ITC Didn’t Diversify Because It Was Bold. It Diversified Because It Was Preparing for the Worst.
From my time observing the business closely, one truth stands out: ITC Limited has diversified — but cigarettes still drive its profits. In FY24 (year ended March 31, 2024), ITC recorded revenue of ~₹78,689 crore. Cigarettes contributed roughly 40% of revenue yet accounted for ~79% of profits. So even though non-tobacco businesses are growing, most of the profit engine still runs on cigarettes.
