ITC

The company posted a good set of results for Q2FY15. On a 15% (YoY) rise in net sales at Rs.8930 crore, the company posted a 9% rise in net profit at Rs.2425 crore. EBITDA was up 10% at Rs.3395 but the market was disappointed as margins fell to 38%, a drop of 170 bps.

The company continues to remain mainly a cigarette company first as 42% of its revenue comes from the same. This flagship segment showed a 14% rise in topline but EBIT margin fell from 69% to 67.8%. FMCG which comprises of packaged food, apparel, education stationaries, Staples, Spices and Ready-to-Eat Foods Business, contributes 22% to the topline showed a 12% rise in revenue. Hotel business contributes the least at 3% and it showed a 6% jump in topline. Business commenced providing operating services at Welcom Hotel Jodhpur during the quarter, taking the total number of rooms under the management contract model in the 5 Star category to 1150.Agri business contributes 20% to the revenue and it grew 16% revenue but EBIT margin fell 160 bps to 14.5% - this robust growth was driven by trading opportunities in wheat, soya and coffee. Paperboards, paper and packaging business contributed 13% to revenue aided by higher capacity utilisation, product mix improvement and scale up of Cartons and Flexibles packaging businesses.