ITC Q4 results disappoint; PAT up 3.5% at Rs 2360 cr; stock likely to react negatively on Monday

MUMBAI: Cigarettes-to-hotels major ITC reported a disappointing set of numbers post market hours for the quarter ended March 2015. The stock is likely to open with a gap-down on Monday.

The stock ended the day flat, up 0.34 per cent, at Rs 328.45 on Friday.

The company reported a net profit of Rs 2360 crore, up 3.5 per cent, against a net profit of Rs 2280 crore in the corresponding quarter last fiscal. The PAT is lower than ET Now poll estimate of Rs 2530 crore.

Net sales stood flat at Rs 9,190 crore in Jan-March quarter against Rs 9,140 crore in the same quarter last fiscal. ET Now poll estimates sales to be at Rs 9700 crore.

"There would be negative reaction on thestock. The miss has been more than Rs 500 crore on the topline. It is much below than what we were expecting," said Sanjay Manyal, Research Analyst, ICICI Securities.

EBITDA rose to Rs 3,243 crore while EBITDA margin were at 35.3 per cent.

Cigarettes revenue edged up to Rs 4,210 crore, up 1.7 per cent, against Rs 4,141 crore, and cigarettes EBIT margins were at 64.3 per cent.

Hotels revenue were at Rs 346 crore against Rs 330 crore; paper and packaging revenue at declined to Rs 1,202 cr vs Rs 1,261 crore.

"We have been cautious on ITC for past one year due to frequent hike in excise duty. It has declined 20 per cent in last six months and we will advise hold on the stock," Manyal added.MUMBAI – Cigarettes-to-hotels major ITC has reported a disappointed set of numbers for quarter ended March 2015 and the stock is likely to open with a gap-down on Monday.

The company reported a net profit of Rs 2360 crore, up 3.5 per cent, against a net profit of Rs 2280 crore in the corresponding quarter last fiscal. The PAT is lower than ET Now poll estimate of Rs 2530 crore.

Net sales stood flat at Rs 9,190 crore in Jan-March quarter against Rs 9,140 crore in the same quarter last fiscal. ET Now poll estimates sales to be at Rs 9700 crore.

"There would be negative reaction on the stock. The miss has been more than Rs 500 crore on the topline. It is much below than what we were expecting," said Sanjay Manyal, Research Analyst, ICICI Securities.

EBITDA rose to Rs 3,243 crore while EBITDA margin were at 35.3 per cent.

Cigarettes revenue edged up to Rs 4,210 crore, up 1.7 per cent, against Rs 4,141 crore, and cigarettes EBIT margins were at 64.3 per cent.

Hotels revenue were at Rs 346 crore against Rs 330 crore; paper and packaging revenue at declined to Rs 1,202 cr vs Rs 1,261 crore.

"We have been cautious on ITC for past one year due to frequent hike in excise duty. It has declined 20 per cent in last six months and we will advise hold on the stock," Manyal added.