ITC Q2 net profit seen flat at Rs 2,412 crore; 3 factors to watch

NEW DELHI: ITC, which is scheduled to report its September quarter earnings later on Friday, is likely to post 0.5 per cent year-on-year (YoY) drop in consolidated net profit at Rs 2,412 crore compared with Rs 2,425 crore reported for the year-ago period, said an ET Now poll.

Ahead of the results, ITC shares were trading 0.9 per cent lower at Rs 346.50 at 10:10 AM. The stock hit a low of Rs 344.65 and a high of Rs 351 in morning trade on the BSE.

Net sales are expected to grow by a marginal 0.5 per cent YoY to Rs 9,064 crore from Rs 9,023 crore reported for the corresponding quarter of last financial year. Ebitda is likely to rise 2.12 per cent YoY to Rs 3,562 crore in the second quarter from Rs 3,488 crore reported for the year-ago period.

Ebitda margins are likely to expand to 39.3 per cent from 38.7 per cent reported for the year-ago period.

Three key factors to watch:

*Extent of decline in cigarette volumes *Extent of growth in FMCG business (peers weak) *Margin pressure/ expansion