Are ITC latest results good or bad?

ITC Limited has reported its financial results for the quarter ending June 2025, showcasing notable growth in several key metrics. The company achieved a profit after tax (PAT) of Rs 13,921.71 crore, reflecting a year-on-year growth of 39.10%. Net sales reached Rs 21,494.79 crore, which represents a 20.91% increase compared to the previous year. Additionally, the operating profit (PBDIT) for the quarter was Rs 6,816.47 crore, marking the highest level in the last five quarters.
However, ITC is facing challenges in its financial health. The company's cash and cash equivalents have decreased to Rs 4,012.36 crore, the lowest in the last six half-yearly periods, indicating a decline in short-term liquidity. Furthermore, the dividend payout ratio has dropped to 51.68%, the lowest in five years, suggesting that a smaller portion of profits is being returned to shareholders.

Overall, while ITC Limited has demonstrated strong growth in key financial metrics, there are concerns regarding liquidity and dividend distribution. Additionally, the company saw an adjustment in its evaluation, reflecting the mixed nature of its financial performance.