Q4 results today: ITC, Sun Pharma among 165 companies to announce earnings on Thursday

Synopsis

ITC is anticipated to reveal moderate revenue growth, driven by cigarettes and agri businesses, while Sun Pharma is expected to showcase high single-digit bottom-line growth, fueled by strong domestic performance. Revenue growth for Sun Pharma is expected to be 9% year-on-year, while ITC's revenue is expected to rise 2% year-on-year. Analysts anticipate $500 million in US sales for Sun Pharma.

The fourth quarter earnings season is coming to a close and on Thursday as many as 165 companies will announce their quarterly numbers. Key earnings to watch out include from ITC, Sun Pharma, Grasim and Honasa Consumer.

Apart from the above, Astra Microwave, Blue Coast Hotels, Container Corp, Capital Trade, Dhunseri Tea, Emami Realty, Emcure Pharma, Eyantra Ventures, Jay Bharat Maruti among others will also declare their results.

ITC Q4 expectations

Diversified conglomerate ITC is expected to post moderate revenue growth, led primarily by its cigarettes and agri businesses. According to an average estimate of five brokerages, revenue is seen rising 2% year-on-year (YoY). The same estimates revealed that profit is likely to fall 1%.

Cigarette revenue is projected to rise by about 7% year-on-year, driven by 4.5% volume growth. The company may see a decline of 195 basis points in cigarette EBIT margins this quarter, but easing tobacco prices could support a recovery in coming quarters.

The agri business is anticipated to deliver strong double-digit growth, benefiting from higher commodity prices, especially leaf tobacco. In contrast, the FMCG segment is expected to post 4.5% revenue growth, with muted profitability due to raw material inflation in key inputs like edible oil, wheat, and potatoes.

The paperboard segment may remain subdued with modest revenue growth of 3.7%, facing headwinds from weak demand, lower realizations, and competition from low-cost Chinese imports. EBIT margins here are expected to hover around 10%, suggesting they may have bottomed out.

Sun Pharma Q4 expectations

Pharma major Sun Pharma is likely to see high single digit growth in its bottom line in the fourth quarter on the back of continued outperformance in the domestic business. According to an average estimate of five brokerages, revenue is seen growing 9% year-on-year (YoY).

Meanwhile, net profit for the reporting quarter will lag the revenue as an average of five estimates showed 6% YoY growth.

Analysts are building in $500 million US sales in 4QFY25, primarily due to higher gRevlimid sales. Meanwhile, gross margins are seen declining 30 bps QoQ to 79.7% due to lower milestone income.

For the specialty business, there is 20% YoY growth expectation at $325 million for 4Q owing to steady execution.

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