Jump to Content
Jump to Top Navigation
Jump to Breadcrumb
Jump to Main Navigation
Jump to Sub Navigation
Jump to Footer
ITC Logo

Quarterly Results

 

Click here to download the Financial Results

Statement of Standalone Unaudited Financial Results
for the Quarter and Nine Months ended 31st December, 2016

(Rs. in Crores)
Particulars   3 Months
ended
31.12.2016
Corresponding
3 Months
ended
31.12.2015
Preceding
3 Months
ended
30.09.2016
9 Months
ended
31.12.2016
9 Months
ended
31.12.2015
Twelve
Months
ended
31.03.2016
    (Unaudited)* (Unaudited)* (Unaudited)* (Unaudited)* (Unaudited)* (Unaudited)*
INCOME FROM OPERATIONS              
a) REVENUE FROM OPERATIONS 1 13470.89 12887.78 13491.37 40118.94 37550.02 51582.45
b) OTHER OPERATING INCOME 2 99.08 74.07 125.24 320.70 255.77 362.12
TOTAL INCOME FROM OPERATIONS (1+2) 3 13569.97 12961.85 13616.61 40439.64 37805.79 51944.57
EXPENSES              
a) Cost of materials consumed   2912.58 2760.36 3000.10 8792.72 8020.91 11054.75
b) Purchases of stock-in-trade   864.89 705.40 501.11 2370.84 1772.43 2591.80
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade   (400.90) (437.69) 170.14 129.94 89.50 (196.55)
d) Excise duty   4321.58 4094.79 3955.90 11476.50 10979.82 15361.90
e) Employee benefits expense   572.31 571.37 600.33 1872.95 1776.88 2328.27
f) Depreciation and amortisation expense   266.54 261.87 268.44 796.23 777.68 1031.93
g) Other expenses   1753.12 1793.00 1759.00 5094.04 5056.68 7086.46
TOTAL EXPENSES 4 10290.12 9749.10 10255.02 30533.22 28473.90 39258.56
PROFIT FROM OPERATIONS BEFORE OTHER INCOME AND FINANCE COSTS (3-4) 5 3279.85 3212.75 3361.59 9906.42 9331.89 12686.01
OTHER INCOME 6 687.94 648.97 475.35 1583.81 1398.03 1769.26
PROFIT FROM ORDINARY ACTIVITIES BEFORE FINANCE COSTS (5+6) 7 3967.79 3861.72 3836.94 11490.23 10729.92 14455.27
FINANCE COSTS 8 13.59 16.09 10.72 34.41 36.86 49.13
PROFIT FROM ORDINARY ACTIVITIES BEFORE TAX (7-8) 9 3954.20 3845.63 3826.22 11455.82 10693.06 14406.14
TAX EXPENSE 10 1307.47 1341.87 1326.19 3924.39 3760.71 5094.88
NET PROFIT FOR THE PERIOD (9-10) 11 2646.73 2503.76 2500.03 7531.43 6932.35 9311.26
OTHER COMPREHENSIVE INCOME (NET OF TAX) 12 (161.61) 283.31 (25.19) (123.23) 182.53 (66.58)
TOTAL COMPREHENSIVE INCOME (11+12) 13 2485.12 2787.07 2474.84 7408.20 7114.88 9244.68
PAID UP EQUITY SHARE CAPITAL 14 1212.14 803.67 1211.16 1212.14 803.67 804.72
(Ordinary shares of Re. 1/- each)              
RESERVES EXCLUDING REVALUATION RESERVES 15           40834.60
EARNINGS PER SHARE (of Re. 1/- each) (not annualised): 16            
(a) Basic (Rs.)   2.18 2.08 2.07 6.23 5.75 7.72
(b) Diluted (Rs.)   2.17 2.06 2.04 6.19 5.72 7.68

* The financial results of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016. The Company adopted Ind AS from 1st April, 2016, and accordingly, these financial results (including for all the periods presented in accordance with Ind AS 101 - First-time Adoption of Indian Accounting Standards) have been prepared in accordance with the recognition and measurement principles in Ind AS 34 - Interim Financial Reporting, prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India.

Notes :

1.

The Unaudited Standalone Financial Results and Segment Results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors of the Company held on 27th January, 2017.

2.

