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Quarterly Results

 

Click here to download the Financial Results

Statement of Standalone Unaudited Financial Results
for the Quarter and Six Months ended 30th September, 2017

(Rs. in Crores)
Particulars   3 Months
ended
30.09.2017
Corresponding 3
Months ended
30.09.2016
Preceding
3 Months
ended
30.06.2017
6 Months
ended
30.09.2017
6 Months
ended
30.09.2016
Twelve Months
  ended
31.03.2017
    (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 
Gross Revenue from sale of products and services (i) 9676.20 13491.37 13722.21 23398.41 26648.05 55001.69
Other operating revenue (ii) 87.72 125.24 78.21 165.93 221.62 446.77
REVENUE FROM OPERATIONS[(i)+(ii)] 1 9763.92 13616.61 13800.42 23564.34 26869.67 55448.46
OTHER INCOME 2 494.21 475.35 476.77 970.98 895.87 1985.91
TOTAL INCOME (1+2) 3 10258.13 14091.96 14277.19 24535.32 27765.54 57434.37
EXPENSES              
a) Cost of materials consumed   2858.00 3000.10 2894.90 5752.90 5880.14 11765.56
b) Purchases of stock-in-trade   558.82 501.11 990.89 1549.71 1505.95 3566.57
c) Changes in inventories of finished goods, stock-in-trade, work-in-progress and intermediates   939.55 170.14 (49.79) 889.76 530.84 644.17
d) Excise duty   (550.21) 3955.90 3845.76 3295.55 7154.92 15359.78
e) Employee benefits expense   606.54 600.33 674.63 1281.17 1300.64 2444.31
f) Finance costs   29.01 10.72 10.38 39.39 20.82 22.95
g) Depreciation and amortization expense   282.42 268.44 268.21 550.63 529.69 1038.04
h) Other expenses   1589.71 1759.00 1697.63 3287.34 3340.92 7090.03
TOTAL EXPENSES 4 6313.84 10265.74 10332.61 16646.45 20263.92 41931.41
PROFIT BEFORE TAX (3-4) 5 3944.29 3826.22 3944.58 7888.87 7501.62 15502.96
TAX EXPENSE 6 1304.45 1326.19 1384.08 2688.53 2616.92 5302.06
a) Current Tax   1320.39 1263.30 1374.02 2694.41 2504.05 5285.65
b) Deferred Tax   (15.94) 62.89 10.06 (5.88) 112.87 16.41
PROFIT FOR THE PERIOD (5-6) 7 2639.84 2500.03 2560.50 5200.34 4884.70 10200.90
OTHER COMPREHENSIVE INCOME 8 (29.04) (25.19) 156.82 127.78 38.38 77.00
A (i) Items that will not be reclassified to profit or loss   (26.07) (40.78) 164.12 138.05 22.92 40.80
(ii) Income tax relating to items that will not be reclassified to profit or loss   1.14 6.22 (1.83) (0.69) 9.74 24.22
B (i) Items that will be reclassified to profit or loss   (6.29) 14.32 (8.35) (14.64) 8.74 18.29
(ii) Income tax relating to items that will be reclassified to profit or loss   2.18 (4.95) 2.88 5.06 (3.02) (6.31)
TOTAL COMPREHENSIVE INCOME (7+8) 9 2610.80 2474.84 2717.32 5328.12 4923.08 10277.90
PAID UP EQUITY SHARE CAPITAL 10 1218.36 1211.16 1215.22 1218.36 1211.16 1214.74
(Ordinary shares of Re. 1/- each)              
RESERVES EXCLUDING REVALUATION RESERVES 11           44126.22
EARNINGS PER SHARE (of Re. 1/- each) (not annualised): 12            
(a) Basic (Rs.)   2.17 2.07 2.11 4.28 4.04 8.43
(b) Diluted (Rs.)   2.15 2.04 2.09 4.24 3.99 8.38

Notes :

1.

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

During the quarter, 3,14,81,220 Ordinary Shares of Re. 1/- each were issued and allotted under the Company’s Employee Stock Option Schemes (ESOS). Consequently, the issued and paid-up Share Capital of the Company as on 30th September, 2017 stands increased to Rs. 1218,36,46,491/-.

4.

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

5.

