ITC - Quarterly Statement of Standalone and Consolidated Financial Results

Statement of Standalone 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)	(Audited)	(Unaudited)	(Audited)	(Audited)
Gross Revenue from sale of products and services	(i)	11300.05	12064.15	11912.16	46323.72	45221.41
Other operating revenue	(ii)	119.99	141.88	100.85	483.62	562.98
REVENUE FROM OPERATIONS[(i)+(ii)]	1	11420.04	12206.03	12013.01	46807.34	45784.39
OTHER INCOME	2	755.54	740.18	983.62	3013.66	2484.54
TOTAL INCOME (1+2)	3	12175.58	12946.21	12996.63	49821.00	48268.93
EXPENSES
a) Cost of materials consumed		3254.23	3335.33	3360.82	13121.76	13184.97
b) Purchases of stock-in-trade		987.26	1331.28	743.90	4289.71	4300.32
c) Changes in inventories of finished goods, stock-in-trade, work-in-progress and intermediates		(174.43)	(51.02)	441.77	(176.34)	(180.14)
d) Excise duty		577.76	213.92	207.37	1187.64	788.74
e) Employee benefits expense		666.53	759.99	669.11	2658.21	2728.44
f) Finance costs		14.73	7.74	12.44	55.72	34.19
g) Depreciation and amortization expense		392.50	350.18	416.21	1563.27	1311.70
h) Other expenses		1945.16	2044.88	1977.37	7822.11	7656.55
TOTAL EXPENSES	4	7663.74	7992.30	7828.99	30522.08	29824.77
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (3-4)	5	4511.84	4953.91	5167.64	19298.92	18444.16
EXCEPTIONAL ITEMS (Refer Note 4)	6	-	-	(132.11)	(132.11)	-
PROFIT BEFORE TAX (5+6)	7	4511.84	4953.91	5035.53	19166.81	18444.16
TAX EXPENSE (Refer Note 5)	8	714.76	1472.01	893.60	4030.76	5979.84
a) Current Tax		852.70	1574.38	1075.13	4441.97	5849.24
b) Deferred Tax		(137.94)	(102.37)	(181.53)	(411.21)	130.60
PROFIT FOR THE PERIOD (7-8)	9	3797.08	3481.90	4141.93	15136.05	12464.32
OTHER COMPREHENSIVE INCOME	10	(761.21)	56.32	(364.22)	(1381.81)	362.56
A (i) Items that will not be reclassified to profit or loss		(744.22)	45.23	(367.62)	(1365.32)	358.32
(ii) Income tax relating to items that will not be reclassified to profit or loss		4.69	0.81	0.43	9.62	3.69
B (i) Items that will be reclassified to profit or loss		(29.42)	15.81	3.52	(36.24)	0.85
(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 (9+10)	11	3035.87	3538.22	3777.71	13754.24	12826.88
PAID UP EQUITY SHARE CAPITAL	12	1229.22	1225.86	1229.11	1229.22	1225.86
(Ordinary Shares of Rs. 1/- each)
RESERVES EXCLUDING REVALUATION RESERVES	13				62799.94	56723.93
EARNINGS PER SHARE (of Rs. 1/- each) (not annualised):	14
(a) Basic (Rs.)		3.09	2.84	3.37	12.33	10.19
(b) Diluted (Rs.)		3.09	2.83	3.36	12.31	10.13

# 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 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 26th 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 Rs. 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 Company has 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 September 30, 2019. The resultant favourable impact of Rs. 1020.00 Crores has been recognised over the three quarters of the financial year commencing from quarter ended 30th September, 2019. Consequently, Tax Expense for the quarter ended 31st March, 2020 includes a credit of Rs. 340.00 Crores (quarter ended 31st December, 2019 - Rs. 340.00 Crores).
6	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.
7	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.
8	The Board of Directors of the Company has recommended a dividend of Rs. 10.15 per Ordinary Share of Rs. 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.
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

				STANDALONE
(Rs. in Crores)
Particulars				3 Months ended 31.03.2020#	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
				(Audited)	(Audited)	(Unaudited)	(Audited)	(Audited)
1.	Segment Revenue
	a)	FMCG	- Cigarettes	5130.53	5485.92	5310.98	21201.74	20712.95
			- Others	3183.55	3273.92	3312.32	12844.23	12505.28
	Total FMCG			8314.08	8759.84	8623.30	34045.97	33218.23
	b)	Hotels		465.75	509.76	552.31	1837.28	1665.45
	c)	Agri Business		1887.26	2100.93	2094.71	10240.72	9396.54
	d)	Paperboards, Paper & Packaging		1458.86	1537.36	1555.37	6107.18	5860.16
		Total		12125.95	12907.89	12825.69	52231.15	50140.38
	Less : Inter-segment revenue			825.90	843.74	913.53	5907.43	4918.97
Gross Revenue from sale of products and services				11300.05	12064.15	11912.16	46323.72	45221.41
2.	Segment Results
	a)	FMCG	- Cigarettes	3403.00	3855.95	3755.97	14852.55	14551.07
			- Others [Note (i)]	146.95	130.49	107.62	423.05	315.72
			- Restructuring of Lifestyle Retailing Business	-	70.47	-	-	70.47
		Total FMCG		3549.95	4056.91	3863.59	15275.60	14937.26
	b)	Hotels		42.60	88.67	87.33	157.75	177.74
	c)	Agri Business		123.11	147.24	213.44	788.92	776.63
	d)	Paperboards, Paper & Packaging		285.70	300.53	333.96	1305.33	1239.23
		Total		4001.36	4593.35	4498.32	17527.60	17130.86
	Less :	i) Finance Costs		14.73	7.74	12.44	55.72	34.19
		ii) Other un-allocable (income) net of un-allocable expenditure [Note (ii)]		(525.21)	(368.30)	(681.76)	(1827.04)	(1347.49)
		iii) Exceptional Items *		-	-	132.11	132.11	-
Profit Before Tax				4511.84	4953.91	5035.53	19166.81	18444.16
3.	Segment Assets
	a)	FMCG - Cigarettes		6903.91	8315.15	8026.25	6903.91	8315.15
		- Others		8694.53	8093.09	9036.61	8694.53	8093.09
		Total FMCG		15598.44	16408.24	17062.86	15598.44	16408.24
	b)	Hotels		6646.08	6016.28	6629.57	6646.08	6016.28
	c)	Agri Business		4030.59	3901.03	3878.66	4030.59	3901.03
	d)	Paperboards, Paper & Packaging		6823.85	6966.69	6932.46	6823.85	6966.69
		Total		33098.96	33292.24	34503.55	33098.96	33292.24
		Unallocated Corporate Assets		42136.40	36505.68	38319.52	42136.40	36505.68
Total Assets				75235.36	69797.92	72823.07	75235.36	69797.92
4.	Segment Liabilities
	a)	FMCG	- Cigarettes	3991.11	4720.75	4532.75	3991.11	4720.75
			- Others	2133.61	2017.30	2208.12	2133.61	2017.30
		Total FMCG		6124.72	6738.05	6740.87	6124.72	6738.05
	b)	Hotels		858.06	608.42	938.10	858.06	608.42
	c)	Agri Business		1098.29	907.32	829.05	1098.29	907.32
	d)	Paperboards, Paper & Packaging		764.73	755.90	795.70	764.73	755.90
		Total		8845.80	9009.69	9303.72	8845.80	9009.69
		Unallocated Corporate Liabilities		2360.40	2838.44	2572.87	2360.40	2838.44
Total Liabilities				11206.20	11848.13	11876.59	11206.20	11848.13

# 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 standalone financial results.
Note (i): In respect of FMCG-Others segment, earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter and twelve months ended 31.03.2020 is Rs. 256.47 Crores and Rs. 914.00 Crores respectively (quarter ended 31.12.2019 - Rs. 255.82 Crores; quarter ended 31.03.2019 - Rs. 228.27 Crores and twelve months ended 31.03.2019 - Rs. 688.25 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.

ITC Limited

Balance Sheet			STANDALONE
(Rs. in Crores)
Particulars			As at 31st March, 2020	As at 31st March, 2019
Particulars			(Audited)	(Audited)
A	ASSETS
1	Non-current assets
	(a)	Property, Plant and Equipment	18932.57	17945.65
	(b)	Capital work-in-progress	2776.31	3391.47
	(c)	Investment Property	385.36	-
	(d)	Intangible assets	519.45	540.75
	(e)	Intangible assets under development	3.89	9.89
	(f)	Right of use assets	680.17	-
	(g)	Financial Assets
		(i) Investments	13455.59	14071.45
		(ii) Loans	3.31	6.21
		(iii) Others	607.09	2380.49
	(h)	Other non-current assets	1364.71	1883.05
		Non-current assets	38728.45	40228.96
2	Current assets
	(a)	Inventories	8038.07	7587.24
	(b)	Financial Assets
		(i) Investments	17175.02	12506.55
		(ii) Trade receivables	2092.00	3646.22
		(iii) Cash and cash equivalents	561.84	162.71
		(iv) Other Bank Balances	6281.43	3606.02
		(v) Loans	4.87	5.02
		(vi) Others	1505.94	1360.29
	(c)	Other current assets	847.74	694.91
		Current assets	36506.91	29568.96
		Total Assets	75235.36	69797.92
B	EQUITY AND LIABILITIES
	Equity
	(a)	Equity Share capital	1229.22	1225.86
	(b)	Other Equity	62799.94	56723.93
		Equity	64029.16	57949.79
	LIABILITIES
1	Non-current liabilities
	(a)	Financial Liabilities
		(i) Borrowings	5.63	7.89
		(ii) Lease liabilities	259.25	-
		(iii) Other financial liabilities	90.47	41.90
	(b)	Provisions	143.79	132.64
	(c)	Deferred tax liabilities (Net)	1617.65	2044.14
		Non-current liabilities	2116.79	2226.57
2	Current liabilities
	(a)	Financial Liabilities
		(i) Trade payables
		Total outstanding dues of micro enterprises and small enterprises	34.67	54.32
		Total outstanding dues of creditors other than micro enterprises and small enterprises	3412.07	3313.96
		(ii) Lease liabilities	64.87	-
		(iii) Other financial liabilities	1147.24	972.94
	(b)	Other current liabilities	4175.91	4910.40
	(c)	Provisions	117.94	25.24
	(d)	Current Tax Liabilities (Net)	136.71	344.70
		Current liabilities	9089.41	9621.56
		Total Equity and Liabilities	75235.36	69797.92

ITC Limited
Standalone 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		19166.81		18444.16
	ADJUSTMENTS FOR :
	Depreciation and amortization expense	1563.27		1311.70
	Share based payments to employees	105.77		215.00
	Finance costs	55.72		34.19
	Interest Income	(1438.87)		(1242.62)
	Dividend Income	(551.11)		(415.90)
	Loss on sale of property, plant and equipment - Net	56.08		102.11
	Doubtful and bad debts	16.17		21.65
	Doubtful and bad advances, loans and deposits	(1.71)		5.30
	Impairment of investment in joint venture	10.00		-
	Net gain recognised on disposal of subsidiary	-		(9.40)
	Net (gain)/loss arising on investments mandatorily measured at fair value through profit or loss	(944.25)		(751.79)
	Foreign currency translations and transactions - Net	0.44	(1128.49)	2.30	(727.46)
	OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES		18038.32		17716.70
	ADJUSTMENTS FOR :
	Trade receivables, advances and other assets	1527.33		(699.48)
	Inventories	(450.83)		(350.09)
	Trade payables, other liabilities and provisions	(658.50)	418.00	567.80	(481.77)
	CASH GENERATED FROM OPERATIONS		18456.32		17234.93
	Income tax paid		(4650.14)		(5485.88)
	NET CASH FROM OPERATING ACTIVITIES		13806.18		11749.05
B.	Cash Flow from Investing Activities
	Purchase of property, plant and equipment, Intangibles etc.	(2140.35)		(2768.64)
	Sale of property, plant and equipment	26.75		9.16
	Purchase of current investments	(74803.59)		(86963.22)
	Sale/redemption of current investments	69214.00		88535.08
	Investment in subsidiaries	(202.39)		(426.48)
	Purchase of non-current investments	(1987.78)		(3404.69)
	Redemption proceeds of non-current investments	3429.63		300.29
	Proceeds on disposal of subsidiary	-		17.75
	Dividend Income	551.11		415.90
	Interest received	1437.26		1112.91
	Investment in bank deposits (original maturity more than 3 months)	(4666.57)		(4527.30)
	Redemption / maturity of bank deposits (original maturity more than 3 months)	3508.18		2928.78
	Investment in deposit with housing finance companies	(585.16)		(848.03)
	Redemption / maturity of deposit with housing finance companies	699.15		536.42
	Loans given	(3.22)		(5.35)
	Loans realised	6.27		5.67
	NET CASH USED IN INVESTING ACTIVITIES		(5516.71)		(5081.75)
C.	Cash Flow from Financing Activities
	Proceeds from issue of share capital	625.30		969.13
	Repayment of non-current borrowings	(3.23)		(6.87)
	Payment of lease liabilities	(44.03)		-
	Interest paid	(45.54)		(86.68)
	Net increase/(decrease) in statutory restricted accounts balances	(1.14)		10.75
	Dividend paid	(7048.71)		(6285.21)
	Income tax on dividend paid	(1373.52)		(1201.69)
	NET CASH USED IN FINANCING ACTIVITIES		(7890.87)		(6600.57)
	NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS		398.60		66.73
	OPENING CASH AND CASH EQUIVALENTS		162.75		96.02
	CLOSING CASH AND CASH EQUIVALENTS		561.35		162.75
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		561.35		162.75
	Unrealised gain / (loss) on foreign currency cash and cash equivalents		0.49		(0.04)
	Cash and cash equivalents		561.84		162.71
3.	Net Cash Flow from Operating Activites includes an amount of Rs. 322.06 Crores (2019- Rs. 299.14 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.

(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 : 26th 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 Standalone Financial Results for the Quarter and Twelve Months ended 31st March, 2020