ITC Q4 AND FY 10 RESULTS - VERY GOOD - GOOD CENTENARY DIVIDEND

ITC Limited

2009-10 VS 2008-09 (Annual)

RESULTS REVIEW

Audited, Cumulative, Consolidated

ITC LIMITED has improved its financials considerably in FY 10 over FY 09

Net Sales has increased to Rs.19136 cr in FY 10 from Rs.16332 Cr in FY 09, which is Rs.2804 Cr higher or, Plus 17.17% YOY.

Cost of Consumption of Raw Materials          is higher in FY 10 at Rs.5951 Cr compared to Rs.5288 Cr in FY 09 (i.e., +663 Cr ; or,12.54%)

Total Expenditure has increased to Rs.13456.Cr in FY 10 compared to Rs.     11841 Cr in FY 09 (i.e.,Rs.1615 Cr; or  +     13.64%)

Profit from Operations has increased by 26.03 % YOY.

Net Profit(+) has also increased by 25.34%  to Rs.4211 Cr from Rs.3359 Cr YOY.

Consolidated Net Profit  has seen a similar increase of 25.37% to  Rs.4168 Cr in FY 10 from Rs.3325 Cr in FY 09.

Consolidated Basic EPS has increased  to Rs.11.01 in FY 10 from Rs.8.82 on a Face value of Rs.1/- (i.e., +24.83% YOY).

Its centenary dividend announcement may be seen in the announcements section below.

QUARTERLY RESULTS

Q.E   :: 03/10 :: 12/09 :: 09/09 :: 06/09  :: 03/09

Net Sales Has gone up well in Q4 to Rs.5054 Cr compared to Rs.4532 Cr in Q3 and Rs.3892 Cr in Q4 of FY 09.

Other Expenditure has gone up considerably in Q4 to Rs.1079 Cr from Rs.827 Cr in Q3 and Rs.829 Cr in Q4 of FY 09.

Total Expenditure in Q4 has gone up to Rs.3668 Cr compared to Rs.3027 Cr in Q3 and rs.2774 Cr in Q4 of FY 09

Net Profit for Q4 is Rs.1028 Cr compared to Rs.1144 Cr in Q3 and Rs.809 Cr in Q4 of FY 09

Dividend (%) last year FY 09 was 370:

Basic EPS in Q4 was Rs.2.71 against Rs.3.02 in Q3; Rs.2.67 in Q2; Rs.2.33 in Q1 and Rs.2.15 in Q4 of last year.

ANNOUNCEMENTS TO THE EXCHANGE

21-05-2010          Itc Limited has informed the Exchange that the Register of Members of the Company shall remain closed for the purpose of dividend from June 11, 2010 to June 18, 2010 both days inclusive. The Annual General Meeting of the Company has been convened for July 23, 2010.          -

21-05-2010          Itc Limited has informed the Exchange that the Board of Directors at its meeting held on May 21, 2010 has recommended a special Centenary dividend of Rs. 5.50 per Ordinary Share of Re. 1/- each and a dividend of Rs. 4.50 per Ordinary Share for the financial year ended March 31, 2010. The dividend, if declared, will be paid on or after July 26, 2010 to those members entitled thereto.      -

21-05-2010          ITC Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 1913587 lacs for year ending on 31-MAR-2010 against Rs. 1633233 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 416818 lacs for the year ending on 31-MAR-2010 against Rs. 332459 lacs for the year ending on 31-MAR-2009. -

21-05-2010          ITC Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 1815319 lacs for year ending on 31-MAR-2010 against Rs. 1538811 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 406100 lacs for the year ending on 31-MAR-2010 against Rs. 326359 lacs for the year ending on 31-MAR-2009. -

21-05-2010          ITC Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Net Sales of Rs. 505379 lacs for quarter ending on 31-MAR-2010 against Rs. 389181 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 102822 lacs for the quarter ending on 31-MAR-2010 against Rs. 80899 lacs for the quarter ending on 31-MAR-2009.

NON-CONSOLIDATED RESULTS

Description	FY10(lakhs)	FY 09(lakhs)	INCREASE	PERCENT
Net Sales/Income from Operations	1815319	1538811	276508	17.97
Other Operating Income	22905	19462	3443	17.69
Increase/Decrease in Stock in trade and work in progress	17524	-12369	29893	-241.68
Consumption of Raw Materials	579796	531578	48218	9.07
Purchase of traded goods	99820	125469	-25649	-20.44
Employees Cost	100277	89088	11189	12.56
Depreciation	60871	54941	5930	10.79
Other Expenditure	410502	319191	91311	28.61
Total Expenditure	1268790	1107898	160892	14.52
Profit from Operations	569434	450375	119059	26.44
Other Income	37433	34031	3402	10
Profit before Interest & Exceptional Items	606867	484406	122461	25.28
Interest	5336	1832	3504	191.27
Profit after Interest but before Exceptional Items	601531	482574	118957	24.65
Profit(+)/Loss(-) from Ordinary Activities before tax	601531	482574	118957	24.65
Tax Expense	195431	156215	39216	25.1
Net Profit(+)/Loss(-) from Ordinary Activities after tax	406100	326359	79741	24.43
Net Profit (+) / Loss (-) for the period	406100	326359	79741	24.43
Dividend (%)	-	370
Face Value (in Rs.)	1	1	0	0
Paid-up Equity Share Capital	38182	37744	438	1.16
Reserves excluding Revaluation Reserves	1362817	1330255	32562	2.45
Basic EPS before Extraordinary items (in Rs.)	10.73	8.66	2.07	23.9
Diluted EPS before Extraordinary items (in Rs.)	10.62	8.64	1.98	22.92

NEWS FROM COMPANY

Financial Results for the Quarter and Year ended  31.03.2010

Highlights

Profits from Operations : + 26 % Pre-Tax Profits : + 25 % Post Tax Profits : + 24 % • Q4 Pre-tax profit of Rs.1505 crores and Post-tax profit of Rs.1028 crores represent a growth of 26% and 27% respectively. • Non-cigarette FMCG segment registers robust revenue growth of 34% in Q4. • Board recommends total Dividend of Rs.10/- per share for 2009/10 including a special Centenary Dividend of Rs. 5.50 per share. • Paper and Pulp investments leveraged to improve value capture and margins. Segment results grow by 35%. • Agri business profits up 70%. • Sequential improvement in Hotels business revenues and profits, with growth of 16% and 10% respectively in Q4, reversing the de-growth of the first 3 Quarters of the year. • Personal Care business launched the ‘Fiama Di Wills’ Transparent Gel bar which was voted ‘Product of the Year’ in the soaps category based on a survey conducted by AC Nielsen. • The ‘ITC Royal Gardenia’ was launched in Bengaluru. It is the world’s largest and Asia’s first LEED Platinum rated hotel. • ITC's Sustainability Report 2009 was adjudged one of the best reports globally in the 'Carbon Disclosure' category by CRRA'10 (Corporate Responsibility Reporting Awards '10).

The Company posted yet another year of impressive performance with a healthy topline growth and high quality earnings, notwithstanding the extremely challenging economic environment, especially in the first half of the year. Gross Turnover for the year grew by 13.5% to Rs.26259.60 crores. Net Turnover at Rs.18153.19 crores grew by 16.3% primarily driven by a 20.9% growth in the non-cigarette FMCG businesses, a 19.8% growth in the Cigarettes business and a 17.4% growth in the Paperboards, Paper & Packaging segment. Pre-tax profits increased by 24.7% to Rs.6015.31 crores while Post-tax profits at Rs.4061.00 crores registered a growth of 24.4%. Earnings Per Share for the year stands at Rs.10.73 (previous year: Rs.8.66). Cash flows from Operations stood at Rs.6620 crores during the year, compared to Rs.4706 crores in the previous year.

For the fourth Quarter, Net Turnover at Rs 5053.79 crores registered a growth of 27.9% driven by robust performance in Cigarettes, other FMCG businesses and the Agribusiness segment. Pre-tax profits at Rs.1504.79 crores and Post-tax profits at Rs. 1028.22 crores grew at an impressive rate of 26.3% and 27.1% respectively over the same Quarter last year.

ITC will complete 100 years in August 2010. ITC today is the leading FMCG marketer in India, the second largest Hotel chain, the clear market leader in the Indian Paperboard and Packaging industry, the country’s foremost Agri-business player and one of India’s fastest-growing Information Technology companies in the mid-tier segment.

In celebration of your Company completing a century, the Board of Directors were pleased to recommend a special Centenary Dividend of Rs.5.50 per share in addition to the dividend of Rs.4.50 per share (previous year: Rs.3.70) for the year ended 31st March, 2010. Total cash outflow in this regard will be Rs.4452.33 crores (previous year: Rs.1633.87 crores) including Dividend Distribution Tax of Rs.634 crores (previous year: Rs.237.34 crores), making it one of the highest ever dividend payouts by an Indian company in the private sector.

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