ITC Q3 today: Demonetisation, cigarette sales key triggers
Analysts added, "We model 5% yoy volume decline in cigarettes and 1% yoy growth in FMCG business; among other businesses, we model -15%, 5% and -7% growth in hotels, agri-business and paper boards respectively."
Analyst expected muted results from ITC Ltd today as the shares of ITC were trading at Rs 264 per piece on BSE, down by 0.51%.
The company is likely to be affected by demonetisation.
In the previous quarter (Q2FY17), the company registered net profit of Rs 2,500 crore, which was up by 10.5% from Rs 2,262.5 crore in the corresponding period of the previous year.
A Kotak Institutional Equities report said, , "We estimate cigarette EBIT to decline marginally by 0.5% and overall EBITDA due to dip 6% yoy due to weak leverage."
During Q2, operating profit (EBITDA) from the cigarette business recorded growth of 8.35% yoy to Rs 3,216.88 crore, while revenue jumped 7.09% to Rs 8,528.47 crore.
That time, ITC said in a statement, its cigarette sales continued to face pressure from contrabands.
Analysts added, "We model 5% yoy volume decline in cigarettes and 1% yoy growth in FMCG business; among other businesses, we model -15%, 5% and -7% growth in hotels, agri-business and paper boards respectively."
Kotak expects ITC to report revenue Rs 8,757.4 crore down by 0.4% on year-on-year (YoY) basis and 8.2% on quarter-on-quarter (QoQ) basis.
While profit after tax is estimated to be around Rs 2,405.7 crore, declining by 3.9% yoy and 3.8% qoq.
Recently, ITC named Sanjiv Puri as its chief executive with effect February 5, when chairman YC Deveshwar will move to a non-executive role.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
10:09 AM IST