The launch and rollout costs of the Company's brands 'Fiama', 'Vivel', 'Superia', 'Engage', 'Savlon' and 'Shower to Shower' covering the range of personal care products of soaps, face washes, shower gels, skin care, deodorants, handwash and ayurvedic talc, and the continuing significant brand building costs of the Foods businesses are reflected under 'Other expenses' stated above and in Segment Results under 'FMCG-Others'.

3.

King Maker Marketing, Inc. USA (KMM) ceased to be a subsidiary of the Company with effect from 16th November 2016 consequent to divestment of the Company's entire shareholding in KMM along with certain related trademarks owned by the Company.

4.

Other Income includes (i) dividend income from equity investments Rs. 193.48 Crores (quarter ended 31.12.2015 - Rs. 318.69 Crores; quarter ended 30.09.2016 - Rs. 28.60 Crores; nine months ended 31.12.2016 - Rs. 248.73 Crores and 31.12.2015 - Rs. 329.50 Crores; and twelve months ended 31.03.2016 - Rs. 338.92 Crores) and (ii) Rs. 137.93 Crores towards profit on divestment of KMM (Rs. Nil for all comparative periods).

5.

a) During the quarter ended 30th September, 2016, the Company has issued 402,66,57,100 Ordinary Shares of Re. 1/- each, as fully paid-up Bonus Shares in the proportion of 1 (One) Bonus Share of Re. 1/- each for every existing 2 (Two) Ordinary Shares of Re. 1/- each. Pursuant to the issue and allotment of Bonus Shares, the earnings per share (Basic and Diluted) have been adjusted for all the periods stated above.

b) During the quarter ended 31st December, 2016, 98,02,400 Ordinary Shares of Re. 1/- each were issued and allotted under the Company's Employee Stock Option Schemes.

6.

Reconciliation of the standalone financial results to those reported under previous Generally Accepted Accounting Principles (GAAP) are summarised as follows:

 
Particulars Notes 3 months
ended
31.12.2015
9 months
ended
31.12.2015
Twelve months
ended
31.03.2016
Profit After Tax as reported under previous GAAP   2652.82 7349.51 9844.71
Impact of measuring investments at Fair Value through Profit or Loss (FVTPL) (ii), (iii) (38.66) (74.66) (115.78)
Impact of measuring derivative financial instruments, other than those designated as cash flow hedges, at fair value (iv) 1.36 (0.43) 8.29
Impact of recognising the cost of the employee stock option scheme at fair value (i) (c) (130.56) (385.72) (498.60)
Reclassification of actuarial gains / losses, arising in respect of employee benefit schemes, to Other Comprehensive Income (OCI)   9.00 27.00 53.84
Tax Adjustments   9.80 16.65 18.80
Profit After Tax as reported under Ind AS   2503.76 6932.35 9311.26
Other Comprehensive Income (net of tax)   283.31 182.53 (66.58)
Total Comprehensive Income as reported under Ind AS   2787.07 7114.88 9244.68

 

(i) Exemptions applied at transition

 

Ind AS 101 (First-time Adoption of Indian Accounting Standards) provides a suitable starting point for accounting in accordance with Ind AS and is required to be mandatorily followed by first-time adopters. Ind AS 101 allows first-time adopters exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions in its standalone financial results:

 

a. Property, Plant and Equipment were carried in the statement of financial position prepared under previous GAAP as at 31st March, 2015. The Company has elected to regard such carrying amount as deemed cost at the date of transition i.e. 1st April, 2015.

 

b. Under previous GAAP, investment in subsidiaries, joint ventures and associates were stated at cost and provisions made to recognise the decline, other than temporary. Under Ind AS, the Company has elected to regard such carrying amount as at 31st March, 2015 as deemed cost at the date of transition.

 

c. As per the previous GAAP, the cost of ITC Employee Stock Option Scheme (ITC ESOS) [equity-settled] was recognised using the intrinsic value method. Under this method, no expenses were recognised in the statement of profit and loss as the fair value of shares on the date of grant equalled the exercise price. Under Ind AS, the cost of ITC ESOS is recognised based on the fair value of the options as on the grant date. In terms of the exemptions, the fair value of unvested options as at the date of transition have been accounted for as part of reserves. The fair value of options vesting after the transition date have been recognised in profit or loss

The cost of ITC ESOS applicable to employees of group companies, net of reimbursements, have been considered as capital contribution.

