Hotel Tobacco Group ITC Ltd is expected to report a net profit of Rs 4,838.8 crore for the April-June quarter on August 14, following the average of six brokerages. surveyed by Moneycontrol. It shows an increase of 4.6% year over year and a growth of 10.3% on a sequential basis.
The company’s revenue was pegged at Rs 17,326 crore in the first quarter of fiscal year 2024, marking a 14.9% increase year-on-year. Sequentially, revenue is expected to decline 4.8%.
Its operating margin is expected to be 36.2%, an increase of 404 basis points year-on-year, as well as a 117 basis point decline in succession. Tobacco volume is expected to grow 8.06% year-on-year in the April-June quarter. Kotak Institutional Equities expects tobacco EBIT margins to decline sequentially by 50 basis points and remain flat for the year due to tobacco price inflation.
FMCG activity is expected to grow 13.12% year-on-year. According to a report by Prabhudas Lilladher, prices of key ICT commodities, such as wheat and sugar, have increased by 6% year-on-year and 3.8% in the first quarter of 2024. Hotel activity is expected is expected to grow 14.3% year-over-year in the April-June quarter. The company announced the shutdown of the hotel business on July 24. Sanjiv Puri CEO at ITC said: “For ITC, the reorganization of the business will refine the allocation of capital, improving asset efficiency ratios, unlocking shareholder value, and leveraging institutional synergy. The 112th Annual General Meeting of Shareholders on August 11.
Kotak Institutional Equities said ITC agricultural activity is expected to decline 23% year-on-year in Q1FY24 on a high basis. Another reason for the decline in agribusiness income is the ban on wheat exports.
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