Q3FY24 Preview: ITC: Revenue seen at ₹1,85,709 million, PAT at ₹50,938 million

25 Jan 2024 , 08:39 AM

Result date: January 29, 2024

Recommendation: Buy

Target price: ₹510

Analysts at IIFL Capital Services believe ITC’s consolidated net sales could increase by ~6% over the year-ago quarter, with the EBITDA margin remaining flat at ~36.4%. The Cigarette and FMCG segment is expected to report a top-line growth of ~7% and 12% respectively whereas the revenues from agri business is expected to be flat over the year-ago quarter.

ITC’s Profit After Tax (PAT) could grow 1.7% as compared to the year-ago quarter.

Important management insights to watch out for:

• Demand trends seen in rural versus urban markets
• Competitive intensity
• Input costs trajectory
• Outlook for Hotels and Agri businesses

Rs. Million	December 2023 estimates	YoY change
Revenue	1,85,709	5.6%
EBITDA	67,534	0.7%
Profit After Tax	50,938	1.7%

Source: IIFL Research