ITC Q4 Review – Healthy Overall Performance: Axis Securities

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ITC Ltd. reported a healthy set of numbers in Q4 FY22 with revenue of Rs 15,331 crore (our estimate – Rs 16,205 crore), down 2.2% QoQ but up ~16.5% YoY, led by a strong 8% volume growth in cigarettes (in line with our estimates).

Gross margins at 52.5% was 132 basis points lower YoY on account of unprecedented raw material inflation.

Ebitda grew 16.8% YoY at Rs 5,224 crore (our estimate – Rs 5,373 crore) with Ebitda margin of 34.1%,up 9 bps YoY and ~156 bps QoQ.

Recurring profit after tax grew 11.8% YoY to Rs 4,191 crore (our estimate – Rs 4,315 crore).

ITC’s board of directors recommended a final dividend of Rs 6.25/share (taking the total dividend for FY22 to Rs 11.50 per share).

Robust broad-based recovery was observed in cigarettes despite Covid 3.0 disruption as volumes surpassed pre-pandemic levels.

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