Slide 1: Q2 FY23 Results
Q2 FY23 Results 20th October, 2022 |1|
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements including those describing the Company’s strategies, strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements” are based on certain assumptions o
Slide 3: Macro Economic Context
Macro Economic Context |3|
Slide 4: Global Macro headwinds: High Inflation + High Interest rates
Global Macro headwinds High Inflation + High Interest rates → Growth Slowdown Rising Inflation US Interest rates : Steepest rise in history 10.0% 10.0% 8.2% 5.4% 4.1% pp 3.4% 2.8% 0.7% Euro Area Germany US China Sep'22 Sep'21 0 5 10 15 20 25 30 35 40 Source : Statista, Trading Economics Months since
Slide 5: India Persistently high Inflation
India Persistently high Inflation Downward revision to GDP Estimates CPI, Core CPI (% y-o-y) Interest Rates on the rise (%) 7.8% 7.0% 7.4% 7.0% 6.7% 6.1% 5.9% 6.2% 6.0% 5.9% 6.0% 4.3% CPI Core CPI RBI Upper Limit 4.5% Source : MOSPI Source : RBI, Fed FY23 Inflation estimates revised upwards (% y-o-y
Slide 6: External headwinds weigh on macro outlook
External headwinds weigh on macro outlook Trade Deficit; Q1 FY23 CAD highest since Sep’18 ($bn) Net FII flows ($bn) 40 19 4.0% 20 3.7% 15 7.5 7 2.4% 0.9% 2.0% 0 -1.5% 0.0% 3.1 3.0 -0.3% -2 -8 -10 -20 -10 -13 0.9 1.0 -16 -1.0% -1.3% -22 -2.0% 0.5 -24 -40 -31 -2.6% -35 -4.0% -0.3 -41 -45 -2.8% -1.2 -2
Slide 7: Bright Spots
Bright Spots Normal monsoon |Stable tax collections| Credit growth pickup Stable GST collections (Rs. Lakh crore) Net Direct Tax collections (Rs. Lakh crore) Rainfall +6% LPA (1st Jun’22 – 30th Sep’22) 1.68 1.41 1.45 1.49 1.44 1.48 1.42 1.40 2.66 1.99 0.98 0.93 1.68 2.08 0.62 FY23 FY22 FY21 YTD Aug'
Slide 8: India Macro
India Macro Key Positives Key Monitorables Pickup in economic High Inflation activity continues Rising interest rates Capex cycle yet Tax collections stable to pick up Rising Current Account Pickup in credit growth deficit / Currency Depreciation Structural Interventions by Global Macro Headwinds Go
Slide 9: Q2 FY23 Results Headline Financials & Business Highlights
Q2 FY23 Results Headline Financials & Business Highlights |9|
Slide 10: Key Highlights: Q2 FY23
Key Highlights: Q2 FY23 Gross Revenue EBITDA Overall Segment PBIT Margin ex – Agri Business Strong performance +27.1% +27.1% 37.3% 150 bps continues across segments PAT EPS +20.8% +20.3% For the quarter ended 30th Sept, 2022, YoY change | 10 |
Slide 11: Key Highlights: Q2 FY23
Key Highlights: Q2 FY23 ▪ Strong and broad-based growth in FMCG – Others across markets & channels; Segment Revenue up 21.0% YoY, at appx. 1.5x of Q2 FY20 ̶ Staples & Convenience Foods and Discretionary/Out of Home categories drive growth ̶ Education & Stationery Products Business continues to witne
Slide 12: Key Highlights: Q2 FY23
Key Highlights: Q2 FY23 ▪ Robust growth in Agri Business; Segment Revenue up 44.0% YoY ̶ Wheat, Rice and Leaf Tobacco exports ▪ Paperboards, Paper & Packaging Segment continues to deliver strong performance; Segment Revenue up 25.0% YoY while Segment PBIT up 54.0% YoY; Segment PBIT margins at 27.5%
Slide 13: ITC Next Strategy
ITC Next Strategy Future Ready | Consumer Centric | Agile Multiple Growth Drivers Innovation and R&D Cost Optimization Best fit - market opportunity & enterprise strengths Agile & purposeful innovation to win Structural interventions across value Science-based research platforms chain Disruptive mod
Slide 14: FMCG Others
(Ws Dit ke aage CabkiGtaay hai our eyes! Some Curls fill our tummy. ‘noobie heab in your gang! Enduring Value — WHICH VERMICELL! DISH WOULD YOU LOVE TO TASTE? Me FMCG Others Ge uh. Pack, ENGAGE LAMANTE CLCK AND BRUSH ——
Slide 15: FMCG Others – Q2 FY23
Segment Revenue up 21.0% YoY FMCG Others – Q2 FY23 at ~1.5x of Q2 FY20 OFMCG Segment Revenue Rs. cr. Rs. ▪ Strong and broad-based growth across markets and channels 5,200 +48.5% - Strong growth in Staples & Convenience Foods (Biscuits, Atta, Noodles) and +21% Discretionary/Out-Of-Home categories (Sn
Slide 16: FMCG Others – Q2 FY23
Segment EBITDA +15% YoY FMCG Others – Q2 FY23 More than doubled over Q2 FY20 ▪ Segment EBITDA Margin at 9.5% (Q2 FY22: 10.0%) ‒ Sequential improvement of 170 bps ▪ Sharp escalation in input costs mitigated through multi-pronged interventions: ̶ Strategic cost management, premiumisation, supply chain
Slide 17: Creating Structural Competitive Advantages
World Class Distributed Infrastructure Creating Structural Competitive Advantages Scale| Productivity| Costs Solar Plant, Dindigul ICML Trichy AMLF Kapurthala ICML Medak Diversity & Inclusion: Industry leading gender diversity AMLF: Ancillary Manufacturing cum Logistics Facility ICML: Integrated Con
Slide 18: Driving Cost Agility & Productivity
Driving Cost Agility & Productivity Remove | Reduce | Re-engineer Manufacturing ICMLs Next Generation Agile Supply Chain Industry 4.0 Network Optimization (AI/ ML Enabled) TPM Direct to Market Lean, Six Sigma ITC One Supply chain Smart Transportation Delayering Operations Smart Last Mile Execution S
Slide 19: Addressing Emerging Consumer Need Spaces with Agility
Addressing Emerging Consumer Need Spaces Robust innovation pipeline with Agility Aashirvaad Meri Chakki Atta Bingo! Snacks Mom’s Magic Sunfeast Dark Fantasy Pick Your Mix Differentiated Flavors & Textures Centre Filled with Cashews Premium Filled Cookies & Molten Butter Creme Fiama Charcoal & Grapef
Slide 20: Future-Ready Portfolio
Augmenting ‘Good For You’/ Future-Ready Portfolio ’Free From’ range Aashirvaad Nature’s Super Foods Roasted Vermicelli Aashirvaad Svasti Aashirvaad Svasti Milk Gluten Free & Multi Millet Mix | Organic No Added Preservatives Organic Cow Ghee Select Milk Easy Digest Milk (Lactose Free) Aashirvaad Salt
Slide 21: Building Brands with Purpose
Building Brands with Purpose #Farmerettes Nimyle Eco-Friendly India Mission Supporting Women Farmers State Level YiPPee! A Better World Inter School Quiz Competition 3000+ Schools 6000+ students Generating awareness and driving Creating awareness amongst children about environmental concerns conscio
Slide 22: Leveraging Festive Occasions
Leveraging Festive Occasions Aashirvaad ‘Aamar Maa’ pandal: A Tribute to fearless, strong, compassionate mothers Real life mothers visiting the pandal projected as Maa Durga Aashirvaad associates with Rath Yatra Sunfeast Dark Fantasy Sunfeast Marie Mangaldeep 3in1 Agarbatti Aashirvaad Svasti Celebra
Slide 23: Expanding Reach in Emerging Channels
