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ITC posts robust growth in revenues & profits surpassing pre-pandemic levels
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IANS | 22 Jun, 2022
In
spite of significant disruptions during the year, ITC posted robust
growth in revenues and profits, surpassing pre-pandemic levels.
ITC's
consumer-centricity, agility in seizing market opportunities, focus on
execution excellence and proactive strategic interventions enabled it to
post robust growth.
Overall for FY 2021-22, gross revenue at Rs
59,101.09 crore increased by 22.7 per cent, while EBITDA increased by 22
per cent to Rs 18,933.66 crore. Profit before tax at Rs 19,829.53 crore
grew by 15.5 per cent over the previous year while profit after tax
stood at Rs 15,057.83 crore as against previous year's Rs 13,031.68
crore.
Total comprehensive income for the year stood at Rs
15,631.68 crore (previous year Rs 13,277.93 crore). Earnings per share
for the year stood at Rs 12.22 (previous year Rs 10.59).
An
extensive strategy reset has been undertaken in recent years to
architect the structural drivers that will power ITC's next horizon of
growth and ensure that the enterprise remains future-ready,
consumer-centric and nimble.
Each of ITC's businesses has
pivoted to create new frontiers for the future, with enhanced
competitiveness as well as sharper focus on cost management to
strengthen the leadership or rapidly enhance market standing in the case
of newer segments.
As a core element of the ITC Next strategy,
the company will continue to explore opportunities to craft disruptive
business models anchored at the intersection of digital and
sustainability, the two defining trends in the 'new normal', leveraging
its institutional strengths.
The FMCG-Others segment turned in a
resilient performance with segment revenue growing by 8.6 per cent amid
subdued demand conditions. After a relatively muted first half, revenue
in the second half of the year witnessed double-digit growth.
Staples
and Convenience Foods remained resilient even as the pace of revenue
growth moderated on a relatively high base. Discretionary/Out-of-Home
categories recorded strong growth surpassing pre-pandemic levels driven
by progressive improvement in mobility.
Progressive resumption of
physical classes at educational institutions led to gradual recovery in
the Education & Stationery Products business, however, sales
remained below pre-pandemic levels. Segment EBITDA for the year grew by
10 per cent to Rs 1,448.97 crore with margins being sustained at 9.1 per
cent in spite of unprecedented inflationary headwinds.
To
accentuate consumer-centricity, agility and enable sharper focus in the
context of the growing scale and complexity of operations, the Branded
Packaged Foods businesses have been reorganised into market centric
clusters with integrated and empowered teams.
Focused
interventions made in the recent past have also augmented ITC's
multi-channel go-to-market capability, resulting in manifold expansion
in the reach and availability of its products. Over the last five years,
market and outlet coverage have grown 4x and 1.6x, respectively, while
the network of stockists has expanded to 6.4x during the same period.
The
impact of these multi-dimensional interventions is evident in the
substantial margin expansion of 650 bps in Segment EBITDA over the last
five years even in the face of significant inflationary headwinds
witnessed during the year.
After an extremely challenging FY
2020-21, the Hotels Segment witnessed smart recovery driven by the
domestic leisure and wedding segments; business travel also saw
progressive improvement, albeit remaining well below pre-pandemic
levels. Pick-up in revenues together with relentless focus on cost
management resulted in a positive swing of Rs 346.63 crore in Segment
EBITDA, despite considerable disruptions caused by the two waves of the
pandemic during the year.
The Agri Business segment delivered
stellar performance with segment revenue and results growing by 28.7 per
cent and 25.6 per cent, respectively. This was driven by strong growth
in wheat, rice, spices and leaf tobacco exports on the back of strong
customer relationships, robust sourcing network and agile execution.
The
Agri Business has been a strong backbone and a key source of
competitive advantage for ITC's FMCG and cigarettes businesses. The
scope and scale of operations have grown manifold over the years and
currently encompass over 4 million tonnes in 22 states and over 20
agri-value chains.
The Paperboards, Paper and Packaging segment
recorded strong growth of 36 per cent in segment revenue and 54.7 per
cent in segment results. This was aided by demand revival across most
end-user segments, higher realisations, product mix enrichment and
exports.
Robust margin expansion of appx. 270 bps was achieved
leveraging the integrated nature of the business model, Industry 4.0 and
other digital interventions.
During the year, ITC Infotech's
consolidated total income grew by 16.8 per cent to Rs 2,884.30 crore
(previous year Rs 2,469.29 crore). Profit before tax stood at Rs 719.64
crore (previous year Rs 604.13 crore) and net profit stood at Rs 541.04
crore (previous year Rs 451.30 crore).
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Currency |
Import |
Export |
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87.50
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84.65 |
Euro
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75.65 |
Japanese
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56.85 |
As on 13 Aug, 2022 |
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