29 per cent growth in Q2 Net Profit

19 Oct 2001

&naudited Financial Results (Provisional) For the Quarter and Half Year Ended 30th September,
2001

ITC recorded yet another quarter of impressive growth. Post Tax Profit for the quarter ended 30th September
2001, at Rs.334 crores grew by 29 per cent over the corresponding quarter of the previous year. Earnings per
share for Q2 stood at Rs.13.6. Post tax Profit for half year ending 30th September, 2001 recorded a growth of
25 per cent. Provision for Taxation includes the impact of deferred taxation. Segment-wise revenues, results
and capital employed are annexed.

Domestic cigarette volumes continue to remain under pressure due to the impact of the steep increase in
excise duties imposed in the last Union Budget. The rate of de-growth however, is showing signs of
deceleration. Apart from continuing to invest in brands, the Company's FMCG business is engaged in
strengthening its distribution reach to support its planned entry into Packaged Foods.

Other Income of Rs.65 crores for quarter ended 30th September, 2001 includes one-time interest receipt of
Rs.32 crores on income tax refunds. Interest cost for the 2nd quarter was lower by Rs.9 crores, reflecting the
continuing favourable impact of the debt reduction effected last year. Other expenditure for the quarter is
higher by 13 per cent over the corresponding period last year largely on account of start-up costs of the
Lifestyle Retailing and Greeting Cards businesses. The Company continues to focus on effective cost
management, including productivity improvements.

The Lifestyle Retailing Business continues to rapidly scale up operations, with 22 stores operational currently,
apart from 9 pro shops. The 'Wills Sport' world-class product range is gaining increasing acceptance with
consumers. Some of the metro city stores are already among the top revenue grossers per square foot in their
respective locations. The Greeting Cards SBU has further expanded its presence, with the 'Expressions' range
of cards now being available across the country.

The Hotels and Tourism industry in India, as in most parts of the world, has been significantly set back in the
wake of the recent tragic events in the U.S. Although the market is expected to remain depressed in the near
term, the Company believes that the inherent long term potential of this industry in India remains exciting. The
'ITC Grand Maratha' now offers 386 luxury rooms for the discerning upmarket traveller. The projects at Kolkata
and Upper Worli, Mumbai are progressing satisfactorily.

The Agri-Business segment of the Company sustained an export growth of 11 per cent in agri-commodities
despite difficult global trading conditions. The crop holiday declared by the Tobacco Board in Andhra Pradesh
significantly affected the Company's leaf tobacco operations during the quarter, with threshing volumes down
by over 80 per cent.

The Packaging business registered a smart recovery from the strike-led disruption in operations during the first
quarter this year. The SBU continues to maintain its status as the preferred supplier of international quality
printed paperboard packaging, the export of which grew by 33 per cent during the quarter.

The financial results for the quarter ended 30th September 2001, approved by the Board of Directors at its
meeting in Kolkata on 19th October, 2001 are enclosed.
&naudited Financial Results (Provisional)
For the Quarter and Half Year Ended
30th September, 2001
(Rs. Crores)
Quarter
Ended
30.09.2001
Quarter
Ended
30.09.2000
Half Year
Ended
30.09.2001
Half Year
Ended
30.09.2000
Twelve
Months
Ended
31.03.2001
Gross Income 2348.04 2161.67 4600.46 4305.37 8816.11
Net Sales Turnover [1] 1102.42 1004.39 2150.31 2010.38 4208.12
Other income [2] 64.85 37.08 91.27 54.81 144.47
Net Income (1+2) 1167.27 1041.47 2241.58 2065.19 4352.59
Less:
Total Expenditure [3] 628.83 575.11 1180.38 1142.29 2516.44
a)
(Increase)/Decrease
in stock-in-trade
(53.37) 0.89 (70.68) (13.46) (20.31)
b) Consumption of
raw material etc.
420.46 324.72 769.58 695.36 1512.68
c) Staff cost 59.94 70.69 121.41 133.97 274.43
d) Other
expenditure
201.80 178.81 360.07 326.42 749.64
Interest (Net) [4] 15.14 24.15 33.76 47.16 95.91
Gross Profit (1+2-3-
4)
523.30 442.21 1027.44 875.74 1740.24
Less:
Depreciation [5] 37.48 29.08 75.51 66.89 139.94
Profit Before Tax
(1+2-3-4-5)
[6] 485.82 413.13 951.93 808.85 1600.30
Less:
Provision for Current
Taxation
[7] 170.93 161.48 343.93 315.02 594.04
Profit After Current
Tax (6-7)
[8] 314.89 251.65 608.00 493.83 1006.26
Provision for [9] -18.72 -6.97 -26.28 -13.76
Deferred Tax
Net Profit (8-9) [10] 333.61 258.62 634.28 507.59 1006.26
Paid up Equity Share
Capital (Ordinary
shares of Rs. 10/-
each)
[11] 245.41 245.41 245.41 245.41 245.41
Reserves excluding
Revaluation Reserve
[12] 3225.65
Earnings per Share
(Basic & Diluted)
(Rs.)
[13] 13.59 10.54 25.85 20.68 41.00
Aggregate of non
Promoter
Shareholding
[14]
- Number of Shares 245414904 245414904 245414904
- Percentage of
Shareholding
100 100 100
Notes:
i. The above results were approved at the meeting of the Board of Directors of the Company held on
19th October, 2001.
ii. Figures for the previous year have been re-arranged wherever necessary.
iii. Gross Income comprises of Segment Revenue and Other Income.
iv. Consequent to the receipt of approvals of the members and of the Central Government,
the name of the Company stands changed from 'I.T.C. Limited' to 'ITC Limited' effective 18th
September, 2001.
v. The Board of Directors of the Company at its meeting held on September 21, 2001 approved a Scheme
for the amalgamation of ITC Bhadrachalam Paperboards Ltd. ("ITC Bhadrachalam") with the Company,
with effect from April 1, 2001, subject to the approvals of the members of the Company and the
Hon'ble High Courts at Kolkata and Hyderabad. The Scheme of Amalgamation, inter alia, provides that
on such amalgamation becoming effective, the members of ITC Bhadrachalam will receive 1 (one)
Ordinary Share of Rs. 10/- each of the Company for every 16 (sixteen) Equity Shares of Rs. 10/- each
held by them in ITC Bhadrachalam on such date as the Board of Directors of the Company may
determine. The Hon'ble High Court at Kolkata has directed convening of a meeting of the members of
the Company on 7th December, 2001 for this purpose.
vi. The Company has recorded a cumulative net deferred tax liability of Rs. 57.32 crores upto 31st March,
2001 as a reduction from General Reserves. This adjustment has not been reflected in the above
shown "Twelve months ended 31.3.2001" column which remains as per the audited accounts.
However, corresponding figures for the second quarter and half year of the previous year are being
shown to enable comparison.
vii. The above is as per Stock Exchange Regulations and does not take into account the excise issues
disputed by the Company.

Segment wise Revenue, Results and Capital Employed,
under Clause 41 of the Listing Agreement
For The Quarter and Half Year Ended 30th September, 2001
(Rs. Crores)
3 months ended
30.09.2001
Half Year ended
30.09.2001

