- Cigarette EBIT (85% of EBIT) grew at a 9-quarter low rate of 5.6%. Cigarette volume grew 2.5%

- In 3QFY20, revenues grew 5% YoY while PAT grew 33% YoY due to low tax rate

- Revenues of Agri Business, Paper & Packaging and Hotels grew 8.8%, 0.8% and 22.2%, respectively.

- Performance in 3Q reflects overall weak demand especially in rural markets and the increasing salience of illicit trade, especially at the premium end

- ITC’s market share in capsule is 55% (80% for cigarettes) and is now manufacturing 80% of capsules in-house instead of imports, thus saving costs

- weak earnings outlook of 5.5% EPS CAGR over the next two years has resulted in a sharp decline in multiples but it still trades at a premium compared to its peers

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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