AT A TIME when most peers witness margin. headwinds, every single segment of ITC has seen stable to expanding margins in Q4, with smart gains in cigarette & FMCG. Cig. volume growth at 9% is impressive with double-digit Ebit growth, broadly in line. >20% Ebitda growth is a key positive in FMCG. Dividend pay-out improves to c.95% while CAPEX is near-flat-o-y-this drives up RoE to a 7-y high of 25%. ITC stands out given high margin visibility & we retain Buy.
In-line Q4: ITC's Q4 standalone Ebitda grew 17%y-o-y to ₹52.2 bn, in line with our estimates. Growth was led by the cigarette business, which saw a 12% Ebit growth (inline). FMCG business surprised positively, both on revenue and margin fronts. Paperboards also performed better than expected, although this was offset by a miss in hotels (3rd wave impact) and agribusiness. EPS growth was a tad lower (+12%yo-y) due to lower other financial income.
This story is from the May 23, 2022 edition of Financial Express Mumbai.
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This story is from the May 23, 2022 edition of Financial Express Mumbai.
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