ITC Q4 Review - FMCG, Hotel Divisions Drive The Beat; Cigarette Volume Trajectory Remains Healthy: Systematix

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.ITC Ltd.’s overall Q4FY23 revenue/Ebitda/profit after tax growth of 5.6%/18.9%/19.6%, respectively, was ahead of our estimates, with better-than-expected growth and best-ever margins in the fast moving consumer good and hotels segments. Soft margins in cigarettes and paper limited the YoY margin improvement to 430 basis points, which was down 50 bps QQ. Key highlights:Cigarette volume/Ebit growth of ~12%/14% (4.1% four-year volume compound annual growth rate) demonstrates a claw back of market share from illicit industry given stable taxation regime backed by deterrent government actions driving improved volume growth trajectory,FMCG grew at a solid 19.4%, led by growth in foods and discretionary/out-of-home categories, with 445 bps margin expansion led by premiumisation, supply chain agility and strategic cost management,hotels business continued a strong rebound, generating 100% YoY revenue growth with sharp swing in margins led by higher average room rate, occupancy and cost interventions,agri business declined 18%, due to export restrictions on wheat imposed by the Government,paper segment revenue was up mere 1.8% due to planned shutdown of mill and high base with margins down by 60 bps and,ITC Infotech posted revenue growth of 30% with Ebitda growth of 33%..Click on the attachment to read the full report:.ITC Q4 Results: Profit Beats Estimates Driven By Steady FMCG Sales .DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ITC Q4 Review - FMCG, Hotel Divisions Drive The Beat; Cigarette Volume Trajectory Remains Healthy: Systematix

Cigarette growth picking up given favorable government action.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP