Dated-18th sJan 2013 Net profit up by 20.6% Reasons Non-Cigarette FMCG segment registers robust revenue growth of 30.

0.1% and improves profitability Gross Revenue/Income from Operations grew by 22.9% driven primarily by Branded Packaged Foods, Personal Care, Agri Business and Cigarettes. Profit Before Tax and Net Profit registered a growth of 19.4% and 20.6% respectively Profit Before Tax and Net Profit at Rs 2957.19 crores & Rs 2051.85 crores registered a growth of 19.4% and 20.6% respectively

(W. r.t. various product categories) 1. FMCG - Branded Packaged Foods The Business recorded significant growth during the quarter across all categories driven by strong volume growth and an enriched product mix. Sunfeast biscuits has sustained its growth. There has been innovation in the product portfolio with the addition of new variants under the Dream Cream and Dark Fantasy Choco Fills range. Sunfeast Yippee!' Noodles and the 'Bingo!' range of savoury snacks continued to record strong growth. 'mint-o Ultra mintz'- a sugar-free extra- strong mint, has also been generating consumer response. 2. Personal Care Products ITC has launched the 'Couture Spa' range of soaps under the 'Fiama Di Wills' brand. The Business also launched a 'Collectors Edition' soap series in association with the Lonely Planet Magazine under the Fiama Di Wills Men's range. The prouct portfolio was further augmented with the launch of Fiama Di Wills Aqua Pulse deodorant in select markets.

3. Education and stationery productsClassmate notebooks continued to expand its consumer franchise and recorded strong growth in sales during the quarter. The brand further consolidated its leadership position in the student notebook category during the quarter. 4. Cigarettes The cigarette industry in India continues to be impacted by a discriminatory taxation and regulatory policy framework. While cigarettes contribute nearly 75% of the tax revenues generated by the tobacco sector, it accounts for less than 15% of tobacco consumption in the country

Despite these challenging conditions, the Companys Cigarettes Business, through its relentless focus on providing differentiated and world-class products to consumers, sustained its leadership position in the industry. 5.HotelsITC Grand Chola, which commenced operations in September 2012, received encouraging response in its first quarter post launch. 6. Agri businessSegment Revenues recorded a robust growth of 43% during the quarter aided by exports of wheat and leaf tobacco and soya The Business continues providing strategic sourcing support to the Companys Cigarettes and Branded Packaged Foods businesses by ensuring high quality supplies at competitive costs.