INSUBCONTINENT EXCLUSIVE:
jumped more than 36 per cent to an all-time high of Rs 4,023 crore for the September quarter, helped by a fall in tax expenses and tax
credit.
The scrip was trading 2.37 per cent up at Rs 254.85 at around 9.30 am (IST), while the benchmark BSE Sensex was up 97 points, or
crore, which the company attributed to performance at its paperboards, hotels and non-cigarette FMCG businesses.
The net profit exceeded
analyst forecasts of Rs 3,640-3,670 crore, while revenue met estimates
Analysts said cigarette volume growth was in line with their estimates of 3-4 per cent.
The surge in net profit was both due to a reduction
in corporate tax rate and higher depreciation, which came in as an additional tax benefit on the large investment the conglomerate has been
making towards its manufacturing units and hotels under the Make in India initiative.
The company said its results included a tax credit of
valuations of 19x FY21E EPS, downsides appear limited
Though revenue is expected to grow in single digits, the expansion in operating profit margin, higher other income and reduction in the
corporate tax would result in strong double-digit earning growth in FY2020
ITC continues to trade at a discounted valuation of 18.1 times its FY2021E earnings, lower than some large-cap FMCG companies
