ITC Q2 PAT seen up 15.5% at Rs 2,120 crore

MUMBAI: The FMCG major ITC will be announcing its second quarter results tomorrow. According to ET Now poll, the company is likely to report standalone net profit of Rs 2,120 crore, up 15.5 per cent, against a net profit of Rs 1,836 crore, in the corresponding quarter last fiscal.

Net sales are seen up 14 per cent at Rs 8,158 crore in September 2013 quarter as against Rs 7,146 crore in year-ago period.

EBIDTA is seen up 14.7 per cent at Rs 3,084 crore from Rs 2,688 crore in same quarter a year ago. EBIDTA margins are seen at 37.8 per cent vs 37.6 per cent.

The EBITDA growth is expected to be led by EBIT margins expansion in cigarette business.

Segment–wise expectations:

FMCG-cigarette

* Expect cigarette volume decline of 2-3 per cent

* Price hikes taken during the quarter to hurt volume growth

* Price hike of approx 10 per cent taken fro certain brands during the quarter

* Prices up approx 17 per cent yoy basis

* See EBIT cigarette margins expanding by 70-80bps

* Expect cigarette revenue growth of 16 per cent, EBIT growth of 18 per cent

FMCG-non cigarette

* See revenue growth of 16 per cent and EBIT loss of Rs 12 crore

* Palm oil prices up 10 per cent YoY

* Relaunched Vivel, plans to launch more products under Fiama Di Wills brand

Hotel & Paper

* Both sectors to deliver weak trends, remain under pressure

* Weak industry environment to impact hotel biz

Agri and Agro coomodities

* Numbers expected to be strong

* To benefit from rupee depreciation on exports

Factors to watch out for:

* Non-tobacco FMCG business growth and profitability

* Cigarette volume trend post the price hikes

*Signs of pick-up in hotels business