Q2FY24 Preview: ITC: Revenue seen at Rs. 180,719 million, PAT at Rs. 50,665 million

17 Oct 2023 , 04:48 PM

Result date: October 19, 2023

Recommendation: Buy

Target price: Rs. 500

ITC could post growth of 7% in cigarette volume over the year-ago quarter, believe analysts at IIFL Capital Services. In FMCG, they are forecasting ~10.8% sales growth — lower than the 13.5% clocked in the previous quarter, and ~10.6% sales growth in Hotels segment — greater than the 7.6% clocked in the previous quarter. ITC could post 15% fall in sales of the Agri-business as compared to the year-ago quarter. Higher occupancy and RevPAR should aid revenue growth of hotels business.

Profit After Tax (PAT) could grow by about 10% relative to the year-ago quarter.

Important management insights to watch out for:

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

Rs. Million	September 2023 estimates	YoY change
Revenue	180,719	6.7%
EBITDA	69,020	10.3%
PAT	50,665	9.7%

Source: IIFL Research