ITC - Quarterly Statement of Standalone and Consolidated Financial Results

Statement of Consolidated Financial Results for the Quarter and Twelve Months ended 31st March, 2020

Particulars			3 Months ended 31.03.2020#	Corresponding 3 Months ended 31.03.2019#	Preceding 3 Months ended 31.12.2019	Twelve Months ended 31.03.2020	Twelve Months ended 31.03.2019
(Rs. in Crores)
			(Audited)	(Unaudited)	(Unaudited)	(Audited)	(Audited)
Gross Revenue from sale of products and services		(i)	12456.45	13078.09	13220.30	50968.50	49348.43
Other operating revenue		(ii)	104.19	134.10	87.24	424.97	513.68
REVENUE FROM OPERATIONS[(i)+(ii)]		1	12560.64	13212.19	13307.54	51393.47	49862.11
OTHER INCOME		2	667.76	690.11	652.96	2597.89	2173.79
TOTAL INCOME (1+2)		3	13228.40	13902.30	13960.50	53991.36	52035.90
EXPENSES
a)	Cost of materials consumed		3396.36	3400.97	3827.86	13810.70	13403.01
b)	Purchases of stock-in-trade		991.88	1325.82	728.88	4237.90	4220.51
c)	Changes in inventories of finished goods, stock-in-trade, work-in-progress and intermediates		(352.47)	(159.73)	130.58	(703.13)	(203.19)
d)	Excise duty		778.48	423.04	404.99	1989.42	1509.43
e)	Employee benefits expense		1095.76	1130.65	1085.21	4295.79	4177.88
f)	Finance costs		14.68	9.63	11.43	54.68	45.42
g)	Depreciation and amortization expense		413.23	370.78	436.90	1644.91	1396.61
h)	Other expenses		2147.01	2259.20	2153.29	8502.63	8348.11
TOTAL EXPENSES		4	8484.93	8760.36	8779.14	33832.90	32897.78
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (3-4)		5	4743.47	5141.94	5181.36	20158.46	19138.12
EXCEPTIONAL ITEMS (Refer Note 4)		6	-	-	(132.11)	(132.11)	-
PROFIT BEFORE TAX (5+6)		7	4743.47	5141.94	5049.25	20026.35	19138.12
TAX EXPENSE (Refer Note 6)		8	817.01	1549.14	1001.38	4441.79	6313.92
a)	Current Tax		952.89	1651.81	1183.18	4846.15	6191.62
b)	Deferred Tax		(135.88)	(102.67)	(181.80)	(404.36)	122.30
PROFIT FOR THE PERIOD (7-8)		9	3926.46	3592.80	4047.87	15584.56	12824.20
SHARE OF PROFIT / (LOSS) OF ASSOCIATES AND JOINT VENTURES		10	0.26	3.84	2.53	8.22	11.70
PROFIT AFTER TAX, SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES (9+10)		11	3926.72	3596.64	4050.40	15592.78	12835.90
OTHER COMPREHENSIVE INCOME		12	(806.81)	97.84	(368.03)	(1,469.97)	326.40
A (i)	Items that will not be reclassified to profit or loss		(817.70)	53.50	(393.78)	(1,490.98)	383.04
(ii)	Income tax relating to items that will not be reclassified to profit or loss		4.90	(1.11)	0.43	10.14	3.04
B (i)	Items that will be reclassified to profit or loss		(1.75)	50.98	25.87	0.74	(59.38)
(ii)	Income tax relating to items that will be reclassified to profit or loss		7.74	(5.53)	(0.55)	10.13	(0.30)
TOTAL COMPREHENSIVE INCOME (11+12)		13	3119.91	3694.48	3682.37	14122.81	13162.30
PROFIT FOR THE PERIOD ATTRIBUTABLE TO :
OWNERS OF THE PARENT			3856.52	3535.11	3975.54	15306.23	12592.33
NON-CONTROLLING INTERESTS			70.20	61.53	74.86	286.55	243.57
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO :
OWNERS OF THE PARENT			3049.06	3632.29	3607.51	13835.90	12919.28
NON-CONTROLLING INTERESTS			70.85	62.19	74.86	286.91	243.02
PAID UP EQUITY SHARE CAPITAL		14	1229.22	1225.86	1229.11	1229.22	1225.86
(Ordinary Shares of Re. 1/- each)
RESERVES EXCLUDING REVALUATION RESERVES		15				64044.04	57915.01
EARNINGS PER SHARE (of Re. 1/- each) (not annualised):		16
(a)	Basic (Rs.)		3.14	2.89	3.24	12.47	10.30
(b)	Diluted (Rs.)		3.13	2.87	3.23	12.45	10.24
# The figures for the 3 months ended 31.03.2020 and corresponding 3 months ended 31.03.2019 are the balancing figures between the audited figures in respect of the full financial year and the year to date figures upto the third quarter of the respective financial years.

