Q4FY23 Preview: ITC: Revenue seen at Rs. 177,028 million, PAT at Rs. 50,302 million

17 May 2023 , 09:52 AM

Result date: 18^th May, 2023

Recommendation: Buy

Target price: Rs. 425

Analysts at IIFL Capital Services are forecasting ITC’s cigarette volumes to grow by 15% over the year-ago quarter. In FMCG, they expect 17% sales growth — slightly lower than the 18% clocked in the previous quarter. They expect the Agri-business to post 25% fall in sales as compared to the year-ago quarter. Hotels business will witness continued momentum even as paper business could be on the path of recovery. Overall revenue growth is pegged at 8% over the year-ago quarter.

ITC’s EBIT margin could come in at 7.1%, aided by over 100 basis points expansion in gross margin, better product mix and cost savings. 

ITC’s Profit After Tax (PAT) could grow 20% over the year-ago quarter.

Important management insights to watch out for:

• Demand outlook in rural and urban markets
• Competitive intensity across business segments
• Input cost trends
• Outlook for Hotels and Agri businesses 

Rs Million	March 2023 estimates	YoY change
Revenue	177,028	8.1%
EBITDA	67,378	20.3%
Profit After Tax	50,302	19.9%

Source: IIFL Research