On June 6, ITC shares increased by more than 1% to Rs 434 a share following the approval of the demerger of the conglomerate's hotel arm by shareholders. ITC stated in a stock market statement that around 99.6% of shareholders voted in favor of the demerger, with only 0.4 percent voting against it. ITC's stock has dropped more than 5% so far this year, trailing the benchmark Nifty 50 index's 4% increase. Prior to this, on July 24, 2023, ITC reached a 52-week high of Rs 499 per share.

"The resolution for approval of scheme of arrangement amongst ITC and ITC Hotels and their respective shareholders and creditors passed notice dated April 30, 2024 through remote e-voting and e-voting," ITC stated in a statement with the exchange.

ITC's net profit decreased 1.31 percent year over year (YoY) to Rs 5,020 crore in the January–March quarter (Q4FY24), despite a minor YoY increase in revenue of Rs 17,752 crore.  A final dividend of Rs 7.50 per common share was suggested by the firm for the fiscal year that ends on March 31, 2024.

The quarter saw record-high revenue and earnings for ITC's hotels division, driven by robust RevPar growth from retail, MICE, and marquee events. In Q4FY24, segment sales increased 15.6% YoY to Rs 2,989 crore, while EBITDA increased 26.2% YoY to Rs 1,049 crore.

ITC was given a "buy" recommendation by Centrum analysts after the company's Q4 earnings, with a target price of Rs 536 per share. "With value unlocking in hotel demerger, we expect investor’s focus to shift on core fundamentals of the business such as growth momentum and margin trajectory," stated the brokerage. 

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