ITC shares gained over 4 per cent on Friday after the company reported better-than-anticipated financial results for the quarter ended March 31, 2016. The company posted 5.67 per cent rise in net profit figures at Rs 2,495.20 crore for the quarter ended March 31, 2016 against Rs 2,361.18 crore in the corresponding quarter a year ago.
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 9,188.25 crore in the same quarter last year.
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.
The share price of ITC jumped 4.05 per cent to Rs 338 on NSE. The scrip opened the day at Rs 326.75 and touched a high and low of Rs 338.70 and Rs 324.80, respectively, in trade.
The Nifty FMCG index closed 0.47 per cent up at 19,705.
On BSE, ITC shares jumped 1.55 per cent to Rs 329.95.