Revenue from this segment is at Rs 3,750 crore vis-Ã -vis Rs 3,300 odd crore over last year, a growth of 10% odd, says Naveen Kulkarni, CIO, Axis Securities. ITC Q3 earnings are in line with ET Now poll. Your first thoughts on the numbers coming in and where do you think the bulk of the problem is coming from, given that the hotel business has not really revived the way we had wanted it to?Of course, there are challenges in the hotels business with average room realisations across the board. That business will take a little longer to revive because corporate travel and other things are still not happening and average room rentals are down quite significantly. Occupancy is also not up to the mark. The hotels business is still a small part of ITC. The cigarette EBIT growth will be a key number. At this point in time, cigarette EBIT seems to have declined by round 10% on YoY basis. But sequentially, there is some improvement and so that is slightly better. Overall, at this point in time, the numbers are more or less in line. I will have to take a closer look to get a better sense but prima facie they look in line to me. In terms of ITC, vis-Ã -vis the other FMCG companies, where do you see things really standing out?ITC is a very different play compared to the other FMCG companies. Revenue from this segment is at Rs 3,750 crore vis-Ã -vis Rs 3,300 odd crore over last year, a growth of 10% odd. So I would say that FMCG and others business has done reasonably well because a large part of that business is food. Also the cigarette business has grown on a sequential basis. Overall, the numbers do not look too bad to me. They are in line. The hotel segment is still quite weak and it is primarily an urban centric product. So there is a wait and watch on how this is going to pan out at this stage, but prima facie they have overall performed reasonably okay.
Thursday, February 11, 2021
Hotel biz main challenge for ITC: Naveen Kulkarni | Economic Times
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