ITC records yet another
impressive performance
Post -Tax profits register 27% growth crossing
the Rs. 1000 crore mark
ITC crossed yet another performance
milestone with Post-Tax profits exceeding the Rs. 1000 crore mark, registering a
substantial growth of 27%. Pre-Tax profits grew by 30% to Rs. 1600 crores. The Company
continues its conservative approach to income tax provisioning relating to certain State
taxes, the collection of which has been stayed by appropriate Courts. Earnings per share
touched a new high of Rs.41.00 (Rs.32.29 last year). The ITC Board at its meeting on 30th
May, 2001 recommended a Dividend of Rs.10.00 per share (last year: Rs. 7.50 per share)
These impressive results were achieved,
despite sluggish business conditions, through continuous value addition to products and
services, quality upgradation, strengthening of the goodwill of the Company’s
trademarks, improvements in productivity and continuous focus on cost management. As a
result of these actions, the Company’s net trading margins have increased to 40% from
35% recorded last year. The Company continued its policy of debt retirement and completed
the repayment of the balance of its foreign currency loan during the year. The full impact
of the debt retirement programme, which commenced last year, reflected in a further
reduction of Rs.28 crores in interest cost during the year.
The Company consolidated its leadership
position in the cigarette industry by pursuing its strategy of continuous value addition,
resulting in an enriched product mix. The Company’s contribution to the Exchequer
grew by over 10% to nearly Rs.5100 crores during the year.
The Company’s seven-star super deluxe
hotel, the 'ITC Grand Maratha Sheraton' at Mumbai opened in January, 2001. The hotel has
been well received by guests. The construction of 'ITC Sonar Bangla' at Kolkata and 'ITC
Grand Towers', Upper Worli in Mumbai is making steady progress. These premium Hotels are
expected to open their doors to guests by the end of 2002. The Company has also acquired 8
acres of prime land in Chennai in order to tap the long-term potential of this fast
growing market.
Agri exports grew by nearly 12% to Rs.362
crores in spite of a decline in India’s agri exports for the third successive year.
Project 'e-Choupal', a pioneering click and mortar initiative of the International
Business Division to link the Indian farmer with domestic and world markets, has been
rapidly scaled up to 235 choupals covering 1000 villages in the three chosen commodities,
namely soya, coffee and aqua.
The Company’s Packaging and Printing
business continued to maintain its status as a premier supplier of high quality printed
paperboard-based packaging for the FMCG industry, particularly for the premium packaging
of cigarettes, liquor, foods and personal care products. In an acknowledgement of its
world class capability, exports grew by 35%.
The newly formed Greeting Cards SBU has
made rapid progress by establishing the presence of its 'EXPRESSIONS' range of cards in
over 7000 outlets in around 180 towns across the country. The SBU has entered into a
licensing arrangement for designs with Simon Elvin Ltd., one of UK’s leading greeting
card publishers.
The 'Wills Sport' range of relaxed wear for
men and women has been well received by discerning customers. The Company is currently in
the process of scaling up its operations to over 50 exclusive outlets across the country
by March 2002, of which around 25 outlets are scheduled to open in the next four months.
The Board of Directors, at its meeting held on 30th
May 2001 approved the audited financial results for the year ended 31st March,
2001 which are annexed.
Financial Results (Audited) for the Year
Ended
31st March, 2001 |
| (Rs. Crores) |
| |
|
Year Ended
31.03.2001 |
Year Ended
31.03.2000 |
% Change |
| GROSS INCOME |
|
8816.11 |
8069.37 |
9.25 |
| NET SALES TURNOVER |
[1] |
4204.24 |
3819.17 |
|
| OTHER INCOME |
[2] |
137.35 |
116.31 |
|
| NET INCOME (1+2) |
|
4341.59 |
3935.48 |
|
| Less: |
|
|
|
|
| Total Expenditure |
[3] |
2516.44 |
2475.45 |
|
| a) (Increase)/Decrease in
stock-in-trade |
|
(20.31) |
7.22 |
|
| b) Consumption of raw material
etc. |
|
1512.68 |
1515.95 |
|
| c) Staff cost |
|
274.43 |
250.25 |
|
| d) Other expenditure |
|
749.64 |
702.03 |
|
| INTEREST (net) |
[4] |
84.91 |
112.55 |
|
| GROSS PROFIT (1+2-3-4) |
|
1740.24 |
1347.48 |
29.15 |
| Less: |
|
|
|
|
| DEPRECIATION |
[5] |
139.94 |
118.53 |
|
| PROFIT BEFORE TAX (1+2-3-4-5) |
[6] |
1600.30 |
1228.95 |
30.22 |
| Less: |
|
|
|
|
| PROVISION FOR TAXATION |
[7] |
594.04 |
436.51 |
|
| NET PROFIT (6-7) |
[8] |
1006.26 |
792.44 |
26.98 |
| PROFIT BROUGHT FORWARD |
|
201.28 |
187.86 |
|
| TOTAL |
|
1207.54 |
980.30 |
|
| ADJUSTMENT FOR HOTEL FOREIGN
EXCHANGE RESERVE |
|
48.01 |
3.48 |
|
| ADJUSTMENT FOR INVESTMENT
ALLOWANCE RESERVE |
|
0.40 |
1.22 |
|
| AVAILABLE FOR APPROPRIATION |
|
1255.95 |
985.00 |
|
| APPROPRIATION OF PROFIT/ AND
RESERVE |
|
|
|
|
| a) Transfer to Debenture
Redemption Reserve |
|
17.50 |
17.50 |
|
| b) Release from Debenture
Redemption Reserve |
|
-14.50 |
-58.33 |
|
| c) Transfer to General Reserve |
|
700.00 |
600.00 |
|
| d) Profit Carried Forward |
|
282.50 |
201.28 |
|
| DIVIDEND INCLUDING DIVIDEND TAX |
|
270.45 |
224.55 |
|
| PAID UP EQUITY SHARE CAPITAL
(Ordinary shares of Rs.10 each) |
[9] |
245.41 |
245.41 |
|
| RESERVES EXCLUDING REVALUATION
RESERVES |
[10] |
3225.65 |
2489.84 |
|
| EARNINGS PER SHARE (Basic &
Diluted) (Rs) |
[11] |
41.00 |
32.29 |
|
AGGREGATE OF NON
PROMOTER SHAREHOLDING |
(12) |
|
|
|
- NUMBER OF
SHARES |
|
245414904 |
245414904 |
|
- PERCENTAGE OF
SHAREHOLDING |
|
100 |
100 |
|
| |
| Notes: |
(i) The
above results were taken on record at the meeting of the Board of Directors of the Company
held on 30th May, 2001.
|
(ii) Figures of the previous year have been rearranged wherever necessary.
|
(iii)
Provision for Taxation includes adjustments relating to previous years being excess net
provision for tax Rs. 41.62 Crores (previous year Rs. 55.12 Crores).
|
(iv) The
Board of Directors of the Company has recommended a dividend of Rs. 10.00 per Ordinary
share for the financial year ended 31st March, 2001 and the dividend, if declared, will be
paid on or after 6th August, 2001 to those members entitled thereto.
|
(v) The
Register of Members of the Company will be closed for the purpose of dividend from 18th
July, 2001 to 3rd August, 2001 (both days inclusive).
|
| (vi) The 90th Annual General Meeting of the Company has been convened for 3rd
August, 2001. |
|
Registered
Office:
Virginia House, 37 Chowringhee,
Kolkata 700 071, India
Place: Kolkata
Date: 30th May, 2001 |
For and on behalf of the Board Sd/- K. Vaidyanath,
Director
|
___________________________________________________________________
