ITC - Statement of Unaudited Consolidated Financial Results for the Quarter and Six Months ended 30th September, 2019

Statement of Unaudited Consolidated Financial Results for the Quarter and Nine Months ended 31st December, 2019

Particulars			3 Months ended 31.12.2019	Corresponding 3 Months ended 31.12.2018	Preceding 3 Months ended 30.09.2019	9 Months ended 31.12.2019	9 Months ended 31.12.2018	Twelve Months ended 31.03.2019
(Rs. in Crores)
			(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
Gross Revenue from sale of products and services		(i)	13220.30	12506.05	12759.44	38512.05	36270.34	49348.43
Other operating revenue		(ii)	87.24	77.72	107.95	320.78	379.58	513.68
REVENUE FROM OPERATIONS[(i)+(ii)]		1	13307.54	12583.77	12867.39	38832.83	36649.92	49862.11
OTHER INCOME		2	652.96	585.03	629.88	1930.13	1483.68	2173.79
TOTAL INCOME (1+2)		3	13960.50	13168.80	13497.27	40762.96	38133.60	52035.90
EXPENSES
a)	Cost of materials consumed		3827.86	3468.81	3461.47	10414.34	10002.04	13403.01
b)	Purchases of stock-in-trade		728.88	816.00	720.74	3246.02	2894.69	4220.51
c)	Changes in inventories of finished goods, stock-in-trade, work-in-progress and intermediates		130.58	187.59	255.49	(350.66)	(43.46)	(203.19)
d)	Employee benefits expense		1085.21	1014.77	1035.95	3200.03	3047.23	4177.88
e)	Finance costs		11.43	5.70	13.99	40.00	35.79	45.42
f)	Depreciation and amortization expense		436.90	356.43	415.84	1231.68	1025.83	1396.61
g)	Other expenses		2558.28	2491.31	2551.68	7566.56	7175.30	9857.54
TOTAL EXPENSES		4	8779.14	8340.61	8455.16	25347.97	24137.42	32897.78
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (3-4)		5	5181.36	4828.19	5042.11	15414.99	13996.18	19138.12
EXCEPTIONAL ITEMS (Refer Note 5)		6	(132.11)	-	-	(132.11)	-	-
PROFIT BEFORE TAX (5+6)		7	5049.25	4828.19	5042.11	15282.88	13996.18	19138.12
TAX EXPENSE (Refer Note 6)		8	1001.38	1691.24	868.39	3624.78	4764.78	6313.92
a)	Current Tax		1183.18	1620.25	1029.68	3893.26	4539.81	6191.62
b)	Deferred Tax		(181.80)	70.99	(161.29)	(268.48)	224.97	122.30
PROFIT FOR THE PERIOD (7-8)		9	4047.87	3136.95	4173.72	11658.10	9231.40	12824.20
SHARE OF PROFIT / (LOSS) OF ASSOCIATES AND JOINT VENTURES		10	2.53	3.57	0.97	7.96	7.86	11.70
PROFIT AFTER TAX, SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES (9+10)		11	4050.40	3140.52	4174.69	11666.06	9239.26	12835.90
OTHER COMPREHENSIVE INCOME		12	(368.03)	325.07	(52.18)	(663.16)	228.56	326.40
A(i)	Items that will not be reclassified to profit or loss		(393.78)	420.39	(43.21)	(673.28)	329.54	383.04
(ii)	Income tax relating to items that will not be reclassified to profit or loss		0.43	13.21	2.58	5.24	4.15	3.04
B(i)	Items that will be reclassified to profit or loss		25.87	(95.42)	(16.28)	2.49	(110.36)	(59.38)
(ii)	Income tax relating to items that will be reclassified to profit or loss		(0.55)	(13.11)	4.73	2.39	5.23	(0.30)
TOTAL COMPREHENSIVE INCOME (11+12)		13	3682.37	3465.59	4122.51	11002.90	9467.82	13162.30
PROFIT FOR THE PERIOD ATTRIBUTABLE TO :
OWNERS OF THE PARENT			3975.54	3078.67	4119.16	11449.71	9057.22	12592.33
NON-CONTROLLING INTERESTS			74.86	61.85	55.53	216.35	182.04	243.57
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO :
OWNERS OF THE PARENT			3607.51	3403.74	4067.27	10786.84	9287.00	12919.28
NON-CONTROLLING INTERESTS			74.86	61.85	55.24	216.06	180.82	243.02
PAID UP EQUITY SHARE CAPITAL		14	1229.11	1224.69	1228.65	1229.11	1224.69	1225.86
(Ordinary Shares of Re. 1/- each)
RESERVES EXCLUDING REVALUATION RESERVES		15						57915.01
EARNINGS PER SHARE (of Re. 1/- each) (not annualised):		16
(a)	Basic (Rs.)		3.24	2.51	3.35	9.33	7.41	10.30
(b)	Diluted(Rs.)		3.23	2.50	3.34	9.30	7.36	10.24

