ITC Shares Jump Over 5% After Strong Q2 Results, Outperforming Revenue Estimates

On Friday, the shares of ITC jumped over 5% to a day's high of Rs 493.50 on the BSE after reporting strong financial results for the quarter ended September 2024. The company recorded a roughly 16% growth in revenue at Rs 22,282 crore.The net profit increased slightly, by 2% to Rs 4,993 crore. Nonetheless, this amount was marginally less than the Rs 5,079 crore profit that the market had projected. On the other hand, ITC's sales surpassed the Rs 18,068 crore that analysts had projected.

At the time of filing, the shares of ITC were trading at Rs 488.90, 3.61 per cent up from the previous trading session day. ITC shares are up, while the Nifty and Sensex are down roughly 1% each. The 52 week high and low of the ITC share is Rs 528.55 and Rs 399.30 respectively.JM Financials has made a 'BUY' call on the shares of ITC. As per the report, "ITC’s Sep-Q results were a mixed bag with revenue growth ahead of est. (led by sharp beat on Agri; Cigarette & FMCG sales were inline,) while EBIT performance was weaker (miss on Cigarette & FMCG margins) than our forecasts. Cigarette sales were stable with volume growth at 3% (inline with our est.), while EBIT growth was lower (c.5% vs est. of 7%) on account of high input costs & lack of commensurate price hikes. Among the cyclical businesses – Hotels & Agri business did better both on sales & profitability while Paperboards division saw some recovery in sales."The report added, "Pace of recovery in FMCG also needs to be watched especially due to heightened competitive scenario in Foods. Overall stability in taxation for Cigarettes, relatively better performance in FMCG sales and stable to improving trend in cyclical businesses is a positive. Maintain BUY."

(Disclaimer: The above information is meant for informational purposes only, and should not be considered as any investment advice.)