Slide 1: Q2 FY25 Results
Q2 FY25 Results 24th October, 2024 |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 outlook steady with downside risks India remains resilient Real GDP Growth YoY 8.2 7.7 7.0 7.2 6.5 3.7 2.1 2.4 1.4 3.2 1.8 2.8 0.8 4.8 World Adv. Eco US Euro Area China Real GDP growth YoY 2023 2024f 2010-19 average FY19 FY23 FY24 FY25e Source: IMF WEO Oct’24 Source
Slide 5: Weakening trend in Consumption Amidst Overall Macroeconomic Stability
Weakening trend in Consumption Amidst Overall Macroeconomic Stability Food inflation remains sticky (YoY%) Passenger vehicle and 2W retail sales declining (YoY%) 40 % 33% PV 2W Sep'23 Jun-24 Sep-24 28% 9.4% 9.2% 30 % 22% 20 % 17% 6.6% 10 % 5.0% 5.1% 5.5% 1% 0% 6% 3% -10% -6% -7% -5% -7% -9% -20% -13
Slide 6: High Frequency Indicators Indicate Deceleration in Economic Activity in Q2 FY25
High Frequency Indicators Indicate Deceleration in Economic Activity in Q2 FY25 Unusually heavy rains in August/September 2024 Real rural wages remain weak Slower growth in credit card spends (YoY%) 9.0% Real Farm YoY% Real Non Farm YoY% 6.0% 35 3.0% 0.0% 25 -3.0% -6.0% -9.0% 15 Source: Labour Burea
Slide 7: Macro Economic Environment
Macro Economic Environment Key Key Positives Monitorables Stable growth Strong Bank & Geopolitical Corporate Food Inflation outlook disruptions Balance Sheets Fiscal & Current Account Deficits Rural Consumer Capital relatively Recovery Sentiment & Expenditure comfortable Wage growth |7|
Slide 8: Q2 FY25 Results Headline Financials & Business Highlights
Q2 FY25 Results Headline Financials & Business Highlights |8|
Slide 9: Key Highlights: Q2 FY25
Resilient performance amidst a Key Highlights: Q2 FY25 challenging operating environment Gross Revenue EBITDA +16% +5% ex-Paper up 6.3% YoY Profit Before Tax Profit After Tax +3.7% +3.7% Post adjusting for LTCG^ tax related changes ^ Long Term Capital Gains |9|
Slide 10: Key Highlights: Q2 FY25
Key Highlights: Q2 FY25 ▪ Resilient performance amidst a challenging operating environment ̶ Gross Revenue records strong growth; up 16% YoY driven by Agri Business and Hotels ̶ EBITDA up 5% YoY, ex-Paper up 6.3% YoY ̶ Subdued demand conditions, unusually heavy rains in parts of the country, high fo
Slide 11: Key Highlights: Q2 FY25
Key Highlights: Q2 FY25 ▪ Cigarettes Net Segment Revenue up 7.3% YoY, Segment PBIT up 5.1% YoY ̶ Market standing continues to be re-inforced through strategic portfolio and market interventions with focus on competitive belts and to counter illicit trade ̶ Differentiated & premium offerings continue
Slide 12: Key Highlights: Q2 FY25
Key Highlights: Q2 FY25 ▪ Agri Business Segment Revenue up 47% YoY led by Leaf Tobacco & Value Added Agri products; Segment PBIT up 27.5% YoY ̶ Strong growth in Leaf Tobacco exports leveraging strong customer relationships & new business development ̶ Value Added Agri portfolio (e.g. Coffee, Fruits
Slide 13: FMCG Others Q2 FY25
MM ENA Enduring Value FMCG Others Q2 FY25 Ms sconce INDEPENDENCE Farmlite Two teams. Onegoal Paperkraft Dandiya Beats Fantasy Treats. ow vant SUNRISE
Slide 14: FMCG Others – Q2 FY25
Resilient performance amidst FMCG Others – Q2 FY25 muted demand conditions FMCG Segment Revenue ▪ Segment Revenue up 5.4% YoY, up 7% YoY ex-Notebooks - Staples, Biscuits, Snacks, Frozen Snacks, Dairy, Premium Soaps, Homecare & Agarbatti drive growth ▪ Incessant rains/flooding in certain parts of the
Slide 15: FMCG Others – Q2 FY25
FMCG Others – Q2 FY25 ▪ Q2 Segment EBITDA margins remained resilient - Steep inflationary headwinds in input costs largely mitigated by premiumisation, supply chain optimisation, calibrated pricing actions, digital initiatives & strategic cost management Annual Trends Q2 Trends Full Year Seg. EBITDA
Slide 16: Future-Ready Portfolio
Future-Ready Portfolio Recent Launches Fortifying the Addressing New Growth Core Adjacencies Vectors Bingo! Sunfeast Aashirvaad Svasti Milk Aashirvaad Dermafique Sunfeast Fantastik! Original Style Mangaldeep Scent Biscuits Creamy Rich Roasted Short Vermicelli Face Serum 4D Chocolate Himalayan Crysta
Slide 17: Celebrating Festivities with Exquisite Gifting Collections
Celebrating Festivities with Exquisite Gifting Collections | 17 |
Slide 18: Deepening Consumer Engagement
Deepening Consumer Engagement Sharpening Value Proposition Digital @ Consumer #Farsh Par Bachpan Basta Hai #BingoKoreanStyle | 18 |
Slide 19: Deepening Consumer Engagement
Deepening Consumer Engagement Marketing Campaigns Across Platforms Brands with purpose Be elegantly eco-friendly Cover made with 80% Recycled Plastic PET Bottles | 19 |
Slide 20: FMCG Cigarettes Q2 FY25
MM ENA Enduring Value FMCG Cigarettes Q2 FY25
Slide 21: FMCG Cigarettes – Q2 FY25
FMCG Cigarettes – Q2 FY25 Portfolio Vitality | Product Availability | Execution Excellence ▪ Q2 Net Segment Revenue* up 7.3% YoY Segment Revenue ▪ Business continues to counter illicit trade and make strategic portfolio & market interventions with focus on competitive belts to reinforce market stand
Slide 22: FMCG Cigarettes Reinforcing market standing
FMCG Cigarettes Reinforcing market standing Innovation Portfolio Fortification • Classic Connect • Flake Spl • American Club Clove Mint • Classic Burst Portfolio • Gold Flake Indie Mint • Scissors • Uni Klov • Silk Cut Red Recent Introductions • Bristol Maja Mix • American Club Super Slims • Classic
Slide 23: Hotels Business Q2 FY25
MM ENA Enduring Value Hotels Business Q2 FY25
Slide 24: Hotels – Q2 FY25 Strong Growth on a High Base
Hotels – Q2 FY25 Strong Growth on a High Base ▪ Strong performance on a high base (LY includes G20 related business) Segment Revenue ▪ F&B, Retail & Wedding segments drive growth 728 cr. 12.1% ▪ 2 new F&B outlets launched → Ottimo at ITC Grand Goa & Avartana at ITC 2-Yr CAGR +16.5% Maurya ▪ ITC Ratn
Slide 25: Curated offerings to drive demand
Curated offerings to drive demand Special occasions leveraged F&B collaborations Celebrations on Gourmet couch Culinary rendezvous featuring Asia’s best Michelin Star renowned Chef Thitid (Le Du & Nusara) | Chef Pam (Potong) ITC Maurya, ITC Grand Chola, ITC Royal Bengal & ITC Maratha | 25 |
Slide 26: Executing 'Asset Right' Strategy
9 Openings & 15 Signings in Executing ‘Asset Right’ Strategy H1 FY25 Welcomhotel, Belagavi Fortune Beach Resort ECR, Chennai Healthy Pipeline of Management Contracts – Phased openings over the next few quarters | 26 |
Slide 27: Agri Business Q2 FY25
A Enduring Value Agri Business Q2 FY25
Slide 28: Agri Business
Segment Revenue up 47% YoY led by Leaf Tobacco & Value Agri Business Added Agri products; Segment PBIT up 27.5% YoY ▪ Value-Added Agri portfolio (e.g. Coffee, Fruits & Vegetables, Spices etc.) recorded robust growth ▪ Strong growth in Leaf Tobacco exports leveraging strong customer relationships and
Slide 29: Paperboards, Paper & Packaging Q2 FY25
Paperboards, Paper & Packaging Q2 FY25 | 29 |
Slide 30: Paperboards, Paper & Packaging
Challenging operating environment Paperboards, Paper & Packaging Low-priced imports | Soft domestic demand | Subdued realisation | Surge in wood costs Segment Revenue up 2.1% YoY; up 7% QoQ ▪ Sharp focus on portfolio augmentation, export customer/market development and Segment Revenue structural cos
Slide 31: Financials
Financials | 31 |
Slide 32: Key Financials
Key Financials YoY Rs. Cr. Q2 FY25 Q2 FY24 Growth Gross Revenue 20,360 17,549 16.0% Net Revenue 19,121 16,357 16.9% EBITDA 6,335 6,042 4.9% PBT 6,754 6,514 3.7% PAT 5,078 4,927 3.1% PAT up 3.7% on comparable basis, post adjusting for LTCG^ tax related changes in Union Budget 2024. Standalone basis ^
Slide 33: Segment Revenue
Segment Revenue • Cigarettes: Net Revenue up 7% YoY Q2 • FMCG Others YoY - Revenue up 5% YoY amidst subdued demand conditions & Rs. cr. FY25 FY24 disruptions a/c excessive rains in parts of the country growth • Up 7% YoY ex-Notebooks Segment Revenue - Staples, Biscuits, Snacks, Frozen Snacks, Dairy,
Slide 34: Segment Results
Segment Results Q2 YoY Rs. cr. FY25 FY24 growth • FMCG Others Segment Results ‒ Segment Results 2-yr. CAGR +17% a) FMCG - Cigarettes 5023 4782 5% ‒ Marginal drop of 35 bps in Segment EBITDA - Others 442 439 1% margins, amidst inflationary headwinds in input Total FMCG 5465 5220 5% costs b) Hotels 15
Slide 35: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability | 35 |
Slide 36: Impactful Social Performance
Impactful Social Performance On-farm livelihood Off-farm livelihood ITC e-Choupal Natural Resources diversification – Afforestation diversification – Livestock Climate Smart Agriculture Management – Water 4 Million Farmers Development Over 28 lac* acres covered Stewardship Over 12.50 lac acres Over
Slide 37: 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 38: Sustainability – Highlights
Sustainability – Highlights • Comprehensive policies & guidelines institutionalized • 9 ITC Units have received AWS (Alliance for Water Stewardship) Platinum certification till date • 50% energy from renewable sources achieved for the first time, well ahead of 2030 target • Plastic Neutrality commit
Slide 39: ITC Infotech
ITC Infotech | 3939|
Slide 40: ITC Infotech
ITC Infotech Customer Centricity | Employee Centricity | Operational Excellence Rs. cr. Rs. cr. Revenue H1 YoY +13% Rs. cr. Rs. cr. 2200 1900 1600 1300 1768 1990 1000 H1 H1 23/24 24/25 • Broad based growth; Healthy Total Contract Value (TCV) signings • Investments continue in Capability building in
Slide 41: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. | 41 |
Slide 42: 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