ITC reported 19% yoy increase in revenues at Rs81.8bn (above our expectations of Rs81.2bn) during Q4 FY13 driven by ~11% yoy growth in core cigarettes segment.
|(Rs m)||Q4 FY13||Q4 FY12||% yoy||Q3 FY13||% qoq|
|OPM (%)||32.1||31.9||26 bps||36.4||(421) bps|
|Effective tax rate (%)||(29.4)||(28.8)||-||(30.6)||-|
|PAT margin (%)||23.6||23.5||4 bps||26.9||(333) bps|
|Ann. EPS (Rs)||9.8||8.3||18.2||10.5||(7.0)|
|(Rs mn)||Revenues||yoy (%)||EBIT||yoy (%)|
|FMCG - Others||20,362||26.0||119||-|
|Paper & Packaging||10,575||7.9||1,881||(3.9)|
Cigarette and FMCG - Others segment fuel revenue growth
ITC reported 19% yoy increase in revenues at Rs81.8bn (above our expectations of Rs81.2bn) during Q4 FY13 driven by ~11% yoy growth in core cigarettes segment. Cigarette volumes recorded ~3% yoy increase Vs 1.5% in Q3 and flattish in Q2 FY13. A 31% yoy jump in agri (driven by leaf tobacco exports) and 26% yoy increase in Other-FMCG revenues (led by foods and personal care business) further fuelled revenue growth. The growth could have been even better but for slower growth in hotels (due to weak economic environment) and paper segment revenues.
Drop in overhead cost offsets high input cost impact, cigarette EBIT margins expand by 70bps
OPM expanded by 30bps to 32.1% aided by 210bps/60bps decline in overhead/staff cost respectively. A 250bps increase in raw material cost restricted further margin expansion. Cigarette EBIT margins witnessed 70bps expansion at 31.6%. Price hikes coupled with premiumisation of its portfolio have helped ITC improve cigarette EBIT margins. As expected, Other-FMCG segment registered a profit of Rs119mn (at EBIT level) against a loss of Rs167mn in Q4 FY12 as profits from the foods segment are increasing sequentially. Impacted by steep increase in wood, coal and chemical costs, paper and packaging segment recorded a 3.9% yoy decline in EBIT.
|As a % of net sales||Q4 FY13||Q4 FY12||bps yoy||Q3 FY13||bps qoq|
OPEN A DEMAT ACCOUNT & Get