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UBS Securities is betting big on ITC as it is likely to post a strong second quarter results. Sunita Sachdev, Executive Director, UBS Securities is expecting its volume to growth at 1-2% in this quarter. She also reasons that ban on chewing tobacco will support cigarette volumes.
Cigarettes to FMCG and hotels major ITC is set to announce its results for the quarter ended September 2012 today. Analysts have been expecting strong results from the company despite negative news flow (like packaging norms, changes in tax structures and competition from illicit segments) during the quarter.
In an interview to CNBC-TV18 portfolio manager PN Vijay recommended long term inventors to buy FMCG major ITC at its current level, if their second quarter earnings are fairly decent. The recent ban on gutkha in many states is having a spillover effect on regular cigarettes, but Vijay does not see any great problems for ITC.
Most fast moving consumer goods companies are expected to report a steady double-digit revenue growth in the July-September quarter, with no signs of a slowdown, especially in the daily consumption products, while softer raw material prices will drive margins.
Motilal Oswal has come out with its earnings estimates on consumer sector for September quarter FY13. According to the research firm, steep INR depreciation has negated the impact in many commodities, prices of which are linked globally.
ITC shares reversed Thursday's losses and gained 2% on Friday after several analysts maintained their "buy" rating on the stock, citing strong pricing power in cigarettes and long-term growth opportunities in other segments like fast moving consumer goods.
Sanjay Manyal of ICICI Direct sees ITC's margin growth dip around 100 basis points year on year due to the excise duty hike announced in the Budget this year.
Cigarettes to FMCG and hotels major ITC is set to declare its numbers for the quarter ended June 2012. Analysts on an average expected profit after tax to grow by 18.6% year-on-year to Rs 1,581 crore in the quarter.
Fast moving consumer goods companies are expected to report on average around 20% year-on-year sales growth in the Jan-March quarter, helped by some softening of input costs and price hikes.
Shares of India's largest cigarettes company ITC reversed Friday's losses, gaining about 1% on Monday after several analysts maintained a "buy" or similar rating.
Cigarettes to FMCG and hotels major ITC's fourth quarter net profit rose a better-than-expected 26% year-on-year to Rs 1,614 crore.
Sharekhan's FMCG analyst Kaustubh Pawaskar, explains to CNBC-TV18, that it was higher-than-expected other income that triggered growth in ITC's bottom-line.
Cigarette major ITC's profit after tax is likely to grow 21% over a year ago period to Rs 1,550 crore for the fourth quarter of FY12, according to CNBC-TV18 poll.
Hindustan Unilever's (HUL) fourth quarter net profit rose better-than-expected. Nitin Mathur, Espirito Santo says, the result is very good. He has a 'buy' rating on Hindustan Unilever. "I prefer it over ITC where I have a 'sell' rating. So, I continue to maintain a long-term 'buy' rating on Hindustan Unilever," he adds.
Fast moving consumer goods companies seem to have ridden the economic slowdown quite well, and are expected to report a strong growth in volumes, even as firms hiked some product prices to offset high input costs.
India's largest fast moving consumer goods company Hindustan Unilever is expected to report a robust set of numbers for October-December, helped by staggered price hikes across its categories. The company reports third quarter results on Monday.
Cigarettes to hotels and FMCG major ITC on Friday beat market expectations with a 22% year-on-year rise in net profit at Rs 1,701 crore. However, the stock tumbled more than 3% as the volumes in the core cigarettes business, which accounts for half of total sales, and growth in other segments like hotels disappointed the street.
ITC announced its third quarters numbers. In an interview to CNBC-TV18, Himani Singh, Elara Capital says, the results are very robust on the bottom-line. “I think the stock should react positively,” he adds.
ITC, the biggest cigarette manufacturer in India, is expected to report a profit after tax of Rs 1,630 crore in the third quarter of FY12, a growth of 17.3% as compared to Rs 1,389.1 crore in a year ago quarter.
Cigarettes to FMCG and hotel chain major ITC’s third quarter numbers are expected to be robust, driven mainly by cigarette volumes. The Kolkata-headquartered company will be announcing its earnings on Friday.
Motilal Oswal has come with its December quarterly earning estimates for consumer sector.
An overall slowdown in the macro economy following a sharp rise in interest rates have led to concerns over growth and demand across several sectors in India.
The ITC Q2FY12 numbers were inline with our expectations, said Himani Singh, equity research analyst at Elara Capital and Sanjay Manyal, research analyst at ICICI Direct. Singh feels that the company would surprise on the positive side for this financial year. Manyal stressed on being positive on the cigarette margins.
Cigarette major ITC is expected to report a profit after tax of Rs 1,470 crore for the second quarter of FY12, a growth of 17.9% as compared to Rs 1,246.7 crore in the corresponding quarter of last fiscal.
ITC, Sterlite Industries and Titan Industries are set to announce their second quarter numbers of FY12 today.