ITC Ltd

About

Established in 1910, ITC is the largest cigarette manufacturer and seller in the country. ITC operates in five business segments at present — FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri Business. [1]

Key Points

FMCG - Cigarettes (45% of revenue)
ITC is the leader in the organised domestic cigarette market with a market share of over 80% [1]. It's wide range of brands include Insignia, India Kings, Classic, Gold Flake, American Club, etc. [2]

Despite this vertical contributing only 45% to the revenues, it is the most profitable business of the company with 84% contribution towards PBIT. [1]

Industry: India is the 4th largest market for illegal cigarettes. While the consumption rate of legal cigarettes is only 1/10th in the tobacco industry, It accounts for 4/5th Tax revenue share. Legal cigarette industry remains under pressure due to growth in illicit duty-evaded cigarette consumption. [3]

See full details
  • Market Cap 316,078 Cr.
  • Current Price 257
  • High / Low 262 / 163
  • Stock P/E 22.7
  • Book Value 49.0
  • Dividend Yield 4.19 %
  • ROCE 28.6 %
  • ROE 21.0 %
  • Face Value 1.00

Pros

  • Company is almost debt free.
  • Stock is providing a good dividend yield of 4.19%.
  • Company has been maintaining a healthy dividend payout of 79.34%

Cons

  • The company has delivered a poor sales growth of 4.68% over past five years.

Peer comparison

Sector: Tobacco Products Industry: Cigarettes

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
12,184 12,584 13,212 12,658 12,867 12,903 11,782 10,478 12,077 13,080 14,342 13,247
7,758 7,978 8,380 7,720 8,025 7,926 7,279 7,533 7,676 8,295 9,471 8,804
Operating Profit 4,427 4,605 4,832 4,938 4,842 4,977 4,504 2,946 4,401 4,785 4,871 4,444
OPM % 36% 37% 37% 39% 38% 39% 38% 28% 36% 37% 34% 34%
Other Income 474 585 690 647 630 521 668 925 582 546 579 447
Interest 22 6 10 15 14 11 15 16 13 13 3 9
Depreciation 349 356 371 379 416 437 413 419 405 413 409 414
Profit before tax 4,529 4,828 5,142 5,192 5,042 5,049 4,743 3,436 4,565 4,905 5,039 4,467
Tax % 33% 35% 30% 34% 17% 20% 17% 25% 25% 27% 24% 25%
Net Profit 3,004 3,079 3,535 3,355 4,119 3,976 3,857 2,511 3,368 3,527 3,755 3,276
EPS in Rs 2.45 2.51 2.88 2.74 3.35 3.23 3.14 2.04 2.74 2.87 3.05 2.66

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
19,127 22,566 26,516 31,618 35,306 38,817 39,192 42,768 43,449 48,340 49,388 49,257 52,746
12,776 14,850 17,272 20,398 22,227 24,566 24,661 27,298 26,928 29,802 30,044 32,193 34,245
Operating Profit 6,351 7,716 9,244 11,221 13,080 14,252 14,531 15,470 16,521 18,537 19,344 17,065 18,501
OPM % 33% 34% 35% 35% 37% 37% 37% 36% 38% 38% 39% 35% 35%
Other Income 631 510 772 852 966 1,229 1,483 1,759 2,240 2,080 2,417 2,577 2,154
Interest 92 92 102 108 29 91 78 49 115 71 81 58 38
Depreciation 644 699 745 859 965 1,028 1,077 1,153 1,236 1,397 1,645 1,646 1,641
Profit before tax 6,246 7,435 9,168 11,106 13,052 14,362 14,859 16,026 17,409 19,150 20,035 17,938 18,977
Tax % 33% 32% 31% 31% 31% 32% 36% 35% 34% 33% 22% 25%
Net Profit 4,168 5,018 6,258 7,608 8,891 9,663 9,344 10,289 11,271 12,592 15,306 13,161 13,927
EPS in Rs 3.64 4.32 5.34 6.42 7.45 8.04 7.74 8.47 9.24 10.27 12.45 10.69 11.32
Dividend Payout % 92% 69% 56% 55% 54% 52% 73% 56% 56% 56% 82% 101%
Compounded Sales Growth
10 Years:8%
5 Years:5%
3 Years:4%
TTM:10%
Compounded Profit Growth
10 Years:10%
5 Years:7%
3 Years:6%
TTM:-4%
Stock Price CAGR
10 Years:7%
5 Years:1%
3 Years:-4%
1 Year:55%
Return on Equity
10 Years:26%
5 Years:23%
3 Years:23%
Last Year:21%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
382 774 782 790 795 802 805 1,215 1,220 1,226 1,229 1,231
Reserves 14,076 15,716 18,677 22,368 26,442 30,934 41,875 45,198 51,290 57,915 64,044 59,116
Borrowings 111 125 118 102 242 269 84 46 36 13 277 271
9,248 9,777 10,509 12,069 13,369 13,948 8,888 9,440 11,695 12,585 11,760 13,143
Total Liabilities 23,817 26,391 30,085 35,329 40,848 45,952 51,651 55,898 64,241 71,739 77,311 73,761
8,774 9,172 10,007 12,140 12,921 15,303 15,107 15,893 16,524 19,374 21,713 23,298
CWIP 1,024 1,368 2,396 2,062 3,117 2,700 2,560 3,730 5,508 4,136 3,256 4,011
Investments 5,000 4,868 5,207 5,981 7,284 6,943 11,748 17,581 22,053 25,043 28,663 24,871
9,019 10,984 12,475 15,146 17,526 21,006 22,237 18,694 20,156 23,185 23,678 21,580
Total Assets 23,817 26,391 30,085 35,329 40,848 45,952 51,651 55,898 64,241 71,739 77,311 73,761

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
4,457 5,509 6,256 7,102 7,344 9,843 9,799 10,627 13,169 12,583 14,690 12,527
-3,360 -871 -2,694 -3,881 -3,254 -5,275 -3,921 -3,251 -7,114 -5,546 -6,174 5,740
-1,070 -3,580 -3,305 -3,310 -4,122 -4,661 -5,613 -7,301 -6,221 -6,869 -8,181 -18,634
Net Cash Flow 27 1,058 257 -90 -32 -93 266 75 -166 169 334 -367

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 20 18 17 16 25 19 18 21 23 30 19 19
Inventory Days 266 256 243 227 228 212 244 185 173 165 187 189
Days Payable 190 67 58 53 58 50 63 60 80 74 76 78
Cash Conversion Cycle 96 207 202 189 195 181 199 145 115 122 129 129
Working Capital Days -13 -21 -15 -5 9 -4 52 45 31 32 35 36
ROCE % 44% 48% 50% 51% 50% 48% 40% 36% 35% 35% 33% 29%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
17.05 17.04 16.75 15.64 15.18 14.65 14.60 12.96 13.31 12.79 11.74 10.81
38.10 38.20 38.40 42.47 42.58 42.46 42.09 43.54 42.94 42.50 42.40 43.72
44.85 44.76 44.85 41.89 42.24 42.89 43.31 43.50 43.75 44.71 45.86 45.47

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