As financial year ended, investors are keenly watching ITC’s Q4 earnings, expected to be released soon. If you’re an ITC shareholder or just someone who keeps an eye on the stock market, here’s a quick and easy look at what to expect.
What’s the Buzz Around ITC’s Q4 Performance?
Market analysts predict a 1% year-on-year dip in ITC’s net profit for the January to March 2024 quarter. Yes, that may sound worrying at first glance—but let’s break it down.
The expected dip is mainly due to a few headwinds, like inflationary cost pressures and sluggish growth in certain segments. However, the company is still doing well in other areas, which might balance things out.
Cigarette and Agri Businesses Hold Strong
Two of ITC’s key revenue drivers are expected to perform well this quarter:
- Cigarette Segment: Steady demand and price stability are helping this vertical stay on track. It remains ITC’s most profitable business.
- Agribusiness: Supported by strong wheat and leaf tobacco exports, this segment is likely to post robust growth numbers.
The FMCG segment (which includes popular names like Aashirvaad and Bingo!) is still growing, but at a slightly slower pace. It faces high competition and fluctuating rural demand.
What Does This Mean for Investors?
Even with a small profit dip, ITC’s diversified business model is proving resilient. That’s good news if you’re looking for long-term stability. The company’s focus on expanding its non-cigarette portfolio is also a step in the right direction.