1. Segment Revenue
a) FMCG - Cigarettes 2013.27 4015.00
- Others 5.20 7.48
Total FMCG 2018.47 4022.48
b) Hotels 36.49 73.58
c) Agri Business 203.13 391.44
d) Paper & Packaging 139.43 254.29
Total 2397.52 4741.79
Less : Inter segment revenue 114.33 232.60
Gross sales / income from operations 2283.19 4509.19
2. Segment Results
a) FMCG - Cigarettes 447.36 918.24
- Others -15.07 -30.62
Total FMCG 432.29 887.62
b) Hotels -3.45 -2.75
c) Agri Business 1.66 5.81
d) Paper & Packaging 27.56 44.97
Total 458.06 935.65
Less: i) Interest (Net) 15.14 33.76
ii) Other un-allocable expenditure -42.90 -50.04
net of un-allocable income
Total Profit Before Tax 485.82 951.93
3. Capital Employed
a) FMCG - Cigarettes * 1395.46 1395.46
- Others 27.38 27.38
- Total 1422.84 1422.84
b) Hotels 709.91 709.91
c) Agri Business 354.75 354.75
d) Paper & Packaging 312.20 312.20
Total Segment Capital Employed 2799.70 2799.70
* Before considering provision of Rs 523 Crores in respect of disputed State taxes, the levy/collection of which
has been stayed.
Notes:
1. The Company's corporate strategy aims at creating multiple drivers of growth anchored on its core
competencies.The Company is currently focussed on four business groups: FMCG, Hotels, Paper &
Packaging, and Agri business. The Company's organisational structure and governance processes have
been designed to support effective management of multiple businesses while retaining focus on each
one of them.
2. The business groups comprise the following:
FMCG : Cigarettes - Cigarettes & Smoking mixtures.
: Others - Branded Garments, Greeting Cards and Packaged Foods .
Hotels - Hoteliering .
Paper & Packaging - Speciality Paper & Packaging.
Agri Business - Leaf Tobacco & Agri commodities.
3. Details shown against "FMCG - Others " pertain to the Company's new businesses namely, Branded
Garments, Greeting Cards and Packaged Foods. Since these businesses are presently engaged in
product development and scaling up operations, segment results largely reflect start up costs.
4. In its Hotels business, the Company has been engaged in implementing its strategic investment plans
to complete the ITC - Welcomgroup chain. Capital employed of Rs 710 Crores includes Rs 611 Crores
relating to the recently opened properties, namely ITC One in New Delhi and ITC Grand Maratha in
Mumbai, as well as capital work in progress in respect of properties under construction.
First half of the financial year is generally the lean period for the hotels business.
The segment results reflect the gestation cost of the newly opened properties, the impact of the global
slump in international travel and the holding cost in respect of Searock Sheraton which has been the
subject matter of a prolonged legal dispute. Depressed market conditions are expected to continue in
the near term.
5. The Company's Paperboards business, currently residing in its subsidiary, ITC Bhadrachalam
Paperboards Ltd., will form part of the Paper & Packaging business group upon merger with the
Company in accordance with the amalgamation plan detailed under Note(v) above.
6. The Company's Agri Business is engaged in exports, supply of agri commodities to the planned Foods
business and leaf tobacco to the Cigarettes business. The segment results have been impacted by
difficult global trading conditions and the tobacco crop holiday.
7. Segment capital employed shown above does not include unallocated corporate net assets including
investments, of approximately Rs. 1680 Crores, largely deployed as follows:

(a) Investments in ITC Bhadrachalam Paperboards: (Rs. Crs.)
Equity and Preference Capital 342
Loans 258
Total 600

(b) Exposures in assets consequent to exiting the
Financial Services & Edible Oils businesses 884

ITC Bhadrachalam posted impressive results for the quarter ended September 30, 2001
with a substatial growth of 62 per cent in the Profit after Tax to Rs. 11 crores. Pre-tax
Profit for the quarter at Rs. 17.8 crores represents a growth of 65 per cent compared to
the same period last year. Profits from operations (excluding the extraordinary income of
Rs 4.05 crores earned in the first half of the previous financial year) for the six month
period till 30th September grew by 48 per cent, testifying to the growing international
competitiveness of the Company. Current levels of operations generate cash of over Rs.
9 crores per month.

Despite difficult trading conditions and the impact of the fire in the mill, such results
were achieved because of the focus on high-end value added paperboards. World-class
products such as Cyber XL and Indolux for the packaging segment, and Pearl Graphik
and Safire Graphik for the graphic segment are already leaders in the market. The
Company continues to enhance value for its customers through product development.
The resultant improvement in market standing is expected to further enrich the product
mix substantially, especially since the demand for paperboards in the value-added
segment is forecast to grow at a much faster rate of over 20 per cent per annum,
against 8 per cent for conventional paperboards.

Strategic cost management initiatives, encompassing the entire value chain from fibre to
finished product, led to an all-round enhancement in cost efficiencies, including financing
costs. The expansion and modernisation of the pulp mill at an outlay of Rs. 220 crores is
progressing on schedule. This capex programme is an integral part of the Company's
fibre strategy aimed at substantially improving cost competitiveness, besides enhancing
product quality and enabling scaling up of the mill. The project, on completion, would
also constitute the finest environmental standard by far among paperboard mills in
India.

The financial results for the period ended September 30, 2001 were approved by the ITC
Bhadrachalam Board of Directors at its meeting in Kolkata on October 12, 2001.
18.7% growth in Post-tax Profits
30 Oct 2006

Financial Results for the quarter ended 30th September, 2006

Net Turnover up 32.3%
Non-Cigarette businesses now constitute 51.2 % of Net Turnover
ITC's Net Turnover at Rs.2888 crores posted a strong growth of 32.3% driven by the non-cigarette
businesses which grew by 53% during the quarter and now account for 51.2% of the Company's Net Turnover.
The key growth drivers were the continued ramp up of the Foods business, higher Agribusiness revenues and a
strong performance by the Hotels business.
The Company's post-tax profit for the quarter ended 30th September 2006 at Rs. 679.60 crores recorded a
18.7% growth while pre-tax profit at Rs. 957.76 crores grew by 17.5%. Earnings Per Share for the quarter
stood at Rs.1.81.
FMCG
Branded Packaged Foods
The Company's Branded Packaged Foods business continued to expand rapidly with sales growing 54% over
last year.
The 'Sunfeast' range of biscuits stood further expanded with the introduction of 'Sunfeast Special' in the
fast growing mid-price cookies segment. The quarter also saw the extension of 'Sweet 'n Salt Crackers' to
target markets. Product mix witnessed continued improvement on the back of enhanced sales of value added
products like Creams, Cookies etc. The business continued to make good progress in establishing its own
production facilities at Bangalore and Uttaranchal apart from tying up additional outsourced manufacturing
capacity. These facilities, once commissioned, are expected to facilitate servicing of proximal markets in an
efficient and cost-effective manner. The brand's celebrity association with Shah Rukh Khan and its partnering
with the landmark 'Sunfeast Open 2006' WTA Tennis tournament in Kolkata is beginning to yield significant
value addition by reinforcing the brand's 'energetic, cheerful & spirited' attributes and reiterating its 'spread
the smile' positioning.
In the Staples category, 'Aashirvaad Atta' continued to grow from strength to strength. The brand now
commands an impressive 52% market share amongst national branded players.
Confectionery sales also recorded strong growth during the quarter driven by Candyman - 'Eclairs' and
'Cofitino' in the toffee segment and the extension of 'Mango Natkhat' (a hard-boiled candy) to target
markets. The range of 'Aashirvaad Instant Mixes' introduced recently continued to garner increasing
consumer franchise.
Lifestyle Retailing
The Lifestyle Retailing business grew by 64% during the quarter. The Company's portfolio of products in the
premium segment comprising the 'Classic' range of formal wear, 'Wills Sport' relaxed wear and 'Wills
Clublife' evening wear continued to expand consumer franchise during the quarter. The business recorded
significant improvement in several operating indices such as average realisations, footfalls/conversion, sell
through rates etc. The business plans to enhance its retail footprint with the launch of 8 new stores in
upcoming malls progressively over the next 6-9 months.
The brand's association with high fashion and imagery stood reinforced with the resounding success of the
second 'Wills Lifestyle India Fashion Week' (WIFW) held in August-September 2006. The business has
introduced a high-end WIFW couture line created by leading Indian designers across select 'Wills Lifestyle'
stores.
In the popular segment, the distribution reach of 'John Players' was further strengthened through the
expansion of the 'exclusive brand outlet' network and increased presence in key 'multi-brand outlets'. The
business continued to effectively leverage the brand's association with superstar and youth icon Hrithik
Roshan, making a strong statement in the fashion and lifestyle space and reinforcing its 'style with a playful
side' positioning.
The business continued to actively pursue opportunities in the Exports arena establishing long-term
partnerships with high potential customers. The business has an exclusive manufacturing arrangement with a
state-of-the-art unit located at the Noida SEZ. This strategic move will position the business to take full
advantage of the emerging growth opportunities in the exports segment.
Greeting, Gifting & Stationery Business
The stationery business continued to be scaled up with sales during the quarter increasing by 77% over SPLY.
'Classmate' is the most widely distributed notebook brand across the country and has established itself as the
quality leader in a short span of time leveraging the superior brightness and smoothness of elemental chlorine
free (ECF) paper manufactured at the Company's Bhadrachalam unit. During the quarter, the business also
launched a range of products aimed at the mass market under the brand name 'Saathi'. Product extension to
target markets is underway.
Safety Matches & Incense Sticks
In the Safety Matches business, the Company's brands, including 'Aim' which is the largest selling brand of
matches in the country, continued to enjoy strong consumer preference, resulting in enhanced market
