ITC Q1 Results Review - Unchanged Taxation On Cigarettes To Sustain Formalisation: ICICI Securities

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..ICICI Securities Report.ITC Ltd.’s Q1 FY25 exhibited a resilient performance with improving cigarettes volumes growth trajectory to ~2.5% YoY, despite calibrated price hikes to navigate cost inflation. Importantly, unchanged taxation on cigarettes will likely sustain market share gain trajectory from illicit industry (~25% of overall cigarettes industry). FMCG business displayed resilience against subdued demand conditions (+6% YoY; 10% two year compound annual growth rate) with continued improved profitability (operating leverage, input cost deflation, pricing and cost optimisation). Hotels business witnessed another resilient quarter (+11% YoY) despite lower wedding days. Formal cigarettes industry continues to have tailwinds of:stability in taxes anddeterrent action by enforcement agencies. .We expect the formal industry to drive volume growth (from peak levels) if these tailwinds sustain. Inflation in key input prices across business segments is expected to limit margin expansion. Maintain Add..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 - Unchanged Taxation On Cigarettes To Sustain Formalisation: ICICI Securities

Inflation in key input prices across business segments is expected to limit margin expansion, says the brokerage.

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ITC Q1 Results Review - Unchanged Taxation On Cigarettes To Sustain Formalisation: ICICI Securities

Inflation in key input prices across business segments is expected to limit margin expansion, says the brokerage.

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