ITC up on ahead of quarterly numbers
Shares of FMCG major ITC Ltd were trading 0.7% higher at Rs 173.50 on expectations of appreciable quarterly numbers. The company will announce its third quarter results post noon on Monday.
By ET Bureau |
MUMBAI: Shares of FMCG major ITC Ltd were trading 0.7% higher at Rs 173.50 on expectations of appreciable quarterly numbers. The company will announce its third quarter results post noon on Monday.
Analysts are expecting ITC to register a topline growth (YoY) in the range of 18 to 20% for the quarter ended Dec. 31, 2008. PAT (net profit) is expected to rise in the range of 10% and 14% during the considered quarter.
According to third results preview by Motilal Oswal Securities, cigarette volumes are expected to decline by 2%, lower than 2.5% decline in 1HFY09 due to higher-than-expected conversion from non-filters.
Hotels business is expected to report decline in sales. FMCG losses are likely to decline, as the company benefits from the decline in palm oil price, a key ingredient in toilet soaps. Paper and paperboard division will gain from stabilisation of the pulp facility although increase in input costs in previous quarters will limit gains.
"Operating margins will still be under pressure for ITC. The company is expected to be under pressure as a result of losses arising out of non-FMCG businesses. We maintain a neutral view on the stock," said Angel Broking's FMCG analyst Anand Shah.
Analysts are expecting ITC to register a topline growth (YoY) in the range of 18 to 20% for the quarter ended Dec. 31, 2008. PAT (net profit) is expected to rise in the range of 10% and 14% during the considered quarter.
According to third results preview by Motilal Oswal Securities, cigarette volumes are expected to decline by 2%, lower than 2.5% decline in 1HFY09 due to higher-than-expected conversion from non-filters.
Hotels business is expected to report decline in sales. FMCG losses are likely to decline, as the company benefits from the decline in palm oil price, a key ingredient in toilet soaps. Paper and paperboard division will gain from stabilisation of the pulp facility although increase in input costs in previous quarters will limit gains.
"Operating margins will still be under pressure for ITC. The company is expected to be under pressure as a result of losses arising out of non-FMCG businesses. We maintain a neutral view on the stock," said Angel Broking's FMCG analyst Anand Shah.
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