Winning Bizness Desk
Mumbai. In a major development that could reshape the future of the hospitality industry across India, the shareholders of ITC Limited have approved the demerger of the group's hotel business. FMCG company ITC, which manufactures everything from cigarettes to soaps, gave this information in a stock exchange filing. It said that about 99.6% of shareholders voted in favor of the demerger, while only 0.4% voted against it. Total 99.6% of public institutions and 98.4% of public non-institutions voted in favor of the demerger proposal.
ITC will hold 40% stake in hotel business after demerger
ITC will hold 40% stake in the hotel business after demerger, while remaining 60% stake will be with shareholders. ITC announced the demerger plan in July last year and later said that the new unit would be listed in 15 months. The entire 100% stake of the company is held by public shareholders. ITC's market cap is Rs 5.44 lakh crore. ITC Hotels as an independent unit will compete with competitors like Tata-owned Indian Hotels Company and EIH Associated Hotels. Indian Hotels operates Taj Hotels. EIH manages the Oberoi brand of hotels.
Hotel business contributed 4% to ITC's FY24 revenue
The hotel business contributed 4% to ITC's FY24 revenue. While its consumer staples business accounted for 71% of the revenue. ITC's profit in the fourth quarter (January-March) of FY24 fell 4% year-on-year (YoY) to ₹ 5120.55 crore. The company's consolidated net profit in the same quarter a year ago was ₹5,335.23 crore. The company has announced a final dividend of ₹ 7.50 paise per share for FY24. ITC released its fourth quarter and annual results on 23 May.
Consolidated revenue from operations declined
ITC's consolidated revenue from operations declined by 0.19% on an annual basis. Revenue from operations stood at ₹ 19,446.49 crore in the fourth quarter of FY24. The revenue stood at ₹ 19,484.50 crore in the same quarter a year ago i.e. the fourth quarter of FY23. ITC's consolidated profit for the entire financial year 2024 increased by 6.60% to ₹20,458.78 crore. The profit in FY 2023 was ₹19,191.66 crore.
