ITC is trading higher by 1% at Rs 290, extending its Friday’s gain of nearly 1%, on reporting a 21% year-on-year (yoy) jump in net profit at Rs 2,052 crore for the third quarter ended December 31, 2012 (Q3) due to higher volumes and price increase in cigarettes.
The FMCG (fast moving consumer goods) company had profit of Rs 1,701 crore in a year ago quarter, posted 14th consecutive quarter of 20% plus net profit growth. “The company’s total income from operations grew 23% yoy at Rs 7,712 crore mainly because of higher growth in branded packaged foods, personal care, cigarette and agri business,” ITC said in a statement.
Analysts at Motilal Oswal Securities expects ITC to sustain the premium valuations due to strong earnings visibility, acceleration in earnings growth trajectory to 20% and cigarette volume outperformance v/s industry.
The stock opened at Rs 289 and hit a high of Rs 291 on the NSE. A combined 10.88 million shares have changed hands on the counter so far on both the exchanges.