standing. The anticipated synergies arising out of the recent acquisition of WIMCO Ltd. by the Company's
subsidiary, Russell Credit Ltd. are being progressively realised.
Market standing of the Company's 'Mangaldeep' brand of incense sticks (agarbattis) continued to be
strengthened with sales recording robust growth aided by the seven new SKUs introduced so far during the
year to cater to regional preferences.
Sourcing from Khadi & Village Industries Commission (KVIC) approved units continued during the quarter. The
business also continued its collaboration with various NGOs to provide vocational opportunities to rural youth
and economically disadvantaged women in keeping with the Company's commitment to the 'triple bottom line'.
FMCG-Cigarettes
The Cigarettes industry continued to operate in a climate of rapidly escalating restrictions on
consumer/marketing freedoms. The impact of the 'Cigarettes and Other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003'
(COTPA) with effect from 1st April 2004 has been rendered even more stringent with the recent notification
requiring printing of pictorial health warnings on cigarette packs.
While the Company welcomes fair and pragmatic laws on tobacco control and ensures compliance with these in
letter and spirit, it is engaged in drawing the attention of policymakers and legislators to the inequitable
situation arising out of tobacco control legislation being enforced, in effect, only on the cigarette industry.
While excise duty on cigarettes was increased by as much as 10% in March 2005 and by another 5% in March
2006, there was no increase in duties on bidis, which outsell cigarettes more than 8 times. In view of the
already existing high tax burden on cigarettes, this sharp increase in excise duty, while significantly
disadvantaging cigarettes vis--vis other tobacco products could lead to a reduction in the economic value per
unit of tobacco consumed in the country with consequent impact on the potential revenue collection from the
tobacco sector.
Further, Cigarettes continue to be subjected to multiplicity of taxes at the Central and State levels. The
constitutionality of the levy of entry taxes by the States is presently before the Courts. A judgement favourable
to industry will be in consonance with the taxation philosophy underlying the concept of VAT, namely the
elimination of the cascading impact of multiple taxes.
The Company's commitment to world-class quality enabled it to further strengthen market standing and
sustain its leadership position in the industry. The business continues to focus on delivering superior value to
consumers through the introduction of modern format packaging in all segments and design enhancement of
leading brands based on state-of-the-art technology. On the manufacturing front, investments are being
progressed towards enhancement of quality, variety and productivity.
Hotels
The Hotels business posted a strong performance during the quarter with Segment Revenues growing by 31%
to touch Rs.201 crores on the back of a 37% growth in overall REVPAR (revenue per available room). Segment
results (PBIT) during the quarter touched Rs. 58 crores representing a growth of 110% over SPLY.
A comprehensive renovation and product upgradation programme is underway at various hotels in keeping
with the Company's strategy of maintaining the contemporariness of its properties. Construction activity in
respect of the new super-deluxe luxury hotel at Bangalore is also progressing as per project plans. Substantial
progress was also achieved in developing the project plans and obtaining the requisite approvals for a new
property at Chennai.
Paperboards, Specialty Paper & Packaging
Sales of value added paperboards continued to record strong growth during the quarter, further enriching the
product mix. These products now constitute appx. 50% of total paperboard sales. Production of value added
grades from the 75000 TPA line (PMV) commissioned in January 2005, continued to be scaled up leveraging
the recent investments in technology upgradation. In the recycled segment, the Kovai unit continued to benefit
from the recent investments in a captive power plant and a de-inking plant.
Plans are underway to augment capacity by commissioning another paperboard machine by 2008/09 with a
view to servicing the growing demand for high quality paperboards. The business is also progressing an
investment towards setting up capacity for manufacturing uncoated paper including branded copier grades, to
tap the emerging growth opportunities and further consolidate its market standing. This capacity is also
expected to come on stream by 2008/09.
In fulfilment of its commitment to a cleaner environment, the Company's Elemental Chlorine Free (ECF) pulp
mill continues to meet world-class environmental standards. The business is making steady progress towards
doubling pulping capacity to achieve cost competitiveness and meet future growth requirements. With
increasing awareness of hygiene and safety among Indian consumers, industries like foods and
pharmaceuticals are progressively switching to ECF pulp-based paperboard. The business made good progress
