ECONOMY

ITC Q1 Review – Cigarettes Recovery Tepid, FMCG Margins Shine: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

We are marginally decreasing FY22/23 earnings per share estimates of ITC Ltd. by 2%/1.2% on account of lower other income which halved during Q1.

Cigarette volumes recovery has been impacted due to restrictions in Kerala, Odisha and North East and recovery is expected to be slower than expected.

Fast moving consumer goods margins have seen benefit of higher scale, rigorous cost control, closer to market production units and rising direct coverage and trend is expected to continue.

Paperboard has gained margins in inflationary input cost scenario due to backward integration and medium term outlook remains intact.

We expect hotels business recovery to be delayed due to the second wave however traction at leisure locations bodes well for ITC.

Click on the attachment to read the full report:

Prabhudas Lilladher ITC Q1FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
editorpen Governmental News Finance News

Source link

Back to top button