Notes :

1	The audited 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 26 June, 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 March, 2020, 11,05,470 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 March, 2020 stands increased to Rs. 1229,22,31,241/-.
4	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.
5	The Board of Directors of the Company has recommended a dividend of Rs. 10.15 per Ordinary Share of Re. 1/- each for the financial year ended 31st March, 2020 and the dividend, if declared, will be paid on Tuesday, 8th September, 2020 to those Members entitled thereto.
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 were re-measured in the quarter ended 30th September, 2019. The resultant favourable impact of Rs. 1022.04 Crores has been recognised over the three quarters of the financial year commencing from the quarter ended 30th September, 2019. Consequently, Tax Expense for the quarter ended 31st March, 2020 includes a credit of Rs. 340.94 Crores (quarter ended 31st December, 2019 - Rs. 331.48 Crores).
7	The Company, on 23rd May, 2020, entered into a Share Purchase Agreement (SPA) 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.
8	The Group 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 Group has considered internal and external sources of information up to the date of approval of the Consolidated Financial Results, including credit reports and related information, economic forecasts, market value of certain investments etc. Based on the current estimates, the Group does not expect any significant impact on such carrying values. The impact of COVID-19 on the Group's financial statements may differ from that estimated as at the date of approval of the Consolidated Financial Results.
9	The Register of Members of the Company shall remain closed for the purpose of dividend from Wednesday, 8th July, 2020 to Thursday, 9th July, 2020.
10	The 109th Annual General Meeting of the Company has been convened for Friday, 4th September, 2020.
11	This statement is as per Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ITC LIMITED
Segment-wise Revenue, Results, Assets and Liabilities
for the Quarter and Twelve Months ended 31st March, 2020

Particulars				3 Months ended 31.03.2020#	Corresponding 3 Months ended 31.03.2019#	Preceding 3 Months ended 31.12.2019	Twelve Months ended 31.03.2020	Twelve Months ended 31.03.2019
(Rs. in Crores)
	CONSOLIDATED
				(Audited)	(Unaudited)	(Unaudited)	(Audited)	(Audited)
1.	Segment Revenue
	a)	FMCG	- Cigarettes	5750.44	6049.50	5944.86	23679.13	22913.27
			- Others	3190.34	3281.55	3320.45	12875.08	12535.04
		Total FMCG		8940.78	9331.05	9265.31	36554.21	35448.31
	b)	Hotels		494.76	530.19	574.26	1926.44	1746.74
	c)	Agri Business		1899.01	2111.03	2258.87	10453.87	9565.39
	d)	Paperboards, Paper & Packaging		1458.87	1537.36	1555.36	6107.18	5860.16
	e)	Others		575.68	491.50	563.69	2202.77	1966.62
		Total		13369.10	14001.13	14217.49	57244.47	54587.22
	Less : Inter-segment revenue			912.65	923.04	997.19	6275.97	5238.79
Gross Revenue from sale of products and services				12456.45	13078.09	13220.30	50968.50	49348.43
2.	Segment Results
	a)	FMCG	- Cigarettes	3649.88	4082.64	4006.39	15838.46	15411.77
			- Others	144.37	131.13	108.64	424.94	325.55
			- Restructuring of Lifestyle Retailing Business	-	70.47	-	-	70.47
		Total FMCG		3794.25	4284.24	4115.03	16263.40	15807.79
	b)	Hotels		38.27	86.78	88.90	154.00	185.69
	c)	Agri Business		127.05	144.60	251.51	829.74	793.38
	d)	Paperboards, Paper & Packaging		285.71	300.53	333.95	1305.33	1239.23
	e)	Others		79.97	27.44	65.15	290.95	172.45
		Total		4325.25	4843.59	4854.54	18843.42	18198.54
	Less :	i)	Finance Costs	14.68	9.63	11.43	54.68	45.42
		ii)	Other un-allocable (income) net of un-allocable expenditure [Note(i)]	(432.90)	(307.98)	(338.25)	(1369.72)	(985.00)
		iii)	Exceptional items *	-	-	132.11	132.11	-
Profit Before Tax				4743.47	5141.94	5049.25	20026.35	19138.12
3.	Segment Assets
	a)	FMCG	- Cigarettes	7483.78	8863.69	8594.50	7483.78	8863.69
			- Others	8809.78	8224.57	9153.51	8809.78	8224.57
		Total FMCG		16293.56	17088.26	17748.01	16293.56	17088.26
	b)	Hotels		7563.12	7302.46	7527.69	7563.12	7302.46
	c)	Agri Business		4333.55	4191.18	4096.02	4333.55	4191.18
	d)	Paperboards, Paper & Packaging		6816.90	6960.54	6925.15	6816.90	6960.54
	e)	Others		1601.91	901.55	1525.06	1601.91	901.55
		Total		36609.04	36443.99	37821.93	36609.04	36443.99
		Unallocated Corporate Assets		40758.00	35354.42	37241.09	40758.00	35354.42
Total Assets				77367.04	71798.41	75063.02	77367.04	71798.41
4.	Segment Liabilities
	a)	FMCG	- Cigarettes	4148.85	4888.65	4686.26	4148.85	4888.65
			- Others	2122.96	2020.85	2194.47	2122.96	2020.85
		Total FMCG		6271.81	6909.50	6880.73	6271.81	6909.50
	b)	Hotels		830.17	637.39	912.55	830.17	637.39
	c)	Agri Business		972.06	785.36	662.80	972.06	785.36
	d)	Paperboards, Paper & Packaging		764.12	755.48	795.65	764.12	755.48
	e)	Others		375.72	296.42	366.20	375.72	296.42
		Total		9213.88	9384.15	9617.93	9213.88	9384.15
		Unallocated Corporate Liabilities		2502.43	2929.92	2941.78	2502.43	2929.92
Total Liabilities				11716.31	12314.07	12559.71	11716.31	12314.07

