Thread by @MarketLearner_

ITC Q2FY23 results update📰
Segment wise analysis📊
Future outlook🔍

Everything in this #Thread🧵

#StockMarket #Stocks #invest #Investment #investor

@caniravkaria @Ishan_Narayan_ @harrie007 @kaushaldarshan_ @mystock_myview @SmartSyncServ @connectgurmeet @kuttrapali26

(1/10)

👉Near term outlook remains positive as :-

a) Positive cigarette volume traction in a stable tax regime.

b) Strong pricing & benefits of backward integration in paper and paper board in near term.

(2/10)

c) Structural recovery with robust outlook in ARR and occupancy levels in hotels.

d) Sustained growth across segments in FMCG with margin expansion likely from Q3/Q4 FY23.

👉Expect slowdown in growth post FY23 given high base of current year.

(3/10)

🚬CIGARETTES

👉Revenues grew by 23.3% yoy & EBIT by 23.6% yoy. Margins expanded by 18 bps.

👉Volumes surprised on the upside backed by innovation & premiumisation.

👉Flat pricing, superior mix & benefits of trade initiatives helped ITC to grow faster.

(4/10)

🍫FMCG

👉Revenues grew by 21% yoy & EBIT grew by 17.9% yoy. Margins contracted by 17 bps yoy.

👉EBITDA margin was down 50 bps due to severe inflationary impact.

👉Strong growth was seen in Staples & Convenience foods & Discretionary products.

(5/10)

👉Hygiene products portfolio remain subdued due to waning impact of COVID.

👉Expect operating led benefit in margins while volatile raw materials remain a key risk.

(6/10)

🛎 HOTELS

👉Revenue grew by 81.8% yoy. Margins came in at 15.7%.

👉ARR & occupancy levels were ahead of pre-pandemic levels driven by retail (packages), leisure, weddings & MICE segments.

👉ARR/Occupancy improved yoy with demand outlook remaining strong.

(7/10)

📰PAPERBOARDS, PAPER & PACKAGING

👉Revenues grew by 25% yoy, EBIT grew by 54% yoy. Margins expanded 518 bps yoy.

👉Revenue growth is driven by strong demand across end user segments & value added paperboard.

(8/10)

👉Fine paper shows robust performance with high demand in notebooks & publications.

👉Nadiad unit for packing started in the qtr. It has backward integration into pulp & saw high margins due to high global pulp price which are not sustainable & may correct post Q3 FY23.

(9/10)

🌿AGRI BUSINESS

👉Revenues grew by 44% yoy, EBIT by 16.6% yoy. Margins down by 203 bps.

👉Driven by growth in wheat, rice & tobacco exports leveraging strong customer relationships, sourcing network & agile execution & benefits of supply chain disruption.

(10/10)

Do you have ITC in your portfolio? Let me know in the comments below.

We also have a telegram channel where we share lots of info & price action charts for FREE of cost, below is the link to join🔽

telegram.me/TheMarketLearn…

Want to know about a large caps growing faster than 99% of the smallcaps? Read the below thread & you'll get it all.

Thanks for showing up,
Parth Goyal

https://twitter.com/MarketLearner_/status/1585681797622693893