ITC - 4QFY2013 Result Review - Angel Broking

For 4QFY2013 ITC posted strong set of numbers. Net sales rose by 19.2% on a yoy basis to Rs. 8,180cr. Cigarettes business posted a 11.5% yoy growth in net sales to Rs. 3,623cr aided largely by price hikes. Other FMCG business posted a healthy 26.0% yoy growth in net sales to Rs. 2,036cr. Agri business posted a strong 31.1% yoy growth in net sales to Rs. 1,855cr. Hotels and Papers & Packaging businesses posted a top-line growth of 10.4% and 7.9% respectively. OPM came in at 32.1% up 51bp on yoy basis. While the cigarette business posted 421bp margin expansion, other FMCG business posted profit of Rs. 12cr (vs. loss of Rs. 17cr in 4QFY2012). However, other divisions posted margin contraction on a yoy basis. The company's bottom-line rose by a healthy 19.4% yoy to Rs. 1,928cr.

We maintain our Neutral view on the stock.

Source : Equity Bulls

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