ITC - Quarterly Statement of Standalone and Consolidated Financial Results

Statement of Unaudited Standalone Financial Results for the Quarter ended 30th June, 2020

Particulars		3 Months ended 30.06.2020	Corresponding 3 Months ended 30.06.2019	Preceding 3 Months ended 31.03.2020#	Twelve Months ended 31.03.2020
(Rs. in Crores)
		(Unaudited)	(Unaudited)	(Audited)	(Audited)
Gross Revenue from sale of products and services	(i)	9435.61	11361.35	11300.05	46323.72
Other operating revenue	(ii)	66.14	141.47	119.99	483.62
REVENUE FROM OPERATIONS[(i)+(ii)]	1	9501.75	11502.82	11420.04	46807.34
OTHER INCOME	2	896.82	620.17	755.54	3013.66
TOTAL INCOME (1+2)	3	10398.57	12122.99	12175.58	49821.00
EXPENSES
a) Cost of materials consumed		3048.44	3098.29	3254.23	13121.76
b) Purchases of stock-in-trade		1676.61	1816.23	987.26	4289.71
c) Changes in inventories of finished goods, stock-in-trade, work-in-progress and intermediates		(778.13)	(774.66)	(174.43)	(176.34)
d) Excise duty		590.43	190.37	577.76	1187.64
e) Employee benefits expense		696.92	690.31	666.53	2658.21
f) Finance costs		16.79	15.22	14.73	55.72
g) Depreciation and amortization expense		398.18	358.89	392.50	1563.27
h) Other expenses		1620.90	1916.60	1945.16	7822.11
TOTAL EXPENSES	4	7270.14	7311.25	7663.74	30522.08
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (3-4)	5	3128.43	4811.74	4511.84	19298.92
EXCEPTIONAL ITEMS	6	-	-	-	(132.11)
PROFIT BEFORE TAX (5+6)	7	3128.43	4811.74	4511.84	19166.81
TAX EXPENSE	8	785.67	1637.80	714.76	4030.76
a) Current Tax		767.95	1563.38	852.70	4441.97
b) Deferred Tax		17.72	74.42	(137.94)	(411.21)
PROFIT FOR THE PERIOD (7-8)	9	2342.76	3173.94	3797.08	15136.05
OTHER COMPREHENSIVE INCOME	10	(5.73)	(213.01)	(761.21)	(1381.81)
A (i) Items that will not be reclassified to profit or loss		(17.83)	(218.57)	(744.22)	(1365.32)
(ii) Income tax relating to items that will not be reclassified to profit or loss		0.97	2.23	4.69	9.62
B (i) Items that will be reclassified to profit or loss		14.87	5.12	(29.42)	(36.24)
(ii) Income tax relating to items that will be reclassified to profit or loss		(3.74)	(1.79)	7.74	10.13
TOTAL COMPREHENSIVE INCOME (9+10)	11	2337.03	2960.93	3035.87	13754.24
PAID UP EQUITY SHARE CAPITAL	12	1229.22	1225.86	1229.22	1229.22
(Ordinary Shares of Re. 1/- each)
RESERVES EXCLUDING REVALUATION RESERVES	13				62799.94
EARNINGS PER SHARE (of Re. 1/- each) (not annualised):	14
(a) Basic (Rs.)		1.91	2.59	3.09	12.33
(b) Diluted (Rs.)		1.91	2.57	3.09	12.31

# The figures for the preceding 3 months ended 31.03.2020 are the balancing figures between the audited figures in respect of the full financial year ended 31.03.2020 and the year to date figures upto the third quarter of that financial year.

Notes :

1	The Unaudited Standalone 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 24th July, 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	The Company on 9th July, 2020, incorporated a wholly owned subsidiary in the name of ‘ITC IndiVision Limited’; the initial subscribed share capital of the said company would be Rs. 1 crore.
4	As reported earlier, the Company had entered into a Share Purchase Agreement (SPA) on 23rd May, 2020, to acquire 100% of the equity share capital of Messrs. Sunrise Foods Private Limited, an Indian company primarily engaged in the business of spices under the trademark ‘Sunrise’, subject to fulfilment of various terms and conditions as specified in the SPA. The Company and the sellers are working towards consummation of the transaction.
5	The Company has considered the possible effects that may arise out of the still unfolding COVID-19 pandemic on the carrying amounts of property, plant & equipment, intangible assets, investments, inventories, trade receivables, etc. For this purpose, the Company has considered internal and external sources of information up to the date of approval of the Standalone Financial Results including credit reports and related information, economic forecasts, market value of certain investments etc. Based on the current estimates, the Company does not expect any significant impact on such carrying values. The impact of COVID-19 on the Company's financial statements may differ from that estimated as at the date of approval of Standalone Financial Results.
6	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 ended 30th June, 2020 which needs to be explained.

