Economic Performance

ITC posted yet another year of impressive results testifying to the robustness of the corporate strategy of creating multiple drivers of growth. The performance is even more satisfying when viewed in the light of the challenging business environment of the cigarette industry, incubation costs of new FMCG business and the rural marketing initiatives and gestation costs of investments in the paperboards business. Gross Turnover for the year 2005-06 grew by 21.5% to Rs. 16,224 crores driven by good topline growth across all businesses of the Company. Pre-tax profit (before exceptional items) increased by 22.3% to Rs. 3,269 crores, while post-tax profit (before exceptional items) at Rs. 2,280 crores registered a growth of 24.1%. The ITC scrip gained 118% during the year outperforming the benchmark BSE Sensex by 44 percentage points.