4QFY20 results of ITC by Mr. Rajit Rajoriya, Equity Research Associate, Angel Broking Ltd

"Standalone Revenue from operations declined by 6.4% to Rs.11,420 crore compared to Revenue of Rs.12,206 crore in the same period of 2018-19. EBITDA for the quarter stood at Rs. 4,163 crore as compared to the street's estimate of 4,495.06 crore while EBITDA margins came in at 36.5%. Net profit was up by 9% to Rs 3,797 crore. All business segments reported a degrowth led by Agri business (-10.2% YoY), Hotels (-8.6% YoY) Cigarettes (-6.5% YoY), Paperboard (-5.1% YoY) and FMCG (-2.8% YoY).

ITC has been aggressive in its FMCG business - launching sanitisers and hand washes, leveraging its extensive distribution network and acquiring a key regional spice brand. However, it has lost around 40 days of cigarette sales due to the lockdown. Its hotels and paper segments, too, are likely to be impacted due to the loss of business. While it missed the Street estimates due to decline in revenues across all segments, the performance of its FMCG segment has kindled hopes of an improved show in the latter part of the year."

Shares of ITC LTD. was last trading in BSE at Rs.202.7 as compared to the previous close of Rs. 194.6. The total number of shares traded during the day was 1762903 in over 12144 trades.

The stock hit an intraday high of Rs. 203.8 and intraday low of 194.85. The net turnover during the day was Rs. 353137651.

Source : Equity Bulls

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