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Quarterly Results

 

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Statement of Standalone Unaudited Financial Results
for the Quarter and Nine Months ended 31st December, 2017

(Rs. in Crores)
Particulars   3 Months
 ended
31.12.2017
Corresponding
3 Months  ended
31.12.2016
Preceding
3 Months
 ended
30.09.2017
9 Months
ended
31.12.2017
9 Months
ended
31.12.2016
Twelve
Months
 ended
31.03.2017
    (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Gross Revenue from sale of products and services (i) 9852.74 13470.89 9676.20 33251.15 40118.94 55001.69
Other operating revenue (ii) 99.45 99.08 87.72 265.38 320.70 446.77
REVENUE FROM OPERATIONS[(i)+(ii)] 1 9952.19 13569.97 9763.92 33516.53 40439.64 55448.46
OTHER INCOME 2 626.92 687.94 494.21 1597.90 1583.81 1985.91
TOTAL INCOME (1+2) 3 10579.11 14257.91 10258.13 35114.43 42023.45 57434.37
EXPENSES              
a) Cost of materials consumed   2941.91 2912.58 2858.00 8694.81 8792.72 11765.56
b) Purchases of stock-in-trade   498.90 864.89 558.82 2048.61 2370.84 3566.57
c) Changes in inventories of finished goods, stock-in-trade, work-in-progress and intermediates   140.22 (400.90) 939.55 1029.98 129.94 644.17
d) Excise duty   180.17 4321.58 (550.21) 3475.72 11476.50 15359.78
e) Employee benefits expense   595.02 572.31 606.54 1876.19 1872.95 2444.31
f) Finance costs   24.02 13.59 29.01 63.41 34.41 22.95
g) Depreciation and amortization expense   290.75 266.54 282.42 841.38 796.23 1038.04
h) Other expenses   1691.47 1753.12 1589.71 4978.81 5094.04 7090.03
TOTAL EXPENSES 4 6362.46 10303.71 6313.84 23008.91 30567.63 41931.41
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (3-4) 5 4216.65 3954.20 3944.29 12105.52 11455.82 15502.96
EXCEPTIONAL ITEMS (Refer Note 6) 6 412.90 - - 412.90 - -
PROFIT BEFORE TAX (5+6) 7 4629.55 3954.20 3944.29 12518.42 11455.82 15502.96
TAX EXPENSE 8 1539.35 1307.47 1304.45 4227.88 3924.39 5302.06
a) Current Tax   1457.14 1398.14 1320.39 4151.55 3902.19 5285.65
b) Deferred Tax   82.21 (90.67) (15.94) 76.33 22.20 16.41
PROFIT FOR THE PERIOD (7-8) 9 3090.20 2646.73 2639.84 8290.54 7531.43 10200.90
OTHER COMPREHENSIVE INCOME 10 86.86 (161.61) (29.04) 214.64 (123.23) 77.00
A (i) Items that will not be reclassified to profit or loss   78.07 (168.22) (26.07) 216.12 (145.30) 40.80
(ii) Income tax relating to items that will not be reclassified to profit or loss   3.67 10.37 1.14 2.98 20.11 24.22
B (i) Items that will be reclassified to profit or loss   7.84 (5.75) (6.29) (6.80) 2.99 18.29
(ii) Income tax relating to items that will be reclassified to profit or loss   (2.72) 1.99 2.18 2.34 (1.03) (6.31)
TOTAL COMPREHENSIVE INCOME (9+10) 11 3177.06 2485.12 2610.80 8505.18 7408.20 10277.90
PAID UP EQUITY SHARE CAPITAL 12 1219.05 1212.14 1218.36 1219.05 1212.14 1214.74
(Ordinary shares of Re. 1/- each)              
RESERVES EXCLUDING REVALUATION RESERVES 13           44126.22
EARNINGS PER SHARE (of Re. 1/- each) (not annualised): 14            
(a) Basic (Rs.)   2.54 2.18 2.17 6.82 6.23 8.43
(b) Diluted  (Rs.)   2.52 2.17 2.15 6.76 6.19 8.38

Notes :

1.

The Unaudited Standalone Financial Results and Segment Results were reviewed by the Audit Committee and approved by the Board of Directors of the Company at the meeting held on 19th January, 2018.

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, 68,10,380 Ordinary Shares of Rs. 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 31st December, 2017 stands increased to Rs. 1219,04,56,871/-.

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 excluded, but does not exclude NCCD, 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 nine months ended 31st December, 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
31.12.2017
Corresponding
3 Months
ended
31.12.2016
Preceding
3 Months
ended
30.09.2017
9 Months
ended
31.12.2017
9 Months
ended
31.12.2016
Twelve Months
 ended
31.03.2017
Gross Sales Value (net of rebates and discounts) (A) 16746.20 15746.93 16391.58 49148.44 46858.42 64174.17
Taxes other than Excise Duty / NCCD (B)*  6893.46 2276.04 6715.38 15897.29 6739.48 9172.48
Gross Revenue from sale of products and services [C = (A-B)] 9852.74 13470.89 9676.20 33251.15 40118.94 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. Exceptional Items represent provisions for earlier years of Rs. 412.90 Crores (Rs. 270.00 Crores post tax), in respect of Tamil Nadu entry tax that have been written back during the current quarter, based on a favourable order of the Hon’ble Supreme Court.

