ITC Q3 Results Announcement: Earnings Preview and Market Outlook
ITC, one of India's leading diversified conglomerates, is set to announce its third-quarter results today, February 6. Market analysts anticipate a mixed performance, with revenue expected to increase but net profit likely to decline.
Earnings Expectations
Industry experts predict that ITC’s standalone revenue will grow by 8-11% year-on-year, reaching approximately ₹17,950-₹18,420 crore. This growth is primarily driven by strong sales in the FMCG and cigarette businesses. However, net profit is expected to decrease by 6-8% year-on-year to around ₹5,100-5,230 crore, mainly due to last year’s high base effect from a tax reversal.
Key Focus Areas for Investors
Investors will be closely watching ITC’s performance across its core business segments:
FMCG: Growth in packaged foods and personal care products
Cigarettes: Stability and pricing strategies
Hotels: Post-pandemic recovery and occupancy rates
Agribusiness: Impact of rural demand and commodity prices
Additionally, ITC’s management commentary on demand trends and rural consumption will be crucial for market sentiment.
Market Reaction and Technical Analysis
Ahead of the Q3 results, ITC’s share price is trading 0.97% lower at ₹443 per share. Technical indicators suggest the stock is in a consolidation phase, forming three consecutive inside candles on the daily chart. ITC’s stock is hovering around key daily exponential moving averages (EMAs) such as the 21, 50, and 200-day EMAs.
For traders, the high and low of the budget day candle will serve as a critical indicator of future price movement. A breakout above or below these levels could determine the stock’s next direction.
Options Market Insights
Options traders are pricing in a ±5% movement in ITC’s stock until the February 27 expiry. The at-the-money (ATM) strike price for the expiry is ₹445, with both call and put options priced at ₹22.
Potential Trading Strategies:
Long Straddle: Buying an ATM call and put to profit from large price movements in either direction.
Short Straddle: Selling an ATM call and put for a range-bound trade, profiting if the stock moves less than ±5%.
Bull Call Spread: Buying a call and selling a higher strike call for a bullish outlook with reduced cost.
Bear Put Spread: Buying a put and selling a lower strike put for a bearish stance with balanced risk and reward.
Final Thoughts
With ITC’s Q3 results announcement, all eyes will be on the company’s revenue growth, profit margins, and management’s future outlook. Investors and traders should stay informed and assess market reactions before making any decisions.
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Disclaimer: This article is for educational purposes only and does not constitute financial advice. Traders should understand the risks involved and use proper risk management strategies before investing in derivatives markets.
Reference from:-https://upstox.com/news/market-news/earnings/itc-q3-results-check-earnings-preview-and-technical-structure-ahead-of-results/article-144302/