Document 396886

ITC Limited
Vireinia House
37
J:.
L. Nehru Road
Kolkata 700 071, krdia
Tel,:91-33-2288 9371
EuiluringValue
Foc
91-33-2288 0655
October 31,2014
Media Statement
Hishliqhts
Underlying
Net Revenue uP 14'8%
gro;ilin PiofitBefore Tax
at1l'8%
Non.cigaretteFMGGSegmentregistersarevenuegrowthofll.g%amidst
e nviron ment'
a pe rsistenuy sl u iii
J
ion="e-r demand
Revenue driven by trading opportunities
Robust growth in Agri Business
in wheat, soya and Goffee'
Revenue up 8'9% aided by
Paperboards, Paper & Packaging Segment
improvement and scale up of
frix
capacity
higher
C.lion= and Fllxibles packaging businesses'
Xrii,Jri*"0ffi*
Hospitalityindustrycontinues-tobeimpactedbyweakeconomic
segment Results for the quarter
conditions and pricing environmJnt.
in useful life of
depreciati"n
include additional
"targ;;;;-to,':I"ion
Act, 2013'
fixed asseb in.""ot Lnce with Companies
lTCpostedanotherquartelo|impressivesrgwthinrevenueandprofits
by a steep hike in '
notwithstanding a challenging busine.rLnui.n._"I^:f"erbated
in the Union
third yg^ar ln s_y_c33311n as announced
Excise Duties on c;g;"td*.i6rtre
driven
14'8%
of
dgso.ez crores recorded a srowth
Budset zo14.N"t
After
Foods, Personat Care and Cigarettes'
Packaged
ilr*O"O
Business,
Agri
by
(towa1{s Rates & Taxes and interest
in oz
adjusting for liabitity written back
crores)' underlying growLh
19?-u'
thereon pertaining {o earlier ye{s,"gilg"ting
pror,iiuii"ng th'" q.uarter stood aifi'a% and 15'6%
in profit Before r"*
""J-r.r6t
the qriarter stood at Rs' 3'04'
respectivefy. earn'ilgJpir Snrre for
d&;;;;;Fi;.
iii+
ht
FMGG- Others
Amidstasluggishconsumerdemandenvlronment,theBrandedPackagedFoods
in market standing dUring the qUartef
Businesses recorded further i*proi.mentmost
categories' tn ifre Staples' Spices
growing well aheal of tn" industry ltrr"i
robust growth driven
and Read,-to-eaiioods
gusindsl n".f,lrurd'attJ
recorded
*.".HoTELs.?APERBoARDS&PACI(AGING.AGRI-BUSINE,SSoINFoRMATIoNTECIINoLoGY
visitusatwu/[email protected]:L16005wBl9l0PLc00i985oe-mail:[email protected]
2
Foods
bypremiumvariantsandthe,selectofferingyrr]chcontinuestogainimpressive
Bakery anJ Conteclonery
tf,"
During
in two
9y3rt"i,-tnuconsumer franchrse.
range of premium cookies
Magic'
-"no ,ni.r,Lrtt"-r;- Tne ausiness also forayed into the
tauncnei'triu-"s"int"r.t'rt+or;i
Business ,casrrew-a'irrn-ono
products
variants in select markets' The
th:
segment.wlth
target
to
rolled out
Chewing Gums
have met with faviurable
markets.
"fl6rrOn'
anO are being
consr*"r'?Jpo;;
=d"n
,B.1ngo!, registered robust growth driven.by the finger
Business,
rn the snack Foods
MeJne" 'Tansles' and 'Galata
comprising
portfolio
snacks
Y"9i;;ili;;;i;orre
Styte; variants oi Bingo! Yumitos
tauncfruE;Oiigin'l
il"ntty
and
Masti, sub-brandr.
ttie ayartbt. ln tt'" lnstant Noodles
grinJO
S""O
potato chips rr.o
high growth trajectory and
pasta categones] 'Sunflast YiPPeeJ' ,rltuln"b its
enhanced market standing'
its product
Care Products B.!:.iness augmented
During the quarter, the Personal
variants
six
in
tf'" L"ntrt ot'Engage' Coiogne
range in the Deodorants category *iif,
p"ironrrwash cate;;ry, tlrg !.usi11-s expanded
of
- 3 each for men and women. tn the
groo-ming tugrlni with the introduction
the
its presence in th" r".t-groyng
under
Sh;;"lG-""1" u,nd F?-":-y,1*
severat new vanants of Gel eathing-;a;t,
consumer
,Fiama Di wi*s, brand. These pioducts have received encouraging
markets'
and are being extended to target
i[u
*.:
iir:tfil;;.g
,rt"
iuupon""
Cigarettes
smuggling
coupled.with the growing incidence--of
Discriminatory and punitive taxation
""nJf"ng"= faiing the legal ciga.rette industry
and i,egat ,rnuiriri" ,r" tne UiggIIt
quafer with the
*"r1--torpourided ouiing
in lndia. These chalengesBudgei
Duty rates
2Q14'ot a steep increase in Excise
announcement in the Union
;tengtn not exceeding 65 mm'' Such
inctuding a 7Z"i ni[" on fitter ciiaiett"t "1
by some
t"rpi"o *i-tn trttt'''"r increase in VAT on cigarettes
increase in outy
pressure on legal industry.volumes and
states during the quarter, will "I9rt further
the tobacco sector' The recent Government
sub-optimise the revenue potential from
heatth warnings covering 85% of the
notification mandating larger t,r" oigi"pttic
to be effectiu6 from April 1st 2015, will
principaroisprav aierin oitn sides-of i."'pr"r,
industny vls-i-vis both illegal cigarette
adversely irpr"t ir," domestic r"gJ.igri"tt"
products'
trade and other unbranded tobacco
th;
;i;,
