ITC Q3FY22 Preview: Revenue seen at Rs 141,699 million, PAT at Rs 39,517 million

3 Feb 2022 , 02:22 PM

Result date: 3^rd February, 2022
Recommendation: Buy
Target price: Rs. 265
 
ITC could post 8% growth in cigarette volumes during the quarter. The company has come unscathed from the budget as this year, there was no change in taxes levied on tobacco companies. This is a key positive for ITC. The company’s FMCG business could clock in sales growth of 11% during the quarter and might reflect performance of the Sunrise acquisition. Overall, sales could grow 8.9% on a YoY basis. ITC is one of the few FMCG companies which could post expansion in gross margin and healthy growth in EBITDA. Hotels business could witness EBIT breakeven during Q3 which witnessed normalization of demand post the pandemic. Its PAT could grow at 12.1% on a YoY basis.

Important management insights to watch out for:

• Demand trends in key businesses
• Outlook on margins across key businesses

Rs. Million	December 2021 estimates	YoY change
Revenue	141,699	8.9%
EBITDA	53,498	11.8%
PAT	39,517	12.1%

Source: Company, IIFL Research