Net revenue rose by 8.6% year-on-year to Rs 17,726 crore during the period under review.

The company’s FMCG – Others business has reported 4% YoY growth in revenue to Rs 5,418 crore in Q3 FY25, amidst muted demand conditions.

The revenue from Cigarettes rose by 7.8% YoY to Rs 8,136 crore in the third quarter. Adjusted for excise duty/NCCD on sales, the revenue is higher by 8.1% YoY, mainly driven by growth in volumes.

The Agri Business segment revenue increased by 9.7% YoY to Rs 3,351 crore, with significant growth contribution from Leaf Tobacco & value added Agri products.

The company’s Paperboards, Paper and Packaging Segment remains impacted due to low priced Chinese & Indonesian supplies in global markets including India, soft domestic demand conditions and unprecedented surge in wood prices. Segmental revenue for Q3 FY25 was Rs 2,144 crore, up 3.1% YoY.

The Hotels business has recorded 14.6% YoY growth in revenue to Rs 922 crore. The business has been demerged into ITC Hotels Limited (ITCHL) w.e.f. 01 January 2025. ITCHL shares listed on stock exchanges on 29 January 2025.

During the quarter, the company witnessed sharp cost escalation in key input materials (edible oil, wheat, potato, leaf tobacco, wood etc.) witnessed.

EBITDA improved by 2.9% to Rs 6,197 crore in Q3 FY25 from Rs 6,024 crore in Q3 FY24.

Profit before tax in Q3 FY25 stood at Rs 7,363 crore, up by 9.5% from Rs 6,725 crore in Q3 FY24.

The company’s board recommends interim dividend of Rs 6.50 per share for the financial year ending 31 March 2025.

Separately, ITC said that it has signed definitive agreements for acquisition of Prasuma, a leading player in the frozen, chilled and ready to cook foods space in India.

Prasuma, a specialist in oriental cuisine (viz. momos, baos, Korean fried chicken), high quality delicatessens and raw meats, etc., sells a wide assortment of 170+ products, backed by unparalleled innovation expertise in developing ‘Good-for-You’ products.

This acquisition will further fortify ITC’s presence in these future-facing categories, with current annual market size of over Rs 10,000 crore and poised for rapid growth in the years ahead.

ITC will acquire 100% stake in Prasuma over a period of 3 years. The first tranche of 43.8% stake shall be acquired upfront and balance stake will be acquired, in tranches, by June, 2028, basis pre-defined valuation criteria and subject to other conditions as stated in the definitive agreements.

ITC had entered the Frozen Foods market in 2019 under ‘ITC Master Chef’ brand. Within 5 years of launch, ITC Master Chef has grown rapidly and has established itself as one of the leading Frozen Foods brands.

With the industry at an inflection point, this acquisition will help strengthen and expand ITC’s presence in the aforesaid categories by gaining entry into high growth segments, viz. Pan Asian foods, Deli meats, etc.

With the proposed acquisition, ITC will become the first full stack player in the segment with an unparalleled portfolio, offering meals and snacking options across multiple occasions throughout the day for the discerning consumer.

ITC Master Chef and Prasuma shall also benefit from significant synergies through well designed institutional mechanisms and enablers.

ITC is a diversified conglomerate with businesses spanning fast-moving consumer goods, hotels, paperboards and packaging, agribusiness and information technology.