ITC Limited is an Indian conglomerate company headquartered in Kolkata. ITC has a diversified presence across industries such as FMCG, hotels, software, packaging, paperboards, specialty papers and agribusiness. The company has 13 businesses in 5 segments. It exports its products in 90 countries. Its products are available in 6 million retail outlets.
ITC was established in 1910. ITC is the largest cigarette manufacturer and seller in the country. As of 2019–20, ITC had an annual turnover of US$10.74 billion and a market capitalisation of US$35 billion. In December 2022, their market cap stood at ₹4,22,447.30 crore. It employs 36,500 people at more than 60 locations across India.
Quarterly Growth Walkthrough
ITC Ltd has registered a 22% gain in net profit to ₹5,080 crore for the December 2022 quarter as compared against a net profit of ₹4127 crore for the year ago period.
The revenue from operations has risen by 2.3% to ₹17,705 crore from ₹17,108 crore in the corresponding quarter of the previous fiscal year.
The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA), grew by 22% on year to ₹6223.2 crore from ₹5,102.1 crore.
Segment wise performance
The FMCG-cigarettes revenue has grown by 16.7% to ₹7288 crore from ₹6244 crore in the previous year period. FMCG-others revenue was reported at ₹4841 crore.
The hotels business revenue has grown by 50% to ₹712 crore from ₹473 crore in the corresponding quarter previous fiscal year.
The agricultural business revenue for the December quarter was reported at ₹3,123 crore which is down by 37 per cent from ₹4,962 crore.
The revenue from paperboards, paper and packaging has gained by 12.6% to ₹2,305 crore from ₹2,046 crore.
Declaration of Dividend
ITC has declared an interim dividend of ₹6 per share of ₹1 each, for which 15 February, 2023 has been set as the record date.
The payment of the interim dividend will be between 3 March 2023, and 5 March, 2023.
ITC stock price has made a break over its lifetime high of Rs 376.57 in the recent weeks. The price faces tough resistance around the Rs 400 level which indicates a strong operator presence. The price has overextended above the 200-day moving average and the weekly MFI is at 94 points which makes the stock highly overbought. Traders can short the stock with a stop loss.
Considering the strong quarter and consistency in the profits, the stock might hit the 161.8% retracement level at Rs 511 in the mid-term. Investors may accumulate shares of ITC on corrections only.
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