Source: ZeeBusiness
ITC- cigarette to hotels company is slated to report its March quarter results later today. As per analysts, the company's Q4 earnings are not comparable year-on-year as the March quarter of the previous year also included the Hotels business.
Notably, hotels demerger came into effect from January 1, 2025.
In the last quarter of the FY2024, the company's hotel business posted a profit of Rs 900 crore.
According to Zee Business research, ITC is estimated to register a consolidated net profit of Rs 4,851 crore for the January-March period, translating to a decline of 3.4 per cent on a year-on-year basis.
For the final quarter of FY24, the FMCG firm had registered a net profit of Rs 5,020 crore.
The company is expected to register a 1.5 per cent year-on-year increase in its revenue for the March quarter, at Rs 16,823 crore, according to the research.
Its revenue is expected to be supported by a price hike in the food segment.
The company is expected to report quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) to the tune of Rs 5,887 crore, marking a decline of 4.5 per cent compared with the year-ago period, according to the research.
Zee Business analysts peg the FMCG major’s margin for the fiscal fourth quarter at 35 per cent, marking a year-on-year decline of 220 basis points (bps).
However, its gross margin is estimated to shrink due to a rise in input costs.
The cigarette-to-paper company is expected to report 4.5 per cent volume growth in its key cigarette business, with revenue and EBIT expected to log 7 per cent and 3.5 per cent, respectively.
Furthermore, the company's FMCG and agri-business is estimated to log 4.5 per cent and 7 per cent growth, respectively.
In addition, the company's paperboard business is also seen clocking 4.5 per cent growth in the March quarter as per Zee Business estimates.
ITC as per its board meeting update will also be announing a final dividend for the FY25. Trendlyne data shows that the company since 2003 has declared a total of 28 dividends.
In the past 12 months, ITC Ltd. has declared an equity dividend amounting to Rs 14.00 per share and at the current share price of ₹426.1000, ITC Ltd.'s dividend yield is 3.29 per cent.
ITC shares in the last one year has underperformed with a negative return of 2 per cent. In contrast, the Nifty50 index has given over 9 per cent return.
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