Expanding Reach in Emerging Channels Winning in Emerging Channels New Routes to Market Modern Trade Fast-tracking E-Com, D2C, Cash & Carry Direct Marketing On the Go Strategic Partnership QSR Channel Specific Launches Climate Controlled Supply Chain E-Com | Modern Trade| Strategic Tie-Ups Dairy | Fr
Slide 24: Leveraging Digital to expand reach
Leveraging Digital to expand reach eB2B: UNNATI VIRU: Virtual Salesman VISTAAR: Rural App Project Zen Next Generation Agile FMCG Supply Chain Over 4.4 lakh Outlet penetration | 24 |
Slide 25: FMCG Cigarettes
MM ENA Enduring Value FMCG Cigarettes
Slide 26: FMCG Cigarettes – Q2 FY23
FMCG Cigarettes – Q2 FY23 ▪ Net Segment Revenue* up 23.4% YoY; Segment PBIT up 23.6% YoY Segment Revenue ▪ Innovation & democratising premiumisation across segments 6954 cr. 23.3% ▪ Portfolio Vitality | Product Accessibility | Execution Excellence ̶ Recent launches continue to gain traction Segment
Slide 27: FMCG Cigarettes: Reinforcing market standing
FMCG Cigarettes Reinforcing market standing Innovation Portfolio Fortification • Classic Connect • Gold Flake Neo SMART Filter • American Club Clove Mint • Navy Cut Deluxe • Gold Flake Indie Mint • Player’s Gold Leaf Chase • Gold Flake Neo • Gold Flake Star • Capstan Fresh Recent Introductions Other
Slide 28: Hotels Business
MM ENA Enduring Value Hotels Business
Slide 29: Hotels – Q2 FY23
Stellar performance across properties Hotels – Q2 FY23 Segment Revenue up 25.6% over Q2 FY20 Segment Revenue ▪ ARR and Occupancy ahead of pre-pandemic levels; Retail, Leisure, Weddings and MICE drive growth 536 cr. ▪ Segment EBITDA margin at 29.0% (Vs. 20.4% in Q2 FY20); margin expansion driven by h
Slide 30: ITC Narmada launched in Aug’22
ITC Narmada launched in Aug’22 Responsible Luxury LEED Platinum Certification - 1st in Gujarat | 30 |
Slide 31: Executing ‘Asset Right’ Strategy
Executing ‘Asset Right’ Strategy Healthy Pipeline of Management Contracts Two launches during the quarter Phased openings over the next few quarters Storii Shanti Morada, Goa Mementos Udaipur Storii Amoha Retreat, Dharamshala Welcomhotel Corbett | 31 |
Slide 32: Special Occasions leveraged to drive demand
Special Occasions leveraged to drive demand | 32 |
Slide 33: Driving Value through Digitalisation
Driving Value through Digitalisation Brand/Guest Experience CRM One stop shop for all guest needs Room Reservation | Restaurant Booking Analytics & Insight driven personalisation Takeaway | Loyalty | Room Controls | 33 |
Slide 34: Agri Business
MM ENA Enduring Value Agri Business
Slide 35: Agri Business – Q2 FY23 Robust Growth in Revenue
Agri Business – Q2 FY23 Robust Growth in Revenue ▪ Segment Revenue up 44.0% YoY driven by wheat, rice and leaf tobacco exports ̶ Strategic sourcing support to Branded Packaged Foods Businesses – Wheat, Dairy and Spices Segment Revenue ▪ ITCMAARS* – a crop-agnostic ‘phygital’ full stack AgriTech plat
Slide 36: ITCMAARS
ITCMAARS Advisory Inputs Outputs Services 460+ FPOs ~1.8 lac ~1.2 lac 50+ 9 states Farmer registrations App downloads Tie-ups with partners | 36 |
Slide 37: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging | 37 |
Slide 38: Paperboards, Paper & Packaging – Q2 FY23
Paperboards, Paper & Packaging – Q2 FY23 Growth Momentum Continues Paperboards & Specialty Paper ▪ Paperboards, Paper & Packaging Segment continues to deliver strong performance Segment Revenue ▪ Robust growth in Revenue driven by higher realisation ̶ Strong demand across end-user segments and expor
