Slide 1: Cover letter to stock exchanges
ITC Limited Virginia House 37 J. L. Nehru Road Kolkata 700 071, India Tel. : 91 33 2288 9371 Fax : 91 33 2288 4016 / 1256 / 2259 / 2260 29th January, 2024 The Manager The General Manager The Secretary Listing Department Dept. of Corporate Services The Calcutta Stock National Stock Exchange of BSE Lt
Slide 2: Copy addressees
cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A. cc: Societe de la Bourse de Luxembourg 35A Boulevard Joseph II L-1840 Luxembourg
Slide 3: Media Statement: Standalone Results for Quarter ended 31st December 2023
ITC Limited Virginia House 37 J. L. Nehru Road Kolkata, 700 071, India Tel.: 91 33 2288 9371 Fax: 91 33 2288 0655 Media Statement January 29, 2024 Standalone Financial Results for the Quarter ended 31st December, 2023 Highlights • Board recommends Interim Dividend of Rs. 6.25 per share for the Finan
Slide 4: Global economy remains sluggish; India a bright spot
The global economy remains sluggish with the pace of growth projected to decelerate for the third year in a row - from 2.6% in 2023 to 2.4% in 2024, nearly 75 bps below the average of the 2010s. Developing economies are projected to grow just 3.9% representing about 100 bps below the average of the
Slide 5: Branded Packaged Foods businesses
➢ Branded Packaged Foods Businesses • ‘Aashirvaad’ Atta posted robust growth reinforcing its leadership position in the Branded Atta industry - Value-added atta range sustained its strong growth momentum driven by increased thrust in Modern Trade and e-Commerce channels. - In line with its strategy
Slide 6: Agarbattis and FMCG Cigarettes
➢ ‘Mangaldeep’ Agarbattis and Dhoop recorded robust growth during the quarter anchored on a range of differentiated products and enhanced visibility. The portfolio was fortified with the launch of ‘Mangaldeep Scent’ in 3 variants. FMCG – CIGARETTES The Cigarettes Business witnessed consolidation on
Slide 7: Agri Business and Paperboards, Paper & Packaging
• ITCMAARS (Metamarket for Advanced Agriculture and Rural Services) – a crop-agnostic ‘phygital’ full stack AgriTech platform has been scaled up across nine states. Over 1600 Farmer Producer Organisations (FPOs) encompassing more than 11.4 lac farmers have been added to the Company’s network. PAPERB
Slide 8: Q3 FY24 Results
Q3 FY24 Results 29th January, 2024 |1|
Slide 9: 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 10: Macro Economic Context
Macro Economic Context |3|
Slide 11: Macro Economic Environment: Global deceleration
Macro Economic Environment Global economy 3rd consecutive year of deceleration India remains a bright spot weakness likely to persist Real GDP Growth YoY Real GDP Growth YoY 7.7 7.8 7.6 7.2 7.3 6.5 3.1 2.0 2.3 1.4 2.4 1.2 1.6 0.7 4.5 World Advanced United Euro China FY19 FY23 Q1 FY24 Q2 FY24 FY24E e
Slide 12: Macro Economic Environment: India growth led by investments
Macro Economic Environment India growth led by Investments India remains a bright spot Consumption subdued Real GDP Growth YoY 6.8 7.0 7.8 7.6 7.2 7.3 6.5 6.9 7.6 3.1 11.0 FY19 FY23 Q1 FY24 Q2 FY24 FY24E GDP PFCE GFCF Q2 FY24 FY12-19 ▪ GDP growth remains above long term average ▪ Overall macros well
Slide 13: India Macro: Key Positives and Monitorables
India Macro Key Key Positives Monitorables Moderating Stable growth Geopolitical Agri Commodity Inflation outlook disruptions Inflation Strong Bank & Monetary easing Buoyant Tax Rural Demand Corporate cycle in Advanced collection recovery Balance Sheets economies Infrastructure External Balances Gov
Slide 14: Q3 FY24 Results Key Highlights
Q3 FY24 Results Key Highlights |7|
Slide 15: Key Highlights: Q3 FY24
