ITC shareholders approve demerger of hotel business with 99.6% majority votes. Demerger of ITC’s hotel business got approval from shareholders: After the demerger, the company will hold 40% stake in this business.

Shareholders of ITC Limited have approved the demerger of the group’s hotel business. FMCG company ITC, which makes cigarettes and soaps, gave this information in its stock exchange filing.

ITC reported that approximately 99.6% of shareholders voted in favor of the demerger, while only 0.4% voted against it. 99.6% of public institutions and 98.4% of non-public institutions voted in favor of the demerger proposal.

ITC will keep 40% stake in hotel business after demerger
After demerger, ITC will hold 40% stake in the hotel business. The remaining 60% stake will be held by the shareholders. ITC had announced the demerger plan in July last year and later said the new unit would be listed in 15 months.

ITC shares closed 1.42% higher at ₹436.40 today. The entire 100% stake of the company is held by public shareholders. The market cap of ITC 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. Whereas EIH manages the hotels of Oberoi brand.

Hotel business contributes 4% to ITC’s FY24 revenue
The hotel business contributed 4% to ITC’s fiscal year 2024 revenue. Whereas its consumer staple business accounted for 71% of the revenue.

ITC’s fourth-quarter profit stood at ₹5,120 crore
ITC’s profit in the fourth quarter (January-March) of FY 2024 declined by 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 the financial year 2024. ITC had released fourth quarter and annual results on May 23.

0.19% decline in income on annual basis
Consolidated revenue from operations of ITC declined by 0.19% on an annual basis. Revenue from operations stood at ₹19,446.49 crore in Q4FY24. Revenue in the same quarter a year ago i.e. fourth quarter of FY23 was ₹19,484.50 crore.

Company’s profit increased by 6.60% in financial year 2024
ITC’s consolidated profit for full fiscal year 2024 increased by 6.60% to ₹20,458.78 crore. The profit in FY 2023 was ₹19,191.66 crore.

Revenue increase of 0.42% in FY 2024
ITC’s consolidated revenue increased to ₹76,840.49 crore in FY2024. Revenue in FY 2023 was ₹76,518.21 crore. That means there has been an increase of 0.42% in revenue.

Sanjeev Puri is the chairman and managing director of ITC.
ITC is a leading multi-business Indian enterprise with presence in FMCG, Paper, Packaging, Agri-Business, Hotels and IT. Sanjeev Puri is the chairman and managing director of ITC.

This company was established in 1910, then the name of this company was Imperial Tobacco Company. Then in 1970 its name was changed to India Tobacco Company. After this, its name became ITC Limited in 1974.