InvestorQ : Do you find ITC interesting as a stock investment after the latest Q2 results?
Katherine Gonsalves made post

Do you find ITC interesting as a stock investment after the latest Q2 results?

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rhea Babu answered.
2 months ago
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For the quarter ended September 2021, Kolkata based ITC reported 10.1% increase in net profits at Rs.3,764 crore showing a healthy growth on a yoy basis. This was triggered largely by an all-round recovery across segments, although cigarettes continues to dominate. Total revenues from operations for ITC in the Sep-21 quarter was up 12.9% at Rs.14,844 crore showing a good recovery from the dumps of the previous year.

On the positive side, the revenues and profits showed growth traction even on a sequential basis i.e. month on month. Cigarette revenues grew 10.5% at Rs.6,220 crore and the non-cigarette revenues grew by 2.9% at Rs4,044 crore. Pre-tax profits from the cigarettes business stood at Rs.3,762 crore. The message is that on a profit generation metrics, ITC is still substantially dependent on cigarettes, which is what makes me ambivalent of the stock.

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