ITC Q1 FY25 Results Preview: Cigarettes-to-hotels conglomerate likely to log 5% revenue growth; margin may shrink by 100 bps

ITC Q1 FY25 Results Preview: Cigarettes-to-hotels conglomerate ITC is set to report its financial results for the April-June period on Thursday, August 1. Analysts expect Kolkata-headquartered ITC - whose popular cigarette brands include Classic and Gold Flake - to stage a steady financial performance with low-single-digit percentage growth in its cigarettes business.  

According to Zee Business research, ITC is estimated to register a standalone net profit of Rs 5,020 crore for the quarter ended June 30, 2024, which translates to an increase of 2.4 per cent over the corresponding period a year ago. The analysts expect the Kolkata-based company's quarterly revenue to expand to Rs 16,665 crore from Rs 15,828 crore a year ago. 

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ITC is estimated to log Rs 6,365 crore in June-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), up 1.8 per cent on a year-on-year basis, according to the research. 

Zee Business analysts peg ITC's margin at 38 per cent for the first quarter of the current financial year, as against 39 per cent for the year-ago period. 

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The analysts expect ITC to register sales growth of 7-8 per cent in cigarettes and  7.0 per cent in other FMCG products. They estimate its cigarette volumes to increase 2-3 per cent compared with the year-ago period. 

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ITC Shares: Historical performance

As of July 31, ITC shares have gained 5.9 per cent so far in 2024, underperforming a 14.8 per cent gain in the headline Nifty50 index.

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