Slide 1: Q1 FY23 Results
Q1 FY23 Results 1st August, 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: Persistently high Inflationary conditions
Persistently high Inflationary conditions CPI, Core CPI (% y-o-y) World Bank Commodity Index (% y-o-y) 7.8% 7.1% 7.0% 7.0% 6.4% 6.0% 5.8% 5.7% 5.9% 5.6% 4.9% 4.3% CPI Core CPI RBI Upper Limit Energy – Crude Oil (85%), Coal (5%) and Natural Gas (10%) Oil & Meals – Soyabean & Soyabean Oil, Palm Oil, C
Slide 5: Interest rate hikes, widening CAD and FPI outflows
US Dollar Index at a 20-year high 3 consecutive Interest Rate hikes by RBI Widening CAD & FPI outflows → Lower Rupee Interest Rates on the rise Trade Deficit at record high in Jun’22 30 19 15 4.8% RBI Repo Rate Fed Repo Rate 5.2% 4.9% 7 3.8% 103.7% -2 -8 -10 -22 -13 4.4% 4.4% 2.8% -10 4.0% 4.0% -10
Slide 6: Normal monsoon + improving sentiments; rural demand subdued
Normal monsoon + Improving sentiments → Rural Demand remained subdued Anticipated pick-up in H2 Rural Inflation > Rural Wage Rainfall +10% LPA (1st Jun’22 – 28th Jul’22) Rural CPI Rural Wage Goly 8.4 8.0 7.1 6.1 5.3 5.0 4.8 4.3 4.4 4.5 2.2 2.0 Source : MOSPI / Labour Bureau / CMIE Improving Rural Co
Slide 7: Global Macro and India Macro
Global Macro India Macro Continued slowdown in global growth momentum Key Positives Key Monitorables 2022 Global GDP growth further revised down to 3.2% Vs. 3.6% (Apr’22) and 4.4% (Jan’22) - Reduced household purchasing power & high inflation poses downside risks Recovery in economic - Recession ris
Slide 8: Q1 FY23 Results Headline Financials & Business Highlights
Q1 FY23 Results Headline Financials & Business Highlights |8|
Slide 9: Key Highlights: Q1 FY23
Key Highlights: Q1 FY23 Gross Revenue EBITDA Overall Segment PBIT Margin ex – Agri Business Robust performance +41.0% +41.5% 36.9% 245 bps continues across segments PAT EPS +38.4% +38.1% For the quarter ended 30th June, 2022, YoY change |9|
Slide 10: Key Highlights: Q1 FY23
Key Highlights: Q1 FY23 ▪ Robust performance continues across segments ▪ Stability in taxes on Cigarettes, backed by deterrent actions by enforcement agencies, enable green shoots of volume recovery from illicit trade ̶ Segment Revenue up 29.0% YoY; Segment EBIT up 30.1% YoY ▪ Strong performance in
Slide 11: Key Highlights: Q1 FY23
Key Highlights: Q1 FY23 ▪ Agri Business sustains high growth trajectory; Segment Revenue up 82.7% YoY ̶ Wheat, Rice and Leaf Tobacco exports ▪ Paperboards, Paper & Packaging continued to deliver strong performance; Segment Revenue up 43.3% YoY along with margin expansion of ~220 bps ̶ Strong demand
Slide 12: 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 13: FMCG Others
& Some Curls steal y= our eyes! Some \ Curls fill our tummy. ‘noodle heab in your gang! Enduring Value FMCG Others wr) i SUNBEAN
Slide 14: FMCG Others – Q1 FY23 Segment Revenue up 19.5% YoY
Strong Performance FMCG Others – Q1 FY23 Segment Revenue up 19.5% YoY Rs. cr. ▪ Segment Revenue up 19.5% YoY; + 45.5% over Q1 FY20 OFMCG Segment Revenue 4,700 4,451 +45.5% - Robust growth in Discretionary/Out-Of-Home categories; Staples & 4,500 4,300 +19.5% Convenience Foods remained resilient 4,100
Slide 15: FMCG Others – Q1 FY23 Segment EBITDA
Segment EBITDA at 347 cr. FMCG Others – Q1 FY23 Nearly doubled over Q1 FY20 Seg. EBITDA Margin at 7.8% in spite of inflationary headwinds Rs. cr. ▪ Segment EBITDA margin sustained at 7.8% (-20 bps YoY; up 460 5.9% +92%; 190 bps margin expansion ~190 bps Vs. Q1 FY20) in spite of unprecedented commodi
Slide 16: Russia-Ukraine Conflict → Further hardening of Commodity Prices
Russia-Ukraine Conflict → Further hardening of Commodity Prices Some moderation witnessed in June Palm Oil BOPP Film Metallocene 202 160 154 154 180 174 210 184 150 170 158 190 160 140 150 170 140 130 130 150 120 120 130 100 100 110 110 110 100 100 100 90 90 90 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3
Slide 17: Creating Structural Advantage: Scale, Productivity, Costs
Creating Structural Advantage Scale| Productivity| Costs Solar Plant, Dindigul ICML Trichy AMLF Kapurthala ICML Medak AMLF: Ancillary Manufacturing cum Logistics Facility ICML: Integrated Consumer Goods Manufacturing and Logistics Facility | 17 |
Slide 18: Driving Cost Agility & Productivity
Driving Cost Agility & Productivity Remove | Reduce | Re-engineer Manufacturing ICMLs 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 Smart Buying Marketing
Slide 19: Addressing Emerging Consumer Need Spaces with Agility
Addressing Emerging Consumer Need Spaces with Agility Bingo! Snacks Spices Aashirvaad Svasti Differentiated flavors & textures Sabji Masala|Kitchen King Masala| Dimer Kosha Litchi Lassi| Aam Doi Mom’s Magic Sunfeast Dark Fantasy Classmate Interaktiv Mangaldeep Fragrance Sticks Centre filled with mol
Slide 20: Augmenting 'Good For You' range
Future-Ready Portfolio Augmenting ‘Good For You’ range Aashirvaad Nature’s Super Foods Aashirvaad Salt Proactive Farmlite Digestive B Natural|Sunfeast Nutrilite Organic Better Heart health Goodness of Whole Wheat Health Range Rising Gluten Intolerance & Going back to Roots YiPPee! Power Up Noodles A
Slide 21: Raising Consumer Awareness
Raising Consumer Awareness Dedicated Content Marketing Raising Consumer Awareness | 21 |
Slide 22: Building Brands with Purpose
Building Brands with Purpose Sixth Sense Consumer Panel Aashirvaad #RahoChaarKadamAage An Initiative for the differently abled End-to-end campaign to help women upskill and establish their businesses Vivel #AbSamjhautaNahi World Hand Hygiene Day #Handwash First | 22 |
Slide 23: Expanding Reach in Emerging Channels
Expanding Reach in Emerging Channels Winning in Emerging Channels New Routes to Market On-the-Go Direct Marketing QSR Strategic Partnerships Fast-tracking E-Com| Modern Trade D2C | Cash & Carry Climate Controlled Supply Chain Scaling-up Expanding e-Com Dairy | Chocolates Food Services OFMCG sales in
Slide 24: Digital @ ITC
Digital @ ITC Building a dynamic 'Future-Tech' enterprise eB2B: UNNATI VIRU: Virtual Salesman VISTAAR: Rural App Project Zen Next Generation Agile FMCG Supply Chain Over 3.2 lakh Outlet penetration | 24 |
Slide 25: FMCG Cigarettes
MM ENA Enduring Value FMCG Cigarettes
Slide 26: FMCG Cigarettes – Q1 FY23
FMCG Cigarettes – Q1 FY23 ▪ Net Segment Revenue* up 29.5% YoY; Segment EBIT up 30.1% YoY Segment Revenue ▪ Robust growth across regions & markets; volumes surpass pre-pandemic levels 6609 cr. 29.0% ▪ Innovation & democratising premiumisation across segments ▪ Focused portfolio/market interventions ̶
Slide 27: FMCG Cigarettes Reinforcing market standing
FMCG Cigarettes Reinforcing market standing Innovation Portfolio Fortification • Classic Connect • Gold Flake Neo SMART Filter • Gold Flake Neo • Navy Cut Deluxe • American Club Clove Mint • Player’s Gold Leaf Chase • Gold Flake Indie Mint • Gold Flake Star • Capstan Fresh Recent Introductions Other
Slide 28: Hotels Business
MM ENA Enduring Value Hotels Business mT Pg
Slide 29: Hotels – Q1 FY23
Hotels – Q1 FY23 ARR & Occupancy ahead of pre-pandemic levels Segment Revenue 555 cr. ▪ Stellar performance across locations (4.4x of LY; 1.4x of FY20) ✓ Revenue up 41.4% over Q1 FY20 ▪ ARR and Occupancy ahead of pre-pandemic levels; Leisure, Weddings & MICE drive growth Segment EBITDA ▪ EBITDA marg
Slide 30: Industry Recognition
Industry Recognition Freddie Awards, 2022 ITC Hotels – Best Service Grand Market Pavilion, ITC Royal Bengal – Best Family Dining Gourmet Couch, ITC Hotels – Best Food Delivery Services Bukhara, ITC Maurya – Best Indian Cuisine | 30 |
Slide 31: Healthy Pipeline of Management Contracts
Healthy Pipeline of Executing ‘Asset-Right’ Strategy Management Contracts Mementos Welcomhotel Storii Fortune Collection of unique luxury hotels across Collection of intimate sized handpicked varied destinations ranging from modern properties in the premium segment retreats to historic treasures Pro
Slide 32: 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 | 32 |
Slide 33: Agri Business
MM ENA Enduring Value Agri Business
Slide 34: Agri Business Robust Growth in Revenue led by Exports
Agri Business Robust Growth in Revenue led by Exports ▪ Sustained high growth trajectory with Segment Revenue up 82.7% led by wheat, rice and leaf tobacco exports Segment Revenue ̶ Strategic sourcing support to Branded Packaged Foods Businesses – Wheat, Dairy and Spices 7473 cr. 82.7% ▪ ITCMAARS* –
Slide 35: ITCMAARS
ITCMAARS Minimum Viable Product for all 4 modules launched Advisory Inputs Outputs Services 200+ FPOs 75,000+ 60,000+ 40+ 7 states Farmer registrations App downloads Tie-ups with partners | 35 |
Slide 36: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging | 36 |
Slide 37: Paperboards, Paper & Packaging Record High Revenue and Profits
Paperboards, Paper & Packaging Record High Revenue and Profits Paperboards & Specialty Paper Segment Revenue ▪ Paperboards, Paper & Packaging Segment delivered strong performance ▪ Robust growth in Revenue driven by higher volumes & realisation 2267 cr. 43.3% ̶ ̶ Continued strong demand across end-u
Slide 38: Scaling up Sustainable Solutions
Scaling up Sustainable Solutions ITC LSTC | External Collaborations Sustainable Solutions Portfolio Extrusion Laminating Laminating Coated Boards Base Base ToughPack Bio-based Paper + Barrier Flexible Packaging Coated Boards Coatings Paper Paper + HSL Anti fungal Online Coated Oxyblock Boards Antifu
Slide 39: Financials
Financials | 39 |
Slide 40: Key Financials
Key Financials Rs. Crs. Q1 FY23 Q1 FY22 GOLY Gross Revenue 18,164 12,884 41.0% Net Revenue 17,217 12,134 41.9% EBITDA 5,648 3,992 41.5% PBT 5,540 4,015 38.0% PAT 4,169 3,013 38.4% Robust performance continues across segments Standalone basis | 40 |
Slide 41: Segment Revenue Q1 FY23
Segment Revenue Q1 FY23 Robust growth across Segments Rs. cr. • FMCG Others Q1 - Segment Revenue up 19.5% vs. LY (+45.5% Vs. Q1 FY20) FY23 FY22 Goly - Strong growth in Discretionary/OOH categories Segment Revenue - Staples & Convenience Foods remained resilient a) FMCG - Cigarettes 6609 5122 29% - E
Slide 42: Segment Results Q1 FY23
Segment Results Q1 FY23 Robust growth across Segments Rs cr. Q1 • FMCG-Others: FY23 FY22 Goly ‒ Segment EBITDA at 347 cr. Segment Results • at 1.9x of Q1 FY20 a) FMCG - Cigarettes 4189 3221 30% ‒ EBITDA margin at 7.8% - Others 204 173 18% • -20 bps YoY; +~190 bps vs. Q1 FY20 Total FMCG 4393 3394 29%
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 955,000 acres Over 1.35 million acres Well-being Out of Waste 4 Million Farmers Over 2,055,000 milch programme has covered empowered greened covered animals covered ~20 mi
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 Building Green De-Carbonization 100% Infrastructure 50% 50% 100% Collecti
Slide 46: Sustainability – Highlights
Sustainability – Highlights • All Businesses aligned with 2030 targets • Comprehensive set of policies & guidelines put in place • Exceeded commitment on Plastic Neutrality; collected and sustainably managed over 54000 MT of plastic waste in FY22 across 35 states/UT • Achieved A- Leadership score un
Slide 47: ITC Infotech
ITC Infotech | 4747|
Slide 48: ITC Infotech Robust Revenue Growth
ITC Infotech Robust Revenue Growth 14 50 Revenue (Rs.cr.) EBITDA (Rs.cr.) 30 00 33 00 3 Yr Cagr: 31 00 Revenue: 12.4% 12 50 25 00 29 00 10 50 2853 20 00 27 00 85 0 717 15 00 2454 618 25 00 65 0 23 00 2249 10 00 45 0 21 00 2007 291 Q1 FY23 includes: 50 0 161 25 0 19 00 - Certain costs associated with
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