Slide 1: Q4 & FY23 Results
Q4 & FY23 Results 18th May, 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: Unprecedented Inflationary Pressure in 2022 across Major Economies
Unprecedented Inflationary Pressure in 2022 across Major Economies Global Consumer Inflation (Average) (%) US Interest rates : Steepest rise in history 8.7 4.7 3.6 3.5 3.2 2018 2019 2020 2021 2022 Months since hiking cycle started Source : Visual Capitalist Source: IMF WEO Apr’23 Central Bank Rates
Slide 5: Macro Economic Environment
Macro Economic Environment Slowdown in Global Growth estimates Global Growth Slowdown (% y-o-y) 2022 initial estimate 2022 latest estimate ▪ 2022 Global GDP growth at 3.4% (Vs. earlier est. 4.4%) 4.8 4.4 3.9 4.0 3.4 ▪ 2023 Global GDP growth now estimated at 2.8% (Vs. earlier est. 3.8%) 2.7 Global Ad
Slide 6: India Macros: Key Positives and Monitorables
India Macros : Key Positives and Monitorables Key Positives Key Monitorables Heightened Uncertainty Slowdown in global Pickup in economic growth impacting activity continues external trade Geopolitical dynamics Inflation Credit growth uptick Commodity Consumption Demand price volatility Tax collecti
Slide 7: Q4 and FY23 Results Headline Financials & Business Highlights
Q4 and FY23 Results Headline Financials & Business Highlights |7|
Slide 8: Key Highlights: FY23
Key Highlights: FY23 Robust growth across all operating segments amidst a challenging operating environment Gross Revenue EBITDA Overall EBITDA Margin +17.6% +26.5% 34.5% 240 bps PAT EPS Total Dividend +24.5% +24.0% Rs. 15.50 per share Including Special dividend of Rs. 2.75 per share |8|
Slide 9: Key Highlights: FY23
Key Highlights: FY23 ▪ Strong growth in FMCG – Others Segment; Revenue up 19.6% YoY, at appx. 1.5x of FY20 ̶ Segment EBITDA at 1954 cr. up 34.9% YoY ̶ Segment EBITDA margin at 10.2% - up 115 bps YoY amidst severe inflationary pressures ▪ Sustained volume claw back in Cigarettes from illicit trade on
Slide 10: Key Highlights: FY23
Key Highlights: FY23 ▪ Robust growth in Agri Business; Segment Revenue up 12.2% YoY (up 19.7% ex-Wheat exports) ̶ Segment PBIT up 28.8% YoY ̶ Margin expansion driven by Leaf tobacco exports & value-added agri products portfolio ̶ Restrictions imposed on wheat & rice exports impact Segment Revenue ▪
Slide 11: Key Highlights: Q4 FY23
Key Highlights: Q4 FY23 Gross Revenue EBITDA ex – Wheat Exports Strong growth +16.1% +18.9% trajectory sustained Profit After Tax Overall EBITDA Margin +21.4% 36.1% 385 bps For the quarter ended 31st March, 2023, YoY change | 11 |
Slide 12: Key Highlights: Q4 FY23
Key Highlights: Q4 FY23 ▪ Strong growth in FMCG – Others; Segment Revenue up 19.4% YoY, at appx. 1.6x of Q4 FY20 ̶ Segment EBITDA up 76% YoY; margin expansion driven by multi-pronged interventions viz. premiumisation, supply chain agility, judicious pricing actions, digital initiatives, strategic co
Slide 13: Key Highlights: Q4 FY23
Key Highlights: Q4 FY23 ▪ Agri Business Segment Revenue up 20.1% (ex-Wheat exports) YoY; ̶ Segment PBIT up 25.9% YoY driven by growth in value-added agri products and leaf tobacco exports ▪ Paperboards, Paper and Packaging Segment includes the impact of planned shut down of pulp mills for capacity e
Slide 14: ITC Next Strategy
ITC Next Strategy ITC NEXT STRATEGY Future Ready | Consumer Centric | Climate Positive | Inclusive Structural interventions across value Multiple Drivers of Growth chain Innovation and Agile, Resilient Digital World Class Sustainability 2.0 Talent R&D & Efficient Supply Chains Diversity, Equity & In
Slide 15: FMCG Others
Sux A Some Curls steal <>.) our eyes! Some \ Curls fill our == tummy. ‘Tag that gorgeots ooble hea in your gang! Enduring Value LOOKING FORWARD TO 365 DAYS OF FMCG Others Farmlite
Slide 16: FMCG Others – Q4 FY23
