ITC Q4 Results Preview: PAT likely to grow 1%, margin may remain flat; will the cigarette maker declare a dividend?

ITC Q4 result preview: ITC, a cigarette-to-hotel conglomerate, is all set to announce its fourth-quarter results ended March 31, on Thursday, May 23. Zee Business analysts expect the company's standalone net profit for the quarter that ended March 31, 2024, at Rs 5,064 crore against Rs 5,014 crore a year ago which implies a one per cent rise. Further, the FMCG giant is likely to report a standalone revenue of Rs 16,626 crore against Rs 16,116 crore year-on-year (YoY), up 3 per cent. 

The FMCG major's standalone earnings before interest, taxes, depreciation, and amortisation or EBITDA will remain flat as per analysts. The EBITDA is pegged at Rs 6,187 crore against Rs 6,209 crore YoY. Additionally, the company's margin is expected to be recorded at 37 per cent against 39 per cent a year ago. 

Furthermore, the cigarette volume growth is expected to remain flat, eight per cent growth is possible in the FMCG segment where margins in are expected to be around 9-10 per cent. Hotels are likely to witness strong growth of 16 per cent. However, agri business is estimated to decline 13 per cent in the fourth quarter. Weakness is also expected in the paper business. Investors will keep an eye out for management's commentary on demand and margins.

How did ITC perform in Q3?

ITC Ltd reported a jump of 10.75 per cent in its standalone profit after tax (PAT) and a rise of 8.52 per cent in revenue from operations YoY as the company reported its December quarter results on Monday (January 29, 2024).

The company's revenue grew 8.52 per cent to Rs 17651.85 crore from Rs 16265.48 crore YoY. 

ITC dividend 

FMCG behemoth ITC had earlier informed exchanges that it will release its fourth-quarter results for fiscal year 2024  and its board will consider final dividend in a meeting on May 23.

Read more: ITC Dividend 2024: Company to announce Q4 results, may declare final dividend - check out details

ITC share price historic performance 

In a year, ITC shares have gained over 3 per cent against Nifty50's rise of over 23 per cent.

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