ITC Reports Strong Profit Growth Amid Emerging Liquidity Challenges in June 2025 Results

ITC, a prominent player in the FMCG sector, has recently reported its financial results for the quarter ending June 2025. The results indicate a notable shift in the company's evaluation, with a revision in its score reflecting recent performance metrics.
In terms of profitability, ITC's Profit After Tax (PAT) for the latest six months reached Rs 13,921.71 crore, showcasing a year-on-year growth of 39.10%. This positive trend is complemented by net sales, which hit a record high of Rs 21,494.79 crore in the last five quarters, also marking a year-on-year increase of 20.91%. Additionally, the operating profit (PBDIT) reached Rs 6,816.47 crore, the highest in the same timeframe, while the Profit Before Tax (PBT) stood at Rs 6,445.80 crore, again the highest in the last five quarters.

Conversely, ITC faces challenges with its cash and cash equivalents, which have fallen to Rs 4,012.36 crore, the lowest in the last six half-yearly periods, indicating a decline in short-term liquidity. Furthermore, the company's dividend payout ratio has decreased to 51.68%, the lowest in five years, suggesting a reduced distribution of profits as dividends.

Overall, ITC's financial results reflect a complex landscape of growth in key areas alongside emerging liquidity concerns.

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