Presented d by

Ankit Vardhan (10DF016)

Abhishek Charaborty(10DF017)
Satish umar (10DF 018)
(PDGM FC)
 CONTENTS..
1 .INTRODUCTION

2. OVERVIEW OF ITC PVT LTD

3. CUSTOMER FOCUS

4. PRODUCTS OF COMPANY

5. OBJECTIVE OF THE STUDY

6. BALANSHEET AND P/L ACCOUNT OF ITC COMPANY

6. COMPARISON BETWEEN THE COMPETITORS

7. CONCLUSION
 INTRODUCTION
 ITC is one of India's foremost private sector companies with a
market capitalisation of over US $ 30 billion and a turnover of US $
6 billion. ITC is rated among the World's Best Big Companies.

 ITC ranks among India's `10 Most Valuable (Company) Brands', in a

study conducted by Brand Finance and published by the Economic
Times. ITC also ranks among Asia's 50 best performing companies
compiled by Business Week.

 ITC employs over 26,000 people at more than 60 locations across

India. The Company continuously endeavors to enhance its wealth
generating capabilities in a globalising environment to
consistently reward more than 4,00,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations.
 CUSTOMER FOCUS
 ITC has been a partner in India's growth for over nine
decades now and has built a very special relationship of trust
and commitment with the people of India.

 The Company continuously focuses its efforts to better

understand the changing lifestyles of India and anticipate
consumer needs in order to satisfying consumer needs.

 It helps the Company to create value that can be sustained

over the long term by offering consumers a wide variety of
high quality, safe of products at affordable prices. 
PRODUCTS OF THE COMPANY

 ITC is an outstanding market leader in its traditional

businesses of Cigarettes, Hotels, Paperboards, Packaging
and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery,
Branded Apparel, Personal Care and Stationery.
OBJECTIVE OF STUDY
 The objective is to know about the Financial decisions taken and
what are its impact on the earning per share.

 To evaluate the company's financial needs and raise the

appropriate type of capital that best fits those needs.

 Raising external funds and making long term investments.

 The importance of various financial planning principles in

governing the financing decisions.

  To maximize profits, shareholder wealth maximization,

corporate value maximization.
 CALCULATIONS..
% change in
Sales -19.720464 16.79127 9.247595 18.61362 28.83047 25.67274 13.9548 6.79587 23.90021

                     

% change in 15.3488 4.35483

EPS -17.317073 6.860707 25.09728 14.61897 23.60923 18.0022 4 9 22.25657

                     

% change in 16.4479 5.84916

EBIT -8.9010205 12.92991 12.35936 15.85639 20.82931 19.77556 2 5 25.28478

                     
Degree of
Operating 1.17865 0.86069
Leverage -0.4513596 0.770038 1.336495 0.85187 0.722476 0.770294 7 4 1.057931
 CONT..
Degree of
Financial 0.88023
Leverage - 1.9455155 0.530607 2.030629 0.921961 1.133462 0.910325 0.933178 0.744523 6

                     

Degree of
Combined 0.93122
Leverage - 0.8781271 0.408588 2.713925 0.785391 0.818899 0.701218 1.099897 0.640807 9

                     

Intrest
Coverage 113.309
Ratio 17.68543 27.598835 69.90717 94.5482 63.99953 275.031 1198.165 43.74706 264.4138 7

                     

Debt -
Equity
Ratio 0.24 0.06 0.02 0.02 0.03 0.01 0.02 0.02 0.01 0.01
 COMPARISON BETWEEN THE COMPETITORS

% change in Sales - % change in EPS

30

30

25
25

20
20

15 15

10
10

5
5

0
2002 2003 2004 2005 2006 2007 2008 2009 2010
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 CONT..
% change in EBIT Degree of Operating Leverage
1.4
30

1.2
25

20

0.8

15
0.6

10
0.4

5 0.2

0
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 CONT..
Degree of Financial Leverage Degree of Combined Leverage
2.5 3

2.5
2

2
1.5

1.5

0.5
0.5

0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 CONT..
Debt - Equity Ratio
Intrest Coverage Ratio
0.25
1200

0.2 1000

800
0.15

600

0.1

400

0.05
200

0
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 % CHANGE IN SALES
50

40

30

20
ITC
HUL
NESTLE
10

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-10

-20
 % CHANGE IN EPS
40

30

20

10

ITC
0 HUL
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 NESTLE

-10

-20

-30

-40
 % CHANGE IN EBIT
50

40

30

20

ITC
10 HUL
NESTLE

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-10

-20

-30
 Degree of Operating Leverage
16

14

12

10

8 ITC
HUL
NESTLE
6

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-2
 Degree of Financial Leverage
5

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-5

ITC
-10 HUL
NESTLE

-15

-20

-25
 Degree of Combined Leverage
18

16

14

12

10

ITC
8 HUL
NESTLE

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-2
 Intrest Coverage Ratio
2500

2000

1500

ITC
HUL
NESTLE
1000

500

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 Debt - Equity Ratio
0.8

0.7

0.6

0.5

ITC
0.4 HUL
NESTLE

0.3

0.2

0.1

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 NESTLE INDIA
DEGREE OF FINANCIAL
DEGREE OF OPERATING
LEVERAGE
8
LEVERAGE
1.4

7
1.2

6
1
5
0.8
4

0.6
3

0.4
2

0.2
1

0
0 2003 2004 2005 2006 2007 2008 2009
2002 2003 2004 2005 2006 2007 2008 2009
 Cont..
DEGREE OF COMBINED
DEBT-EQUITY RATIO LEVERAGE

0.45 8

0.4
7

0.35
6
0.3
5
0.25

4
0.2

0.15 3

0.1 2

0.05
1

0
2003 2004 2005 2006 2007 2008 2009 0
2003 2004 2005 2006 2007 2008 2009