ITC Ltd.

- Income Statement - Consolidated

INR Crores
Particulars Mar-16 Mar-17 Mar-18

INCOME
Revenue From Operations [Gross 54673.17 58287.95 47362.51
Less: Excise/Sevice Tax/Other Lev 15868.98 15927.91 4239.61
Revenue From Operations [Net] 38804.19 42360.04 43122.9
Other Operating Revenues 387.91 416.57 326.04
Total Operating Revenues 39192.1 42776.61 43448.94

Other Income 1530.8 1761.53 1831.86

Total Revenue 40722.9 44538.14 45280.8

EXPENSES
Cost Of Materials Consumed 11168.68 11979.03 11943.75
Purchase Of Stock-In Trade 2595.2 3477.56 2883.97
Changes In Inventories Of FG,WIP -195.38 592.57 1027.76
Employee Benefit Expenses 3440.97 3631.73 3760.9
Finance Costs 53.6 24.3 89.91
Depreciation And Amortisation E 1077.4 1152.79 1236.28
Other Expenses 7731.78 7659.81 7349.6
Total Expenses 25872.25 28517.79 28292.17

Profit/Loss Before Exceptional, 14850.65 16020.35 16988.63

Exceptional Items 0 0 412.9

Profit/Loss Before Tax 14850.65 16020.35 17401.53

Tax Expenses-Continued Operations

Current Tax 5150.37 5546.16 5893.19
Deferred Tax 207.84 2.93 23.24
Total Tax Expenses 5358.21 5549.09 5916.43
Profit/Loss After Tax And Before 9492.44 10471.26 11485.1

Profit/Loss From Continuing Ope 9492.44 10471.26 11485.1

Profit/Loss For The Period 9492.44 10471.26 11485.1

Minority Interest -156.41 -187.79 -221.48

Share Of Profit/Loss Of Associate 8.42 5.97 7.58
Consolidated Profit/Loss After M 9344.45 10289.44 11271.2
OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 7.75 8.5 9.26
Diluted EPS (Rs.) 7.71 8.45 9.2

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 5009.7 6840.12 5770.01
Tax On Dividend 992.74 1338.95 1136.83
onsolidated
INR Crores
Mar-19 Mar-20

49348.43 50968.5
1509.43 1989.42
47839 48979.08
513.68 424.97
48352.68 49404.05

2173.79 2597.89
50526.47 52001.94

13403.01 13810.7
4220.51 4237.9
-203.19 -703.13
4177.88 4295.79
45.42 54.68
1396.61 1644.91
8348.11 8502.63
31388.35 31843.48

19138.12 20158.46

0 -132.11
19138.12 20026.35

6191.62 4846.15
122.3 -404.36
6313.92 4441.79
12824.2 15584.56

12824.2 15584.56

12824.2 15584.56

-243.57 -286.55
11.7 8.22
12592.33 15306.23
 10.3 12.47
10.24 12.45

6285.21 7048.71
1213.6 1407.44
 ITC Ltd. - Balance Sheet - Consolidated
INR Crores
Particulars Mar-16 Mar-17 Mar-18 Mar-19
No. of Equity Shares (in Lac 80472.07 121473.83 122042.95 122586.32

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 804.72 1214.74 1220.43 1225.86
Total Share Capital 804.72 1214.74 1220.43 1225.86

Reserves and Surplus 41874.8 45198.19 51289.68 55917.07

Total Reserves and Surplu 41874.8 45198.19 51289.68 55917.07
Employees Stock Options 0 0 0 1997.94
Total Shareholders Funds 42679.52 46412.93 52510.11 59140.87
Minority Interest 260.9 294.74 334.47 343.47

NON-CURRENT LIABILITIES
Long Term Borrowings 26.66 18.4 11.5 8.15
Deferred Tax Liabilities [Ne 1880 1878.77 1923.02 2052.06
Other Long Term Liabilities 50.92 59 109.98 79.92
Long Term Provisions 135.42 158.42 149.63 161.95
Total Non-Current Liabiliti 2093 2114.59 2194.13 2302.08

CURRENT LIABILITIES
Short Term Borrowings 43.95 19.11 17.35 1.86
Trade Payables 2339.29 2659.33 3496.18 3509.58
Other Current Liabilities 4203.82 4381.41 5672.82 6449.17
Short Term Provisions 71.4 61.16 63.8 51.38
Total Current Liabilities 6658.46 7121.01 9250.15 10011.99

Total Capital And Liabilitie 51691.88 55943.27 64288.86 71798.41

ASSETS
NON-CURRENT ASSETS
Tangible Assets 14459.36 15262.27 15863.68 18625.74
Intangible Assets 444.74 428.68 457.75 545.92
Capital Work-In-Progress 2528.97 3684.2 5499.6 4126.18
Intangible Assets Under D 30.75 45.69 8.73 10.24
Fixed Assets 17463.82 19420.84 21829.76 23308.08
Goodwill On Consolidation 202.53 202.53 202.53 202.53
Non-Current Investments 5125.81 6693.99 11483.79 11695.99
Deferred Tax Assets [Net] 40.54 44.95 47.98 59.37
Long Term Loans And Adva 12.96 8.54 9.69 8.34
Other Non-Current Assets 3983.72 3303.32 4321.49 4776.83
Total Non-Current Assets 26829.38 29674.17 37895.24 40051.14

CURRENT ASSETS
Current Investments 6621.78 10887.39 10569.07 13347.5
Inventories 9062.1 8186.15 7584.53 7943.97
Trade Receivables 1917.18 2474.29 2682.29 4035.28
Cash And Cash Equivalents 6063.3 2967.4 2899.6 4152.03
Short Term Loans And Adv 8.07 6.78 5.84 6.75
OtherCurrentAssets 1190.07 1747.09 2652.29 2261.74
Total Current Assets 24862.5 26269.1 26393.62 31747.27

Total Assets 51691.88 55943.27 64288.86 71798.41

OTHER INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 2888.85 3870.68 3252.13 3562.53

BONUS DETAILS
Bonus Equity Share Capital 710.47 1113.13 1113.13 1113.13

NON-CURRENT INVESTMENTS
Non-Current Investments 4929.8 6502.72 11276.13 11459.86
Non-Current Investments 5125.81 210.27 205.45 211.84

CURRENT INVESTMENTS
Current Investments Quot 2942.01 2743.52 2394.82 4973.37
Current Investments Unqu 3680.28 8148.08 8351.52 8377.61

Working Capital 18204.04 19148.09 17143.47 21735.28

Mar-20
122922.31

1229.22
1229.22

62021.86
62021.86
2022.18
65273.26
377.47

5.9
1627.2
348.07
175.37
2156.54

1.42
3629.83
5780.34
148.18
9559.77

77367.04

20985.44
525.37
3251.61
4.85
24767.27
202.53
10715.02
56.29
5.27
 2115.31
37861.69

17948.33
8965.53
2562.48
7277.34
6.33
2745.34
39505.35

77367.04

3784.02

1113.13

10653.86
206.33

3456.49
14500.78

29945.58
 ITC Ltd. - Ratio Analysis - Consolidated
I
Particulars Formula Mar-16 Mar-17
PROFITABILITY RATIOS

(Net Income + Interest

expenses + Taxes +
depreciation +
EBDITA Margin (%) amortization)/Net Sales 40.77 40.2
Revenue − COGS −
EBIT Margin (%) Operating Expenses 38.02 37.5

PBT Margin (%) 37.89 37.45

Net Profit Margin (%) 24.22 24.47

Return on Networth / Equity (%) 21.89 22.16

Return on Capital Employeed (%) 33.09 32.86

Return On Assets (%) 18.07 18.39

Asset Turnover Ratio (%) 75.81 76.46

LIQUIDITY RATIOS

Current Ratio (X) 3.73 3.69

Quick Ratio (X) 2.37 2.54

Inventory Turnover Ratio (X) 4.32 5.23

Dividend Payout Ratio (NP) (%) 53.61 66.47

Dividend Payout Ratio (CP) (%) 48.06 59.77

Earning Retention Ratio (%) 46.39 33.53

Cash Earning Retention Ratio (%) 51.94 40.23

COVERAGE RATIOS
Interest Coverage Ratio (%) 278.06 660.27

Interest Coverage Ratio (Post Tax) (%) 178.1 431.92

VALUATION RATIOS

Enterprise Value (Cr.) 258257 338038.68

EV / Net Operating Revenue (X) 6.59 7.9
EV / EBITDA (X) 16.16 19.66
MarketCap / Net Operating Revenue (X) 6.74 7.96
Retention Ratios (%) 46.38 33.52
Price / BV (X) 6.19 7.34
Price / Net Operating Revenue (X) 6.74 7.96
EarningsYield 0.03 0.03