 

(ii) Under previous GAAP, current investments were stated at lower of cost and fair value. Under Ind AS, these financial assets have been classified as FVTPL on the date of transition and fair value changes after the date of transition has been recognised in profit or loss.

 

(iii) Under previous GAAP, non current Investments were stated at cost. Where applicable, provision was made to recognise a decline, other than temporary, in valuation of such Investments. Under Ind AS, financial assets in equity instruments [other than those in (i) (b)] have been classified as Fair Value through Other Comprehensive Income (FVTOCI) through an irrevocable election at the date of transition.

 

(iv) Under previous GAAP, the net mark to market losses on derivative financial instruments, other than those designated as cash flow hedges, as at the Balance Sheet date, were recognized in profit or loss, and the net gains, if any, were ignored. Under Ind AS, such derivative financial instruments are to be recognised at fair value and the movement is recognised in profit or loss.

7.

This statement is as per Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Limited Review

The Limited Review, as required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been completed and the related Report forwarded to the Stock Exchanges. This Report does not have any impact on the above 'Results and Notes' for the Quarter ended 31st December, 2016 which needs to be explained.

Unaudited Segment-wise Revenue, Results, Assets and Liabilities
for the Quarter and Nine Months ended 31st December, 2016

( Rs. in Crores)
    STANDALONE
  Particulars 3 Months
ended
31.12.2016

Corresponding
3 Months
ended
31.12.2015

Preceding
3 Months
ended
30.09.2016
9 Months
ended
31.12.2016
9 Months
ended
31.12.2015
Twelve
Months
ended
31.03.2016
    (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
1. Segment Revenue            
  a) FMCG
- Cigarettes
8287.97 8106.31 8528.47 25047.04 23802.83 32348.29
  - Others 2569.26 2484.91 2671.66 7626.07 7020.39 9731.17
  Total FMCG 10857.23 10591.22 11200.13 32673.11 30823.22 42079.46
  b) Hotels 370.51 345.29 297.34 955.21 923.18 1286.17
  c) Agri Business 1671.92 1480.99 1880.06 6346.06 5650.09 7456.88
  d) Paperboards, Paper & Packaging 1335.82 1337.67 1331.41 3990.13 4012.67 5327.70
  Total 14235.48 13755.17 14708.94 43964.51 41409.16 56150.21
  Less :  Inter-segment revenue 764.59 867.39 1217.57 3845.57 3859.14 4567.76
Revenue from operations 13470.89 12887.78 13491.37 40118.94 37550.02 51582.45
2. Segment Results            
  a)FMCG
- Cigarettes
3033.69 2983.83 3216.88 9255.15 8733.87 11752.43
  - Others (19.66) 18.75 (3.26) (27.44) (0.32) 70.51
  Total FMCG 3014.03 3002.58 3213.62 9227.71 8733.55 11822.94
  b) Hotels 42.15 25.83 0.65 44.02 13.04 55.69
  c) Agri Business 236.61 234.92 296.96 770.88 762.71 933.03
  d) Paperboards, Paper & Packaging 246.03 240.98 231.95 725.67 704.67 907.62
  Total 3538.82 3504.31 3743.18 10768.28 10213.97 13719.28
  Less : i)Finance Costs 13.59 16.09 10.72 34.41 36.86 49.13
  ii)Other un-allocable (income) net of
un-allocable expenditure [Note (i)]
(428.97) (357.41) (93.76) (721.95) (515.95) (735.99)
Profit Before Tax 3954.20 3845.63 3826.22 11455.82 10693.06 14406.14
3. Segment Assets            
  a)FMCG
- Cigarettes
7792.74 7979.31 7816.59 7792.74 7979.31 7946.13
  - Others 6596.10 5752.71 6825.79 6596.10 5752.71 6059.49
  Total FMCG 14388.84 13732.02 14642.38 14388.84 13732.02 14005.62
  b) Hotels [Note (ii)] 5039.01 4812.48 4930.88 5039.01 4812.48 4820.29
  c) Agri Business 2750.70 2877.92 2817.81 2750.70 2877.92 2968.39
  d) Paperboards, Paper & Packaging 6323.56 5944.42 6242.72 6323.56 5944.42 6031.00
  Total 28502.11 27366.84 28633.79 28502.11 27366.84 27825.30
  Unallocated Corporate Assets 23248.16 20916.25 21018.47 23248.16 20916.25 22178.05
Total Assets 51750.27 48283.09 49652.26 51750.27 48283.09 50003.35
4. Segment Liabilities            
  a)FMCG
- Cigarettes**
2999.09 2898.14 2858.54 2999.09 2898.14 2644.39
  - Others 1414.40 1262.48 1333.26 1414.40 1262.48 1179.77
  Total FMCG 4413.49 4160.62 4191.80 4413.49 4160.62 3824.16
  b)Hotels 452.29 393.17 383.62 452.29 393.17 345.39
  c)Agri Business 1001.44 871.56 1089.73 1001.44 871.56 610.35
  d)Paperboards, Paper & Packaging 615.62 539.91 583.39 615.62 539.91 510.68
  Total 6482.84 5965.26 6248.54 6482.84 5965.26 5290.58
  Unallocated Corporate Liabilities 3302.69 3108.52 4175.57 3302.69 3108.52 3073.45
Total Liabilities 9785.53 9073.78 10424.11 9785.53 9073.78 8364.03

