Tuesday, January 22, 2013

ITC LIMITED - RESULTS FOR – Q3 FY 2012-13 - Q.E DEC, 2012 - Net Sales up 23.11%YoY; Net Profit up by 20.63% YoY - Future Promising



ITC LIMITED


RESULTS FOR – Q3 FY 2012-13

Q/E DEC, 2012

Net Sales for Q3 FY 2013 stands at Rs.7627.07 Cr; compared to Rs.7146.00 Cr; (Up by 6.73%); and Rs.6195.43 Cr in Q3 FY 12 (Up by 23.11%).

Total Expenditure       for Q3 FY 2013 stands at Rs.5059.56 Cr; compared to Rs.4727.17 Cr in Q2 FY 13 (Up by 7.03%); and Rs.4040.63  cr in Q3 FY 12(Up by 25.22%).

Profit (+)/Loss (-) before Interest, Dep. & Taxes for Q3 FY 2013 stands at Rs.2567.51        Cr; compared to Rs.2418.83 Cr in Q2 FY 13; (Up by 6.15%); and Rs.2154.80 Cr in Q3 FY 12 (Up by          19.15%).

Net Profit for Q3 FY 2013 stands at Rs.2051.85 Cr; compared to Rs.1836.42 Cr in Q2 FY 13; (Up by 11.73%); and Rs.   1700.98 Cr in Q3 FY 12 (Up by 20.63%).

Changes in inventories of FG, WIP, SIT      for Q3 FY 2013 stands at Rs.56.00 Cr; compared to Rs(-)318.06; Cr in Q2 FY 13; (Up by 117.61%); and Rs(-)73.33 Cr in Q3 FY 12 (Up by -176.37%).

Cost of materials        for Q3 FY 2013 stands at Rs.2374.48 Cr; compared to Rs.     2079.41 Cr; (Up by 14.19%); and Rs.1927.71 Cr in Q3 FY 12 (Up by 23.18%).

Purchases of SIT        for Q3 FY 2013 stands at Rs.646.52 Cr; compared to Rs.1103.03 Cr; (Up by      -41.39%); and Rs.318.08 Cr in Q3 FY 12 (Up by 103.26%).

Employee expense     for Q3 FY 2013 stands at Rs.346.22 Cr; compared to Rs.289.24 Cr; (Up by 19.7%); and Rs.298.10 Cr in Q3 FY 12 (Up by 16.14%).

Depreciation      for Q3 FY 2013 stands at Rs.205.22 Cr; compared to Rs.188.86 Cr; (Up by  8.66%); and Rs.173.89 Cr in Q3 FY 12 (Up by18.02%).

Other expenses for Q3 FY 2013 stands at Rs.1431.12 Cr; compared to Rs.1384.69 Cr; (Up by 3.35%); and Rs.1396.18 Cr in Q3 FY 12 (Up by  2.5%).

Total expenses  for Q3 FY 2013 stands at Rs.5059.56 Cr; compared to Rs.4727.17 Cr; (Up by 7.03%); and Rs.4040.63 Cr in Q3 FY 12 (Up by          25.22%).

Profit before tax         for Q3 FY 2013 stands at Rs.2957.19 Cr; compared to Rs.2661.10 Cr; (Up by 11.13%); and Rs.2476.66 Cr in Q3 FY 12 (Up by19.4%).

Tax Expenses     for Q3 FY 2013 stands at Rs.905.34 Cr; compared to Rs.824.68 Cr; (Up by 9.78%); and Rs.  775.68 Cr in Q3 FY 12 (Up by 16.72%).

Net Profit for Q3 FY 2013 stands at Rs.2051.85 Cr; compared to Rs.1836.42 Cr; (Up by  11.73  %); and Rs.1700.98 Cr in Q3 FY 12 (Up by 20.63%).

Face Value of Share is Rs.1; and Paid-up Equity stands at Rs.787.83 Cr;

Basic EPS for Q3 FY 2013 stands at Rs.2.61; compared to Rs.2.34 in Q2 FY 13; and Rs.2.19 in Q3 FY 12.

Diluted EPS        for Q3 FY 2013 stands at Rs.2.57; compared to Rs.2.31 in Q2 FY 13; and Rs.2.16 in Q3 FY 12 (Up by 18.98%).

Public holding in the company is 99.7%.

Harvard Business Review ranks ITC Chairman Mr. Y C Deveshwar as the 7th Best Performing CEO in the World

FMCG - Branded Packaged Foods

The Business  recorded significant growth during the quarter across all categories driven by  strong volume growth and an enriched product mix. 'Sunfeast' biscuits sustained  its robust growth trajectory and augmented its differentiated and innovative  product portfolio with the addition of new variants under the Dream Cream and  Dark Fantasy Choco Fills range. The brand has emerged as the clear market  leader in the highly competitive premium cream biscuits segment. 

'Sunfeast  Yippee!' Noodles and the 'Bingo!' range of savoury snacks continued to record  strong growth driven by an increasing consumer franchise for the existing  product range and the new variants launched during the year. The Business has  built a healthy pipeline of innovative product formats/variants to further  enhance its market standing in these high growth categories. 

In the  Confectionery category, the Business launched 'mint-o Ultra mintz'- a sugar-free  extra-strong mint in select markets. The product has met with encouraging  consumer response.

