ITC - Result Review - Angel Broking

For 1QFY2014 ITC posted in-line results on the bottom-line front, with net profit coming at Rs.1,892cr (up 18% on yoy basis). Topline rose by 10.3% yoy to Rs.7,338cr. Cigarettes business posted a top-line growth of 7.1% yoy, while the growth in other FMCG business stood at 18.4% yoy. Agri-business continued to post impressive performance with a top-line growth of 29.4%. Performance of Hotels business continued to remain muted with a top-line growth of 7.5% yoy. OPM rose by 237bp on yoy basis to 37.1% aided by higher margins in cigarettes business. However, other FMCG business posted a loss of Rs.19cr (profit of Rs.12cr in 4QFY2013) in the quarter.

We maintain our Neutral view on the stock.

Source : Equity Bulls

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