Unaudited Financial Results (Provisional) for the Quarter and Nine Months ended 31st December, 2000

ITC continued to sustain its robust growth record with post-tax profits for the quarter growing by 29.3%. Net profit todate at Rs. 710 crores represents a growth of 25%. Net income for the quarter grew by 15.6%, reflecting healthy growth in all business segments of the Company. Improvement in operating margins have been sustained on the back of ITC’s value-led strategy, supported by continuous investments in technology and brands, together with strategic cost management initiatives.

The hotels business witnessed improved occupancies. The exclusive offering from ‘ITC One,’ the super deluxe extension of the ITC Maurya Sheraton, has already become the new benchmark in the premium category of hotels in India. The top of the line ITC Grand Maratha at Mumbai will start receiving guests very soon. The other hotel projects are progressing satisfactorily.

The ISO 14001 certification awarded to the state-of-the-art Bangalore cigarette factory reinforces the Company’s constant endeavour to attain international benchmarks in every area of its operations.

Agri exports were buoyant during the quarter. Following the success of the ‘e-choupal’ initiative, the International Business Division, in collaboration with ITC Infotech India Ltd., launched its bi-lingual website to web-enable the Indian coffee planters. The site provides real time price and market information, besides guidance on complex risk transfer mechanisms and access to various cash management tools.

The internationally competitive capability of the Packaging and Printing business was evident in the impressive 36% growth of its exports. During the quarter, the Division bagged yet another slew of awards including the Capexil Special Export Award, the India Star Award for uniqueness, innovativeness and visual appeal in the cartons segment, and the Asia Star 2000 Award. The Division’s Greeting Cards SBU rolled out its expanded range in all the metros.

The Wills Sport Fall-Winter Collection was received extremely well. Roll out plans are under rapid implementation.

The Board of Directors approved the results for the quarter ended 31st December, 2000 at its meeting on 17th January, 2001, which are enclosed

Notes:

a) The above results were taken on record at the meeting of the Board of Directors of the Company on 17th January, 2001.

b) Figures of the previous year have been rearranged wherever necessary.

c) The above is as per Stock Exchange Regulations and does not take into account the excise issues disputed by the Company.