ITC posts strong quarter on all fronts
New Delhi
30-October-2021
ITC's 2Q FY22 was ahead of estimates with EBITDA and PBT growing 13 per cent year-on-year (YoY), Credit Suisse said in a report.
Net cigarette revenue grew 10.3 per cent YoY as the recovery post the second Covid-19 wave has been rapid. Cigarette volumes were back to near pre-Covid levels towards the end of the quarter. Cigarette EBIT also grew 10.4 per cent YoY as margins were stable.
FMCG business had a very high base due the surge in packaged foods in 2Q FY21, and thus revenue growth was muted at 3 per cent YoY.
EBITDA margin was maintained at 10 per cent despite high input cost inflation from edible oils and packaging material.
Hotels turned EBITDA positive while the paper and agri business also had good quarters with 24 per cent/16 per cent YoY EBIT growth, respectively.
Investor focus is expected to shift to the deliberations of the expert committee to build a roadmap for cigarette taxation.
"We continue to see positive risk reward. Maintain Outperform," Credit Suisse said.
FMCG business maintains 10 per cent EBITDA margin despite high input cost inflation.
The two-year revenue CAGR over 2Q FY20 was, however, strong at over 10 per cent. The EBITDA margin was maintained at 10 per cent despite high input cost inflation from edible oils and packaging material - IANS
More Headlines
PM Modi Ups Ante Against Congress, Says Rajiv Gandhi Abolished Inheritance Law To 'Save Own Interests'
BJP Leader Nainar Nagendran Summoned by Tamil Nadu Police Over Rs 4 Crore Train Seizure
Actress Tamannaah Bhatia Summoned by Maharashtra Cyber Police in Online Betting Scandal
Delhi Police Use Fire Brigade Crane To Bring Down TN Farmers From Mobile Tower
NRI Medical Professional Pemmasani Chandra Sekhar: The Richest Candidate in Lok Sabha Elections 2024
PM Modi Ups Ante Against Congress, Says Rajiv Gandhi Abolished Inheritance Law To 'Save Own Interests'
BJP Leader Nainar Nagendran Summoned by Tamil Nadu Police Over Rs 4 Crore Train Seizure
Actress Tamannaah Bhatia Summoned by Maharashtra Cyber Police in Online Betting Scandal
Delhi Police Use Fire Brigade Crane To Bring Down TN Farmers From Mobile Tower
NRI Medical Professional Pemmasani Chandra Sekhar: The Richest Candidate in Lok Sabha Elections 2024