** Segment Liabilities of FMCG-Cigarettes is before considering Rs. 651.37 Crores (31.12.2015 - Rs. 645.44 Crores; 30.09.2016 - Rs. 661.60 Crores; 31.03.2016 - Rs. 651.54 Crores) in respect of disputed Taxes, the recovery of which has been stayed or where States' appeals are pending before Courts. These have been included under 'Unallocated Corporate Liabilities'.

Note (i): As stock options are granted under ITC ESOS to align the interests of employees with those of shareholders and also to attract and retain talent for the enterprise as a whole, the option value of ITC ESOS do not form part of the segment performance reviewed by the Corporate Management Committee. Also refer note 6 (i) (c) to the financial results.

Note (ii): Includes Rs. 541.21 Crores (31.12.2015 - Rs. 541.21 Crores; 30.09.2016 - Rs. 541.21 Crores; 31.03.2016 - Rs. 541.21 Crores) towards payment to IFCI Limited and applicable stamp duty for purchase of a five star hotel resort in Goa operating under the name Park Hyatt Goa Resort & Spa and IFCI Limited issued required sale certificate in favour of the Company. The erstwhile owners of the property thereafter challenged the sale. By its judgement dated 23.03.2016, the Bombay High Court set aside the sale and directed IFCI Limited to refund the sale consideration to the Company. The Company and IFCI Limited have approached the Hon'ble Supreme Court against the High Court judgement. The Hon'ble Supreme Court by its interim order dated 22.04.2016 has issued notice in the matter, ordered status quo and directed that the sale consideration shall remain with IFCI Limited. The matter is pending before the Hon'ble Supreme Court.

Notes :

(1)

The Company's corporate strategy aims at creating multiple drivers of growth anchored on its core competencies.  The Company is currently focused on four business groups : FMCG, Hotels, Paperboards, Paper & Packaging and Agri Business. The Company's organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them.

The Operating Segments have been reported in a manner consistent with the internal reporting provided to the Corporate Management Committee, which is the Chief Operating Decision Maker.

(2) The business groups comprise the following :

 

FMCG : Cigarettes - Cigarettes, Cigars etc.
  

 

: Others - Branded Packaged Foods Businesses (Staples, Snacks and Meals; Dairy and Beverages; Confections); Apparel; Education and Stationery Products; Personal Care Products; Safety Matches and Agarbattis.

 

Hotels - Hoteliering.

 

Paperboards, Paper & Packaging - Paperboards, Paper including Specialty Paper & Packaging including Flexibles.

 

Agri Business - Agri commodities such as soya, spices, coffee and leaf tobacco.
(3) Segment results of 'FMCG : Others' are after considering significant business development, brand building and gestation costs of Branded Packaged Foods businesses and Personal Care Products business.
   
Registered Office :
Virginia House, 37 J.L. Nehru Road,
Kolkata 700 071, India

Dated : 27th January, 2017
Place : Kolkata, India

For and on behalf of the Board



Director & Chief Financial Officer Chairman

Click here for Commentary on Performance

Click here for:

Financial Results September 2016
Financial Results June 2016 Financial Results March 2016