Highincidenceoftaxationandadiscriminatoryregula.toryregimeoncigarettesinlndia
to lightly taxed
to a signii.rnt inin in ioOa."o co-nsumption
have, over the
chewing ro9.?".* andGutkha' These
ortax evaded,#;;;'ilar&"iir" eidi, Khrini,
prlsen*y Eonstitute over 88% of total
cheaper unO i"*nue inefiicie"t-;t;';i"
overalt tobacco consumption is
tobacco consumption in the couniry.-ih;";.*hile
in overall tobacco consumption has
increasing in tndia, the share 91 f."d'Ji^",glt^"*:
to betow 12o/o in 2013-14'
progressiverv oe"rin"Jt, zt"t iitgetlez
;;;;, i;
rates by some States provides an
The imposition of discriminatory and punitive VAT
sale of illegal stocks by criminal
attractive tax arbitrage opport;',d ;;iiting in
1
share'
of their regitimate revenue
the..state
i-o"tl'"n'" collection and
erements thus depriving
"Governments
trave-;;;;;;-Erim31ar
punitive tax rates'on
visible decrease
ot cigarettes without any
["0"
"i-,gur"ttes
iregj
in
mu*i_foii
have red to
in overatt tobacco consumPtion'
il;;;"
TheCompanywillcontinuetoeng.agewjththe.:!n..:*"dauthorities,bothatthe
tiii
jl i%'#;
fft
G ove rn rn e";;; 56t"'
U'
lt
ce ntrar
revent
on ciqarettes to maximize the
in. giountn of the illegal segment'
;[[1fiJ;ffi
::1[i
focus
the.company's unwavering
environment'
business
its leadership
Despite such a challenging
t" i""trrn"it LnaopJ it',io sustain
*ofl41"ia"1
iroau.t.
processes
providing
quality
on
innovation and
;rooua
consumer.J.ffiiil
industry.
in
the
oosition
to deliver superior value'
ffi#i;H
ih;
iliin""t
Hotels
scenario in the
impacted .bY weak pricing
The Hotels industry continued. to be
" overhang of excessive room
ana ifre
stuggish econom'".
backdrop of
-a-omestic
inventory in key
Seqment Revenue growth during
Hotels Business includes
5 ?%
in
the quarte,,"."iiIi'"iLJ"t
charge toi tte quarter due to revision
depreciition
,oJitionrr
to*riJJ
the
.r.
ll
to
13.4
Rs.
wi*rirre provisions of schedule
the usefur rife of fixed assets in acco'rianle
ComPanies Act, 2013'
uf:lll-"-Fortune banner in the'upscale'at
'My Fortune Bengalurrl', a fl3qship-property
guests' Project activity
has been well received by
Gotf
segment tauncnJJ'in May'14,
and.=p, ,,"toi -'lo"cated at the classicFY15'
luxury
lolf
super
a
Bharat
in Q3
ITC Grand
and is'exp""t"o to be launched
is
Hyderabad
Resort, nn"n"."ri";;*g "o*prlti"*
and
at the rr*urv-ilGl proiects in Kolkata
"oiOiiiJ*
marfets."i".t"qr"ltiy,
qfi;;i,q{{Tithe
construction activity
prog ressing satisfacto rilY'
providing
.asset.righf groMh strategy, the-.Business.commenced
its
ln line with
the quarter' taking the total number
operating serric"J.ItW"iCo*H"t"iiJiluituting the'S St"' category to 1150'
of rooms under the management ""nti'it-t""UelIn
PaPerboards, PaPer & Packaging
product
SegmentRevenuerecordedagrowthofS'9%wh1t-eSegmentResultsWereupg,To/o
effrcieniies, improvement in
il
utifisatiJn
capacity
prices
driven by higher
"p"irting
uusine"s. lloy:l:'' input
ri"*tol,l.
J""riging
cartons
quarter adversery
mix and scate-up of
remain-eJuilLurt"o te'u.ts ouring the
_
tnit of wood _ "no
particurarrv
imPacting margins'
up its in-house
during the quarter towards scaring
The Business made good progress gf'aOlachalam u-nit' in" proiect is expected to be
pulp manutacturing ;ap-19t, at tne
lommissioned in Q3 FY15'
Developrnent
Contribution to Sustainable
TheCompany,ssociallnvestmentsProgrammeajlgtoaddressthechallenges
change through a ranse
por.frr]'lnri;;il""t"1d;d;'i;iil",iry:lTate
of
out
arisrns
ruririnrnre s6'rre= of livelihood
overarching oui""iir"e of creating
of activities with the
for stakeholders.
chart:
ThefootprintoftheCompany,SsociallnvestmentsProgram,g.|"=.spread|o71
U" ri.*"A at a gtancJin ihe following
districts across
*".Jrii.i"ni
"un
lniervention Areas
Toat oGtrlcts Covered
$cEt
and Farm Forestry
Soit .nA Moisture Conservation
ffil
181,887
167,?76
Number
Artificial lnsemination
doses (in lakhs
256
Practices
susdinab-teLh/elihoodslnitiative
Cattle DeveloPment Centres
Animal Husbandry Services
ffientofWomen
Members
Self HelP GrouP
Livelihoods crq4!ec!
erimary Education
Beneficiaries
ft
Hectare
Hectare
14.23
Persons
Persons
Children (in la(hg
tati o n
Low Cost Sanitary Units
ea-ttna n A Sa n
i
New Dethi on october 31st 2014' approved
The Board of Directors, at its meeting in
SAt"'b;r 30h 2014'which are enclosed'
the financial results for the quarter "nlf"i
(Nazeeb Arif)
Vice President
Corporate Communications
ITC Limited
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