Q2FY23 Preview: ITC: Revenue seen at Rs176,029 million, PAT at Rs42,791 million

19 Oct 2022 , 04:18 AM

Result date: 20^th October, 2022
Recommendation: Add
Target price: Rs335

Analysts at IIFL Capital Services forecast cigarette volume growth of 13% (over the year-ago quarter) on a favorable base. The cigarette volume growth translates to a 3-year CAGR of 3.0% which is an acceleration from 2.0%/1.8% in Q4FY22/Q3FY22.

ITC’s FMCG sales could grow 15% sales growth, which is lower than the 19.5% clocked in the previous quarter, and an EBIT margin of 5.8%.

The company’s EBITDA is likely to grow 18% over the year-ago quarter, while its Profit After Tax or PAT could surge by about 15%.

Important management insights to watch out for:

• Cigarette pricing, margin
• Demand tends, profitability outlook of the FMCG business
• Outlook on agri, paper and hotel businesses

Rs. Million	September 2022 estimates	YoY change
Sales	176,029	29.7%
EBITDA	59,188	18.0%
Profit After Tax	42,791	15.2%

Source: Company, IIFL Research