LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

ITC Q4 preview: Will demonetisation, price hike in cigerattes impact earnings?

ITC in Q3FY17 reported 5.7% yoy  jump in net profit at Rs 2,646.73 crore and while total income from operations grew by 4.7% yoy at Rs 13,569.97 crore. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
ITC Q4 preview: Will demonetisation, price hike in cigerattes impact earnings?
Representational Image. Photo: Pixabay
Written By: ZeeBiz WebTeam
Updated: Fri, May 26, 2017
10:34 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
ITC share price tanks over 2.5 pct! Is it opportune to buy? Experts have this to say about it ITC share price tanks over 2.5 pct! Is it opportune to buy? Experts have this to say about it
IRCTC, Tata Power, ITC share prices: Target, holding strategies to stop-loss - EXPLAINED IRCTC, Tata Power, ITC share prices: Target, holding strategies to stop-loss - EXPLAINED
ITC Share Price: HUGE demerger impact! Stock experts give 'Share to buy' tag, upgrade target; should you buy? ITC Share Price: HUGE demerger impact! Stock experts give 'Share to buy' tag, upgrade target; should you buy?
ITC Share price: Morgan Stanley maintains an overweight rating with a target price of Rs 251 ITC Share price: Morgan Stanley maintains an overweight rating with a target price of Rs 251
In chat with Anil Singhvi, analyst Vikas Sethi recommends ITC, JSW Steel as top buys for big gains In chat with Anil Singhvi, analyst Vikas Sethi recommends ITC, JSW Steel as top buys for big gains

Share price of ITC will be in focus on Friday ahead of its fourth quarter ended March 31, 2017, results. 

At 1022 hours, ITC was trading at Rs 304.45 per share higher by 1.58% on BSE. 

Many analysts expects the last quarter of FY17 to feel the impact of price hike made in cigeratte during January – March 2017, period in both top-line (revenue) and bottom-line (net profit). 

ITC is majorly dependent on cigeratte business and in the month of February, the company made 13% hike in its premium category (Classic). 

Following which, Motilal Oswal said, ITC's cigeratte volume will decline by 4% on year-on-year (YoY) basis. 

In Q3FY17, cigerattes business contributed just 2.24% in ITC's total revenue at Rs 8,287.97 crore compared to Rs 8,106.31 crore a year ago same period. 

Similarly, Edelweiss Financial Services said, “On a base of flattish volumes in cigarette we expect cigarette volumes to decline by ~1-2% YoY in Q4FY17 in cigarettes (Q3FY17 saw flattish volume growth on a base of 4% YoY decline in volumes).”

Motilal expects cigarette EBIT (earnings before interest and tax) to grow 1.9% YoY. We have factored in EBITDA decline of 0.1% YoY to Rs 3,603 crore for ITC this Q4. 

Thus a decline in cigerattes volume would mean net sales will be impacted. Motilal sees net sales of Rs 9,879.8 crore, growing by 1.26% yoy and 6.82% qoq basis. 

Meantime other FMCG business of ITC is expected to witness single-digit growth in Q4. Edelweiss said, “FMCG business is expected to see 10% YoY on a base of 5.4% YoY. Subdued demand in hotels and papers is expected to continue further impact by demonetisation.”

While KR Choksey said, “It's other business like paper board, hotels and agri has been impacted by demonetisation and will see delay in recovering We expect EBIDTA & PAT margins to be around 26.8% and 19.2% on yoy basis.”

Considering above, ITC's net profit is seen at Rs 2,578.1 crore during Q4FY17, increasing by 8.37% yoy but will decline by 2.59% on qoq basis. 

ITC in Q3FY17 reported 5.7% yoy  jump in net profit at Rs 2,646.73 crore and while total income from operations grew by 4.7% yoy at Rs 13,569.97 crore. 
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
ITCITC Q4 resultITC Q3 RESULTITC cigerattes volumeITC net profitITC net salesFMCGQ4FY17FY17ITC financial performanceDemonetisationTobacco and cigerratesBSEMarketsShares
RELATED NEWS
ITC share price tanks over 2.5 pct! Is it opportune to buy? Experts have this to say about it ITC share price tanks over 2.5 pct! Is it opportune to buy? Experts have this to say about it
IRCTC, Tata Power, ITC share prices: Target, holding strategies to stop-loss - EXPLAINED IRCTC, Tata Power, ITC share prices: Target, holding strategies to stop-loss - EXPLAINED
ITC Share Price: HUGE demerger impact! Stock experts give 'Share to buy' tag, upgrade target; should you buy? ITC Share Price: HUGE demerger impact! Stock experts give 'Share to buy' tag, upgrade target; should you buy?
ITC Share price: Morgan Stanley maintains an overweight rating with a target price of Rs 251 ITC Share price: Morgan Stanley maintains an overweight rating with a target price of Rs 251
In chat with Anil Singhvi, analyst Vikas Sethi recommends ITC, JSW Steel as top buys for big gains In chat with Anil Singhvi, analyst Vikas Sethi recommends ITC, JSW Steel as top buys for big gains

LATEST NEWS

Rajini, Kamal, Mohanlal and many others mourn Vivek's demise

IndianOil Alert – Your Opportunity to earn WHOPPING Rs 2 Cr – Know terms and conditions; Do this and Win BIG

GOOD NEWS! Modi Govt slashes Remdesivir MRP by half, with retro-effect—This is how much it will cost you now

Petrol, Diesel Price Today – Rates unchanged on Sunday in 4 metros; Do this to get latest prices in Delhi-NCR, Mumbai, Kolkata and Chennai

SBI three-fold strategy for PPF, small saving schemes: Income tax rebate, Interest rates on deposits and more

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty support range; says global markets, Q4 results to drive street

Expert recommends BUY ACC with price target of Rs 2100, stop-loss Rs 1850

7th Pay Commission Latest News: 'Special Allowance' extended for These Central government employees

IBPS admit card 2021 released—here is how you can download it from official website ibps.in

Glenmark Pharma share price: Expert says HUGE value unlocking; reveals two BUY targets

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved