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Jan 18, 2013, 02.09 PM IST | Source: CNBC-TV18

ITC outperformed, price hikes in FMCG rewarded: Angel

In an interview to CNBC-TV18, V Srinivasan of Angel Broking gives his views on ITC's Q3 numbers. Srinivasan says the company has out-performed their expectations.

In an interview to CNBC-TV18, V Srinivasan of Angel Broking gives his views on ITC's Q3 numbers . Srinivasan says the company has out-performed their expectations.

"We estimated Rs 7200 crore and it has come in at about Rs 7600 crore. Same is the case with the net profit numbers. It has come ahead of our estimates. It has come in at Rs 2052 crore and we were estimating it at around Rs 1800 crore," he adds.

Q: What have you made of the numbers of ITC? It is much better than our poll atleast.

A: The numbers on the topline front is certainly better than what we had estimated. We estimated Rs 7200 crore and it has come in at about Rs 7600 crore. Same is the case with the net profit numbers it has come ahead of our estimates. It has come in at Rs 2052 crore and we were estimating it at around Rs 1800 crore.

Q: Cigarette net sales has come in at Rs 3657 crore versus Rs 3232 crore. Anything to say in terms of the cigarette net sales, has that bettered?

A: I don't have the internal numbers, but the cigarette sales growth has been healthy for this quarter.

Q: The other FMCG business losses have come down to Rs 24 crore versus Rs 46 crore and that is an improvement on a sequential basis as well. So the losses have reduced 50 percent on a year on year basis. What would your view be on that?

A: The company has consistently been reducing the losses on the other FMCG business so it is a positive step in this direction because the management has been guiding for a breakeven some time later in the year or early next year. So this is certainly positive for the company.  The price hikes is the other thing which they have carried out has acted well for the company.

Q: So if you had to highlight two-three key points in terms of the key positives for ITC because it has come above your estimates, what would those three key points be?

A: The topline performance alone looks very good for this quarter. So, we need to see what divisions are done. Seeing the last quarter, the agriculture business has done really well in the second quarter. Hence those internals needs to be seen. As of now that what has contributed to this because top line of Rs 7627 crore is a real surprise.

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