ITC

INTRODUCTION

India Tobacco Company.

ITC is one of Indias foremost private sector companies

ITC has a diversified presence in FMCG (Fast Moving

Consumer Goods), Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business and Information
Technology

ITC is an outstanding market leader in its traditional

businesses of Hotels, Paperboards, Packaging, AgriExports and Cigarettes, it is rapidly gaining market
share even in its nascent businesses of Packaged
Foods & Confectionery, Branded Apparel, Personal
Care and Stationery ITC. Touching your life.

INCOME STATEMENT

ITC PERFORMANCE
Growth Growth

SALES
EBITDA
EBDT
EBT
PAT

2013

2014

2015

YOY

YOY

(Rs. in

(Rs. in

(Rs. in

2013-

2014-

crores)

crores)

crores)

2014

2015

12%
16%
17%
18%
17%

7%
10%
10%
10%
9%

44,224
12,051
11,964
11,105
7,693

49,579
14,022
14,016
13,051
8,990

53,160
15,458
15,390
14,362
9,765

INCOME STATEMENT ANALYSIS

Performance for the quarter impacted by:

Continuing pressure on legal Cigarette industry volumes
Lack of trading opportunities in wheat and soya
Sluggish demand conditions especially in the FMCG and
Hospitality sector

Revenue is majorly affected because over the last 3 years, the

incidence of Excise Duty and VAT on cigarettes, at a per unit level,
has gone up cumulatively by 98% and 104% respectively.

Cigarette taxes account for approximately 38% of the retail price.

This falls well below the rate recommended by the World Bank
(from 65% to 80% of retail price) that is commonly present in
countries with effective tobacco control policies.

BALALNCE SHEET

ITC PERFORMANCE

FIXED ASSETS
INVESTMENT
CAPITAL (WIP)
NET CURRENT
ASSETS
SHAREHOLDERS
FUND
TOTAL DEBT

2013

2014

2015

(Rs. in

(Rs. in

(Rs. in

crores)
16,679
7,060
1,487

crores)
18,240
8,823
2,295

crores)
21,392
8,405
2,114

2,600

3,181

6,076

790
66

795
51

801
38

BALANCE SHEET ANALYSIS

The capital is increasing because theres a shift in the

business of ITC, as in the focus isnt just on the tobacco
product

Investment needs to be equal to the depreciation of

assets of the company however that isnt the case here
for ITC

Shareholders funds is increasing because of Issue of

Shares under the ITC Employee Stock Option Schemes
and Issue of Shares upon Demerger of the Non
Engineering Business of Wimco Limited into the Company

Total debt of the company is decreasing which is

undoubtedly good for the company and it also has a solid
reserve

RATIO ANALYSIS

LIQUIDITY RATIOS
Ratios

Mar15

Mar14

Mar13

Current Ratio

1.45

1.25

1.22

Quick Ratio

0.87

0.68

0.66

Debt Equity
Ratio

0.01

0.01

0.02

PROFITABILITY RATIOS
Ratios

Mar15

Mar14

Mar13

Net Profit Margin

26.31

26.43

24.80

Return on capital
employed

45.74

48.21

48.29

Return on net worth

31.31

33.51

33.36

TURNOVER RATIOS
Ratios

Mar15

Mar14

Mar13

Inventory Turnover
Ratio =
COGS
----------------

6.43

4.52

4.53

18.78

19.97

27.82

1.74

1.83

1.80

Total inventory
Debtors Turnover
Ratio =
Net Sales
---------------Avg Debtors
Fixed Asset turnover
Ratio =

RATIOS
Ratios

Mar15

Mar14

Mar13

No of days in Working
capital =
Average inventory
holding period + avg
collection period Avg
payback period

74.10

37.96

38.45

THANK YOU