Q1FY24 Preview: ITC: Revenue seen at Rs. 198,363 million, PAT at Rs. 48,190 million

10 Aug 2023 , 11:35 AM

Result date: 14^th August, 2023

Recommendation: Buy

Target price: Rs. 500

Analysts at IIFL Capital Services expect ITC to register 8.5% growth in cigarette volumes over the year-ago quarter. In FMCG, they forecast 14% sales growth — lower than the 19% clocked in the previous quarter. They expect the Agri-business to post 20% YoY fall in sales. Overall sales of the company could grow 8.1% as compared to the year-ago quarter.

The company’s EBITDA could grow 9.8% over the year-ago quarter. Inflation in tobacco prices could weigh on margin of the cigarettes business. Analysts at IIFL Capital Services expect ITC’s FMCG business to clock in EBIT margin of 5.5%.

The company’s Profit After Tax or PAT could grow 9.8% over the year-ago quarter.

Important management insights to watch out for:

• Demand trends across product segments and markets
• Pricing action and outlook on input costs, margins

Rs. Million	June 2023 estimates	YoY change
Revenue	198,363	8.1%
EBITDA	66,720	9.8%
Profit After Tax	48,190	9.8%

Source: IIFL Research