ITC to announce Q3 results today: Check earnings preview and technicals

Experts expect ITC's standalone revenue to grow 8-11% year-on-year to ₹17,950-₹18,420 crore, driven by stronger sales in its FMCG and cigarette businesses. However, the company's profitability may take a hit, with net profit likely to decline by 6-8% year-on-year to ₹5,100-5,230 crore. This decline is mainly due to the high base effect from last year, as ITC benefited from a tax reversal in Q3FY24.

Investors will be closely monitoring the performance of ITC's key businesses - FMCG, cigarettes, hotels and agribusiness - during the results announcement. In addition, management's commentary on demand trends and consumption, particularly in rural areas, will be closely scrutinised.

Ahead of the Q3 result announcement, ITC shares are trading 0.97% lower at ₹443 per share on Thursday, February 6.

Technical View

Shares of ITC are currently trading at a crucial stage, consolidating within the range of the budget day range. It has formed three consecutive inside candles on the daily chart and is consolidating around all the major daily exponential moving averages (EMAs) such as the 21, 50 and 200. For directional clues, traders can look at the high and low of the budget day candle. A close above or below these levels will provide further directional clues.

Options outlook

Before planning strategies, let's examine ITC’s historical price behaviour during past earnings announcements.

Options strategies for ITC

With the options market predicting a price movement of ±5% till February 27, traders can consider long and short straddle strategies to take advantage of the expected volatility.

Meanwhile, traders seeking a more strategic approach to bullish or bearish options trading can explore directional spreads, which provide a refined alternative to simple option buying.

• For a bullish outlook, a bull call spread involves buying a call option while simultaneously selling a higher strike call with the same expiration, reducing cost while capping potential gains.
• Conversely, for a bearish stance, a bear put spread consists of buying a put option and selling a lower strike put, balancing risk and reward.