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 Nine Months ended 31st December, 2017 which needs to be explained.

Unaudited Segment-wise Revenue, Results, Assets and Liabilities
for the Quarter and Nine Months ended 31st December, 2017

(Rs. in Crores)
  STANDALONE
Particulars 3 Months
ended
31.12.2017
Corresponding
3 Months
ended
31.12.2016
Preceding
3 Months
 ended
30.09.2017
9 Months
ended
31.12.2017
9 Months
ended
31.12.2016
Twelve Months
  ended
31.03.2017
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
1. Segment Revenue          
  a) FMCG - Cigarettes 4629.19 8287.97 4554.21 17957.56 25047.04 34001.98
  - Others 2871.78 2569.26 2804.11 8276.78 7626.07 10511.83
  Total FMCG 7500.97 10857.23 7358.32 26234.34 32673.11 44513.81
  b) Hotels 404.44 370.51 300.18 1009.51 955.21 1341.73
  c) Agri Business 1530.86 1671.92 1967.98 6259.36 6346.06 8264.55
  d) Paperboards, Paper & Packaging 1279.60 1335.82 1309.41 3948.83 3990.13 5362.86
  Total 10715.87 14235.48 10935.89 37452.04 43964.51 59482.95
  Less :  Inter-segment revenue 863.13 764.59 1259.69 4200.89 3845.57 4481.26
Gross Revenue from sale of products and services * 9852.74 13470.89 9676.20 33251.15 40118.94 55001.69
2. Segment Results          
  a) FMCG - Cigarettes 3269.25 3033.69 3291.67 9835.06 9255.15 12513.91
  - Others 46.99 (19.66) 20.49 72.91 (27.44) 28.12
  Total FMCG 3316.24 3014.03 3312.16 9907.97 9227.71 12542.03
  b) Hotels 54.77 42.15 4.24 64.32 44.02 110.95
  c) Agri Business 233.34 236.61 256.20 724.65 770.88 905.80
  d) Paperboards, Paper & Packaging 268.26 246.03 274.19 799.74 725.67 965.84
  Total 3872.61 3538.82 3846.79 11496.68 10768.28 14524.62
  Less : i) Finance Costs 24.02 13.59 29.01 63.41 34.41 22.95
  ii) Other un-allocable (income) net of un-allocable expenditure [Note (i)] (368.06) (428.97) (126.51) (672.25) (721.95) (1001.29)
  iii) Exceptional items** (412.90) - - (412.90) - -
Profit Before Tax 4629.55 3954.20 3944.29 12518.42 11455.82 15502.96
3. Segment Assets            
  a) FMCG - Cigarettes 7829.31 7792.74 8389.61 7829.31 7792.74 7994.51
  - Others 7436.51 6596.10 7744.46 7436.51 6596.10 7113.91
  Total FMCG 15265.82 14388.84 16134.07 15265.82 14388.84 15108.42
  b) Hotels [Note (ii)] 5402.59 5039.01 5356.60 5402.59 5039.01 5082.80
  c) Agri Business 2986.56 2750.70 2929.88 2986.56 2750.70 2991.57
  d) Paperboards, Paper & Packaging 6815.89 6323.56 6774.68 6815.89 6323.56 6322.79
  Total 30470.86 28502.11 31195.23 30470.86 28502.11 29505.58
  Unallocated Corporate Assets 29357.27 23248.16 25898.12 29357.27 23248.16 24710.37
Total Assets 59828.13 51750.27 57093.35 59828.13 51750.27 54215.95
4. Segment Liabilities            
  a) FMCG - Cigarettes** 4684.73 2999.09 4416.35 4684.73 2999.09 2447.84
  - Others 1879.37 1414.40 1749.29 1879.37 1414.40 1407.21
  Total FMCG 6564.10 4413.49 6165.64 6564.10 4413.49 3855.05
  b) Hotels 512.94 452.29 479.61 512.94 452.29 420.62
  c) Agri Business 1027.58 1001.44 1198.51 1027.58 1001.44 795.88
  d) Paperboards, Paper & Packaging 786.75 615.62 749.53 786.75 615.62 623.85
  Total 8891.37 6482.84 8593.29 8891.37 6482.84 5695.40
Unallocated Corporate Liabilities 2980.80 3302.69 3925.49 2980.80 3302.69 3179.59
Total Liabilities 11872.17 9785.53 12518.78 11872.17 9785.53 8874.99

* Refer note 5 to the financial results.

** Segment Liabilities of FMCG-Cigarettes is before considering Rs. 229.14 Crores (31.12.2016 - Rs. 651.37 Crores; 30.09.2017 - Rs. 638.09 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'. Also refer note 6 to the financial results.

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 (31.12.2016 - Rs. 541.21 Crores; 30.09.2017 - Rs. 541.21 Crores; 31.03.2017 - 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 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 hearing of the matter is completed and is awaiting judgement by 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.
(4) Figures for the corresponding previous periods are re-arranged, wherever necessary, to conform to the figures of the current period.
   
Registered Office :
Virginia House, 37 J.L. Nehru Road,
Kolkata 700 071, India

Dated : 19th January, 2018
Place : Kolkata, India

For and on behalf of the Board



Director & Chief Financial Officer Chief Executive Officer & Director

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Financial Results September 2017
Financial Results June 2017 Financial Results March 2017