ITC

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Diversified conglomerate ITC Ltd. reported a consolidated net profit of Rs. 5,343 crore for the first quarter of FY25, showing a modest year-on-year growth of 1.3%. While profits inched upward, revenue remained largely flat at Rs. 16,050 crore due to subdued demand in certain key segments. The company’s core cigarette business remained stable, while the non-cigarette FMCG segment posted continued growth. However, the agribusiness and paperboards segments saw contraction, impacted by global headwinds.

ITC Chairman and Managing Director Sanjiv Puri has called upon Indian businesses to aggressively pursue global relevance, asserting that the time has come for Indian brands to secure their place on the world stage. In a wide-ranging address that balanced ambition with realism, Puri emphasized that India’s competitive edge, powered by innovation, scale, and supply chain resilience, must translate into global leadership.

ITC Ltd.’s fast-moving consumer goods (FMCG) division continues to deliver steady growth despite facing persistent macroeconomic pressures and shifting consumer preferences. While the company grapples with inflationary input costs and a slowdown in rural demand, it has maintained performance through strategic product innovation, pricing discipline, and channel diversification. With strong performances in foods, personal care, and hygiene categories, the FMCG segment remains a key pillar of ITC’s diversification journey beyond its traditional tobacco business.

India’s fast-moving consumer goods (FMCG) sector stands as a pillar of resilience amid economic cycles, with ITC, Hindustan Unilever (HUL), and Dabur commanding significant investor attention. Each company brings a unique portfolio strategy, operational strength, and market narrative, shaping distinct investment prospects. While ITC enjoys a diversified revenue mix bolstered by cigarettes and a fast-growing FMCG arm, HUL thrives on an expansive consumer products empire with unmatched brand recall. Dabur, meanwhile, leverages its heritage in Ayurvedic and natural segments.

British multinational British American Tobacco (BAT) has reduced its stake in Indian conglomerate ITC Ltd by 2.3% through a block deal worth Rs. 11,613 crore (USD 1.36 billion). The sale involved 29 crore shares of ITC at a floor price of Rs. 400 per share, representing a discount of about 7.8% from the company's previous closing price. The move is part of BAT's strategy to increase financial flexibility and focus on its transformation goals, including deleveraging and sustainable shareholder returns.