ITC Q4 net profit seen up 18% at Rs 1,910cr
ITC is expected to report a net profit of Rs 1,910 crore, up 18 percent year-on-year, while net sales are likely to increase 17 percent to Rs 8,025 crore, according to a CNBC-TV18 poll. Cigarette volumes are seen up 1.5 percent.
Moneycontrol Bureau
Cigarettes to hotels to FMCG major ITC will report its fourth quarter earnings later on Friday. Analysts on average expect the company to report a net profit of Rs 1,910 crore, up 18 percent year-on-year, while net sales are seen up 17 percent to Rs 8,025 crore, according to a CNBC-TV18 poll.The Jan-March quarter will see a full play out of the 16-17 percent price hikes taken by the company in FY2013 to offset the increase in taxes. While the price hikes will aid margins, volume growth will be around 1.5 percent (1 percent in Q3).The non-cigarette FMCG (FMCG-others) business will continue to see strong growth (revenue seen up 25 percent). Few analysts feel the business could breakeven, however, consensus estimates are of around Rs 25-30 crore loss. The FMCG (Others) business, which includes personal care and foods, is expected to breakeven in FY14, according to most analysts.The hotels business, meanwhile, is likely to remain a drag on overall earnings, amid continued sluggish growth in the wider hotel industry. The agri business could see 15-20 percent revenue growth and the paper and paper products business could see sales increase in low-teens, analysts say.Overall, ITC's EBITDA is likely to increase 24 percent to Rs 2,680 crore, while margins are seen up 180 bps to 33.4 percent.ITC shares were down 0.4 percent at Rs 335.75 on NSE in morning trade. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
