Itc Limited · NSE:ITC
Itc — Q3 FY2024 Earnings Presentation
40 slides from Itc's earnings presentation, Jan 29, 2024
Slide 1: Q3 FY24 Results
Q3 FY24 Results 29th January, 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 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 5: Macro Economic Environment
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 6: India Macro Key Positives
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 7: Q3 FY24 Results Key Highlights
Q3 FY24 Results Key Highlights |7|
Slide 8: 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 9: 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 10: 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 11: FMCG Others
Not Just HaPPy, It's gonna Be A MatCh Full OF MA ENA wpe YOUR Enduring Value FMCG Others
Slide 12: 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 13: FMCG Others Segment EBITDA Margins up 100 bps YoY
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 14: 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 15: 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 16: Deepening Consumer Engagement
Deepening Consumer Engagement Celebrating moments | 16 |
Slide 17: 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 18: FMCG Cigarettes
MM ENA Enduring Value FMCG Cigarettes
Slide 19: 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 20: 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 21: Hotels
Hotels Welcomhotel Chennai | 21 |
Slide 22: 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 23: 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 24: New Hotels in the pipeline
New Hotels in the pipeline ITC Ratanadipa, Colombo Mementos, Jaipur Welcomhotel Belagavi STORII Sirmour | 24 |
Slide 25: Agri Business
MM ENA Enduring Value Agri Business " — ITCMAARS fatarer
Slide 26: 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 27: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging | 27 |
Slide 28: 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 29: Financials
Financials | 29 |
Slide 30: 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 31: 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 32: 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 33: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability | 33 |
Slide 34: 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 35: 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 36: 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 37: ITC Infotech
ITC Infotech | 3737|
Slide 38: 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 39: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. | 39 |
Slide 40: 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