Segment revenue up 19.4% YoY FMCG Others – Q4 FY23 at ~1.6x of Q4 FY20 ▪ Robust performance witnessed across markets and channels - Staples, Biscuits, Snacks, Noodles, Dairy, Beverages, Soaps, Fragrances, Agarbatti drive growth - Education & Stationery Products Business continues to witness strong t
Slide 17: FMCG Others – Q4 FY23
Segment EBITDA +76% YoY FMCG Others – Q4 FY23 2.6x of Q4 FY20 ▪ Segment EBITDA Margin at 13.3% (Q4 FY22: 9.0%) - Margin expansion driven by multi-pronged interventions viz. premiumisation, supply chain agility, judicious pricing actions, digital initiatives, strategic cost management and fiscal ince
Slide 18: Creating Structural Competitive Advantage
World Class Distributed Infrastructure Creating Structural Competitive Advantage Scale| Productivity| Costs Proximity to large Key Business Drivers Delayered Operations consumption centres Direct Shipments Freshness Shorter Distance to market 11 ICMLs Elimination of Multiple Operational Market Respo
Slide 19: Future-Ready Portfolio
Future-Ready Portfolio Recent Innovations Aashirvaad Besan | Ragi Vermicelli Paneer Pakoda Super Millets Cookies Sunfeast Supermilk B Natural Select |Sunfeast 100% Chana Dal | Beat your Ragi and Jowar | Immunity Nutrients Smoothies Source of Calcium, Protein and Iron craving instantly Ragi and Jowar
Slide 20: Deepening Consumer Connect
Deepening Consumer Connect Multi-point touch strategy Leveraging emerging trends Cohort based marketing Leveraging regional connect - Strongaa Oru Milk Biscuit! #Bingo collaboration with ‘East Bengal’ Football Club | 20 |
Slide 21: Building Brands with Purpose
Building Brands with Purpose SAVLON #Handambassador CLASSMATE All Rounder MOM’s MAGIC #HugHerMore Handwash reminder by Sachin Tendulkar ka Haath ! SUNRISE School Connect Program | 21 |
Slide 22: Sharp Targeted Communication
Sharp Targeted Communication | 22 |
Slide 23: 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 24: Expanding Reach in Emerging Channels
Expanding Reach in Emerging Channels Winning in Emerging Channels New Routes to Market Modern Trade Fast-tracking E-Com, On the Go QSR Direct Marketing D2C, Cash & Carry Assortment Multi-format + Omni Digital First Brands Strategy Channel capability Strategic Growth Levers Supply Chain & Infra Strat
Slide 25: Leveraging Digital
Leveraging Digital eB2B: UNNATI Project PACE Project Zen Project Trinetra AI based image recognition Next Generation Agile Project Lighthouse FMCG Supply Chain Nearly 5.4 lakh Outlet penetration Leveraging Data & Analytics to drive productivity, efficiency & for data driven decision making | 25 |
Slide 26: FMCG Cigarettes
MM ENA Enduring Value FMCG Cigarettes
Slide 27: FMCG Cigarettes – Q4 FY23
FMCG Cigarettes – Q4 FY23 ▪ Net Segment Revenue* up 13.7%; Segment PBIT up 14.0% Segment Revenue 7356 cr. 14.2% ▪ Innovation & democratising premiumisation across segments ▪ Portfolio Vitality | Product Availability | Execution Excellence Segment Results ̶ Recent launches continue to gain traction 4
Slide 28: FMCG Cigarettes: 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 Alphat
Slide 29: Hotels Business
MM ENA Enduring Value Hotels Business
Slide 30: Hotels – Q4 FY23
Stellar performance across properties Hotels – Q4 FY23 Segment revenue doubles over Q4 FY22 Segment Revenue ▪ RevPAR well ahead of pre-pandemic levels; Retail, Leisure, Weddings and MICE 782 cr. drive growth (+101%; 1.7x of Q4FY20) ▪ Healthy pipeline of management contracts under Welcomhotel, Mement
Slide 31: Trailblazer in Responsible Luxury
Trailblazer in Responsible Luxury First 2 Hotels in the World to receive First 12 Hotels in the World to receive LEED Zero Water Certification LEED Zero Carbon Certification ITC Mughal ITC Rajputana WH Guntur ITC Sonar ITC Maratha ITC Grand Central ITC Gardenia Others: Sheraton New Delhi| Welcomhote
Slide 32: Executing 'Asset Right' Strategy
Executing ‘Asset Right’ Strategy Healthy Pipeline of Management Contracts Mementos Udaipur launched Activation of Storii & Mementos Mementos – Memories Available Mementos Udaipur Storii in a Bottle Phased openings over the next few quarters The Storii Box Ketli & Kahaani Storii Moira Riviera, Goa |
Slide 33: Multiple Value Drivers
Multiple Value Drivers ASSET STRENGTHEN AUGMENT LEVERAGE RIGHT BRAND REVENUE DIGITAL POSITIONING STREAMS Green credentials Signature experiences & LEVERAGE services DIGITAL Enhance brand visibility | 33 |
Slide 34: Agri Business
MM ENA Enduring Value Agri Business
Slide 35: Agri Business – Q4 FY23
Agri Business – Q4 FY23 ▪ Segment Revenue (ex-Wheat exports) up appx. 20%. Segment PBIT up 25.9% YoY driven by Segment Revenue growth in value-added agri products and leaf tobacco exports ̶ Strategic sourcing support to Branded Packaged Foods Businesses – Wheat, Dairy, Beverages & 3579 cr. 18.0% Spi
Slide 36: ITCMAARS
ITCMAARS Advisory Inputs Outputs Services ~1150 FPOs ~5.7 lac ~4.2 lac ~60 9 states Farmer registrations App downloads Tie-ups with partners Metamarket for Advanced Agriculture and Rural Services | 36 |
Slide 37: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging | 37 |
Slide 38: Paperboards, Paper & Packaging – Q4 FY23
Paperboards, Paper & Packaging – Q4 FY23 ▪ Paperboards, Paper & Packaging Segment posted resilient performance Segment Revenue ̶ Planned shutdown of pulp mills for capacity expansion during the quarter ̶ Softening of pulp prices, muted demand in global markets and relatively higher base impacted YoY
Slide 39: Sustainable Packaging Solutions
Sustainable Packaging Solutions ITC LSTC | External Collaborations New Growth Vector Premium Moulded Fibre Products (MFP) 45 0 Sustainable Products portfolio 40 0 35 0 1.7x 30 0 25 0 x 20 0 15 0 10 0 50 0 FY22 FY23 Foray into MFP through a new WOS^ Foundational investment for • Market development •
Slide 40: Financials
Financials | 40 |
Slide 41: Key Financials
Key Financials Q4 Q4 YoY YoY Rs. cr. FY23 FY22 FY23 FY22 growth growth Gross Revenue* 17,224 16,227 6.1% 69,481 59,101 17.6% Net Revenue 16,150 15,307 5.5% 65,427 55,724 17.4% EBITDA 6,209 5,224 18.9% 23,944 18,934 26.5% PBT (bei) 6,522 5,442 19.8% 24,678 19,830 24.4% PAT 5,087 4,191 21.4% 18,753 15
Slide 42: Segment Revenue & Results Q4 FY23
Segment Revenue & Results Q4 FY23 Q4 Q4 YoY YoY Rs. cr. FY23 FY22 Rs. cr. FY23 FY22 growth growth Segment Revenue Segment Results a) FMCG - Cigarettes 4689 4114 14.0% a) FMCG - Cigarettes 7356 6443 14.2% - Others 502 236 112.6% - Others 4945 4142 19.4% Total FMCG 5191 4350 19.3% Total FMCG 12301 105
Slide 43: Segment Revenue & Results FY23
Segment Revenue & Results FY23 Full Year Full Year YoY YoY Rs. cr. FY23 FY22 Rs. cr. FY23 FY22 growth growth Segment Revenue Segment Results a) FMCG - Cigarettes 17927 14869 20.6% a) FMCG - Cigarettes 28207 23451 20.3% - Others 1374 923 48.8% - Others 19123 15994 19.6% Total FMCG 19301 15792 22.2% T
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 10,43,000 acres Over 1.47 million acres Well-being Out of Waste 4 Million Farmers Over 21 lac milch programme covers empowered greened covered animals covered 55 lac house
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 • Comprehensive set of policies & guidelines institutionalized across Businesses in line with S2.0 vision and targets • Exceeded commitment on Plastic Neutrality; collected and sustainably managed over 60,000 MT of plastic waste in FY23 • 60% critical Tier - 1 suppliers t
Slide 48: ITC Infotech
ITC Infotech | 4848|
Slide 49: ITC Infotech
ITC Infotech Rs. cr. Revenue Q4 YoY +30% EBITDA Q4 YoY +33% 14 50 Revenue (Rs.cr.) EBITDA (Rs.cr.) 90 0 18 0 16 0 30 00 88 0 33 00 14 0 86 0 3 Yr Cagr: 84 0 82 0 12 0 31 00 Revenue: 12.4% 12 50 80 0 10 0 80 25 00 78 0 76 0 60 29 00 10 50 2853 74 0 72 0 40 751 821 872 877 119 135 166 158 20 70 0 20 0
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