The share price of this fundamentally strong Indian FMCG company was up by 4.5 percent to an intraday high on Friday after Reporting a revenue increase of 17 percent.
Share Price Movement
In Friday’s trading session, ITC’s share price was up by 4.89 percent touching the day’s high of Rs. 493.50. The stock was trading at Rs. 481.20 per share and was up 2 percent from the previous close of Rs.471.85 per share. In the past year, the stock has given 11.13 percent returns.
Q2FY25 Results update
The stock surge was driven by the good results in revenue and net profits reported by ITC Ltd for the recent quarter.
In its latest filing for the quarter ending September 2024, the company announced a 16.66 percent rise in revenue, reaching Rs.20,736 crore compared to Rs.17,774 crore in Q2 FY24. On a quarter-over-quarter basis, the operational revenue was up by 12.34 percent from Rs.18,457 crore in Q1FY25.
During the same period, net profit increased by 1.79 percent to Rs.5,054 crore in Q2 FY25, compared to Rs.4,965 crore in Q2 FY24, and down by 2.37 percent from Rs.5,177 crore in Q1 FY25.
Regarding return ratios, the return on capital employed (ROCE) currently stands at around 37.50 percent, whereas the return on equity (ROE) is at 28.40 percent. The stock is trading at a P/E (Price to Earnings) ratio of around 29.2. The company also has a current ratio of 3.05 and little or no debt in the company.
FMCG-Cigarettes contribute around 36.66 percent, 23.06 percent from FMCG-others, 3.25 percent from Hotels, 24.13 percent from Agri-Business, 8.73 percent from Paperboards, Paper & Packaging, 4.14 percent from others in Q2FY25. The majority of the earnings are from Cigarettes.
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Recent Acquisition
The company has approved the acquisition of 1,52,32,129 Equity Shares each of EIH Limited and 34,60,829 Equity Shares of HLV Limited from Russell Credit Limited, a wholly-owned subsidiary of the Company. Post-acquisition, the total shareholding of the Company in EIH and HLV would be 16.13 percent and 8.11 percent respectively.
Company Profile
ITC Ltd, headquartered in Mumbai, India, provides innovative financial technology solutions. The company specializes in software for retail, corporate, and investment banking, along with consulting and outsourcing services. As a subsidiary of ITC Corporation, it supports over 900 clients globally, enhancing their operational efficiency and compliance.
Written by – Santhosh S
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