ITC LIMITED
Unaudited Segment-wise Revenue, Results, Assets and Liabilities
for the Quarter ended 30th June, 2020

				STANDALONE
(Rs. in Crores)
Particulars				3 Months ended 30.06.2020	3 Months ended 30.06.2019	Preceding 3 Months ended 31.03.2020#	Twelve Months ended 31.03.2020
				(Unaudited)	(Unaudited)	(Audited)	(Audited)
1.	Segment Revenue
	a)	FMCG	- Cigarettes	3853.79	5433.40	5130.53	21201.74
			- Others	3374.57	3060.05	3183.55	12844.23
	Total FMCG			7228.36	8493.45	8314.08	34045.97
	b)	Hotels		22.58	392.59	465.75	1837.28
	c)	Agri Business		3746.30	3611.23	1887.26	10240.72
	d)	Paperboards, Paper & Packaging		1026.44	1527.53	1458.86	6107.18
		Total		12023.68	14024.80	12125.95	52231.15
	Less : Inter-segment revenue			2588.07	2663.45	825.90	5907.43
Gross Revenue from sale of products and services				9435.61	11361.35	11300.05	46323.72
2.	Segment Results
	a)	FMCG	- Cigarettes	2356.38	3849.13	3403.00	14852.55
			- Others [Note (i)]	125.41	78.02	146.95	423.05
		Total FMCG		2481.79	3927.15	3549.95	15275.60
	b)	Hotels		(242.58)	10.39	42.60	157.75
	c)	Agri Business		178.73	202.95	123.11	788.92
	d)	Paperboards, Paper & Packaging		160.12	329.76	285.70	1305.33
		Total		2578.06	4470.25	4001.36	17527.60
	Less :	i) Finance Costs		16.79	15.22	14.73	55.72
		ii) Other un-allocable (income) net of un-allocable expenditure [Note (ii)]		(567.16)	(356.71)	(525.21)	(1827.04)
		iii) Exceptional Items		-	-	-	132.11
Profit Before Tax				3128.43	4811.74	4511.84	19166.81
3.	Segment Assets
	a)	FMCG - Cigarettes		6736.71	8392.38	6903.91	6903.91
		- Others		10209.59	9536.33	8694.53	8694.53
		Total FMCG		16946.30	17928.71	15598.44	15598.44
	b) Hotels			6577.62	6368.81	6646.08	6646.08
	c) Agri Business			4304.84	4626.16	4030.59	4030.59
	d) Paperboards, Paper & Packaging			7073.03	6966.82	6823.85	6823.85
	Total			34901.79	35890.50	33098.96	33098.96
	Unallocated Corporate Assets			44298.77	38781.55	42136.40	42136.40
Total Assets				79200.56	74672.05	75235.36	75235.36
4.	Segment Liabilities
	a)	FMCG	- Cigarettes	4701.65	4980.18	3991.11	3991.11
			- Others	2559.08	2080.61	2133.61	2133.61
		Total FMCG		7260.73	7060.79	6124.72	6124.72
	b)	Hotels		812.57	874.64	858.06	858.06
	c)	Agri Business		1175.76	1019.28	1098.29	1098.29
	d)	Paperboards, Paper & Packaging		930.03	795.40	764.73	764.73
		Total		10179.09	9750.11	8845.80	8845.80
		Unallocated Corporate Liabilities		2619.93	3960.35	2360.40	2360.40
Total Liabilities				12799.02	13710.46	11206.20	11206.20
# The figures for the preceding 3 months ended 31.03.2020 are the balancing figures between the audited figures in respect of the full financial year ended 31.03.2020 and the year to date figures upto the third quarter of that financial year.
Note (i): In respect of FMCG-Others segment, earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended 30.06.2020 is Rs. 257.34 Crores (quarter ended 30.06.2019 is Rs. 180.69 Crores, quarter ended 31.03.2020 is Rs. 256.47 Crores and twelve months ended 31.03.2020 - Rs. 914.00 Crores).
Note (ii): 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); Education and Stationery Products; Personal Care Products; Safety Matches and Agarbattis; Apparel.

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.

(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.

(4)

Figures for the corresponding previous periods are re-arranged, wherever necessary, to conform to the figures of the current period.

Registered Office :
Virginia House, 37 J.L. Nehru Road,
Kolkata 700 071, India

Dated : 24th July, 2020
Place : Kolkata, India

For and on behalf of the Board

Director & Chief Financial Officer

Chairman & Managing Director

Website: www.itcportal.com | E-mail: enduringvalue@itc.in | Phone: +91-33-2288 9371 | Fax: +91-33-2288 0655 | CIN : L16005WB1910PLC001985

Click here for Commentary on Performance

Financial Results September 2020 - Standalone | Consolidated
Financial Results March 2020 - Standalone | Consolidated
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Quarterly Results

Statement of Unaudited Standalone Financial Results for the Quarter ended 30th June, 2020