ITC - 3QFY2014 results - Angel Broking

Views of Mr. V. Srinivasan (Research Analyst - FMGC, Angel Broking) on ITC 3QFY2014 result:

"For 3QFY2014 ITC's performance was in-line with estimates. The company's net sales rose by 13.1% yoy to Rs. 8,623cr. Cigarettes business posted a 12.5% yoy growth in net sales to Rs. 4,116cr aided by the price hikes taken by the company, even though volumes are expected to have de-grown by 2-3%. Healthy realizations resulted in Cigarettes business posting a 18.8% yoy growth in its EBIT. Other FMCG business posted a 16.6% yoy growth in net sales to Rs. 2,078cr aided by robust performance from the branded packaged foods business. Enhanced scale and improvement in leverage resulted in segmental EBIT of Rs. 10cr vs. loss of Rs. 24cr for 3QFY2013. Agri business posted a 9.5% yoy and 19% yoy growth in revenue and segmental EBIT respectively. Paperboards and packaging divisions' revenue grew by 18.5% yoy. However, segmental EBIT remained flat on account of increase in input costs. Hotels business posted a flat performance on the top-line front reporting net revenue of Rs. 315cr. However, segmental EBIT rose by 12.1% yoy to Rs. 62cr driven by superior performance by ITC Grand Chola. Overall, company's OPM rose by 54bp yoy to 36.9%. Bottom-line rose by 16.3% yoy to Rs. 2,385cr. We maintain a Buy rating on the stock with a Target Price of Rs. 382."

Source : Equity Bulls

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