Sustainability Report 2011

Economic Performance

ITC, in its Centenary Year, posted yet another year of stellar performance with an impressive top line growth and high quality earnings reflecting the robustness of its corporate strategy of creating multiple drivers of growth. This performance is particularly noteworthy when viewed against the backdrop of the extremely challenging business context in which this was achieved, namely, the steep increase in excise duties in the Union Budget 2010 coupled with the amplified impact of arbitrary increases in VAT on cigarettes, brand building and incubation costs of the new FMCG businesses, the impact of the significant investments made in augmenting distribution infrastructure and the gestation costs of the large investments in the Hotels business.

Gross Turnover for the year grew by 16.5% to ` 30,604.39 crores. Net Turnover at ` 21,167.58 crores grew by 16.6% primarily driven by a 23.1% growth in the non-cigarette FMCG businesses, 22.9% growth in Agri business and 17.6% growth in the Hotels segment. Pre-tax profits increased by 20.8% to ` 7268.16 crores while Post-tax profits at ` 4,987.61 crores registered a growth of 22.8%.

Earnings Per Share for the year stands at ` 6.49 (previous year - adjusted for Bonus Issue - ` 5.34). Cash flows from Operations stood at ` 7,460 crores compared to ` 6,632 crores in the previous year.

ITC completed 100 years in August 2010. It is a matter of great pride to reflect on the enormous progress made by ITC over the years. ITC today is the leading FMCG marketer in India, the second largest Hotel chain, the clear market leader in the Indian Paperboards and Packaging industry and the country’s foremost Agri business player. Additionally, ITC’s wholly owned subsidiary, ITC Infotech India Limited, is one of India’s fast growing Information Technology companies in the mid-tier segment.

ITC today is one of India’s most admired and valuable corporations with a market capitalisation in excess of ` 1,40,000 crores and has consistently been, over the last fifteen years, amongst the top 10 private sector companies in terms of market capitalisation. The Company is debt free. The amount reflected as debt primarily consists of various incentives given by the Government and are interest free. (Refer to ITC Report & Accounts 2011, schedule 4, page 85)

Last year, in celebration of ITC completing a 100 years, the Company had declared a Special Centenary Dividend of ` 5.50 per share (adjusted for bonus issue - ` 2.75 per share) in addition to a Dividend of ` 4.50 per share (adjusted for bonus issue - ` 2.25 per share). In addition a 1:1 Bonus issue was also made in the Centenary year.

Direct Economic Impact

* Detailed Financial Performance available at Here