'Aashirvaad'  atta further consolidated its leadership position across markets aided by  increasing consumer traction for the value-added and premium offerings viz.  'Select' and 'Multi-grain' variants. 

The Business  continues to invest in disaggregated manufacturing and distribution  infrastructure with a view to optimising supply chain costs and improving  market servicing.

Personal Care Products

The Business  sustained its impressive growth trajectory during the quarter with the Soap  category garnering increasing consumer franchise driven by the 'Vivel’ brand. 

The product  portfolio was strengthened during the quarter with the launch of the 'Couture  Spa' range of soaps under the 'Fiama Di Wills' brand. The signature series,  created in alliance with fashion guru Wendell Rodricks, aims at providing  consumers an exciting and intriguing bathing experience. In line with the  brand's ‘Feel Young’ value proposition, the series of three exciting Couture  Spa gel bars are infused with real gold, known for its youthful skin care  properties. 

The Business  also launched a 'Collector’s Edition' soap series in association with the  Lonely Planet Magazine under the Fiama Di Wills Men's range. The six exciting  Collector’s Edition packs are inspired by various water sports and destinations  renowned for rejuvenating and revitalising experiences, in line with the brand's  value proposition of 'rejuvenation'.

The product  portfolio was further augmented with the launch of Fiama Di Wills Aqua Pulse  deodorant in select markets. The Skin Care range was also expanded during the  quarter with the launch of 'Vivel Cell Renew' Body Lotion, Hand  Crème/Moisturizer and Perfect Glow Skin Toner in target markets. 

The new  product /variant launches have received encouraging consumer response. 

Education & Stationery Products

Classmate  notebooks continued to expand its consumer franchise and recorded strong growth  in sales during the quarter. The brand further consolidated its leadership  position in the student notebook category during the quarter.  

Besides  notebooks, the ‘Classmate’ brand offers a wide range of products that includes  ball/gel pens, wood cased and mechanical pencils, mathematical instruments,  erasers, sharpeners and scales. ‘Classmate’ also endorses ‘Colour Crew’, an art  stationery brand, with a range of wax crayons, colour pencils and sketch pens  for children.

The Business continues to strengthen the Paperkraft brand,  its premium executive and office supplies range. It has positioned 'Paperkraft'  as the finest green paper for business applications viz. copy-scan-print-fax,  leveraging the Company's world-class fibre line at Bhadrachalam which is  India's first ozone treated elemental chlorine free facility.  Paperkraft's green credentials are  supported, among other factors, 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 cigarette  industry in India continues to be impacted by a discriminatory taxation and  regulatory policy framework. While cigarettes contribute nearly 75% of the tax  revenues generated by the tobacco sector, it accounts for less than 15% of  tobacco consumption in the country. Steep increase in Excise duty and VAT on  cigarettes during the year have further exacerbated the situation vis-à-vis  lightly taxed or tax evaded tobacco products like Bidi, Khaini, Chewing Tobacco  and Gutkha. These lightly taxed or tax evaded tobacco products are the most  dominant forms of tobacco consumption in India and constitute as much as 85% of  total usage. Further, the high incidence of tax on cigarettes has created tax  arbitrage opportunities leading to the growth of illegal cigarettes in the  country. Consequently, legal industry volumes have come under severe pressure.

Despite these  challenging conditions, the Company’s Cigarettes Business, through its  relentless focus on providing differentiated and world-class products to  consumers, sustained its leadership position in the industry. Focus on  innovation and consumer centricity supported by world-class brands,  contemporary packaging formats, state-of-the-art manufacturing facilities and a  deep and wide distribution network have enabled the business to consistently  deliver superior value. 

During the  quarter, the Business introduced new variants / product enhancements across its  brand portfolio leading to further consolidation of market standing. The  launches in the new filter segment (cigarette length not exceeding 65 mm) have  met with favourable consumer response and the business is rolling out the products  to all markets in the country. 

Hotels

The  hospitality sector continued to be adversely impacted by the weak economic  conditions prevailing in key international source markets and India on the one  hand and significant additions to room supplies in key Indian cities on the  other. Consequently, growth in Segment Revenues was muted during the quarter. 

ITC Grand  Chola, which commenced operations in September 2012, received encouraging  response in its first quarter post launch. The hotel has achieved the distinction  of being the world’s largest 'Leadership in Energy and Environmental Design'  (LEED) Platinum rated hotel in 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 properties at Kolkata, Bengaluru and at the Classic Golf  Resort near Gurgaon is progressing as per plans.

Paperboards, Papers & Packaging

Segment  Revenues grew by 10% during the quarter, 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  investments in a new state-of-the-art paperboard facility at Bhadrachalam and  the new packaging & printing facilities at Haridwar are nearing completion  and are expected to become operational shortly. The Business continues to  provide strategic sourcing support to the FMCG businesses enabling product  differentiation and faster speed-to-market. 

Agri Business

Segment  Revenues recorded a robust growth of 43% during the quarter aided by exports of  wheat and leaf tobacco and soya. 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 providing strategic sourcing support to the Company’s Cigarettes and  Branded Packaged Foods businesses by ensuring high quality supplies at  competitive costs.

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