Beating estimates, FMCG major ITC reported 5.67 per cent rise in net profit figures at Rs 2,495.20 crore for the quarter ended March 2016 against Rs 2361.18 crore in the corresponding quarter a year ago.
The company beat analyst expectation. KR Choksey Shares and Securities in April said that ITC is facing regulatory pressure on its core business cigarettes and we expect the decline of in cigarettes volume by 2-3 per cent in Q4FY16. ITC is diversifying into FMCG segment and other business segment that will help it to grow. The brokerage house said that for Q4FY16, ITC is expected to post muted revenue growth of 4 per cent yoy and 5.3 per cent q-o-q, with its EBIDTA margin at 36.3 per cent and PAT margin to be around 24.9 per cent, respectively.”
Net sales of the company jumped 9.51 per cent year-on-year (yoy) to Rs 10,062.38 crore in the quarter under review against Rs 9188.25 crore in the same quarter last year.
ITC Ltd also recommended dividend of Rs. 8.50 (including special dividend of Rs 2) per ordinary share of Rs 1 for the financial year ended March 31, 2016.
Shares of the company closed 1.55 per cent up at Rs 329.95 on BSE.