ITC Q2: FMCG Giant Declares 2% YoY Surge In Net Profit, Shares Slip In Red; Buy Or Sell?

Large cap FMCG sector company, ITC Ltd shares today recorded a decline of 1.81% to settle at Rs 471.85 per share and slipped over 8% in last 1-month. The company today declared its consolidated net profit at Rs 4993 crore for the quarter ended September 2024, up 2% as against Rs 4898 crore announced in the corresponding quarter of last year. The company declared its revenue from operations for the quarter under review at Rs 22,282 crore, up 15.63% as against Rs 19,270 crore declared in the similar quarter of last year. ITC Ltd has a market capitalisation of Rs 5,90,171.04 crore. Check details below:

ITC Gives Approval For Acquisition Of Shares: As per the exchange filing of ITC dated October 24, 2024, "approved acquisition of 1 ,52,32, 129 Equity Shares of~ 2/- each of EIH Limited ('EIH') and 34,60,829 Equity Shares of~ 21- each of HLV Limited ('HL V'), from Russell Credit Limited ('RCL'), a wholly owned subsidiary of the Company, at their respective book value, in order to consolidate shareholding of EIH and HLV under the Company. Post such acquisition, the total share holding of the Company in EIH and HL V would be 16.13% (10,08,53,602 Equity Shares) and 8.11% (5,34,13,884 Equity Shares) of their paid-up share capital, respectively."

The company also approved acquisition from RCL of the entire share capital (comprising 4,20,60,166 Equity Shares of ~ 10/- each) of Greenacre Holdings Limited, an unlisted company and a wholly owned subsidiary of RCL, at book value, added the BSE filing.

ITC Q2: ITC declared its EBITDA at Rs 6,335 crore in the July-September 2024 quarter and margins at Rs 32.8%. The company's revenue from the cigarettes business zoomed 7% YoY to Rs 8,879 crore for the September 2024 quarter as against Rs 8,328 crore in the similar quarter of last year. The company declared its profit before tax (PBT) for the cigarettes business jumped 5% YoY to Rs 5,242 crore for the quarter under consideration.

FMCG-others business declared a surge in revenue by 5% to Rs 5,585 crore for September 2024 quarter as compared to Rs 5,303 crore announced in the same quarter of last year.

The Q2 revenue of hotels business soared 17% YoY to Rs 789 crore as against Rs 675 crore in the corresponding quarter of last year.

Recommendation Of Appointment Of Non-Executive Director: The company recommended for the approval of the Members, the appointment of Mr. Siddhartha Mohanty as a Non-Executive Director of the Company for a period of three years with effect from 1st January, 2025; Mr. Mohanty, if appointed, will represent the Life Insurance Corporation of India.

ITC Shares Performance: The 52-week high price of ITC Ltd shares on BSE is Rs 528.55 per share (as on 27/09/2024) and 52-week low price is Rs 399.30 per share (as on 12/03/2024), respectively. ITC shares gained 10% in last 6-months, rallied 8% in last 1-year, soared 36% in last 2-years, and zoomed 99% in last 3-years.

Should You Buy ITC Shares? According to A R Ramachandran, Independent SEBI Research Analyst "ITC is bearish and oversold on the Daily charts with strong resistance at 491.5. A Daily close above this resistance could lead to target of 528 in the near term. Support will be at 466."

ITC Stock Split History: ITC sub-divided the face value 1 time since September 21, 2005. ITC Ltd. last sub-divided/split face value of its shares from Rs 10 to Re 1 in 2005. ITC share traded ex-split as on September 21, 2005.

ITC Bonus Share History: ITC gave 3 bonuses since September 21, 2005. The FMCG giant's last bonus was declared the ratio of 1:2 with ex-bonus date set as July 1, 2016.

ITC About: ITC is one of India's foremost private sector companies. ITC has a diversified presence in FMCG, Hotels, Packaging, Paperboards & Specialty Papers and Agri-Business. ITC's aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world, of its size and diversity, to be carbon, water and solid waste recycling positive. In addition, ITC's businesses and value chains create sustainable livelihoods for more than 6 million people, a majority of whom represent the poorest in rural India, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of AR Ramchandran. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.