333 Cr. in FY21.
  • The segment revenue is continuously rising from Q1 to Q4 of FY21.

b) FMCG Others:

  • The revenue from FMCG Others has increased by 16% (YoY) from 3,184 Cr. in the Q4 of FY20 to Rs. 3,688 Cr. in the Q4 of FY21.
  • Quarterly, the revenue from FMCG Others has decreased by 1.5% (QoQ) from 3,744 Cr. in Q3.
  • The revenue has shown a rise of 15% from Rs. 12,844 Cr. in FY20 to Rs. 14,728 Cr. in FY21.
  • The segment revenue has shown a fall from Q1 to Q4 of FY21.

c) Hotels:

  • The revenue from Hotels has decreased by 38% (YoY) from 466 Cr. in the Q4 of FY20 to Rs. 288 Cr. in the Q4 of FY21.
  • Quarterly, the revenue from Hotels has increased by 23% (QoQ) from 235 Cr. in Q3.
  • The revenue has shown a fall of 66% from Rs. 1,837 Cr. in FY20 to Rs. 628 Cr. in FY21.
  • The segment revenue has shown a rising trend from Q1 to Q4 of FY21.

d) Agri-Business:

  • The revenue from Agri-Business has increased by a huge 79% (YoY) from 1,887 Cr. in the Q4 of FY20 to Rs. 3,669 Cr. in the Q4 of FY21.
  • Quarterly, the revenue from Agri-Business has increased by 36% (QoQ) from 2,482 Cr. in the Q3.
  • The revenue has shown a rise of 23% from Rs. 10,241 Cr. in FY20 to Rs. 12,582 Cr. in FY21.
  • The segment revenue is also showing a rising trend from Q1 to Q4 of FY21.

e) Paper, Paperboards, and Packaging:

  • The revenue from Paper, Paperboards, and Packaging has increased by 13% (YoY) from 1,459 Cr. in the Q4 of FY20 to Rs. 1,656 Cr. in the Q4 of FY21.
  • Quarterly, the revenue from Paper, Paperboards, and Packaging has increased by 12% (QoQ) from 1,478 Cr. in the Q3.
  • The revenue has shown a fall of 8% from Rs. 6,107 Cr. in FY20 to Rs. 5,619 Cr. in FY21.
  • The segment revenue is also showing a rising trend from Q1 to Q4 of FY21.

ITC Limited- Segment-wise Revenue Growth

ITC Limited- Segment-wise Revenue Growth

ITC Limited- Segment Revenue- QoQ Revenue Trend

ITC Limited- Segment Revenue- QoQ Revenue Trend

ii) EBIT Profit Growth:

a) Cigarettes:

  • The EBIT from Cigarettes has increased by 8% (YoY) from 3,403 Cr. in the Q4 of FY20 to Rs. 3,666 Cr. in the Q4 of FY21.
  • Quarterly, the revenue from Cigarettes has increased by 6% (QoQ) from 3,453 Cr. in Q3.
  • The EBIT has shown a fall of 14% from Rs. 14,853 Cr. in FY20 to Rs. 12,720 Cr. in FY21.

b) FMCG Others:

  • The EBITDA from FMCG Others has increased by 19.5% (YoY) from 256 Cr. in the Q4 of FY20 to Rs. 306 Cr. in the Q4 of FY21.
  • Quarterly, the EBITDA from FMCG Others has decreased by 15% (QoQ) from 360 Cr. in Q3.
  • The EBITDA has shown a rise of 44% from Rs. 914 Cr. in FY20 to Rs. 1,317 Cr. in FY21.

c) Hotels:

  • The EBIT from Hotels has decreased and made a loss, it has come down from 43 Cr. in the Q4 of FY20 to Rs. -40 Cr. in the Q4 of FY21.
  • Quarterly, the EBIT from Hotels has increased (QoQ) from -67 Cr. in the Q3.
  • The EBIT has shown a fall from Rs. 158 Cr. in FY20 to Rs. -535 Cr. in FY21.

d) Agri-Business:

  • The EBIT from Agri-Business has increased by 13% (YoY) from 123 Cr. in the Q4 of FY20 to Rs. 190 Cr. in the Q4 of FY21.
  • Quarterly, the EBIT from Agri-Business has decreased by 3% (QoQ) from 196 Cr. in Q4.
  • The EBIT has shown a fall of 16% from Rs. 1,305 Cr. in FY20 to Rs. 1,099 Cr. in FY21.

e) Paper, Paperboards, and Packaging:

  • The EBIT from Paper, Paperboards, and Packaging has increased by 13% (YoY) from 286 Cr. in the Q4 of FY20 to Rs. 323 Cr. in the Q4 of FY21.
  • Quarterly, the EBIT from Paper, Paperboards, and Packaging has increased by 13.3% (QoQ) from 285 Cr. in Q4.
  • The EBIT has shown a fall of 16% from Rs. 1,305 Cr. in FY20 to Rs. 1,099 Cr. in FY21.

3. Segment-wise Revenue & EBIT Mix: 

i) Revenue & EBIT Mix :