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ITC Ltd’s net profit in the April-June quarter jumped 18 per cent year-on-year (YoY) to Rs 4,903 crore, the company said in a filing with stock exchanges on Monday. The company had posted a consolidated net profit of Rs 4,462.25 crore in the same period the last fiscal.
The diversified conglomerate’s revenue from operations in the first quarter, net of excise duty, fell 8.5 per cent YoY to Rs 15,828.20 crore. ITC’s revenue from operations in the same quarter a year ago was Rs 19,831.27 crore.
The company’s total expenses in Q1FY24 slipped 12.53 per cent YoY to Rs 12,421.77 crore.
“Amidst a challenging operating environment and high-base effect in some of its operating segments, the company sustained its strong growth momentum during the quarter driven by a focus on customer centricity, accelerated digital adoption, execution excellence and agility,” the company stated.
The company’s board also approved the demerger of hotels business, and set an indicative timeline of listing of the new firm in 15 months. ITC’s board approved the hotels business to have the license to use the ITC brand name.
ITC shareholders will get one equity share of ITC Hotels for every 10 shares held in the demerged company (ITC Ltd), according to the entitlement ratio.
The company’s shareholders will hold around 60 per cent direct stake in ITC Hotels (proportionate to their stake in ITC) and the remaining 40 per cent stake to continue with ITC.
“For every ten ordinary shares of the face and paid-up value of Re 1 each held in the demerged company (ITC Ltd), one equity share of the face and paid-up value of Re 1 in the resulting company (ITC Hotels)” will be issued, the company said.
“100 per cent economic interest will continue to be held by ITC shareholders in the hotel business”.