# The figures for the 3 months ended 31.03.2020 and corresponding 3 months ended 31.03.2019 are the balancing figures between the audited figures in respect of the full financial year and the year to date figures upto the third quarter of the respective financial years.

*Refer note 4 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.

Balance Sheet Particulars			CONSOLIDATED
ITC Limited
(RS. in Crores)
			As at 31st March, 2020	As at 31st March, 2019
			(Audited)	(Audited)
A	ASSETS
1	Non-current assets
	(a)	Property, Plant and Equipment	19632.92	18625.74
	(b)	Capital work-in-progress	3251.61	4126.18
	(c)	Investment Property	385.36	-
	(d)	Goodwill on Consolidation	202.53	202.53
	(e)	Other Intangible assets	525.37	545.92
	(f)	Intangible assets under development	4.85	10.24
	(g)	Right of use assets	967.16	-
	(h)	Financial Assets
		(i) Investments
		(a) Investment in Associates	142.10	157.26
		(b) Investment in Joint Ventures	124.46	121.86
		(c) Others	10448.46	11416.87
		(ii) Loans	5.27	8.34
		(iii) Others	615.65	2385.17
	(i)	Deferred tax assets (Net)	56.29	59.37
	(j)	Income Tax Assets (Net)	38.42	28.53
	(k)	Other non-current assets	1461.24	2363.13
		Non-current assets	37861.69	40051.14
2	Current assets
	(a)	Inventories	8879.33	7859.56
	(b)	Biological assets other than bearer plants	86.20	84.41
	(c)	Financial Assets
		(i) Investments	17948.33	13347.50
		(ii) Trade receivables	2562.48	4035.28
		(iii) Cash and cash equivalents	650.35	317.81
		(iv) Other Bank Balances	6626.99	3834.22
		(v) Loans	6.33	6.75
		(vi) Others	1818.54	1499.68
	(d)	Other current assets	926.80	762.06
		Current assets	39505.35	31747.27
		Total Assets	77367.04	71798.41
B	EQUITY AND LIABILITIES
	Equity
	(a)	Equity Share capital	1229.22	1225.86
	(b)	Other Equity	64044.04	57915.01
		Attributable to the owners of the parent	65273.26	59140.87
	Non-controlling interests		377.47	343.47
		Total Equity	65650.73	59484.34
	LIABILITIES
1	Non-current liabilities
	(a)	Financial Liabilities
		(i) Borrowings	5.90	8.15
		(ii) Lease liabilities	204.00	-
		(iii) Other financial liabilities	127.87	73.41
	(b)	Provisions	175.37	161.95
	(c)	Deferred tax liabilities (Net)	1627.20	2052.06
	(d)	Other non-current liabilities	16.20	6.51
		Non-current liabilities	2156.54	2302.08
2	Current liabilities
	(a)	Financial Liabilities
		(i) Borrowings	1.42	1.86
		(ii) Trade payables
		Total outstanding dues of micro enterprises and small enterprises	37.93	55.41
		Total outstanding dues of creditors other than micro enterprises and small enterprises	3591.90	3454.17
		(iii) Lease liabilities	63.87	-
		(iv) Other financial liabilities	1394.88	1187.16
	(b)	Other current liabilities	4072.72	4838.32
	(c)	Provisions	148.18	51.38
	(d)	Current Tax Liabilities (Net)	248.87	423.69
		Current liabilities	9559.77	10011.99
		Total Equity and Liabilities	77367.04	71798.41

