Slide 1: Q3 FY23 Results
Q3 FY23 Results 03rd February, 2023 |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: Macro Economic Environment
Macro Economic Environment Global Growth Slowdown in 2023 (GDP % y-o-y) Slowdown in Global Growth estimates 3.9% 4.0% 3.4% 2.9% ▪ 2023 Global GDP growth estd. at 2.9% (vs 3.4% in 2022) 2.7% ▪ Inflation remains elevated in major economies of the world 1.2% - Certain key commodity prices have softened
Slide 5: India Macro
India Macro Key Positives Key Monitorables Pickup in economic Slowdown in activity continues global growth Twin Deficits - Fiscal & Pickup in Credit growth Current Account Pvt Capex subdued; Tax collections buoyant incipient recovery Inflation Moderating Global geopolitics |5|
Slide 6: Q3 FY23 Results Headline Financials & Business Highlights
Q3 FY23 Results Headline Financials & Business Highlights |6|
Slide 7: Key Highlights: Q3 FY23
Key Highlights: Q3 FY23 Gross Revenue EBITDA Overall Segment PBIT Margin ex – Agri Business ex – Agri Business Strong growth +17.5% +22.0% 37.8% 130 bps momentum sustained across PAT EPS Interim Dividend operating segments +20.5% Rs. 6.00 +21.0% per share For the quarter ended 31st Dec, 2022, YoY ch
Slide 8: Key Highlights: Q3 FY23
Key Highlights: Q3 FY23 ▪ Robust performance continues in FMCG – Others; Segment Revenue up 18.4% YoY, at appx. 1.5x of Q3 FY20 ̶ Staples, Biscuits, Noodles, Snacks, Dairy, Beverages and Soaps drive growth ̶ Education & Stationery Products Business continues to witness strong traction ̶ Segment EBIT
Slide 9: Key Highlights: Q3 FY23
Key Highlights: Q3 FY23 ▪ Agri Business Segment Revenue impacted by restrictions on wheat & rice exports; Segment PBIT up 32.6% driven by strong growth in leaf tobacco exports and value-added agri products ▪ Paperboards, Paper & Packaging Segment continues to deliver strong performance; Segment Reve
Slide 10: ITC Next Strategy
ITC Next Strategy Future Ready | Consumer Centric | Climate Positive | Inclusive Innovation and R&D Strategic Cost Cost Optimization Multiple Growth Drivers Innovation and R&D Management Best fit - market opportunity & Agile & purposeful innovation to win Structural interventions across value enterp
Slide 11: FMCG Others
Holiday Season 2 MM ENA Enduring Value Hit Refresh LOOKING FORWARD 7 with the new Fiama TO 365 DAYS OF FRUIT AND FIBER FMCG Others Ran SUNRISE
Slide 12: FMCG Others – Q3 FY23
Segment revenue up 18.4% YoY FMCG Others – Q3 FY23 at ~1.5x of Q3 FY20 OFMCG Segment Revenue Rs. cr. ▪ Strong growth witnessed across markets and channels 5,200 +46% 4,841 - Staples, Biscuits, Noodles, Snacks, Dairy, Beverages and Frozen Foods drive growth 4,700 +18% - Robust growth in ‘Fiama’ and ‘
Slide 13: FMCG Others – Q3 FY23
Segment EBITDA +30% YoY FMCG Others – Q3 FY23 1.9x of Q3 FY20 ▪ Segment EBITDA Margin at 10.0% (Q3 FY22: 9.1%) - Sequential improvement of 50 bps ▪ Input costs remained elevated even as some commodities witnessed sequential moderation in prices; margin expansion driven through multi-pronged interven
Slide 14: Creating Structural Competitive Advantages
World Class Distributed Infrastructure Creating Structural Competitive Advantages Scale| Productivity| Costs ICML Medak ICML Trichy AMLF Kapurthala ICML Guwahati AMLF: Ancillary Manufacturing cum Logistics Facility ICML: Integrated Consumer Goods Manufacturing and Logistics Facility | 14 |
Slide 15: 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 16: Addressing Emerging Consumer Need Spaces with Agility
Addressing Emerging Consumer Need Spaces Robust innovation pipeline with Agility Bingo! Snacks ITC Master Chef Sunfeast Mom’s Magic Differentiated Flavors and Textures Grilled Chicken Wings | Barbeque Chicken Wings Strawberry/Litchi Smoothies Centre Filled with Cashews Chia Seeds | Fruit Chunks & Mo
Slide 17: Future-Ready Portfolio
Augmenting ‘Good For You’/ Future-Ready Portfolio ’Free From’ range Aashirvaad Rava Aashirvaad Roasted B Natural|Sunfeast Nutrilite Farmlite Digestive High Fibre Samba Broken Wheat| Double Roasted Suji Rava| Vermicelli Health Range Goodness of Wholewheat Bansi Rava No Added Preservatives Sunfeast Bi
Slide 18: Deepening Consumer Engagement
Deepening Consumer Engagement Brand Integration Enhancing Brand Affinity Bingo! resonates well with GenZ #RoadTrippinWithRocky HIGH VISIBILITY ON INSTA | FB Innovative Print & OOH Campaigns First of a kind printed cookie thematic promo leveraging cookie printing technology A Cookie can take you to P
Slide 19: Leveraging Digital
Leveraging Digital Moment Marketing Driving Brand Engagement Enhancing OTT Presence Regional Activation Association with Global Content Bingo! Hashtags associates BOUNCE FOOTBALL FILTER with FIFA 2022 | 19 |
Slide 20: Building Brands with Purpose
Building Brands with Purpose YIPPEE! TRASH TO TREASURE FEEL GOOD WITH #FIAMA Survey to identify cause of stress for GenZ and Millennials HIGH VISIBILITY ON INSTA | FB | 20 |
Slide 21: ITC Mission Millets
ITC Mission Millets UN: 2023 the International Leveraging Enterprise Strengths in Agri, Food & Hospitality Year of Millets Resilient and Climate Smart Farmer Benefits Versatile Crop Agriculture Short duration crop Carbon neutral Higher Gluten free Water efficient Yields & Incomes Non-allergenic Clim
Slide 22: 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 | Hotels D
Slide 23: 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 4.8 lakh Outlet penetration | 23 |
Slide 24: FMCG Cigarettes
MM ENA Enduring Value FMCG Cigarettes
Slide 25: FMCG Cigarettes – Q3 FY23
FMCG Cigarettes – Q3 FY23 ▪ Net Segment Revenue* up 16.8% YoY; Segment PBIT up 16.9% YoY Segment Revenue ▪ Innovation & democratising premiumisation across segments 7288 cr. 16.7% ▪ Portfolio Vitality | Product Availability | Execution Excellence ̶ Recent launches continue to gain traction ̶ Market
Slide 26: Reinforcing market standing
FMCG Cigarettes Reinforcing market standing Innovation Portfolio Fortification • Classic Connect • Gold Flake Neo SMART Filter • Gold Flake SLK • Wills Deluxe • Gold Flake Mixpod • Bristol Deluxe FT • American Club Clove Mint • Capstan FT • Gold Flake Indie Mint Recent Introductions • Classic Verve
Slide 27: Hotels Business
MM ENA Enduring Value Hotels Business
Slide 28: Hotels – Q3 FY23
Stellar performance across properties Hotels – Q3 FY23 Segment Revenue up 50.5% over Q3 FY22 Segment Revenue ▪ RevPAR ahead of pre-pandemic levels; Retail, Leisure, Weddings and MICE drive growth ▪ Segment EBITDA margin at 31.5% (LY 24.7%); margin expansion driven by higher RevPAR, 712 cr. operating
Slide 29: Executing 'Asset Right' Strategy
Executing ‘Asset Right’ Strategy Healthy Pipeline of Management Contracts Welcomhotel Jim Corbett launched Phased openings over the next few quarters Welcomhotel Jim Corbett Welcomhotel Raipur Mementos Udaipur * Storii Moira Riviera, Goa * launching soon | 29 |
Slide 30: Special Occasions leveraged to drive demand
Special Occasions leveraged to drive demand | 30 |
Slide 31: Multiple Value Drivers
Multiple Value Drivers ASSET RIGHT STRATEGY One stop shop for all guest needs LEVERAGE AUGMENT REVENUE DIGITAL STREAMS/ SWEAT ASSETS COST FOCUS | 31 |
Slide 32: Agri Business
MM ENA Enduring Value Agri Business
Slide 33: Agri Business – Q3 FY23