Consequent to the introduction of Goods and Services Tax (GST) with effect from 1st July 2017, Central Excise [other than National Calamity Contingent Duty (NCCD) on cigarettes], Value Added Tax (VAT) etc. have been replaced by GST. In accordance with Indian Accounting Standard - 18 on Revenue and Schedule III of the Companies Act, 2013, GST, GST Compensation Cess, VAT, etc. are not included in Gross Revenue from sale of products and services for applicable periods. In view of the aforesaid restructuring of indirect taxes, Gross Revenue from sale of products and services and Excise duty for the quarter and six months ended 30th September, 2017 are not comparable with the previous periods. Following additional information is being provided to facilitate such comparison:

(Rs. in Crores)
Particulars 3 Months
 ended
30.09.2017
Corresponding
3 Months
ended
30.09.2016
Preceding
3 Months
ended
30.06.2017
6 Months
ended
30.09.2017
6 Months
ended
30.09.2016
Twelve Months
  ended
31.03.2017
Gross Sales Value (net of rebates and discounts) (A) 16391.58 15769.89 16010.66 32402.24 31111.49 64174.17
Taxes other than Excise Duty / NCCD (B)* 6715.38 2278.52 2288.45 9003.83 4463.44 9172.48
Gross Revenue from sale of products and services [C = (A-B)] 9676.20 13491.37 13722.21 23398.41 26648.05 55001.69

* Taxes include GST, GST Compensation Cess, Service Tax, VAT, Luxury Tax etc., as applicable for the reported periods

Excise duty for the quarter ended 30th September, 2017 represents NCCD net of reversal of excise duty on closing inventories held as on 30th June, 2017.

6. The Company does not have any exceptional item to report for the above periods.

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 does not have any impact on the above 'Results and Notes' for the Quarter and Six Months ended 30th September, 2017 which needs to be explained.

(Rs. in Crores)
Balance Sheet STANDALONE
Particulars As at
current half year end
30.09.2017
As at
previous year end
31.03.2017
(Unaudited) (Audited)
A ASSETS    
1 NON-CURRENT ASSETS    
  (a) Property, Plant and Equipment 14362.69 14469.32
  (b) Capital work-in-progress 4286.85 3491.33
  (c) Intangible assets 465.30 410.92
  (d) Intangible assets under development 4.95 45.69
  (e) Financial Assets    
    (i) Investments 9673.85 8485.51
    (ii) Loans 9.32 5.84
    (iii) Others 719.73 99.83
  (f) Other non-current assets 2748.78 2670.12
  Non-Current Assets 32271.47 29678.56
2 CURRENT ASSETS  
  (a) Inventories 7625.63 7863.99
  (b) Financial Assets    
    (i) Investments 11777.53 10099.78
    (ii) Trade receivables 2637.31 2207.50
    (iii) Cash and cash equivalents 46.46 156.15
    (iv) Other Bank Balances 677.76 2591.12
    (v) Loans 4.20 3.37
    (vi) Others 993.97 1004.91
  (c) Other current assets* 3095.95 610.57
  Current Assets 26858.81 24537.39
  TOTAL ASSETS 59130.28 54215.95
B EQUITY AND LIABILITIES    
  EQUITY    
  (a) Equity Share capital 1218.36 1214.74
  (b) Other Equity 43356.21 44126.22
  Equity 44574.57 45340.96
  LIABILITIES    
1 NON-CURRENT LIABILITIES    
  (a) Financial Liabilities    
    (i)  Borrowings 17.99 17.99
    (ii) Other financial liabilities 24.11 9.21
  (b) Provisions 132.57 131.37
  (c) Deferred tax liabilities (Net) 1865.94 1871.70
  (d) Other non-current liabilities 34.99 14.65
  Non-Current Liabilities 2075.60 2044.92
2 CURRENT LIABILITIES    
  (a) Financial Liabilities    
    (i)  Borrowings 600.07 0.01
    (ii) Trade payables 2942.74 2551.22
    (iii) Other financial liabilities 818.13 784.78
  (b) Other current liabilities* 7450.32 3351.15
  (c) Provisions 39.22 41.83
  (d) Current Tax Liabilities (Net) 629.63 101.08
  Current Liabilities 12480.11 6830.07
  TOTAL EQUITY AND LIABILITIES 59130.28 54215.95

* Consequent to the introduction of GST, inter-state stock transfer of goods has become taxable with availability of input tax credit, the utilisation of which is available in subsequent periods. As a result, movement in Other Current Assets and Other Current Liabilities is not comparable with earlier period.

