ITC plunges over 6% post Q1 results as revenues disappoint

NEW DELHI: Shares of FMCG major ITC plunged over 6 per cent in afternoon trade on profit booking even as the company reported in-line net profit for the quarter ended June 2013.

The stock finally recouped some of the losses and ended at Rs 358.80, down 4.57 per cent, on the BSE. It touched a high of Rs 378.90 and a low of Rs 350.20 in trade today.

ITC's net profit for the quarter ended June 2013 increased to Rs 1,891 crore, up 18 per cent, as compared to a net profit of Rs 1,602 crore in the corresponding quarter last fiscal.

Sales for the period increased to Rs 7,338.5 crore, up 10.3 per cent, as against Rs 6,652 crore in year-ago period.

"ITC results were below expectations on the revenue front with the company reporting a 10 per cent revenue growth at Rs 73.4 billion. However, higher cigarette margins led to a 240bp EBITDA margin expansion at 37.7 per cent and led the 18 per cent PAT growth which was in line with expectations,"said IDFC note.

EBITDA margins for April-June quarter increased to 38 per cent vs 35.6 per cent, Year-on-Year (YoY).

Revenues from cigarette business rose 7 per cent to Rs 3,537.4 crore from Rs 3304.2 crore, YoY. The company's FMCG business revenues stood at Rs 1744.7 crore, up 18.4 per cent, from Rs 1,473.1 crore, YoY.

Agri business revenues showed 29.4 per cent growth at Rs 2,189 crore as compared to Rs 1,691.4 crore. Hotels biz revenues grew 7.5 per cent to Rs 250 crore vs Rs 232.4 crore, YoY.