Analysts at KRChoksey expect the company's top line (sales/revenue) to grow 5.7 per cent YoY and 1.8 per cent QoQ to Rs 12,080 crore, mainly due to good traction in non-cigarette space such as hotels, agri business and paper. Cigarette volumes are likely to be affected due to moderate volumes as a result of competitive intensity, rural slowdown and health awareness. EBITDA is expected to be almost flat QoQ and up 6.3 per cent YoY at Rs 4,597 crore. Further, net profit of the company is expected to come in at Rs 3,951 crore, up 23 per cent YoY and down around 2 per cent on QoQ basis. The brokerage notes that reduction in tax rates will lead to net profit margin expansion.
KEY THINGS TO WATCH OUT FOR
Diversification into FMCG space (Frozen food), status of Delectable Technologies acquisition, guidance on price and volume, new product launches and product mix, demand outlook for FMCG and Cigarette segment, and potential hike in cigarette tax are some of the key things to watch out for when the company announces results on Friday.