ITC Q2 preview sees profit drop on cigarette tax hikes
In short
ITC is expected to post weak Q2 numbers. Brokerages cited in the summary see cigarette volumes falling about 8%, cigarette operating profit dropping as much as 29%, revenue falling 3%, and EBITDA down 20%.
This matters because cigarette taxes may hurt ITC’s main business. The report says FMCG and paper could help offset the weakness, but the actual results have not been released.
What the reporting says
ITC is expected to report a weak Q2, with brokerages forecasting about an 8% decline in cigarette volumes and up to a 29% drop in cigarette operating profit after tax hikes. The Economic Times summary also cites Nuvama’s view that consolidated revenue may fall 3% year on year and EBITDA may decline 20%. FMCG and paper growth could cushion the results, but the actual numbers are not yet reported.
Why it matters
ITC is heading into a weak Q2 earnings update, according to the Economic Times summary, with brokerages expecting an 8% fall in cigarette volumes and up to a 29% drop in cigarette operating profit after tax hikes. Nuvama also sees consolidated revenue down 3% year on year and EBITDA down 20%. The report suggests FMCG and paper may soften the hit, but the published source is only a preview.