image credit: dalal street investment journal
ITC Ltd, the largest tobacco company have reported a drop in consolidated net profit for this quarter of fiscal 2021. It’s stock fell for nearly 2 percent. The company has one of the diverse business portfolio which includes FMCG, agribusiness, paperboard and packing, hotels and information technology.
In the last quarter(Q4) of the fiscal year 2021, ITC, the cigarette to hotel conglomerate recorded a consolidated net profit of Rs 3,755 crore. In the same quarter of the fiscal year 2020, the company recorded a consolidated net profit of Rs 3,856 crore . Almost 3 percent down compared to the previous fiscal year 2020.
The chief concern is about the cigarette industry’s dependence, that remain high at 82 percent even in the coming years. However, the overall company’s statistics is satisfactory. A final dividend of Rs 5.75 per share has been recommended by the board for the fiscal year 2020- 2021.
The consolidated revenue of the FMCG giant has increased by almost 22.6 per cent . In the third quarter the consolidated revenue stood to be Rs 15,404 crore . In the previous year, it was Rs 12,560.
ITC’s revenue from the cigarette company has risen by almost 13 percent to Rs 6,508 crore from Rs 5,750 crore a year ago . The company’s earnings before interest and tax or pre tax increased by 6.7 percent to Rs 3,895 crore from Rs 3,649 crore in the previous quarter.
According to latest report the Broking firm Emkay Global has set a target of Rs 265 on the stock . After the company’s March quarter report, other brokerage have mixed opinion about ITC while JPMorgan stayed neutral. UBS and Morgan Stanley’s stock stay on positive note.