ITC Q4 preview: PAT likely to rise 16% YoY, demerger update and commentary on growth outlook eyed

ITC Q4FY23 Preview: ITC, the cigarette-to-hotel conglomerate, is slated to release its March quarter results (Q4FY23) on May 18, Thursday. According to Zee Business Research, the company will report a standalone revenue of Rs 16,361 crore, up 5 per cent year-on-year (YoY) against Rs 15, 531 crore logged in March 2022 quarter. EBITDA or earnings before interest, tax, depreciation, and amortisation is pegged at Rs 6,234 crore, up 19 per cent YoY while margins are estimated to come in at 38 per cent against 34 per cent in the corresponding quarter of fiscal 2021-22. Profit after tax (PAT) or net profit is expected to rise 16 per cent YoY to Rs 4,850 crore against Rs 4,191 crore in the year-ago period. 

Further, cigarette volumes are estimated to grow 13-14 per cent while its FMCG segment is expected to see a growth of 15-17 per cent. However, a fall in agribusiness could impact the company's overall income. The Hotels segment, on the other hand, is likely to post robust growth for the quarter under review. These apart, the company's update on the demerger plan and management's commentary on the growth outlook as well as on rural demand will be key things to watch out for. 

Meanwhile, as per a report, ITC and Godfrey Phillips have increased the prices of their cigarettes. The price hike is to the magnitude of 3-5 per cent, the report added.

ITC STOCK PERFORMANCE

On May 17, the stock of the diversified FMCG company ended  0.97 per cent higher at Rs 428.05 on the NSE. The shares of the Sanjiv Puri-led company have seen an impressive rise in the last 12 months. As per Trendlyne data,  the scrip has zoomed 61.5 per cent between May 17, 2022, and May 17, 2023. In comparison, the Nifty FMCG index has risen 31.75 per cent. The Nifty50 index, on the other hand, has gained nearly 12 per cent during the window.