Key Highlights: Q3 FY24 Gross Revenue Profit After Tax ex – Agri Business +3.9% +10.8% 2-yr CAGR +10.5% 2-yr CAGR +15.8% Interim Dividend Rs. 6.25 per share For the quarter ended 31st Dec, 2023, YoY change |8|
Slide 16: Key Highlights: Q3 FY24
Key Highlights: Q3 FY24 ▪ Resilient performance in FMCG – Others amidst subdued demand conditions; Segment Revenue up 7.6% YoY on a high base; 2-yr CAGR +12.8% ̶ Staples, Dairy, Beverages, Fragrances, Personal Wash, Homecare, Agarbattis and Notebooks drive growth ̶ Segment EBITDA margin expanded 100
Slide 17: Key Highlights: Q3 FY24
Key Highlights: Q3 FY24 ▪ Agri Business Segment impacted by trade restrictions on agri commodities ̶ Geopolitical tensions & climate emergencies have led to concerns on food security and food inflation; trade restrictions imposed by Govt. on agri commodities limit business opportunities for the segm
Slide 18: FMCG Others
Not Just HaPPy, It's gonna Be A MatCh Full OF MA ENA wpe YOUR Enduring Value FMCG Others
Slide 19: FMCG Others – Q3 FY24
Resilient Performance amidst subdued FMCG Others – Q3 FY24 demand conditions ▪ Segment Revenue up 7.6% YoY on a high base; 2-yr CAGR +12.8% - Staples, Dairy, Beverages, Fragrances, Personal Wash, Homecare, Agarbattis and Notebooks drive growth ▪ Strategic portfolio augmentation leveraging agile and
Slide 20: FMCG Others: Segment PBIT and EBITDA margins
Segment PBIT +24.1% YoY FMCG Others Segment EBITDA Margins up 100 bps YoY ▪ Q3 Segment EBITDA margins at 11.0% up 100 bps YoY - Margin expansion driven by multi-pronged interventions viz. premiumisation, supply chain optimisation, judicious pricing actions, digital initiatives and strategic cost man
Slide 21: Purposeful Innovation: Recent Launches
Purposeful Innovation Recent Launches Aashirvaad Atta Sunfeast YiPPee! Sunfeast Dream Crème Sunfeast Supermilk Fabelle Exquisite Chocolate Sunrise Spices with Millets WoW! Masala Cookie and Crème Immunity Nutrients Truffles Exquisite Chicken Masala 25% millets inside Aashirvaad Whole Spices Dermafiq
Slide 22: Deepening Consumer Engagement
Deepening Consumer Engagement Sharpening Value Proposition Building Brand Associations Scan the QR code 40+ Quality Control Tests 100% Atta, 0% Maida On-ground presence during Ayodhya Ram Mandir Pran Pratishtha | 15 |
Slide 23: Deepening Consumer Engagement: Celebrating moments
Deepening Consumer Engagement Celebrating moments | 16 |
Slide 24: Building Brands with Purpose
Building Brands with Purpose Mom’s Magic Fiama - Mental Health Well-being #MaaKehtiHaiTryKaro YiPPee! “Create Magic” Fiama introduced a SENSITIVE PORTRAYAL OF Campaign to convert plastic MENTAL HEALTH special recognition waste into park equipment award in collaboration Awarded to Director Anvita wit
Slide 25: FMCG Cigarettes
MM ENA Enduring Value FMCG Cigarettes
Slide 26: FMCG Cigarettes – Q3 FY24
Consolidation on a high base FMCG Cigarettes – Q3 FY24 after a period of sustained growth momentum ▪ Net Segment Revenue* and Segment PBIT up 2.3% YoY ̶ 2-yr CAGR: Net Segment Revenue +9.3%, Segment PBIT +9.4% Segment Revenue ▪ Portfolio Vitality | Product Availability | Execution Excellence 7549 cr
Slide 27: 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 • American Club Clove Mint • Bristol Deluxe FT • Gold Flake Indie Mint • Flake XL • Flake Skipper Recent Introductions • Classic Alphatec • A
Slide 28: Hotels
Hotels Welcomhotel Chennai | 21 |
Slide 29: Hotels – Q3 FY24
Hotels – Q3 FY24 Stellar Performance continues Best-ever quarter ▪ Strong growth in ARRs and Occupancy witnessed across properties driven by retail, MICE segments Segment Revenue and marquee events like the ICC Cricket World Cup ▪ Segment EBITDA margin expanded by 470 bps YoY to 36.2% driven mainly
Slide 30: Welcomhotel Chennai
Welcomhotel Chennai Iconic Property | Signature Dining | Grand Banquets Lobby Lobby WelcomCafé CaféMarina Marina Sunbean Cafe Welcom Relaunch post comprehensive renovation in January 2024 Bedroom Living Room Bathroom | 23 |
Slide 31: New Hotels in the pipeline
New Hotels in the pipeline ITC Ratanadipa, Colombo Mementos, Jaipur Welcomhotel Belagavi STORII Sirmour | 24 |
Slide 32: Agri Business
MM ENA Enduring Value Agri Business " — ITCMAARS fatarer
Slide 33: Agri Business – Q3 FY24
Agri Business – Q3 FY24 Segment Revenue up 14.2% YoY (ex. Wheat & Rice) ▪ Operating environment remained challenging due to various policy interventions of the Government of India to ensure food security and control inflation Segment Revenue ▪ Strong customer relationships & agile execution in Leaf
Slide 34: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging | 27 |
Slide 35: Paperboards, Paper & Packaging – Q3 FY24
Challenging operating environment Paperboards, Paper & Packaging – Q3 FY24 & high base effect ▪ Paperboards, Paper and Packaging Segment remains impacted by low priced Chinese Segment Revenue supplies in global markets, muted domestic demand, surge in wood cost and high base effect 2081 cr. 9.7% ▪ D
Slide 36: Financials
Financials | 29 |
Slide 37: Key Financials – Q3 FY24
Key Financials – Q3 FY24 YoY 2 Yr. Rs. Cr. Q3 FY24 Q3 FY23 growth CAGR Gross Revenue 17,483 17,122 2.1% 2.5% EBITDA 6,024 6,223 -3.2% 8.7% PBT 6,725 6,678 0.7% 10.7% PAT 5,572 5,031 10.8% 15.8% PBT (excl. Paperboards, Paper and Packaging) +6% YoY; 2-yr CAGR +13% PBT includes exceptional item aggrega
Slide 38: Segment Revenue Q3 FY24
Segment Revenue Q3 FY24 • FMCG Cigarettes Q3 - Net Segment Revenue* up 2.3% YoY on a high base YoY Rs. cr. FY24 FY23 • 2 Yr. CAGR at 9.3% growth • FMCG Others Segment Revenue - Revenue up 7.6% YoY amidst subdued demand conditions a) FMCG - Cigarettes 7,549 7,288 3.6% - Others 5,209 4,841 7.6% • 2 Yr
Slide 39: Segment Results Q3 FY24
Segment Results Q3 FY24 Q3 YoY Rs. cr. FY24 FY23 growth Segment Results • FMCG Cigarettes a) FMCG - Cigarettes 4,728 4,620 2.3% - Segment PBIT up 2.3% YoY on a high base - Others 432 348 24.1% • 2 Yr. CAGR at 9.4% Total FMCG 5,160 4,968 3.9% b) Hotels 230 146 57.1% • FMCG-Others: c) Agri Business 33
Slide 40: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability | 33 |
Slide 41: Impactful Social Performance
Impactful Social Performance ITC e-Choupal Afforestation Watershed Development Livestock Development Solid Waste Management Over 11.7 lac acres Over 15.3 lac acres Well-being Out of Waste 4 Million Farmers Over 21.9 lac milch programme covers empowered greened covered animals covered 60 lac househol
Slide 42: Sustainability 2.0 and 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 43: Sustainability – Highlights
Sustainability – Highlights • Exceeded commitment on Plastic Neutrality; collected and sustainably managed over 60,000 MT of plastic waste in FY23 • 100% critical Tier - 1 suppliers trained on ESG related aspects (as on Jan 24) • Best-in-class ESG Ratings: • AA rating by MSCI for the 6th consecutive
Slide 44: ITC Infotech
ITC Infotech | 3737|
Slide 45: ITC Infotech
ITC Infotech Customer Centricity | Employee Centricity | Operational Excellence Rs. cr. Revenue EBITDA Rs.cr. 350 0 3321 300 0 2853 2454 250 0 2249 2007 717 200 0 150 0 618 579 100 0 161 291 500 • Revenue up 11.0% YoY and 4.1% QoQ 0 • Healthy Total Contract Value (TCV) signings; strong pipeline FY19
Slide 46: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. | 39 |
Slide 47: 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