PER SHARE RATIOS

Basic EPS (Rs.) 7.75 8.5

Diluted EPS (Rs.) 7.71 8.45
Cash EPS (Rs.) 13.13 9.57
Book Value/Share (Rs.) 53.36 38.45
Revenue From Operations / Share (Rs.) 48.7 35.21
EBDITA / Share (Rs.) 19.86 14.16
EBIT / Share (Rs.) 18.52 13.21
PBT / Share (Rs.) 18.45 13.19
Net Profit / Share (Rs.) 11.8 8.62

Activity Ratios

Inventory Turnover COGS/Average Inventory 1.39

Days of Inventory 365/Inventory Turnover 262.78
Receivables Turnover Annual sales/Average Receivables 20.28

Days of Sales outstanding 365/Receivables Turnover 17.99

Payables Turnover Purchases/Average trade Payables 4.44

Days of Payables 365/Payables turnover 82.16

Working Capital Turnover Revenue/Average Working Capital 2.29
Fixed Assets Turnover Revenue/ Average Fixed Assets 2.41
Total Assets Turnover Revenue/Total Average Assets 0.83
dated
INR Crores
Mar-18 Mar-19 Mar-20

42.15 42.56 44.24 GOOD

39.3 39.67 40.91 GOOD

40.05 39.58 40.53 GOOD

26.43 26.52 31.54 GOOD

21.46 21.29 23.44 GOOD

31.03 31.04 29.8 BAD

17.53 17.53 19.78 GOOD

67.58 67.34 63.85 BAD

2.85 3.17 4.13 GOOD

2.03 2.38 3.19 GOOD

5.73 6.09 5.51 GOOD

51.19 49.91 46.05 GOOD

46.13 44.92 41.58 GOOD

48.81 50.09 53.95 GOOD

53.87 55.08 58.42 GOOD
 189.95 422.36 369.66 GOOD

124.15 283.35 288.43 GOOD

309771.76 359914.11 204533.29 BAD

7.13 7.44 4.14 BAD
16.91 17.49 9.36 BAD
7.19 7.52 4.28 BAD
48.8 50.08 53.94 GOOD
5.95 6.15 3.24 BAD
7.19 7.52 4.28 BAD
0.03 0.03 0.07 GOOD

9.26 10.3 12.47 GOOD

9.2 10.24 12.45 GOOD
10.42 11.6 14.02 GOOD
43.3 48.52 53.41 GOOD
35.6 39.44 40.19 GOOD
15.01 16.79 17.78 GOOD
13.99 15.65 16.44 GOOD
14.26 15.61 16.29 GOOD
9.41 10.46 12.68 GOOD

1.51 1.73 1.63 GOOD

240.98 211.44 223.45 GOOD
17.56 15.04 15.76 BAD

20.78 24.26 23.15 BAD

3.69 3.93 4.16 BAD

99.04 92.90 87.85 BAD

2.39 2.49 1.91 BAD
2.20 2.24 2.16 BAD
0.75 0.74 0.70 BAD
Reasoning

The higher the EBITDA margin, the smaller a company's operating expenses in relation to total revenue, increasing i
operation. Increasing EBITDA Margin over the years indicates the company is earning stable profits.
A Higher EBIT margin indicates lower financial risk for the company. Increasing EBIT margin again indicates stable gr
Investors can definately invest in a company with growing EBIT margin.
PBT Margin is how much profit a company generates from its sales before meeting its tax expenses. An increasing P
generating significant Pre-tax Profit on its sales. It is in a better position to meet its tax expenses and a higher PBT m
well.
The net profit margin, also known as net margin, indicates how much net income a company makes with total sales
company is more efficient at converting sales into actual profit.
Through Return on Networth/Equity investors come to know how much profit is being passed on to the investor. In
generated for every dollar of equity investment. An increase in this margin clearly indicates an increasing profatibali
The calculation of ROCE tells you the amount of profit a company is generating per $1 of capital employed. A lower
making poor use of its capital resources.
An ROA that rises over time indicates the company is doing a good job of increasing its profits with each investment
profit generated from the assets of the company.
a low asset turnover ratio indicates that a company is failing to efficiently employ its assets to generate sales.

Current Ratio indicates the capability of the company to pay its current liabilities using its current assets. A high curr
its short-term obligations. Increases in the current ratio over time may indicate a company is "growing into" its capa
The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to mee
assets.The higher the ratio result, the better a company's liquidity and financial health.

