ITC Q3 Results Preview: Standalone PAT expected to grow 4% YoY; hotel, FMCG businesses to post strong growth

ITC Q3 Preview: ITC, the diversified conglomerate, is set to report its financial results for the December quarter of the current fiscal (Q3 FY24) on Monday, January 29. The company's standalone revenue, as per Zee Business Research desk, is expected to grow 5 per cent year-on-year (YoY) to Rs 17,032 crore. Its EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is also seen rising 5 per cent YoY to Rs 6,522 crore. In the year-ago period, EBITDA stood at Rs 6,222 crore.

EBITDA is one of the most commonly used metrics by analysts to assess a company's financial performance. It shows the operating profitability of a business.

Margins, on the other hand, are expected to remain steady at 38.3 per cent. Profit after tax (PAT), or net profit, is estimated to grow 4 per cent YoY to Rs 5,252 crore.

Further, cigarette volumes are expected to grow by 2 per cent due to a high base. Besides, the research desk notes that the five-year average volume growth in the cigarette business is expected to be in the mid-single digits.

FMCG business is expected to see 12 per cent growth. The hotel business is also expected to see strong growth due to the wedding and festive seasons. However, the Agri and Paper & Packaging businesses are likely to see a mild weakness, as per the desk.

Commentary on margins and outlook will be closely tracked.

ITC Q2 FY24 Results

The company reported a 6.11 per cent rise in consolidated net profit at Rs 4,955.90 crore for the September quarter. The company had posted a consolidated net profit of Rs 4,670.32 crore in the year-ago period. Its gross revenue from the sale of products stood at Rs 19,137.51 crore, up 3.83 per cent during the quarter. It was Rs 18,430.52 crore in the corresponding quarter a year ago.
ITC's revenue from operations was at Rs 19,270.02 crore in the quarter, up 3.55 per cent, as against Rs 18,608 crore.

"Amidst a challenging operating environment and a high base effect in some of its operating segments, the company sustained its strong growth momentum during the quarter, driven by a focus on customer centricity, accelerated digital adoption, execution excellence, and agility," ITC said in its earnings statement.