ITC Q1 Results Review - Resilient Cigarette, But Muted FMCG Performance: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.ITC Ltd. delivered a consolidated revenue growth of 8% YoY (in line) in Q1 FY25. Gross cigarette revenue grew 6% YoY led by volume growth of ~3% YoY (in line), mix improvement, and price hikes. The premium cigarette segment continued to outperform; while the value segment sustained weakness.FMCG segments delivered 6% revenue growth, adversely impacted by the severe heat waves and slow packaged food growth. The margins were slightly hurt by rising competitive pressure (from local and regional players), increased commodity prices, and weak demand. Ebit margin stood at 8.7%. (estimate: 9.0%) in Q1 FY25. The paper business continued to face challenges from demand issues, competition from China, lower pulp prices, and higher input costs, resulting in weak revenue and margins. Recovery is anticipated with improvements in domestic demand and a reduction in wood prices following the arrival of new crops. The agri business exhibited improvement during the quarter; however, stock limits on wheat and restrictions on exports continued to hurt the business. Hotels sustained healthy performance, though margins were hit by operating deleverage. We reiterate our Buy rating on ITC with an SOTP-based target price of Rs 575 (premised on 30 times June-26E price/earning). .Click on the attachment to read the full report:.ITC Q1 Review - Weak Results With Moderate Cigarette, FMCG Growth, Margin Decline In Paper, Agri: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ITC Q1 Results Review - Resilient Cigarette, But Muted FMCG Performance: Motilal Oswal

With a stable tax on cigarettes, the brokerage anticipates sustainable growth in the company's business.

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ITC Q1 Results Review - Resilient Cigarette, But Muted FMCG Performance: Motilal Oswal

With a stable tax on cigarettes, the brokerage anticipates sustainable growth in the company's business.

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