ITC Q2 results preview: Cigarette volumes likely to see 5-6% growth; PAT seen rising 11%

ITC Q2 results: ITC Ltd, the Kolkata-headquartered diversified conglomerate, is expected to post revenue growth of 4.5 per cent year-on-year (YoY) on a standalone basis at Rs 16,854 crore for the quarter ended September 30, 2023 (Q2 FY24). The company had registered revenue of Rs 16,130 crore in the year-ago period.

The company is slated to announce its second-quarter results on Thursday, October 19.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is expected to come in at Rs 6,392 crore, up 9 per cent against Rs 5,865 crore logged in the corresponding quarter of the previous fiscal, according to Zee Business Research. The research desk projects margins to come in at 38 per cent against 36 per cent logged in the year-ago period. Net profit, or profit after tax (PAT), is seen rising 11 per cent YoY to Rs 4,958 crore against Rs 4,466 crore logged in the year-ago quarter.

The company is expected to register decent growth in most of its verticals. Cigarette volumes are expected to see 5–6 per cent growth. FMCG business is expected to witness 8 per cent growth, as per the research desk. The margins of the FMCG vertical are also expected to improve. The hotel segment's revenue is expected to grow 11 per cent. The paperboard, paper, and packaging segment's revenue is likely to fall 11 per cent due to a fall in pricing. The agri segment is also expected to report a revenue drop of 14 per cent. 

Updates on the hotel business demerger and the management commentary on demand and margins will be closely tracked.

ITC Q1 results 

The cigarettes-to-hotels conglomerate reported a year-on-year jump of 17.61 per cent in standalone profit after tax to Rs 4,903 crore for the quarter ended June 30. Its revenue came in at Rs 16,995 crore for the first quarter of the current financial year, as against Rs 18,320 crore for the corresponding period a year ago.

On a consolidated basis, the company's profit grew 16.08 per cent to Rs 5,180.12 crore. Its consolidated revenue from operations declined 6 per cent to Rs 18,639.48 crore, impacted by its agribusiness division. It was Rs 19,831.27 crore in Q1 of FY2022-23. ITC's total expenses in the quarter under review slipped 12.53 per cent year-on-year to Rs 12,421.77 crore.