5 Key Takeaways from ITC Q1 Results

Cigarette and FMCG major ITC yesterday reported its quarterly results for the quarter ended June 2022 post market hours.

Indian share market over the past few months have been erratic. Fundamentally strong stocks or be it a debt free company, all have been taken down to the cleaners owing to multiple uncertainties.

Amid all these chaos, shares of ITC have outperformed benchmark indices.

For a decade, the stock languished at levels close to Rs 200 which made it Indian social media's favourite punching bag.

Shareholders were largely anguished by the stock's non-performance. The company has been at the centre of furious debates and discussions among investors.

And then all of a sudden, something changed. Shares of the company started to rise and rose above the multi-year levels of Rs 300.

Yesterday, ahead of its Q1 results, shares of ITC showed a rise of 1.3% due to the anticipation of strong quarterly result.

So, how did ITC perform in the June 2022 quarter?

Here are five key takeaways from ITC's Q1 results.

• ITC reported a 38.4% rise in net profit to Rs 41.7 bn for the June 2022 quarter compared with Rs 30.1 bn in the same quarter last year.
• On the revenue front, ITC showed a 41.4% revenue growth YoY to Rs 183.2 bn. The figure was up 6.8% sequentially.
  
  Its FMCG segment saw a revenue hike of 25% and cigarettes segment saw a rise of 28% in revenue.
  
  ITC beat estimates on the revenue front and on profit and margins.
• EBITDA for the quarter under review stood at Rs 56.4 bn while EBITDA margin for the quarter stood at 32.7%.
  
  The volume growth in cigarettes was 21%, aided by improved mobility levels. EBITDA margin is seen expanding owing to an improved sales mix.
• EBIT for the quarter stood up by 37% to Rs 55.4 bn from Rs 40.2 bn in previous quarter.
• ITC showed stellar growth in all segments while its agri-business and hotel business was notable.
  
  Its hotel business revenue came at Rs 5.8 bn, which is a 34.4% growth compared to the same quarter the last year.

How shares of ITC have performed recently

Shares of ITC surged yesterday by 1.6% ahead of its results.

Over the past year, shares of the company have gained 48%. On a YTD basis, the gains stand at 40%.

The company reported its 52-weeks high of Rs 307.65 today and reported its 52-week low of Rs 204.4 on 26 August 2021.

Shares of ITC are currently trading at the PE (price to earnings) multiple of 24.42.

ITC is one of the best dividends paying stocks. We did an editorial back in January 2022 listing the best dividend stocks you can count on.

Co-head of Research at Equitymaster also did an editorial on ITC back in September 2021 explaining why it's a great time to buy ITC.

For more details, check out ITC 2021-2022 annual report analysis.

Also check out ITC news and analysis.

About ITC

ITC is India's biggest cigarettes & one of the largest fast-moving consumer goods (FMCG) company. It has 78% market share in cigarettes and presence in other business segments such as staples, biscuits, and personal care products.

The company is also present in paperboard, printing & packaging business.

The company completed 100 years in 2010 and it employs over 36,500 people at more than 60 locations across India and is part of the Forbes 2000 list.

To know more, check out ITC company fact sheet and quarterly results.

For a sector overview, read our FMCG sector report.

You can also compare ITC with its peers:

ITC vs VST Industries

ITC vs Godfrey Philips

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