ITC Q3 earnings preview: Net profit, revenue could grow in double-digits; company may announce dividend

As per Axis Securities report, ITC’s EBITDA is expected to grow from ₹12.20 per cent. Speaking on the cigarette business of the company, the brokerage says, “We expect cigarette to grow 11 per cent YoY (8 per cent volume), FMCG to grow at 18% (mid volume growth) primarily led by price growth, hotels (strong demand), papers (recovery) and agri to decline on high base.”

As per Prabhudas Lilladher, “Cigarette volumes likely to expand by 7.5 per cent. FMCG segment of ITC may post 17 per cent growth with QoQ margin improvement. Company’s paper business may grow ny 10 per cent, while Hotel revenue is expected to grow by 32.5 per cent. Overall PAT is expected to grow by 11.8 per cent.”

Speaking on what we can expect from ITC in its Q3FY23 numbers, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “ITC’s ciggerette, FMCG, hotels and other segments have started contributing in full swint and we may expect this to reflect in the balance sheet of the company during October to December 2022 quarter. So, we are expecting strong Q3 results of ITC in FY 2022-23.”

Avinash Gorakshkar said that net profit and revenue of the cigarette-to-hotel conglomerate may grow in double-digits and ITC shareholders may expect interim dividend as well. He said that 16 per cent rise in tax on Cigarette may not be a big dent in ITC’s balance sheet as the company is well positioned to consume this hike without raising the price of its products.

Suggesting ITC shareholders to hold the scrip for strong upside, Anuj Gupta, Vice President — Research at IIFL Securities said, “ITC share price may go up to ₹400 per share levels in near term. So, those who have this stock in their portfolio are advised to hold it further with stop loss placed at ₹366. We may see ₹400 apiece levels before the Q3 results or in immediate session(s) after the announcement of results.”

In Q2FY23 results, ITC had reported strong 24 per cent jump in consolidated net profit, which was mainly driven by cigarettes and snacks business. On a sequential basis, ITC reported consolidated profit after tax (PAT) growth of 5 per cent against ₹4389.76 crore consolidated PAT in Q2FY23. The Kolkata-based FMCG major had reported 25 per cent growth in revenue from operations as well.

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