ITC is expected to announce March quarter results on May 22. According to a CNBC-TV18 poll, the FMCG major is likely to post a net profit of Rs 2,507 crore, up 10.1 percent from Rs 2,278 crore in corresponding quarter last fiscal. Total income, during the quarter is likely to rise 5.3 percent at Rs 9,730 crore compared to Rs 9,239 crore year-on-year.
EBITDA is seen up 8.1 percent at Rs 3,462 crore versus Rs 3,203 crore (Y-o-Y) while operating profit margins (OPM) may jump 90 basis points at 35.6 percent against 34.7 percent on yearly basis.
Analysts polled by CNBC-TV18 expect volume growth to remain muted in Q4 impacted by four consecutive years of excise duty hikes and corresponding price hikes of 15 percent taken post Union Budget. Cigarette volumes are expected to decline by 9-10 percent, similar to what was seen in last quarter.
However, its FMCG business is expected to continue its trend of improving profitability. It is likely to report 12-15 percent annual sales growth. Margins may expand on an improving cigarette EBIT and breakeven.
Cigarette price increases should continue to drive margins while strong cigarette pricing growth will support cigarette margins and drive mid-teens cigarette EBIT growth. Margin expansion will be further boosted by lower raw material and overhead costs.
Meanwhile, its other businesses including hotels, agriculture and paper are likely to see sequential improvement in growth rates. Hotel business is expected to remain soft growing by 6 percent Y-o-Y. Agri business may see some recovery helped by favourable base and is expected to log 15 percent (Y-o-Y) growth. Paper and packaging segment is seen registering 8 percent (Y-o-Y) growth.
The stock ended at Rs 327.35, down Rs 5.10, or 1.53 percent on the BSE.
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