Notes :

1	The Unaudited Consolidated 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 31st January, 2020.
2	The continuing significant brand building costs covering a range of personal care and branded packaged food products are reflected under 'Other expenses' stated above and in Segment Results under 'FMCG-Others'.
3	During the quarter ended 31st December, 2019, 46,35,560 Ordinary Shares of Re. 1/- each were issued and allotted under the Company's Employee Stock Option Schemes. Consequently, the issued and paid-up Share Capital of the Company as on 31st December, 2019 stands increased to Rs. 1229,11,25,771/-.
4	The Company, on 6th December, 2019, acquired 100 Equity Shares and 1,864 Compulsorily Convertible Preference Shares, both of Rs. 10/- each, of Delectable Technologies Private Limited, representing 11.15% of its share capital on a fully diluted basis, at an aggregate consideration of Rs. 1.87 crores.
5	Exceptional items represent cost of leaf tobacco stocks (including taxes) destroyed at a third party owned warehouse due to fire, for which insurance claim has been filed and is under process.
6	The Company and some of its subsidiaries have exercised the option permitted under Section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Deferred Tax Liabilities (net) as at 31st March, 2019 and the estimate of Tax Expense for the year ended 31st March, 2020 have been re-measured. The resultant impact is being recognised over the three quarters of the financial year commencing from the quarter ended 30th September, 2019. Consequently, Tax Expense for the quarter and nine months ended 31st December, 2019 includes a credit of Rs. 331.48 Crores and Rs. 681.10 Crores respectively (quarter ended 30th September, 2019 - Rs. 349.62 Crores).
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 does not have any impact on the above 'Results and Notes' for the quarter and nine months ended 31st December, 2019 which needs to be explained.

Unaudited Segment-wise Revenue, Results, Assets and Liabilities
for the Quarter and Nine Months ended 31st December, 2019

