ITC Q3 Results Review - Short Term Hiccup; Maintain 'Buy': Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.ITC Ltd.’s Q3 FY24 results were below estimates on the operating front. The revenue grew by 1% YoY to Rs 16,314 crore owing to subdued performance in cigarettes (flat volume growth) on account of high base and continued drag in agri – down 2% YoY / paper board business – down 10%. FMCG revenue grew ~8% YoY owing despite subdued demand conditions led by new product development. Hotel business maintained its stellar performance, up by 18% YoY led by retail, meeting, incentives, conferences and exhibitions and strong traction from the ICC World Cup. Gross margins stood at 58%, down 50 basis points owing to a sequential increase in key raw material prices – tobacco, wheat, maida and sugar. Ebitda declined 3% YoY while Ebitda margins stood at 36.9% (down by 177 bps YoY), due to higher opex. The reported profit after tax was Rs 5,572 crore (up 11% YoY) on account of higher other income and lower taxation.Cigarettes (~78% of Ebit) – ITC’s cigarettes revenue grew 3.6%YoY (flat volume growth) on account of high base, while Ebit grew 2% YoY, while Ebit margins declined 75 bps YoY to 62.6% owing to higher raw material (tobacco)..Click on the attachment to read the full report:.ITC Q3 Results Review- Favorable Below-Ebitda Items Offset Muted Performance Impacted By High Base: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ITC Q3 Results Review - Short Term Hiccup; Maintain 'Buy': Axis Securities

We believe ITC is likely to see near-term pressure as the demand environment is likely to remain challenging as witnessed by most of the fmcg companies

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