Unaudited Segment-wise Revenue, Results, Assets and Liabilities
for the Quarter and Six Months ended 30th September, 2017

(Rs. in Crores)
  STANDALONE
Particulars 3 Months
ended
30.09.2017
Corresponding
3 Months
ended
30.09.2016
Preceding
3 Months
ended
30.06.2017
6 Months
ended
30.09.2017
6 Months
ended
30.09.2016
Twelve Months
ended
31.03.2017
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
1. Segment Revenue          
a) FMCG - Cigarettes  4554.21 8528.47 8774.16 13328.37 16759.07 34001.98
- Others 2804.11 2671.66 2600.89 5405.00 5056.81 10511.83
Total FMCG 7358.32 11200.13 11375.05 18733.37 21815.88 44513.81
b) Hotels 300.18 297.34 304.89 605.07 584.70 1341.73
c) Agri Business 1967.98 1880.06 2760.52 4728.50 4674.14 8264.55
d) Paperboards, Paper & Packaging  1309.41 1331.41 1359.82 2669.23 2654.31 5362.86
Total 10935.89 14708.94 15800.28 26736.17 29729.03 59482.95
Less : Inter-segment revenue 1259.69 1217.57 2078.07 3337.76 3080.98 4481.26
Gross Revenue from sale of products and services * 9676.20 13491.37 13722.21 23398.41 26648.05 55001.69
2. Segment Results          
a) FMCG - Cigarettes 3291.67 3216.88 3274.14 6565.81 6221.46 12513.91
- Others 20.49 (3.26) 5.43 25.92 (7.78) 28.12
Total FMCG 3312.16 3213.62 3279.57 6591.73 6213.68 12542.03
b) Hotels  4.24 0.65 5.31 9.55 1.87 110.95
c) Agri Business 256.20 296.96 235.11 491.31 534.27 905.80
d) Paperboards, Paper & Packaging 274.19 231.95 257.29 531.48 479.64 965.84
Total  3846.79 3743.18 3777.28 7624.07 7229.46 14524.62
Less: i) Finance Costs 29.01 10.72 10.38 39.39 20.82 22.95
ii) Other un-allocable (income) net of
un-allocable expenditure [Note (i)]
(126.51) (93.76) (177.68) (304.19) (292.98) (1001.29)
Profit Before Tax 3944.29 3826.22 3944.58 7888.87 7501.62 15502.96
3. Segment Assets            
a) FMCG - Cigarettes 9958.86 7816.59 7782.40 9958.86 7816.59 7994.51
- Others 7813.73 6825.79 8005.99 7813.73 6825.79 7113.91
Total FMCG 17772.59 14642.38 15788.39 17772.59 14642.38 15108.42
b) Hotels [Note (ii)] 5361.47 4930.88 5282.18 5361.47 4930.88 5082.80
c) Agri Business 2929.46 2817.81 3374.96 2929.46 2817.81 2991.57
d) Paperboards, Paper & Packaging 6824.75 6242.72 6369.80 6824.75 6242.72 6322.79
Total 32888.27 28633.79 30815.33 32888.27 28633.79 29505.58
Unallocated Corporate Assets 26242.01 21018.47 28694.84 26242.01 21018.47 24710.37
Total Assets 59130.28 49652.26 59510.17 59130.28 49652.26 54215.95
4. Segment Liabilities            
a) FMCG - Cigarettes** 5985.60 2858.54 3352.99 5985.60 2858.54 2447.84
- Others 1818.56 1333.26 1497.79 1818.56 1333.26 1407.21
Total FMCG 7804.16 4191.80 4850.78 7804.16 4191.80 3855.05
b) Hotels 484.48 383.62 481.36 484.48 383.62 420.62
c) Agri Business 1198.09 1089.73 650.19 1198.09 1089.73 795.88
d) Paperboards, Paper & Packaging 799.60 583.39 585.69 799.60 583.39 623.85
Total 10286.33 6248.54 6568.02 10286.33 6248.54 5695.40
Unallocated Corporate Liabilities 4269.38 4175.57 4720.85 4269.38 4175.57 3179.59
Total Liabilities 14555.71 10424.11 11288.87 14555.71 10424.11 8874.99

* Refer note 5 to the financial results.

** Segment Liabilities of FMCG-Cigarettes is before considering Rs. 638.09 Crores (30.09.2016 - Rs. 661.60 Crores; 30.06.2017 - Rs. 634.60 Crores; 31.03.2017 - Rs. 629.83 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.

Note (ii): Includes Rs. 541.21 Crores (30.09.2016 - Rs. 541.21 Crores; 30.06.2017 - Rs. 541.21 Crores; 31.03.2017 - Rs. 541.21Crores) 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 order dated 22.04.2016 has directed maintenance of status quo and that the amount paid by ITC shall remain with IFCI Limited until further orders. 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 October, 2017
Place : Bengaluru, India

For and on behalf of the Board



Director & Chief Financial Officer Chief Executive Officer & Director

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Financial Results June 2017
Financial Results March 2017 Financial Results December 2016