ITC reports strong Q2 growth across multiple business segments

According to a report by zeebiz on the 18th, Indian cigarette giant ITC Ltd (Indian Tobacco Company) is set to release its second-quarter results for the period ending September 30, 2023. It is forecasted that its revenue on a standalone basis will grow by 4.5% year-on-year, reaching 168.54 billion INR, marking a good growth compared to 161.3 billion INR in the same period last year.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is expected to reach 63.92 billion INR, a 9% increase from 58.65 billion INR in the same quarter of the previous fiscal year. Analysts predict that the gross margin will reach 38%, compared to 36% in the same period last year. Net profit (PAT) is expected to grow by 11% year-on-year, reaching 49.58 billion INR, up from 44.66 billion INR last year.

Industry insiders generally expect good growth across multiple business segments for ITC. Among them, cigarette sales are expected to grow by 5-6%. The fast-moving consumer goods (FMCG) segment is expected to grow by 8%, and the gross margin in the FMCG vertical is also expected to improve. Revenue from the hotel business is expected to grow by 11%, while revenue from the cardboard, paper, and packaging sectors may decline by 11% due to falling prices. Revenue from the agriculture sector is also expected to decline by 14%.

It is worth mentioning that ITC performed well in the previous quarter, with standalone net profit growing by 17.61% year-on-year to 49.03 billion INR. Revenue for the first quarter was 169.95 billion INR, compared to 183.2 billion INR in the same period last year.

Overall, ITC's profit on a consolidated basis grew by 16.08% year-on-year to 51.801 billion INR. Due to the impact of the agriculture business segment, consolidated operating revenue declined by 6% to 186.395 billion INR, compared to 198.313 billion INR in the first quarter of the 2022-23 fiscal year. ITC's total expenses in the quarter decreased by 12.53% year-on-year to 124.218 billion INR.