Slide 39: Sustainable Packaging Solutions New Growth Vector
Sustainable Packaging Solutions ITC LSTC | External Collaborations New Growth Vector Extrusion Coated Boards Bio-based Coated Boards Antimicrobial Coating Laminating Anti fungal Base Boards Laminating Base Oxyblock 200 180 Sustainable Products >2x portfolio 160 140 120 100 80 x 60 Water, Oil & Greas
Slide 40: Financials
Financials | 40 |
Slide 41: Key Financials Q2 FY23
Key Financials Q2 FY23 YoY Rs. Cr. Q2 FY23 Q2 FY22 growth Gross Revenue 16,971 13,356 27.1% Net Revenue 15,976 12,543 27.4% EBITDA 5,864 4,615 27.1% PBT 5,939 4,880 21.7% PAT 4,466 3,697 20.8% Strong performance continues across segments Standalone basis | 41 |
Slide 42: Segment Revenue Q2 FY23
Segment Revenue Q2 FY23 • FMCG Others Q2 - Segment Revenue up 21.0% YoY, at approx. 1.5x of Q2 FY20 YoY - Staples & Convenience Foods and Discretionary/OOH Rs. cr. FY23 FY22 growth categories drive growth Segment Revenue - ‘Fiama’ & ‘Vivel’ range of Personal Wash products performed a) FMCG - Cigaret
Slide 43: Segment Results Q2 FY23
Segment Results Q2 FY23 Q2 YoY Rs. cr. FY23 FY22 • FMCG-Others: growth Segment Results ‒ Segment EBITDA at 463 cr. a) FMCG - Cigarettes 4429 3583 24% • at 2.1x of Q2 FY20 - Others 321 272 18% ‒ EBITDA margin at 9.5% Total FMCG 4750 3855 23% • -50 bps YoY; +170 bps QoQ; +280 bps vs. Q2 FY20 b) Hotels
Slide 44: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability | 44 |
Slide 45: Impactful Social Performance
Impactful Social Performance ITC e-Choupal Afforestation Watershed Development Livestock Development Solid Waste Management Over 10,00,000 acres Over 1.37 million acres Well-being Out of Waste 4 Million Farmers Over 20,73,000 milch programme has covered empowered greened covered animals covered ~20
Slide 46: Sustainability 2.0 Sustainability Targets 2030
Sustainability 2.0 Sustainability Targets 2030 REDUCE I RECYCLE I RESTORE Raising the Bar Strategic Interventions to Combat Climate Change Renewable Specific GHG Recyclable Plastic Plastic Energy Emissions Packaging Neutrality De-Carbonization Climate Adaptation and 100% Resilience 50% 50% 100% Coll
Slide 47: Sustainability – Highlights
Sustainability – Highlights • All Businesses aligned with 2030 targets • Comprehensive set of policies & guidelines institutionalised • Exceeded commitment on Plastic Neutrality; collected and sustainably managed over 54000 MT of plastic waste in FY22 across 35 states/UT • The only enterprise in the
Slide 48: ITC Infotech
ITC Infotech | 4848|
Slide 49: ITC Infotech
ITC Infotech Revenue (Rs. cr.) EBITDA (Rs. cr.) 14 50 Revenue (Rs.cr.) EBITDA (Rs.cr.) 84 0 25 0 30 00 82 0 33 00 20 0 3 Yr Cagr: 80 0 Revenue: 12.4% 15 0 12 50 78 0 31 00 25 00 76 0 10 0 2853 74 0 50 29 00 10 50 211 135 72 0 749 821 70 0 0 20 00 27 00 85 0 Q2 Q2 Q2 Q2 FY22 FY23 FY22 FY23 717 15 00
Slide 50: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. | 50 |
Slide 51: Links
Links Product/initiative Link Bingo! on Instagram https://www.instagram.com/bingo_snacks/ YiPPee! on Instagram https://www.instagram.com/sunfeast_yippee/ Aashirvaad on Instagram https://www.instagram.com/aashirvaad/ Sunfeast Dark Fantasy on Instagram https://www.instagram.com/sunfeastdarkfantasy/ Mo