ITC - Q2FY14 Result - First Cut - Microsec

ITC LTd Net Sales increased by 9% YOY to INR7776 crore YOY (which was below Estimates) and its EBITDA increased by 18% YOY to INR3176 crore. EBITDA Margin of the company increased from 37.2% to 40.4% YOY which was above estimates. PAT increased by 21% YOY to INR2231 crore. PAT also include Exceptional Income of INR158 crore as the Liability towards Rates and Taxes is no longer required. Adjusting the Same, Profit remained in line with the Estimates.

Key Highlights of the Quarter

- Cigarettes Business (Excluding Added Income of 158 crore) contributed 79% in EBIT VS 80% YOY. Cigarettes Volume is expected to decline by ~2-3% as against 0.5% growth YOY

- FMCG Business report a Loss of INR13 crore which was disappointing

- Agriculture business Sales decreased by 12% YOY to INR1772 crore and EBIT grew by 10% YOY to INR285 crore

- Hotel Business EBIT reduced by 43% YOY to INR9 crore and is dragging the profitability of ITC LTD.

- Paperboards Business EBIT reduced by 22% YOY to INR221 crore.

Source : Equity Bulls

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