ITC Ltd, the diversified conglomerate with interests spanning hotels, cigarettes, and FMCG, is poised to announce its Q1 FY25 results today. The company's performance for the quarter ending June 2024 is anticipated to show decent revenue growth, driven primarily by its cigarette and hotels businesses.

Revenue and Profit Estimates

According to a Livemint poll of five brokerages, ITC is projected to report a revenue of ₹16,700 crore for Q1 FY25. This figure represents a 5.5% increase from ₹15,828.2 crore in the same quarter last year. The company’s net profit is estimated to rise 4% YoY, reaching ₹5,094 crore compared to ₹4,902.7 crore in the previous year.

Segment-wise Performance

Cigarettes:

The cigarette segment is expected to grow by 6-7% YoY. Volume growth is forecasted to be in the 2-3% range.

EBIT growth in this segment is anticipated to be 5.3%, though the EBIT margin may face a decline of approximately 75-95 basis points due to increased prices of leaf tobacco.

FMCG:

ITC's FMCG segment is projected to see a 7% YoY revenue growth. The growth is expected despite no major sequential price adjustments.

The EBIT margin in FMCG is likely to expand by 10 basis points YoY to 8.4%.

Hotels:

The hotels segment is expected to witness growth of 8-9% during the April-June 2024 quarter.

EBIT margin in the hotels segment is anticipated to improve by 250 basis points YoY.

Agri and Paper:

The agri business is expected to show flat growth YoY.

The paperboards segment may experience a 2% YoY decline in growth due to challenging conditions such as subdued domestic demand, weak export markets, and cheap Chinese supplies.

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This segment is projected to report an EBIT margin of 14.5%.

Market Sentiment and Stock Performance

Ahead of the Q1 results announcement, ITC shares opened higher but were trading 0.35% lower at ₹493.30 on the BSE as of 9:40 am. The market is keenly awaiting the company's detailed performance report, particularly focusing on the demand outlook in rural vs. urban areas, competitive intensity, and trends in raw material prices.

Analysts and investors will also be watching for insights into ITC’s management outlook on the hotels, agri, and paper & packaging businesses. These areas are crucial for assessing the company’s future trajectory and strategic direction.

Conclusion

ITC Ltd's Q1 FY25 results are set to reflect its continued growth in key segments, with cigarettes and hotels leading the way. However, the performance of its agri and paperboards businesses may temper the overall results. Investors and analysts will closely scrutinize the company’s performance metrics and future guidance to gauge the health of ITC's diversified portfolio.

Also Read : RITES Q1 Results: Significant Decline in Revenue and Profit

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