ITC Q3 Results Review - Margins Continue To Upbeat: Dolat Capital

Dolat Capital Report

ITC Ltd.’s Q3 FY23 revenues came below our estimate but profitability was in line with our anticipation. Our analysis suggest that the cigarette business reported ~15% volume growth during the quarter.

Miss in revenues was mainly attributed to lower sales in agri business during Q3. Impact of wheat and rice export restriction was higher than estimate.

Fast moving consumer goods business reported 18% growth was a positive surprise.

ITC's continuous improvement in cigarette business is encouraging. The business reported 11% sales compound annual growth rate over last three-years and 7% volume CAGR over the same period.

We have increased our FY23/24/25E earnings per share estimates at Rs 15.9/17.3/18.6 representing 6.8/7.4/6.8% revision. Twin impact of cigarette business market share re-gain from illicit trades and lower duty increase in the budget would help the business to improve margins.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.