ITC Ltd reported an 18 per cent rise in its post-tax profit at Rs 1,190 crore in 2001-02. The gross turnover was Rs 9,840 crore, a rise of 13 per cent.

The pre-tax profit at Rs 1,780 crore registered a growth of 11 per cent. The net cash flows from operating activities at Rs 1770 crore represented an increase of 79 per cent. These cash flows enabled debt retirement and reduction in interest costs.

The board recommended a dividend of Rs 13.50 per share, subjected to deduction of income-tax against Rs 10 per share in the previous financial year. The dividend includes that payable on new shares issued and allotted to shareholders of the erstwhile ITC Bhadrachalam Paperboards Ltd, in accordance with the scheme of amalgamation of ITC Bhadrachalam with ITC. The ITC scrip rose by a shade over Rs 6 to Rs 615 today.

The underlying growth in gross turnover for the year was 7.5 per cent and in post-tax profits 22 per cent. The company said this was achieved despite cost and revenue pressures from increase in cigarette taxes, the tobacco crop holiday in Andhra Pradesh, the gestation of new hotel investments and the incubation costs of new businesses.

The increase of 15 per cent in excise duties, increase in state taxes and growing menace of contraband led to domestic cigarette industry volumes declining by about 11 per cent during the year.

ITC contained its domestic volume decline to 8 per cent.

ITC Bhadrachalam Paperboards Limited (ITC Bhadrachalam), which was amalgamated with ITC operative from 1st April 2001, contributed Rs 511 crore to ITC's gross turnover, after excluding inter-divisional sales. Cash profit from operations (PBDIT) increased Rs 101 crore, while operating profits (PBIT) grew by Rs 59 crore as a result of the amalgamation. The aggregate increase in capital employed consequent to the amalgamation amounted to around Rs 281 crore.

The Bhadrachalam paperboards division reported growth of sales of value added products by 18 per cent. The Rs 227 crore pulp mill modernisation and upgradation project will be fully operational by October 2002 and will enhance cost competitiveness while achieving world class environmental standards.

Leaf tobacco exports at Rs 171 crore were at 2000-01 levels. Use of information technology enabled increased exports of other agri-commodities by 48 per cent during 2001-02 at Rs 535 crore.

The e-Choupals, which achieved critical mass scale in the 2001-2002 soya season, led to big gains through virtual integration of the supply chain. Encouraged by the results, this model is being rapidly scaled up and replicated across other locations and commodities.

The lifestyle retailing business expanded to 42 Wills Lifestyle stores across 35 cities while the Design and Technology Centre at Gurgaon was also completed. The greeting cards business was expanded.

ITC also launched branded packaged foods industry with ready-to-eat foods under the brand 'Kitchens of India' as premium products from ITC Welcomgroup. The company acquired the "Mint-O" trademark confectionery and related prelaunch product development work is under way.

The hotels division was hit by slowdown in the global economy. ITC Grand Maratha, commissioned September 2001, clocked cash profits within four months.

The ITC Hotel Sonar Bangla at Kolkata will commence commercial operations by end 2002. The ITC Grand Central project was expected to open towards the end of 2003.