ITC - Q1 FY14 Result - Microsec

ITC LTd Total Income increased by 11% YOY to INR7411 crore YOY and its EBITDA increased by 18% YOY to INR2791 crore. EBITDA Margin of the company increased from 35.4% to 37.7% YOY which was above estimates. PAT increased by 18% YOY to INR1891 crore. Profit was inline with the market Estimates but Topline was below Estimates.

Key Highlights of the Quarter

- Cigarettes Business contributed 83.6% in EBIT VS 81.8% YOY. Cigarettes Volume is expected to decline by 1% as against 1.5% growth YOY

- MCG Business report a Loss of INR19 crore which was disappointing

- Agriculture business Sales grew 29% YOY to INR2189 crore and EBIT grew by 16% YOY to INR199 crore

- Hotel Business EBIT reduced by 66% YOY to INR9 crore and is dragging the profitability of ITC LTD.

AT the CMP of INR358, the stock is trading at a P/E of 32.5x its FY14E EPS of INR11. ITC is relatively cheaper in comparison to other top Consumption companies like Hindustan Unilever (P/E of 40.4x FY14E EPS), Nestle India (P/E of 45.8x its CY13E EPS), Asian Paints (P/E of 40x its FY14E EPS), Godrej Consumer Products (P/E of 36.5x its FY14E EPS) and GSK Consumer Helathcare (P/E of 39x its CY13E EPS).

Source : Equity Bulls

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