ITC shares hit 52-week high at ₹387.60 as bourses open for trading on Monday amid upbeat third-quarter results.

What Happened: The FMCG firm booked ₹5,031 crore – a 21% year-over-year increase – in net profits beating most market estimates by around 10%. However, the company’s revenue dropped around 3% YoY to ₹17,097 crore. Market estimates saw the company posting a 4-5% increase in its revenue. 

The results came just days after Nirmala Sitharaman presented the country's budget. In her speech, she announced a 16% hike in National Calamity Contingent Duty (NCCD). Briefly after the announcement, the company’s shares fell but rose sharply as analysts noted that the hike was below market expectations.

The conglomerate has a vastly diversified presence ranging from Cigarettes to Hotels to Packaged Foods and other FMCG products.

Several analysts estimated that the company would post double-digit growth in both the cigarette and FMCG segments. And the company did not disappoint as the cigarette segment grew by 16.7% YoY to ₹7,288 crore while FMCG revenue stood at ₹4,841 crore an 18 percent rise from the year-ago period.

The company attributed the FMCG growth to company staples, biscuits, noodles, snacks, dairy, beverages, and frozen foods. The company also said it is rapidly growing in  "E-Com / Quick Commerce / Modern Trade / Institutional channels."

Talking about the growth in the cigarette segment the company said that recent launches are gaining traction and the company continues to see "robust growth across regions & markets." 

The company's hotel business revenue jumped 50% to ₹712 crore as travel and tourism started recovering from the pandemic.

The Kolkata headquartered company also announced an interim dividend of ₹6 a share for the current financial year.

Price Action: ITC share traded 1.7% higher at ₹387.60 in early trading as markets opened on Monday, hitting a new 52-week high.

See Also: ITC Shares Trade Weak Ahead Of Earnings Report But This Analyst Remains Positive