MUMBAI, Jan 22 (Economic Times): Most brokerages have lowered the earning estimates and the target price of ITC as the company failed to impress with its third quarter performance. The company registered a net profit rise of 10 per cent versus market expectations of over 12 per cent, as lower cigarette sales growth hurt revenues.
The FMCG major posted a net profit of Rs 26.40 billion, up 10.7 per cent, from Rs 23.85 billion in the corresponding quarter of the last fiscal. Total sales increased marginally by 2 per cent to Rs 88 billion YoY, which were below than ET Now estimates of Rs 97 billion.
Net revenue from cigarettes stood at Rs 41.42 billion, up 0.6 per cent YoY. According to analysts, excise duty hike has taken a toll on the company's revenue growth. There are concerns that the government may announce further hike in excise in the next budget as well. Goldman Sachs has adjusted its FY15-17 EPS by -2 per cent to -3 per cent on weak FMCG demand and exports. The brokerage has also lowered its target price to Rs 441 per share from Rs 450 per share.
Indian brokerages lower ITC target price
FE Team | Published: January 23, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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