ITC has reported a sharp improvement in net profit margins for the year ended 31st March 2000. The company has benefited from a 470 basis points jump in operating margins and a 31% drop in interest expenditure.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share
The topline growth has been modest at 8.6% despite the fact that volumes dipped 3.5%. However, it is necessary to point out that during the fourth quarter sales actually jumped 14%. The rise in margins can be attributed to the improved product mix.
The stock currently trades at a P/E multiple of 20, which is significantly lower than multiples recorded at the end of the previous three financial years (FY97 - 33.3, FY98 - 35.3, FY99 - 41.1).
ITC Ltd has announced third quarter results of the financial year 2016-2017 (3QFY17). The company has reported 4.7% YoY and 5.7% YoY growth in revenues and net profits respectively. Here is our analysis of the results.
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