ITC Q2 results preview: PAT may climb 3%; margin likely to slip 120 bps
Zee Business research estimates ITC to post a mixed set of performance in Q2, with margin taking a slight hit.
Cigarette-to-hotel major ITC is set to report its July-September earnings on October 24, 2024 (Thursday). Zee Business research estimates standalone profit after tax (PAT) at the conglomerate
to rise 3 per cent year-on-year (YoY) to Rs 5,079 crore. In the corresponding period last year, the company's PAT stood at Rs 4,927 crore.
Revenue during the reporting quarter is estimated to increase 7.5 per cent on-year to Rs 17,772 crore as against Rs 16,550 crore reported in the same period last year.
The EBITDA or earnings before interest, taxes, depreciation and amortization is also seen to grow by 4 per cent YoY to Rs 6,272 crore. In the same period a year-ago, the company's EBITDA was reported at Rs 6,042 crore, while the EBITDA margin is expected to decline to 35.3 per cent, a 120 bps decline year-over-year.
During Q2FY24, the company's EBITDA margin was 36.5 per cent.
Segment-wise estimates
The company's cigarette business is estimated to log 3 per cent growth in volume during the review period, while revenue is expected to increase 7 per cent on-year. Similarly, the EBIT growth in the segment is estimated at 5 per cent.
The company's FMCG business is projetced to log 6.5 per cent growth, with EBIT margin expected at 8.4 per cent during the review quarter.
Likewise, its hotel business is expected to clock 10 per cent growth, with EBIT margin pegged at 20 per cent.
Nonetheless, the company's agri-business and paperboards segments are estimated to log 15 per cent growth and 4 per cent de-growth, respectively.
Key monitorable
The management's commentary about growth outlook will take the centrestage.
ITC share price
Ahead of the company's results tomorrow, shares of the FMCG major traded flat at 481.7, while at the day's high it hit levels of Rs 483.15 and its day's low price is Rs 479.75 apiece on the BSE. The stock over the past one year has gained 10 per cent, while the Nifty FMCG index during the same period has moved higher by over 16 per cent.
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