Q4FY22 Preview: ITC: Revenues seen at Rs167,299 million, PAT at Rs41,373 million

16 May 2022 , 04:29 AM

Result date: 18^th May, 2022
Recommendation: Buy
Target price: Rs280
 
ITC to report a good quarterly performance amid healthy topline growth and limited cost pressures. The company could post double digit growth in sales as well as EBITDA. It could witness large positive impact of inflation on the topline of its agri business. Cigarette volumes could grow 9% over the year-ago quarter. The FMCG business could post sales growth of 8% versus 9% recorded in the December 2021 quarter, factoring in a general slowdown in demand.

EBITDA is set to grow 18% over the year-ago quarter, at a pace faster than many peers.

ITC’s Profit After Tax (PAT) could grow 10.2% over the year-ago quarter, amid lower other income.
 
Important management insights to watch out for:

• Outlook on demand across all segments and markets
• Trends in input cost inflation, pricing action planned and margin levers

 

Rs Million	March 2022 estimates	YoY change
Revenue	167,299	17.6%
EBITDA	57,657	18.4%
Profit After Tax	41,373	10.2%

Source: IIFL Research