Shares of Largest Cigarette Manufacturer and Seller in the Country Jump Over 2.5 Per Cent After FY25 Results; PAT Surges 68.92 Per Cent, Dividend of Rs 14.35 Per Share Declared
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Shares of Largest Cigarette Manufacturer and Seller in the Country Jump Over 2.5 Per Cent After FY25 Results; PAT Surges 68.92 Per Cent, Dividend of Rs 14.35 Per Share Declared

The stock has delivered a return of 4.74 per cent over the past 12 months and 8.54 per cent in the last three months. Over the past five years, the stock has provided returns of over 143 per cent. However, it is down 4.87 per cent on a year-to-date basis.

ITC Ltd witnessed a rise of over 2.5 per cent in its share price on Friday, May 23, 2025, reaching Rs 437 per share (as of 10:43 AM IST). The surge followed the release of its quarterly and annual financial results for FY25, alongside the announcement of a total dividend of Rs 14.35 per share for the year. The company displayed a steady performance despite a challenging environment marked by subdued demand and higher input costs.

For the fourth quarter ended March 31, 2025, ITC reported a 9.78 per cent year-on-year growth in revenue from operations, which reached Rs 20,376.36 crore, up from Rs 18,561.59 crore in Q4 FY24. Profit from continuing operations rose to Rs 5,155.27 crore, registering a 2.97 per cent increase from Rs 5,006.14 crore reported in the same quarter last year.

On an annual basis, revenue for FY25 stood at Rs 81,612.78 crore, reflecting a growth of 10.45 per cent from Rs 73,891.43 crore in FY24. Profit after tax (PAT) jumped significantly by 68.92 per cent to Rs 35,052.48 crore, compared to Rs 20,751.36 crore in the previous financial year.

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Despite sharp increases in input costs such as edible oil, wheat, potato, and tobacco, ITC maintained segment-wise growth across key verticals. The Cigarettes segment saw a 7.1 per cent rise in revenue and a 4.9 per cent increase in segment PBIT for the year. FMCG revenues grew 4.8 per cent year-on-year, and Agri Business posted 25 per cent growth in revenue and 18 per cent growth in PBIT. However, the Paperboards, Paper & Packaging segment saw only 1 per cent growth in revenue, while segment results declined by 34 per cent year-on-year.

A notable development was the demerger of the Hotels Business into ITC Hotels Limited (ITCHL) effective January 1, 2025. The segment recorded its highest-ever revenue and operating profits in the nine months ending December 31, 2024, driven by improved RevPAR (Revenue Per Available Room).

The board declared a final dividend of Rs 7.85 per share, adding to the interim dividend of Rs 6.50 per share paid in March 2025. This brings the total dividend for FY25 to Rs 14.35 per share, higher than the Rs 13.75 per share declared in FY24.

In terms of stock performance, ITC has delivered a return of 4.74 per cent over the past 12 months and 8.54 per cent in the last three months. Over the past five years, the stock has provided multibagger returns of over 143 per cent. However, it is down 4.87 per cent on a year-to-date basis.

Founded in 1910, ITC is a Large-Cap conglomerate with a strong presence in multiple sectors including FMCG, cigarettes, agri business, and packaging.

Disclaimer: The article is for informational purposes only and not investment advice.

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