ITC Q2 Results Review - Growth Sustains; Margin Stressed: 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 Q2 FY25 exhibited a resilient revenue growth performance with a stable performance across segments with cigarettes volumes growth trajectory stable at ~3% 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 (+5% YoY; 8% two year CAGR) with margins moderating due to commodity inflation. Hotels business witnessed another resilient quarter (+12% YoY). 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. Margins were under pressure due to commodity inflation across business segments and inferior mix (higher share of agri business). Maintain Add..Click on the attachment to read the full report:.ITC Share Price Gains After Q2 Profit Rise.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 Q2 Results Review - Growth Sustains; Margin Stressed: ICICI Securities

Margins were under pressure due to commodity inflation across business segments and inferior mix, the brokerage maintains 'Add' rating on the stock.

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ITC Q2 Results Review - Growth Sustains; Margin Stressed: ICICI Securities

Margins were under pressure due to commodity inflation across business segments and inferior mix, the brokerage maintains 'Add' rating on the stock.

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