Inventory turnover measures how fast a company sells inventory . An increasing inventory turnover ration usually in
The dividend payout ratio provides an indication of how much money a company is returning to shareholders versus
growth, pay off debt, or add to cash reserves (retained earnings). A payout ratio between 35-55% is considered good
A higher cash dividend payput ratio indicates that the company has paid out less dividends in cash and instead of ke
investments. A payout ratio between 35-55% is considered good
As understood by shareholders who invest in the company, the higher the earnings retention ratio, the growth of th
raising the prices of the shares as well. Increasing Earnings retrntion Ratio thus indicates stable growth.
This is an indication that the company is experiencing a rapid increase in its revenue and profits.
A higher or an increasing interest coverage ratio indicates a better financial health as it means that the company is m
from operating earnings.
A higher ratio indicates a better financial health as it means that the company is more capable to meeting its interes
clearly indicates that the company is able to cover its interest obligations post tax expenses too.

The Enterprise value of the company has decreased

The Enterprise value of the company has decreased
Reduced due to reduction in the EV and the Market cap of the company
More Income is being reinvested into the business rather than being paid to the shareholders
The share price is decreasing
The share price is decreasing
Increased earning per share is a good indication

Increasing EPS is a good indication of company's profitability

Increasing EPS is a good indication of company's profitability
The higher a company’s cash EPS, the better it is considered to have performed over a period
The Book value is a good indication of the intrinsic value of the share and is increasing since FY-18
Decreased as compared to FY-16 but is increasing since FY-17, which is a good indication
Decreased as compared to FY-16 but is increasing since FY-17, which is a good indication
Decreased as compared to FY-16 but is increasing since FY-17, which is a good indication
Decreased as compared to FY-16 but is increasing since FY-17, which is a good indication
Company is performing well with increasing Net Profit per share

Higher ratio suggests that compnay can move its inventory with a relative ease, which has increased from FY-17, bu
The days of inventory are decreasing for that compoany which is a good indication
A low ratio suggests deficiency in the collection process. As compared to the FY-17 the ratio has decreased.

The days of sales outstanding is increasing, high DSO number shows that a company is selling its product to custome
This may lead to cash flow problems because of the long duration between the time of a sale and the time the comp
Companys payable turnover has decreased in FY-20 as compared to FY-17 , but from FY-18 it is continuously increas
debts and cash flow effectively

Increased in FY-20 as compared to FY-17 , but from FY-18 it is continuously decreasing which means that the compa
A high turnover ratio shows that management is being very efficient in using a company’s short-term assets and liab
The greater the ratio the better it is, that means company is utilizing its fixed assets properly
The total assets turnover ratio measures how efficiently an entity uses its assets to tender a sale. Smaller ratios may
products
 Particulars Mar-16 Mar-17 Mar-18 Mar-19
Asset turnover 0.79 0.80 0.70 0.70
Asset Financing 1.21 1.21 1.22 1.21
Profit Margin 23.31% 23.51% 25.36% 25.38%
RONW 27.90% 25.50% 23.60% 22.90%

1.40 35.00%

29.97%
1.20 30.00%

25.36%
1.00 23.51% 25.38% 25.00%
23.31%

0.80 20.00%

0.60 15.00%

0.40 10.00%
27.90% 25.50% 26.90%
23.60% 22.90%
0.20 5.00%

0.00 0.00%
43906 43907 43908 43909 43910

Asset turnover Asset Financing RONW Profit Margin

 Mar-20
0.67
1.19
29.97%
26.90%

35.00%

29.97%
30.00%

25.00%

20.00%

15.00%

10.00%
26.90%

5.00%

0.00%
43910

Profit Margin
 ITC Ltd. - Income Statement - Consolidated
INR Crores
Particulars Mar-16 Mar-17 Mar-18

INCOME
Revenue From Operations [Gross 54673.17 58287.95 47362.51
Less: Excise/Sevice Tax/Other Lev 15868.98 15927.91 4239.61
Revenue From Operations [Net] 38804.19 42360.04 43122.9
Other Operating Revenues 387.91 416.57 326.04
Total Operating Revenues 39192.1 42776.61 43448.94

Other Income 1530.8 1761.53 1831.86

Total Revenue 40722.9 44538.14 45280.8

EXPENSES
Cost Of Materials Consumed 11168.68 11979.03 11943.75
Purchase Of Stock-In Trade 2595.2 3477.56 2883.97
Changes In Inventories Of FG,WIP -195.38 592.57 1027.76
Employee Benefit Expenses 3440.97 3631.73 3760.9
Finance Costs 53.6 24.3 89.91
Depreciation And Amortisation E 1077.4 1152.79 1236.28
Other Expenses 7731.78 7659.81 7349.6
Total Expenses 25872.25 28517.79 28292.17

