Q1 FY23 Preview: ITC: Revenue seen at Rs167,181 million; PAT at Rs41,313 million

31 Jul 2022 , 02:16 AM

Result date: 1st August, 2022
Recommendation: Buy
Target price: Rs305

ITC’s sales growth in the June 2022 quarter would be aided by a favorable base of the year-ago quarter. Cigarette volumes could grow 23% over the year-ago quarter. FMCG business could grow 12% on a year-on-year basis. Overall, revenues could grow by ~27%.

ITC is likely to post one of the best EBITDA margin in the sector during the quarter amid a favorable low base and good show of the cigarettes business. While FMCG business’ EBIT margin could come in at 5%, overall EBITDA is pegged at 33%.

Profit After Tax (PAT) could grow by 26% over the year-ago quarter.

Important management insights to watch out for:

• Outlook on cigarettes volume
• Trends in hotels revenue post opening of workplaces and an increase in travel
• Outlook on agri, paper & packaging and FMCG businesses

(Rs million)	June 2022 estimates	YoY change
Revenue	167,181	26.8%
EBITDA	55,888	25.8%
Profit After Tax	41,313	26.1%

Source: IIFL Research