ITC Ltd posted a 15.3% rise in profit after tax (PAT) to Rs 1,371.35 crore in 2002-03, compared to Rs 1,189.72 crore in the previous fiscal. After adjusting certain one-off items like interest tax refund and interest income thereof and "mark down" on certain assets related to its edible oil business, the company’s underlying profit after tax increased 18.5%, ITC said. The underlying profit before tax for ITC was up 19.1%.

The adjustments made to arrive at the underlying profit growth included and income tax refund of Rs18 crore in the current year, against Rs12 crore in the previous year, interest income on tax refund of Rs9 crore, against Rs 32 crore in the year before and mark down of Rs 35 crore on assets pertaining to the edible oil business, which ITC had exited. For January-March (Q4), 2003, ITC’s profit after tax of Rs323.42 crore grew about 13%, while its net income of Rs 1,424 crore rose 11% over the corresponding period of the previous financial year.

The company recommended a dividend of 150% for 2002-03, that is Rs 15 per Rs 10 paid up share, against Rs 13.5 given out in the previous year. This involves a total cash outflow of Rs 418.84 crore, of which Rs371.27 crore will go as dividend payout and another Rs 47.57 crore as tax on dividend. ITC’s consolidated audited PAT for 2002-03, at Rs 1,372.97 crore, against Rs 1,161.7 crore, showed a growth of 18.5%. The consolidated net income of Rs 6,360.87 crore, against Rs 5,390.85 crore in the previous year, registered an 18% growth.

Tobacco revenues down to 80%

The net income of ITC, at Rs 6,035.37 crore for 2002-03, against Rs 5,201.6 crore in 2001-02, registered a growth of 16%, while gross income at Rs 1,1194.47 crore posted a growth of over 12%. Other income at Rs 169.59 crore rose by 16%. An ITC release said, "despite challenging circumstances, the company leveraged its leadership position in cigarette business to record a revenue growth of 9.3% and a volume growth of 4.1%. ITC attributed this growth as driven by better product mix."

"During the year, ITC launched Gold Flake Kings Cool Mist cigarettes for select markets and packs of 5s for Scissors Standard and Capstan Standard. ITC also launched a super premium category Wills Insignia," the release said.

ITC’s revenue share from the cigarette business fell to 79.5%, from 81.5% in the previous year, while its share of profit from cigarette business to total profit before tax fell to 93.5% from 95%.

The hotel business of ITC marked a turnaround by generating a profit of about Rs10 crore, on a segment revenue of Rs193.4 crore, against a loss of Rs 50 lakh on a revenue of Rs 162.4 crore in the previous year.

Revenue from ITC’s agri-business, which includes trading in leaf tobacco, soya, rice, coffee, marine products and its online trading and procurement platform e-choupal, at Rs 1,658.14 crore, recorded a significant growth of 44.5%. Profit from this, at Rs 84 crore, jumped by over 666%.

"Despite an over-supply in the global leaf tobacco industry coupled with steep devaluation of currencies in competing countries like Brazil and Argentina, ITC’s exports of cigarette leaf tobacco in 2002-03 at Rs 220 crore grew significantly by over 18%," the ITC release said.

The tobacco portal launched by ITC in collaboration with Tobacco Board now covers 100 installations in Andhra Pradesh and Karnataka. ITC now plans to double the reach in 2003-04.

Exports of other agri-commodity touched Rs 845 crore, registering a growth of 50%. ITC’s e-choupal network doubled during the year to take up its total choupals to 2,100, covering 10,000 villages in various states.

Revenue from paperboards, papers and packaging, at Rs 1,162.86 crore, posted a 12.7% growth. The profits increased by 39% in this segment.