- ITC Ltd reported a 4th-quarter net income of 50.2 billion rupees, marking a 1.4% decrease year-over-year (y/y) and falling short of the estimated 51.5 billion rupees.
- Revenue stood at 177.5 billion rupees, up by 1.4% y/y and surpassing the forecasted 171.91 billion rupees.
- Cigarettes revenue was 79.2 billion rupees, up by 7.6% y/y, beating the estimated 77.38 billion rupees.
- Fast-Moving Consumer Goods (FMCG) revenue, excluding cigarettes, amounted to 53 billion rupees, up by 7.3% y/y, slightly below the estimated 53.45 billion rupees.
- Hotel revenue was 8.98 billion rupees, marking a significant 15% y/y rise and slightly exceeding the estimate of 8.92 billion rupees.
- Agriculture business revenue stood at 31 billion rupees, down by 13% y/y and falling below the estimated 36.08 billion rupees.
- Paper business revenue was 20.7 billion rupees, down by 6.8% y/y and below the estimated 21.29 billion rupees.
- Total costs were 120.2 billion rupees, a 2.5% increase y/y.
- Raw material costs were significantly lower than estimated: 53.9 billion rupees versus the estimated 75.43 billion rupees.
- Other income totaled 7.99 billion rupees, a 7.1% y/y increase.
- Dividend per share was set at 7.50 rupees.
- Regarding the company’s investment ratings, there were 35 buys, 2 holds, and 1 sell.
ITC Ltd on Smartkarma
Analysts on Smartkarma, an independent investment research network, have been closely monitoring ITC Ltd. According to Sumeet Singh‘s bullish insights, a recent $2 billion block placement for ITC Ltd was relatively quiet after a flurry of placements in the prior week. The deal, well-flagged and large, involved BAT selling 3.5% of ITC. Singh’s analysis delves into the dynamics of the deal and its potential impact.
However, not all analysts share the same optimism. Another report by Brian Freitas, leaning bearish, discusses the impact of British American Tobacco’s potential stake sale in ITC. BAT aims to monetize part of its 29% stake while keeping at least 25%. The uncertainty surrounding the timeline and the minimal buying from passive trackers could lead to increased stock pressure. This contrasting sentiment presents investors with a range of perspectives to consider regarding the future of ITC Ltd.
A look at ITC Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
ITC Ltd, a prominent member of the BAT Group of UK, covers a wide range of industries including Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri Business, Packaged Foods & Confectionery, Branded Apparel, Greeting Cards, and other FMCG products. With a strong standing in the market, ITC Ltd displays a solid outlook for the future, scoring high in key areas. Notably, the company excels in Dividend and Resilience, demonstrating its commitment to providing returns to shareholders and its ability to withstand market challenges.
Furthermore, ITC Ltd shows encouraging signs in its overall performance, with a positive outlook reflected in its scores for Growth and Momentum. While there might be room for improvement in terms of Value, the company’s significant strengths in other crucial aspects bode well for its long-term prospects. As highlighted by the Smartkarma Smart Scores, ITC Ltd appears well-positioned to continue its success and maintain a resilient stance in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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