ITC net seen up 17% to Rs 1,495cr; hotels, agri business eyed

NEW DELHI: ITC Ltd is expected to report a 16.7 percent YoY increase in net profit at Rs 1,495 crore in the fourth quarter against Rs 1,281 crore in the year-ago period, according to ET Now estimates. Operating profit is seen at Rs 2,285 crore, a 19 percent YoY increase compared to Rs 1,912 crore in the corresponding period a year ago.

Highlights
Net sales seen at Rs 6,760 crore vs Rs 5,836 crore, up 16 percent YoY
PAT seen at Rs 1,495 crore vs Rs 1,281 crore, up 16.7 percent YoY
Operating profit seen at Rs 2,285 crore vs Rs 1,912 crore, up 19 percent YoY
OPM seen at 33.8 percent vs 32.7 percent, up 3.3 percent YoY

Factors to watch out for
Expect 7 percent volume growth and 15 percent sales growth in cigarettes
Sales growth to be driven by price hike and volume growth
Company increased cigarette prices by 10 percent in Q4FY12
Watch out for introduction of 60-65mm cigarette brand

Segment-wise performance
Hotels, agri and paper business to contribute to bottomline
Non-cigarette FMCG business to surprise on the positive side
Paper business segment to expand by 150-200bps
Agricultural business to grow by 15 percent
Revenue growth in hotels to be subdued but margins to improve