ITC's stock may remain range-bound post July-September quarter show

Most brokerages have cut their earnings estimates marginally to factor in the weak performance of the paperboards division

Conglomerate ITC’s results for the July-September quarter of 2023-23 (Q2FY24) on a consolidated basis were broadly in line with brokerage estimates.

While the performance of the cigarette business was in line with expectations, non-cigarette fast moving consumer goods (FMCG) lagged.

At the operating level what dented the overall performance was the sharp drop in the margins of the paperboard business. 

This segment saw a 9.5 per cent decline in sales due to the muted domestic demand and higher supplies of lower priced Chinese products in the global market.

A sharp rise in the prices of wood and coal coupled