ITC’s quarterly result was in line with expectations. While the cigarettes business was adversely impacted by GST flipflops, improving topline growth and margins for the FMCG business was comforting.
ITC reported a Q2 2018 sales of Rs 16,391 crore (on a like-to-like comparison) after excluding rebates and discounts translating to year-on-year (YoY) growth of 3.9 percent. Headline numbers were in line with expectations. Cost of goods sold was higher by 19 percent, mainly due to change in inventories, which impacted EBITDA margins by 142 bps on reported basis. At net profit level, company reported 5.6 percent YoY growth
reported lower volumes on account of increase in tax incidence in the GST regime. ITC’s business was also impacted due to non-availability of additional duty surcharge credit on the transition stocks.
FMCG business – Up 10 percent
ITC’s core FMCG business posted a comparable sales growth of 10 percent which is broadly in line with the industry reported growth so far. As per management, this growth was aided by strong performance in Branded Packaged foods and Personal care businesses. It’s noteworthy that closest peer HUL also reported a decent 8 percent YoY growth for the Personal care division wherein it reported good traction for all categories except for oral care segment.
Give Missed Call at +91 830-630-830-8
For More Live Updates Visit: