ITC Q4 Results Review - Steady Core Business 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.'s cigarette and FMCG performance was healthy, while the nonconsumer business (paper and agribusiness) remained weak. Consolidated revenue grew 2% YoY (estimate: +4.5%). The cigarette revenue increased 7.5% YoY, with volume growth of ~2% YoY (in line), price hikes of 3-4%, and remaining through mix improvement. The premium cigarette segment continued to outperform, while the value segment remained weak. The FMCG segment’s performance was resilient, with 7% YoY revenue growth. Digital and modern trade businesses contributed significantly, comprising 31% of revenue. Despite mounting competitive pressure (from local and regional players) and weak demand, ITC reported an Ebit margin expansion on an LTL basis (adjusting for the PLI benefit in base). The Ebit margin stood at 9% during the quarter. The paper business was hit by demand issues, competition from China, lower pulp prices, and higher input costs. Both revenue and margin were weak; however, a gradual recovery is likely in FY25. Agribusiness continued to see a contraction in FY24, due to trade restrictions on agri-commodities. Hotels posted a robust performance, with strong ARR and occupancy. Reiterate Buy with an SOTP-based target price of Rs 515 (based on 28 times FY26E P/E)..Click on the attachment to read the full report:.ITC Q4 Results: Profit Falls 1.3%, But Meets Estimates.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 Q4 Results Review - Steady Core Business Performance: Motilal Oswal

The resilient nature of its core business, amid an uncertain industry environment, and its 3-4% dividend yield make ITC a good defensive bet in the ongoing volatile interest rate environment.

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ITC Q4 Results Review - Steady Core Business Performance: Motilal Oswal

The resilient nature of its core business, amid an uncertain industry environment, and its 3-4% dividend yield make ITC a good defensive bet in the ongoing volatile interest rate environment.

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