Markets

ITC hits record high after strong Q2 numbers

Our Bureau Mumbai | Updated on November 17, 2017




ITC — the stock with highest weightage on the BSE Sensex and the Nifty — surged to a historic high on Friday after the FMCG major reported a strong second quarter results. The company’s net profit jumped 21.6 per cent year-on-year beating street expectations.

The stock with a face value of Re 1 closed 2.09 per cent higher at Rs 297.50 on the BSE after recording its life-time peak at Rs 299.20.The total traded quantity stood at 13.80 lakh shares against the two-week average of 3.57 lakh.

“The flattish volume number from the cigarettes division came as a surprise even as analysts were expecting negative growth. The new 64 mm cigarette has been a game changer for the company. They are now looking at a pan-India roll-out,” said Nitin Mathur, analyst at Espirito Santo.

For ITC, about 80 per cent of the profits come from the tobacco business. The company has increased tobacco prices by around 15 per cent after the Budget to mitigate the impact of higher excise duties and VAT in States such as Uttar Pradesh.

Kaustubh Pawaskar of Sharekhan said the company’s non-cigarette FMCG business, which includes biscuits, noodles and personal care products, grew 26 per cent. “The business has grown above 20 per cent for the sixth consecutive quarter,” he added.

However, ITC insiders have been selling company’s shares. Last month, B.B. Chatterjee (company secretary), S.S.H. Rehman, S.B. Mathur and P.B. Ramanujam (non-executive Directors), K.N. Grant and Nakul Anand (whole-time directors) pared their stake in the company.

Company Chairman Y.C. Deveshwar has also been selling his stake in the company. He now holds 10.91 lakh shares, down from 54.51 lakh shares in March 2011.

>Priyanka.pani@thehindu.co.in

>Manisha.jha@thehindu.co.in

Published on October 19, 2012

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