ITC Q1 reflects slowdown in cigarette sales: ICICI Direct

Written By Unknown on Kamis, 25 Juli 2013 | 16.02

Jul 25, 2013, 02.21 PM IST

In an interview to CNBC-TV18, Sanjay Manyal, Research Analyst, ICICI Direct stressed that ITC's first quarter numbers clearly shows signs of a slowdown in cigarette sales volumes.

Like this story, share it with millions of investors on M3

ITC Q1 reflects slowdown in cigarette sales: ICICI Direct

In an interview to CNBC-TV18, Sanjay Manyal, Research Analyst, ICICI Direct stressed that ITC's first quarter numbers clearly shows signs of a slowdown in cigarette sales volumes.

Like this story, share it with millions of investors on M3

ITC Q1 reflects slowdown in cigarette sales: ICICI Direct

In an interview to CNBC-TV18, Sanjay Manyal, Research Analyst, ICICI Direct stressed that ITC's first quarter numbers clearly shows signs of a slowdown in cigarette sales volumes.

Share  .  Email  .  Print  .  A+A-
FMCG major ITC which today reported significant (nearly 250 basis points) growth in operating margins, failed to impress street with its numbers as net sales came nearly Rs 400 crore lower than market expectation. The stock plunged nearly 4 percent post disappointing sale numbers.

Kolkata-based company's first quarter numbers clearly shows signs of a slowdown in cigarette sales volumes, Sanjay Manyal, Research Analyst, ICICI Direct pointed.

"Sales growth have been lower mainly because probably there is a degrowth in the cigarette volumes and that's a signal what we got when the management took second time price hike subsequently when it was not required to improve margins," Manyal explained.

Aggressive hike in excise duty since past two years and the subsequent price hike have taken a toll on the cigarette volumes. Manyal stressed that market always believed that ITC's cigarette business was not impacted due to price hikes, but it now seems that it is being impacted.

ITC's first quarter net profit rose 18 percent on-year to Rs 1,891 crore and  net sales rose at 10 percent on-year to Rs 7,339 crore.

ITC's FMCG business was also clearly showing signs of deceleration due to slowdown in demand. The business, which was expected to grow at more than 20 percent per annum is now in its early teens, Manyal said.

The only savior is company's agribusiness which is growing at more than 20 percent as compared to expectations of 10 percent. Manyal maintained cautious stance on the stock with a target price of Rs 328.  


From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18


Anda sedang membaca artikel tentang

ITC Q1 reflects slowdown in cigarette sales: ICICI Direct

Dengan url

https://olahragakecantikan.blogspot.com/2013/07/itc-q1-reflects-slowdown-in-cigarette.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

ITC Q1 reflects slowdown in cigarette sales: ICICI Direct

namun jangan lupa untuk meletakkan link

ITC Q1 reflects slowdown in cigarette sales: ICICI Direct

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger