Fast moving consumer goods (FMCG) major ITC will report its second quarter numbers on Thursday. The stock has been an underperformer in the sector.

There is expectation of a muted volume growth. The revenue growth is expected at around 6.5 percent and come in around Rs 11,800 crore, according to a CNBC-TV18 poll. Earnings before interest, taxes, depreciation, and amortization (Ebitda) is expected to grow in line with revenue at 7.8 percent to around Rs 4,530 crore.

Margin expansion is expected to be around 50 basis points and net profit is likely to grow higher by 22.5 percent to around Rs 3,600 crore on the back of corporate tax cuts announced by finance minister Nirmala Sitharaman last month.

The revenue growth for its most important vertical, cigarettes, is expected to come around 7 percent with volume growth of around 2-3 percent and price growth around 3-4 percent. Earnings before interest and taxes (Ebit) growth is estimated to be around 7-8 percent with steady margin growth or mild expansion.

The FMCG business is likely to be impacted by the ongoing economic slowdown in the country with revenue growth expected at 7-8 percent and Ebit margins around 2.5-3 percent.

For ITC's hotel vertical, the revenue growth is likely to be 10-11 percent, for paper around 6-8 percent, and for agri business around 8-10 percent.

The key number to watch will be cigarette volumes, and regulatory action.

First Published:Oct 24, 2019 9:13 AM IST