ITC pares gains after rallying about 2% ahead of results; Q4FY15 PAT seen up 11% at Rs 2,530 crore

MUMBAI: Cigarettes-to-hotels major ITC will be announcing its fourth quarter results today.

The stock gained as much as 1.78 per cent in intraday trade but soon cut gains and was trading flat ahead of the results.

According to ET Now poll estimates, the company is likely to report net profit of Rs 2530 crore, up 11.06 per cent, as compared to net profit of Rs 2278 crore in the corresponding quarter last fiscal.

Net sales for the quarter is seen at Rs 9700 crore, up 6.06 per cent, from Rs 9145 crore, in year ago period.

Operating margin are seen at 35.5 per cent as against 35 per cent.

According to analysts, ITC may report 8 per cent decline in cigarette volumes in fourth quarter due to steep price hikes. Cigarette revenues are seen rising by 3-4 per cent despite volume decline. Revenues and margins are likely to be aided by 22 per cent price hike in Q4.

Revenues of non-cigarette FMCG business is seen up 15 per cent driven by better agri & other FMCG business growth. Hotels revenue may remain weak as macro factors are still soft. Nearly 8 per cent growth is expected in hotel revenues.

Management outlook on cigarette volume trends, demand outlook for non-cigarette FMCG businesses and guidance on pick-up in hotels business will be eyed.