Result Review 4QFY2013

ITC 

For 4QFY2013 ITC posted strong set of numbers. Net sales rose by 19.2% on a yoy basis to `8,180cr. Cigarettes business posted a 11.5% yoy growth in net sales to `3,623cr aided largely by price hikes. Other FMCG business posted a healthy 26.0% yoy growth in net sales to `2,036cr. Agri business posted a strong 31.1% yoy growth in net sales to `1,855cr. Hotels and Papers & Packaging businesses posted a top-line growth of 10.4% and 7.9% respectively. OPM came in at 32.1% up 51bp on yoy basis. While the cigarette business posted 421bp margin expansion, other FMCG business posted profit of `12cr (vs. loss of `17cr in 4QFY2012). However, other divisions posted margin contraction on a yoy basis. The company’s bottom-line rose by a healthy 19.4% yoy to `1,928cr. Source: AngelBroking

SUN TV

For 4QFY2013, Sun TV’s top-line performance was better than our estimates. The company reported 10.7% yoy growth in its top-line (vs our expectation of 8% growth) to `433cr driven by strong growth of 14.6% yoy in advertising revenue to `269cr. However, on the operating front, margins contracted by 311bp yoy to 73.7%. The company has decided to hike weekday prime-time advertising rates by 19% on an average on Sun TV channel with effect from 15th July 2013. Hence, we expect OPM to improve going forward. On the bottom-line front, PAT grew by 11.6% yoy to `178cr. Source: AngelBroking