Here is a sneak peek into what they expect from ITC’s December 2011 quarter results due today.


For 3QFY12, most of the brokerage firms and research houses expect the FMCG sector to register healthy top-line growth, backed by modest volume growth and price hikes.


Kotak Securites expects ITC’s cigarette revenues to continue registering high growth, leading to 14.5% (YoY) growth in revenues for the quarter. “We expect further improvement in cigarette margins on account of improved pricing (Navy Cut price hikes, affected August, are likely to have an impact in the quarter). EBITDA Margin for the company is estimated at 37.3%, a minor improvement of 0.1 ppt. We expect PAT growth of 14% (YoY) for 3QFY12," states their result preview report.


Analysts at Motilal Oswal expect ITC to post 17% sales growth (6.5% cigarette volume growth) and 18% PAT growth. Paper margins are likely to expand by 120bp to 23% due to improved realisations and a favourable mix, they say, though revenue growth will be moderate at 12% owing to lack of capacity. The agri business is expected to record 15% revenue growth with margins expanding by 180bp, benefitting from rupee depreciation.


According to Ambit Capital, the cigarettes segment to see 13% gross revenue growth, driven by 6% volume growth. “We expect a robust PBIT margin expansion by 202bps to 31.3% while the non-cigarettes revenues to grow by 17%, and see 90bps PBIT margin expansion (YoY)," they say.


Analysts at Angel Broking expect ITC’s Q3FY12 net sales to go up by 17.8% at Rs 6,427 crore, year-on-year, basis. The company's net profit is expected to go up 21% at Rs 1,681 crore. They expect ITC to register robust 17.8% (YoY) top-line growth and 21% (YoY) earnings growth.