ITC - Q4FY13 Result Update - IIFL

- Results in line with expectations. Revenue grew by ~19% yoy to Rs81.8bn, driven by cigarettes, Other-FMCG and agri segments

- Cigarette volumes grew by ~3% yoy; EBIT margins expand by 70bps to 31.6%. Other-FMCG segment achieves break-even at EBIT level; registers a profit of Rs119mn against a loss Rs167mn in Q4 FY12

- OPM expands by 30bps to 32.1%. A drop of 210bps in overhead cost mitigates high raw material cost impact. Net profit matched our expectations by recording ~19% yoy growth at Rs19.3bn

- We expect ITC to witness a revenue/PAT CAGR of 16.5%/18% respectively over FY12-14. Maintain BUY with a revised 9-mth price target of Rs372 (earlier Rs353)

Source : Equity Bulls

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