Particulars				3 Months ended 31.12.2019	Corresponding 3 Months ended 31.12.2018	Preceding 3 Months ended 30.09.2019	9 Months ended 31.12.2019	9 Months ended 31.12.2018	Twelve Months ended 31.03.2019
(Rs. in Crores)
				CONSOLIDATED
				(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1.	Segment Revenue
	a)	FMCG	- Cigarettes	5944.86	5645.05	5841.91	17928.69	16863.77	22913.27
			- Others	3320.45	3207.00	3296.22	9684.74	9253.49	12535.04
		Total FMCG		9265.31	8852.05	9138.13	27613.43	26117.26	35448.31
	b)	Hotels		574.26	474.06	445.82	1431.68	1216.55	1746.74
	c)	Agri Business		2258.87	2045.38	2673.59	8554.86	7454.36	9565.39
	d)	Paperboards, Paper & Packaging		1555.36	1542.51	1565.42	4648.31	4322.80	5860.16
	e)	Others		563.69	512.48	540.18	1627.09	1475.12	1966.62
		Total		14217.49	13426.48	14363.14	43875.37	40586.09	54587.22
	Less : Inter-segment revenue			997.19	920.43	1603.70	5363.32	4315.75	5238.79
Gross Revenue from sale of products and services				13220.30	12506.05	12759.44	38512.05	36270.34	49348.43
2.	Segment Results
	a)	FMCG	- Cigarettes	4006.39	3765.36	4036.44	12188.58	11329.13	15411.77
			- Others	108.64	79.55	92.04	280.57	194.42	325.55
			- Restructuring of Lifestyle Retailing Business	-	-	-	-	-	70.47
		Total FMCG		4115.03	3844.91	4128.48	12469.15	11523.55	15807.79
	b)	Hotels		88.90	66.72	17.01	115.73	98.91	185.69
	c)	Agri Business		251.51	215.50	249.40	702.69	648.78	793.38
	d)	Paperboards, Paper & Packaging		333.95	332.13	355.91	1019.62	938.70	1239.23
	e)	Others		65.15	34.84	77.01	210.98	145.01	172.45
		Total		4854.54	4494.10	4827.81	14518.17	13354.95	18198.54
	Less:	i)	Finance Costs	11.43	5.70	13.99	40.00	35.79	45.42
		ii)	Other un-allocable (income) net of un-allocable expenditure [Note(i)]	(338.25)	(339.79)	(228.29)	(936.82)	(677.02)	(985.00)
		iii)	Exceptional items *	132.11	-	-	132.11	-	-
Profit Before Tax				5049.25	4828.19	5042.11	15282.88	13996.18	19138.12
3.	Segment Assets
	a)	FMCG	- Cigarettes	8594.50	8929.27	9013.44	8594.50	8929.27	8863.69
			- Others	9153.51	8363.06	9683.03	9153.51	8363.06	8224.57
		Total FMCG		17748.01	17292.33	18696.47	17748.01	17292.33	17088.26
	b)	Hotels		7527.69	7092.86	7832.54	7527.69	7092.86	7302.46
	c)	Agri Business		4096.02	3843.18	4172.49	4096.02	3843.18	4191.18
	d)	Paperboards, Paper & Packaging		6925.15	6933.23	6917.79	6925.15	6933.23	6960.54
	e)	Others		1525.06	987.90	999.92	1525.06	987.90	901.55
		Total		37821.93	36149.50	38619.21	37821.93	36149.50	36443.99
		Unallocated Corporate Assets		37241.09	31934.41	33078.02	37241.09	31934.41	35354.42
Total Assets				75063.02	68083.91	71697.23	75063.02	68083.91	71798.41
4.	Segment Liabilities
	a)	FMCG	- Cigarettes	4686.26	4898.27	4891.28	4686.26	4898.27	4888.65
			- Others	2194.47	2103.26	2223.78	2194.47	2103.26	2020.85
		Total FMCG		6880.73	7001.53	7115.06	6880.73	7001.53	6909.50
	b)	Hotels		912.55	662.24	888.07	912.55	662.24	637.39
	c)	Agri Business		662.80	744.42	784.00	662.80	744.42	785.36
	d)	Paperboards, Paper & Packaging		795.65	804.34	844.82	795.65	804.34	755.48
	e)	Others		366.20	317.74	298.53	366.20	317.74	296.42
		Total		9617.93	9530.27	9930.48	9617.93	9530.27	9384.15
		Unallocated Corporate Liabilities		2941.78	3039.42	2794.84	2941.78	3039.42	2929.92
Total Liabilities				12559.71	12569.69	12725.32	12559.71	12569.69	12314.07

*Refer note 5 to the consolidated financial results.

Note (i): As stock options and stock appreciation linked reward units are granted under the ITC Employee Stock Option Schemes (ITC ESOS) and ITC Employee Cash Settled Stock Appreciation Linked Reward Plan (ITC ESARP), respectively, to align the interests of employees with those of shareholders and also to attract and retain talent for the enterprise as a whole, the charge thereof do not form part of the segment performance reviewed by the Corporate Management Committee.

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 & Meals; Snacks; Dairy & Beverages; Biscuits & Cakes; Chocolates, Coffee & Confectionery); 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.

Others

Information Technology services, Branded Residences etc.

(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 : 31st January, 2020
Place : Kolkata, India

For and on behalf of the Board

Director & Chief Financial Officer

Chairman & Managing Director

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Financial Results September 2019 - Standalone | Consolidated
Financial Results June 2019
Financial Results March 2019

Quarterly Results

Statement of Unaudited Consolidated Financial Results for the Quarter and Nine Months ended 31st December, 2019

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