ITC LTD - RESULTS FOR - Q2 FY 2013 - Q/E SEP,2012 - REVENUE UP 20%; NET PROFIT UP 21% YoY - EXPANSIONS FOR FUTURE ARE PROMISING

ITC LIMITED

RESULTS FOR Q2 FY 2013

SEP,2012

ITC has announced Good Results for the second quarter ending Sep,2012.

HIGH LIGHTS

Ø  Ø Non-Cigarette FMCG segment registers robust revenue growth of 26.4% and improves profitability

Ø ITC Grand Chola, the world’s largest LEED Platinum rated hotel in the New Construction category, launched in September 2012

Ø Gross Revenue/Income from Operations at Rs 10223.86 Crs grew by 19.9% driven primarily by Branded Packaged Foods, Agri business and Cigarettes.

Ø Profit from Operations grew by 21.8% to Rs 2499.41 Crs .

Ø Profit Before Tax and Net Profit stand at Rs 2661.10 Crs and Rs 1836.42 Crs registering a growth of 20.1% and 21.3% respectively.

Ø Earnings Per Share for the quarter stood at Rs 2.34.

  More Details are in the table below.

FMCG - Branded Packaged Foods

The business recorded significant growth during the quarter across all major categories. An enriched sales mix combined with smart commodity sourcing and supply chain optimisation helped enhance profitability.

Sunfeast biscuits sustained its robust growth  with innovative products such as Dream Cream, Dark Fantasy Choco Fills. The brand has emerged as the clear market leader in  premium cream biscuits segment.

Sunfeast Yippee! Noodles and Bingo! range of savoury snacks continued to enhance consumer franchise during the quarter, leveraging a highly innovative product portfolio.

 Aashirvaad atta further consolidated its leadership position- with value added and premium offerings viz. 'Select' and 'Multi-grain' variants.

Personal Care Products

The Soap category garnered significant consumer franchise driven by the 'Vivel Luxury Creme' and 'Vivel Clear' variants.

New variant - ‘Exotic Dream’ transparent gel bar was launched - in select markets under the Fiama Di Wills brand.

Consumer response to recent launches such as 'Vivel Summer Fair', for fresh and fair skin, has been encouraging.

'Laboratoire Naturel' - the state-of-the-art consumer and product interaction centre set up by the business in Bengaluru - is being increasingly leveraged to connect R&D and brand teams to the Indian consumer.

Education & Stationery Products

Classmate notebooks registered an impressive growth during the quarter.

The business continues to strengthen the Paperkraft brand, its premium executive and office supplies range. Paperkraft's green credentials are supported,, by the Company's membership of the prestigious Global Forest & Trade Network, an international initiative of the WWF (World Wide Fund for Nature).

Cigarettes

The continuing discriminatory taxation and regulatory framework against cigarettes in India, which account for only 15% of overall tobacco consumption, is a major cause of concern. The steep increase in the tax rates on cigarettes over the years, both at the Central and at the State level, has led to the undesirable consequence of shifting consumption patterns to lightly taxed or tax evaded tobacco products like Bidi, Khaini, Chewing Tobacco and Gutkha which constitute 85% of overall tobacco usage in India besides providing a fillip to illegal cigarette trade.

The sharp increases in Excise duty and VAT on cigarettes during the year have further exacerbated the problem. Consequently, industry volumes have come under severe pressure.

During the quarter, several initiatives were launched across the brand portfolio viz., Classic, Gold Flake, Flake, Navy Cut including pack modernisation, introduction of new variants and limited edition packs leading to further enhancement of market standing. The launches in the new filter segment (cigarette length not exceeding 65 mm) have met with favourable consumer response.

Hotels

Hospitality sector continued to be adversely impacted by the weak economic conditions prevailing in key international source markets and India and significant additions to room supplies in key Indian cities.

During the quarter, the Company unveiled its latest offering in the super premium segment - ITC Grand Chola at Chennai. The hotel has achieved the distinction of being the world’s largest 'Leadership in Energy and Environmental Design' (LEED) Platinum rated hotel under the New Construction category bolstering the unique positioning of ITC Hotels as the greenest luxury hotel chain in the world.

Construction activity of the new luxury properties at Kolkata and at the Classic Golf Resort near Gurgaon is progressing as per plans.

Paperboards, Paper & Packaging

Segment Revenues grew by 6% , aided by improved realisations and product mix enrichment. Segment Results were, however, impacted by the steep hike in input prices particularly that of wood. The business is investing in a state-of-the-art paperboard machine at Bhadrachalam and new packaging & printing facilities at Haridwar which are expected to become operational shortly

Agri Business

Segment Revenues recorded a robust growth of 41% during the quarter aided by wheat exports. Operations at the recently commissioned state-of-the art green leaf tobacco threshing plant in Mysore were scaled up leading to enhanced quality and supply chain efficiencies. The business continues to provide strategic sourcing support to the Company’s Cigarettes and Branded Packaged Foods business by ensuring high quality supplies at competitive costs.

STAND ALONE RESULTS TABLE

ITC LIMITED	30-Sep-12	%Dif QoQ	30-Jun-12	%Dif YoY	30-Sep-11	31-Mar-12	31-Dec-11
Net Sales	714600	7.42	665221	19.61	597418	686135	619543
Total Expenditure	472717	4.13	453952	17.11	403636	487933	404063
Profit before Intt, Dep. & Taxes	241883	14.49	211269	24.82	193782	198202	215480
Net Profit	183642	14.62	160214	21.27	151431	161436	170098
Diluted EPS	2.31	14.36	2.02	19.69	1.93	2.04	2.16
Total Income	722658	7.65	671307	18.65	609057	695464	-
Changes in inventories of FG,SIT,WIP	-31806	27.45	-24956	698.34	-3984	31240	-7333
Cost of materials	207941	0.54	206827	12.03	185604	189419	192771
Purchases of SIT	110303	45.54	75791	119.32	50294	59749	31808
Employee benefits	28924	-29.87	41245	9.13	26504	33227	29810
Depreciation	18886	-3.04	19479	11.01	17013	18804	17389
Other expenses	138469	2.14	135566	8.01	128205	155494	139618
Total expenses	472717	4.13	453952	17.11	403636	487933	404063
Profit  before tax	266110	13.89	233655	20.11	221548	226836	247666
Net Profit	183642	14.62	160214	21.27	151431	161436	170098
Face Value (Rs )	1	0	1	0	1	1	1
Paid-up Equity	78563	0.43	78229	1.07	77730	78184	77962
Basic EPS	2.34	14.15	2.05	20	1.95	2.07	2.19
Diluted EPS	2.31	14.36	2.02	19.69	1.93	2.04	2.16
Public holding (%)	99.7	0	99.7	0.01	99.69	99.69	99.69

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