ITC Limited
Consolidated Cash Flow Statement for the year ended 31st March, 2020

		For the year ended 31st March, 2020 (Rs. in Crores)		For the year ended 31st March, 2019 (Rs. in Crores)
A.	Cash Flow from Operating Activities
	PROFIT BEFORE TAX		20034.57		19149.82
	ADJUSTMENTS FOR :
	Depreciation and amortization expense	1644.91		1396.61
	Share based payments to employees	112.99		239.70
	Finance costs	54.68		45.42
	Interest Income	(1522.13)		(1312.79)
	Dividend Income	(8.31)		(8.38)
	Loss on sale of property, plant and equipment - Net	56.68		105.05
	Net gain recognised on disposal of subsidiary	-		(9.40)
	Doubtful and bad debts	37.59		32.56
	Doubtful and bad advances, loans and deposits	(2.68)		6.01
	Share of (profit) / loss of associates and joint ventures	(8.22)		(11.70)
	Net (gain)/loss arising on investments mandatorily measured at Fair Value through profit or loss	(974.03)		(777.35)
	Foreign currency translations and transactions - Net	(9.49)		6.85
	Impairment of investment in joint venture	(0.15)	(618.16)	-	(287.42)
	OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES		19416.41		18862.40
	ADJUSTMENTS FOR :
	Trade receivables, advances and other assets	1411.00		(754.69)
	Inventories and biological assets other than bearer plants	(507.99)		(359.44)
	Trade payables, other liabilities and provisions	(606.87)	296.14	638.60	(475.53)
	CASH GENERATED FROM OPERATIONS		19712.55		18386.87
	Income tax paid		(5022.89)		(5803.46)
	NET CASH FROM OPERATING ACTIVITIES		14689.66		12583.41
B.	Cash Flow from Investing Activities
	Purchase of property, plant and equipment, Intangibles etc.	(2441.15)		(3169.12)
	Sale of property, plant and equipment	27.02		27.82
	Purchase of current investments	(77847.64)		(90732.22)
	Sale/redemption of current investments	72405.47		92154.09
	Purchase of non-current investments	(1987.78)		(3454.56)
	Redemption proceeds of non- current investments	3429.63		300.29
	Proceeds on disposal of subsidiary	-		17.75
	Dividend from associates and joint ventures	8.34		4.97
	Dividend from others	8.31		8.38
	Interest received	1513.35		1183.95
	Investment in bank deposits (original maturity more than 3 months)	(5602.32)		(5053.76)
	Redemption / maturity of bank deposits (original maturity more than 3 months)	4321.20		3477.97
	Investment in deposit with housing finance companies	(712.16)		(849.17)
	Redemption / maturity of deposit with housing finance companies	700.22		537.49
	Loans given	(3.61)		(9.60)
	Loans realised	7.10		10.04
	NET CASH USED IN INVESTING ACTIVITIES		(6174.02)		(5545.68)
C.	Cash Flow from Financing Activities
	Proceeds from issue of share capital	625.30		969.13
	Repayment of current borrowings	-		(10.56)
	Repayment of non-current borrowings	(3.42)		(7.07)
	Payment of lease liabilities	(49.35)		-
	Interest paid	(43.84)		(98.06)
	Net increase/(decrease) in statutory restricted accounts balances	(1.13)		10.75
	Dividend paid	(7301.62)		(6519.23)
	Income tax on dividend paid	(1407.42)		(1213.60)
	NET CASH USED IN FINANCING ACTIVITIES		(8181.48)		(6868.64)
	NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS		334.16		169.09
	OPENING CASH AND CASH EQUIVALENTS		342.88		173.79
	CLOSING CASH AND CASH EQUIVALENTS		677.04		342.88
Notes :
1.	The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in Ind AS - 7 "Statement of Cash Flows".
2.	CASH AND CASH EQUIVALENTS :
	Cash and cash equivalents as above		677.04		342.88
	Unrealised gain / (loss) on foreign currency cash and cash equivalents		(28.11)		(26.93)
	Cash credit facilities		1.42		1.86
	Cash and cash equivalents		650.35		317.81
3.	Net Cash Flow from Operating Activites includes an amount of Rs. 324.68 Crores (2019- Rs. 301.91 Crores) spent towards Corporate Social Responsibility.

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.

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.

(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 : 26 June, 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 June 2020 - Standalone | Consolidated
Financial Results December 2019 - Standalone | Consolidated

Quarterly Results

Statement of Consolidated Financial Results for the Quarter and Twelve Months ended 31st March, 2020