ITC Q2 Results Review - Resilient Print Despite Challenges; Retain 'Buy': 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 consolidated revenue growth of 17% YoY (beat) in Q2 FY25, due to high growth in agri business. Core business performance was largely in line with estimates despite several challenges.Gross cigarette revenue grew by 7%, driven by volume growth of ~3.5% YoY (in line), pricing growth of 1-2% and better mix. Premium cigarette segment continued to outperform. Ebit growth was 5% YoY (in line).  FMCG segment delivered 5% revenue growth (7% growth excl. notebook business) in a challenging environment. ITC witnessed healthy demand from both urban and rural markets. Excessive rains in parts of the country also impacted a part of the portfolio. Notebooks impacted by a high base effect and local competition on a sharp drop in paper prices. Margins were impacted slightly by rising competitive pressure (local, regional players), increased commodity prices and weak demand. Ebit margin was at 8.0%. (estimate: 8.2%)..Click on the attachment to read the full report:.ITC Q2 Results Review - Agri-Business Surprises Again; Margins Take A Hit: Yes Securities.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 - Resilient Print Despite Challenges; Retain 'Buy': Motilal Oswal

With the stable tax on cigarettes, the brokerage anticipates sustainable growth in business and value it at 20 times Sep’26E EV/Ebitda.

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ITC Q2 Results Review - Resilient Print Despite Challenges; Retain 'Buy': Motilal Oswal

With the stable tax on cigarettes, the brokerage anticipates sustainable growth in business and value it at 20 times Sep’26E EV/Ebitda.

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