ITC Q4FY21 Earnings Preview – Company to announce results - this is what to expect

All eyes are now set on the Q4FY21 results of ITC Ltd as the company could announce the earnings results anytime soon. This stock today ended the Tuesday’s trading session on a negative note. The stock ended at Rs 215.90 on the NSE, down by 0.3 per cent. Zee Business’ Varun Dubey, Senior Research Analyst gives a sneak peek into what the investors can expect today.  

Dubey said that ITC’s standalone revenues for Q4FY21 is expected to go up by 9.9 per cent at Rs 11,900 cr versus Rs 10,842.3 cr  year-on-year (YoY). He also expects the EBITDA to be up 6.9 per cent to Rs 4,450 cr  in the reporting quarter as against Rs 4,163.5 cr during the same quarter in FY20. Meanwhile, EBITDA margins is expected to go down to 37.4 percent in the quarter ended 31 March 2021 versus 38.4 per cent in Q4FY20. 

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Net profit may dip 3.6 per cent to Rs 3,660 cr versus Rs 3,797 on YoY basis, Dubey said. 

Dubey said that ITC Q4 Cigarette volume growth is expected to be in between 8 and10 per cent versus 10 per cent during the same quarter in FY20. He said 16 per cent growth is expected in the cigarette business.  

Cigarettes EBITDA is expected to be up 10 per cent and 14 per cent growth is expected in the FMCG business.  

Hotel business under pressure is expected to decline 40 per cent YoY. 40 per cent growth is expected in Agri Business.  

Paper business expected to grow by 2 per cent, he says. Due to lower tax in last quarter, this quarter, profit will continue to be weak.