Profit/Loss Before Exceptional, 14850.65 16020.35 16988.63

Exceptional Items 0 0 412.9

Profit/Loss Before Tax 14850.65 16020.35 17401.53

Tax Expenses-Continued Operations

Current Tax 5150.37 5546.16 5893.19
Deferred Tax 207.84 2.93 23.24
Total Tax Expenses 5358.21 5549.09 5916.43
Profit/Loss After Tax And Before 9492.44 10471.26 11485.1

Profit/Loss From Continuing Ope 9492.44 10471.26 11485.1

Profit/Loss For The Period 9492.44 10471.26 11485.1

Minority Interest -156.41 -187.79 -221.48

Share Of Profit/Loss Of Associate 8.42 5.97 7.58
Consolidated Profit/Loss After M 9344.45 10289.44 11271.2
OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 7.75 8.5 9.26
Diluted EPS (Rs.) 7.71 8.45 9.2

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 5009.7 6840.12 5770.01
Tax On Dividend 992.74 1338.95 1136.83
nsolidated
INR Crores
Mar-19 Mar-20 Mar-16 Mar-17

49348.43 50968.5 100.00% 106.61%

1509.43 1989.42 100.00% 100.37%
47839 48979.08 100.00% 109.16%
513.68 424.97 100.00% 107.39%
48352.68 49404.05 100.00% 109.15%

2173.79 2597.89 100.00% 115.07%

50526.47 52001.94 100.00% 109.37%

13403.01 13810.7 100.00% 107.26%

4220.51 4237.9 100.00% 134.00%
-203.19 -703.13 -100.00% 303.29%
4177.88 4295.79 100.00% 105.54%
45.42 54.68 100.00% 45.34%
1396.61 1644.91 100.00% 107.00%
8348.11 8502.63 100.00% 99.07%
31388.35 31843.48 100.00% 110.23%

19138.12 20158.46 100.00% 107.88%

0 -132.11
19138.12 20026.35 100.00% 107.88%

6191.62 4846.15 100.00% 107.68%

122.3 -404.36 100.00% 1.41%
6313.92 4441.79 100.00% 103.56%
12824.2 15584.56 100.00% 110.31%

12824.2 15584.56 100.00% 110.31%

12824.2 15584.56 100.00% 110.31%

-243.57 -286.55 100.00% 120.06%

11.7 8.22 100.00% 70.90%
12592.33 15306.23 100.00% 110.11%
 10.3 12.47 100.00% 109.68%
10.24 12.45 100.00% 109.60%

6285.21 7048.71 100.00% 136.54%

1213.6 1407.44 100.00% 134.87%
Mar-18 Mar-19 Mar-20

86.63% 90.26% 93.22% Gross Revenue has decreased, however it trying to

26.72% 9.51% 12.54%
111.13% 123.28% 126.22%
84.05% 132.42% 109.55%
110.86% 123.37% 126.06% Total Operating revenues has increased over the y

119.67% 142.00% 169.71% Other souces of income has increased at a faster r

111.19% 124.07% 127.70%

106.94% 120.01% 123.66% Cost of goods sold has also increased

111.13% 162.63% 163.30% Purchase of stock in trade has increased drasticall
526.03% -104.00% -359.88% Company has reduced its inventory cost
109.30% 121.42% 124.84%
167.74% 84.74% 102.01% Financial cost has increased with a significant perc
114.75% 129.63% 152.67% There is a spike in depreciation and amortisation c
95.06% 107.97% 109.97%
109.35% 121.32% 123.08%

114.40% 128.87% 135.74%

117.18% 128.87% 134.85% Profit is increasing gradually

114.42% 120.22% 94.09%

11.18% 58.84% -194.55%
110.42% 117.84% 82.90%
120.99% 135.10% 164.18%

120.99% 135.10% 164.18%

120.99% 135.10% 164.18% Profit has increased gradually till 2019, however in

141.60% 155.73% 183.20%

90.02% 138.95% 97.62%
120.62% 134.76% 163.80%
119.48% 132.90% 160.90%
119.33% 132.81% 161.48%

115.18% 125.46% 140.70%

114.51% 122.25% 141.77%
creased, however it trying to recover

ues has increased over the years with a 10% increase in year 2017 and 2019

e has increased at a faster rate than the income from operations. Company's investemnt is at good place.

s also increased
ade has increased drastically indicating that company is expecting a high demend in the market for its goods
its inventory cost

eased with a significant percent in 2018 and 2019, company might have taken debts in these years
reciation and amortisation cost in recent years, company may need investment in coming years

adually till 2019, however in 2019, profit spiked by around 30%. Other Income has played a significant role in it.