ITC Ltd has recorded a 6.4 per cent rise in profit after tax at Rs 5,406.52 crore in the third quarter of FY24 on a consolidated basis compared with Rs 5,080.25 crore in the same period of the last fiscal, after accounting for a lower tax incidence.

In the notes to the results, the company disclosed that it has reassessed provisions relating to uncertain tax positions for earlier years based on a favourable order of the Supreme Court received during the quarter. This has resulted in a credit of Rs 468.44 crore in the current tax expense for the quarter.

While the lower tax propped up profit, revenue from operations inched up by 2.4 per cent to Rs 19,484.5 crore from Rs 19,020.65 crore.

The board of the directors announced an interim dividend of Rs 6.5 a share (650 per cent) for the year.

A closer look at the segment results shows that the pace of growth in cigarettes slowed down and revenues from agri business, paperboards, paper and packaging dropped year-on-year (y-o-y) basis. However, the hotel segment delivered their best ever results in terms of revenues and profits, while the non-tobacco FMCG (food and health and personal care) continued to show an uptrend.

ITC informed that the stock exchanges have approved the scheme of arrangement for demerger of the hotel business.

In the media statement, the company said the agri business was impacted by trade restrictions (wheat and rice exports). The paperboards, paper and packaging segment was impacted by low priced Chinese supplies in global markets, muted domestic demand and a surge in wood cost.

The cigarettes business witnessed a consolidation on a high base after a period of sustained growth momentum, even as the segment revenue went up 2.6 per cent to Rs 8,295.18 crore while profit before tax from the segment increased by 2.1 per cent to Rs 4,966.57 crore.

FMCG-others margin expanded by 100 bps to 11 per cent and segment PBT went up by 23.2 per cent to Rs 433.8 crore. Segment revenue was up by 7.6 per cent to Rs 5,218.25 crore. In contrast, hotel segment EBIDTA margin went up 470 BPS to 36.2 per cent and PBT jumped by 56.4 per cent. Revenue from the segment increased by 18 per cent to Rs 872.46 crore.