Agri Business – Q3 FY23 ▪ Segment Revenue impacted by restrictions imposed on wheat & rice exports. Segment PBIT up 32.6% YoY driven by growth in leaf tobacco exports and value-added agri products Segment Revenue ▪ Strategic focus on rapidly scaling up Value-Added product portfolio to enhance value
Slide 34: ITCMAARS
ITCMAARS Advisory Inputs Outputs Services ~850 FPOs ~2.7 lac ~1.7 lac ~60 9 states Farmer registrations App downloads Tie-ups with partners Metamarket for Advanced Agriculture and Rural Services | 34 |
Slide 35: Agri Business
One of Asia’s largest Spices processing facilities Agri Business Commissioned during the quarter Preferred supplier for customers in Food Safe Markets and Emerging markets | 35 |
Slide 36: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging | 36 |
Slide 37: Paperboards, Paper & Packaging – Q3 FY23
Paperboards, Paper & Packaging – Q3 FY23 Strong Performance Continues ▪ Paperboards, Paper & Packaging Segment continues to deliver strong performance Segment Revenue ▪ Robust growth in Segment PBIT driven by higher realization ̶ VAP^ segment recorded strong YoY growth 2306 cr. 12.7% ▪ Sustainable p
Slide 38: Sustainable Packaging Solutions
Sustainable Packaging Solutions ITC LSTC | External Collaborations New Growth Vector Oxyblock Bio-based Coated Boards Extrusion Coated Boards Premium Moulded Fibre Products (MFP) ^ Antimicrobial Coating Bioseal Water, Oil & Grease Resistant Boards ^ Proposed to set up a new wholly owned subsidiary f
Slide 39: Financials
Financials | 39 |
Slide 40: Key Financials Q3 FY23
Key Financials Q3 FY23 YoY Rs. Cr. Q3 FY23 Q3 FY22 Growth Gross Revenue * 17,122 16,634 2.9% Net Revenue 16,084 15,741 2.2% EBITDA 6,223 5,102 22.0% PBT 6,678 5,492 21.6% PAT 5,031 4,156 21.0% Stellar performance across operating segments *Gross Revenue (ex-Agri Business) up 17.5% YoY Standalone bas
Slide 41: Segment Revenue Q3 FY23
Segment Revenue Q3 FY23 • FMCG Others - Segment Revenue up 18.4% YoY and at 1.5x of Q3 FY20 Q3 - Strong growth in Staples, Biscuits, Noodles, Snacks, Dairy, YoY Rs. cr. FY23 FY22 Beverages and Frozen Foods growth - Robust growth in ‘Fiama’ & ‘Vivel’ range of Personal Wash Segment Revenue products; H
Slide 42: Segment Results Q3 FY23
Segment Results Q3 FY23 Q3 YoY Rs. cr. FY23 FY22 • FMCG-Others: Growth ‒ Segment EBITDA at 485 cr. Segment Results a) FMCG - Cigarettes 4620 3951 16.9% • at 1.9x of Q3 FY20 - Others 348 242 43.9% ‒ EBITDA margin at 10.0% Total FMCG 4968 4193 18.5% • +90 bps YoY; +50 bps QoQ b) Hotels 146 51 1.89x •
Slide 43: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability | 43 |
Slide 44: Impactful Social Performance
Impactful Social Performance ITC e-Choupal Afforestation Watershed Development Livestock Development Solid Waste Management Over 10,00,000 acres Over 1.39 million acres Well-being Out of Waste 4 Million Farmers Over 21,05,000 milch programme has covered empowered greened covered animals covered ~23.
Slide 45: 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 46: Sustainability – Highlights
Sustainability – Highlights • All Businesses aligned with 2030 targets • Comprehensive set of policies & guidelines institutionalized • Exceeded commitment on Plastic Neutrality; collected and sustainably managed over 54,000 MT of plastic waste in FY22 across 35 states/UT • The only enterprise in th
Slide 47: ITC Infotech
ITC Infotech | 4747|
Slide 48: ITC Infotech
ITC Infotech Rs. cr. Revenue (Rs.cr.) EBITDA (Rs.cr.) Revenue EBITDA 14 50 30 00 890 180 33 00 870 170 3 Yr Cagr: 850 160 31 00 Revenue: 12.4% 12 50 830 810 150 140 25 00 790 130 2853 770 120 29 00 10 50 750 110 872 751 821 119 135 166 730 100 20 00 710 90 690 80 27 00 85 0 Q1 Q2 Q3 Q1 Q2 Q3 717 15
Slide 49: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. | 49 |
Slide 50: 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