ITC Result: Cigarettes-to-hotel major ITC Limited is expected to report a strong show for the July-September quarter of the financial year 2022-23(Q2FY23) on Thursday, October 20, 2022. The company’s top and bottom lines may register double-digit growth and margins may witness pressure.

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According to Zee Business research analyst Nupur Jainkunia, ITC’s revenue may grow by 23 per cent year-on-year to Rs 15,614 crore (estimate) in Q2FY23 as compared to Rs 12,731 crore in the same period a year ago. Similarly, its profit may surge by 14 per cent YoY to Rs 4,223 crore (estimate) in Q2FY23 versus Rs 3,697crore Q2FY22.

While EBITDA (earnings before interest, taxes, depreciation, and amortization) is seen growing by 17 per cent to Rs 5,421 crore (estimate) in the second quarter of FY23 against Rs 4,615 crore in a year ago period. And margins are expected to fall by 100 basis points to 35 per cent from 36 per cent YoY.

Margins are seen under pressure on a YoY basis, with slight improvement possible sequentially, Zee Business research noted. “Expect growth of 13-15 per cent in cigarette volume, similarly, cigarette EBIT expected to grow by 19 per cent in Q2FY23.”

FMCG revenue growth is seen at 12 per cent, and good growth is expected in the hotel and paper segment, Zee Business research also mentioned. Key factors to watch out are: Outlook on the Agri, paper & packaging, and Hotel businesses.

In line with Zee Business expectations, Street also believes that the FMCG major may continue to report strong numbers in Q2FY23, estimating cigarette business sales will show double-digit growth led by strong volumes as well as a better product mix. And other businesses shall also do better in Q2.

On Tuesday, ITC shares closed over 2.5 per cent higher to Rs 340.85 per share on the NSE. The stock in 2022 has gained more than 55 per cent, while it jumped almost 39 per cent in the last one year.