during the quarter towards scaling up the plantation programme in line with the objective of achieving a total
coverage of 100000 hectares by the end of the decade.
The Packaging and Printing business further expanded its range of offerings to include a wider variety of
contemporary packaging formats. Plans are underway to augment capacity both in the Cartons and Flexibles
segment. Investments towards capacity augmentation at the Chennai unit are also being progressed to meet
the enhanced requirements of the Cigarettes business.
Agribusiness
Agribusiness revenues recorded a growth of 87% during the quarter driven primarily by exports of leaf tobacco
and increased levels of trade in soya, non-basmati rice, chana and coffee. Segment Results (PBIT) touched Rs.
46 crores representing a growth of 49% over last year.
The e-Choupal network was further ramped up during the quarter to 6400 installations. The network now
reaches out to over 3.5 million farmers in the States of Madhya Pradesh, Haryana, Uttaranchal, Uttar Pradesh,
Rajasthan, Karnataka, Maharashtra, Andhra Pradesh and Kerala. On the sourcing front, the e-Choupal network
continued to make an invaluable contribution to strengthen the Company's branded packaged Foods business
through access to high quality, identity preserved wheat. The rural distribution initiative made good progress,
nearly doubling the channel throughput. On the rural retail front, 11 'Choupal Saagars' are now operational
in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh, while 9 more are expected to be launched
progressively over the next 6 months. These 'Choupal Saagars', in synergistic combination with the e-Choupal
network would serve as the core infrastructure to support ITC's rural distribution strategy.
Cigarette leaf tobacco exports recorded robust growth during the quarter on the back of new business
development initiatives and the strategy of offering customised product and service offerings to key customers.
The business is in the process of upgrading its green leaf threshing plant at Anaparti, Andhra Pradesh.
Contribution to Sustainable Development
The Company continued to make progress during the quarter in its social development initiatives in line with its
philosophy of creating stakeholder value through serving society.
The wasteland development programme brought an additional 1,349 hectares under pulpwood plantations
taking the total to 8,171 hectares benefiting nearly 9,464 poor households in 298 villages. The soil & moisture
conservation programme, designed to assist farmers in identified moisture-stressed districts, now covers nearly
1,202 water-harvesting structures providing critical irrigation to 12,144 hectares. As part of its policy to
promote integrated water management solutions to Indian farmers, the Company has taken the next crucial
step towards ensuring efficient usage of water through interventions aimed at improving farm productivity,
promoting group irrigation projects and demonstrating the use of sprinkler sets. Sustainable agricultural
practices were further supported by the Company's promotion of organic fertilisers through vermi-composting
(4,332 units) and 'Nadep' technology (2,089 units).
The sustainable livelihoods initiative of the Company strives to create alternative employment for surplus
labour and decrease pressure on arable land by promoting non-farm incomes. Among many such activities,
special emphasis is being given to improve livestock quality. Cattle development centres under the Company's
livestock development programme currently reach out to over 1,500 villages, providing integrated animal
husbandry services to more than 46,000 milch animals. Another key intervention is in the area of economic
empowerment of women. The ITC sponsored self help micro-credit groups have garnered nearly 11,000
members, of which nearly 5,000 have become successful women entrepreneurs in select rural areas. Several
initiatives are also underway in the areas of Health & Sanitation and Primary education.
In the area of environment, health and safety, ITC continues to raise the bar for its operating units. Already a
water-positive enterprise, the Company also became 'carbon-positive' during 2005/06 and is making rapid
strides towards achieving 'zero solid waste' status.
The Board of Directors, at its meeting in Kolkata on 30th October, 2006, approved the financial results for the
quarter ended 30th September 2006, which are enclosed.
Unaudited FinanciaI ResuIts
for the Quarter and HaIf Year ended 30th September, 2006
(Rs. in Crores)

Quarter
Ended
30.09.2006
Quarter
Ended
30.09.2005
Half Year
Ended
30.09.2006
Half Year
Ended
30.09.2005
Twelve
Months
Ended
31.03.2006
ROSS INCOME 4704.36 3816.24 9423.42 7776.81 16510.51
NET SALES
TURNOVER
[ 1 ] 2887.64 2183.15 5737.39 4450.03 9790.53
OTHER INCOME [ 2 ] 79.48 78.06 164.42 162.58 286.08
NET INCOME (1
+ 2)
2967.12 2261.21 5901.81 4612.61 10076.61
Less:
TOTAL
EXPENDIT&RE
[ 3 ] 1914.91 1363.31 3794.09 2803.43 6463.15
a) (Increase) /
decrease in
(11.74) 3.78 (252.87) (159.19) (141.67)
stock-in-trade
b) Consumption
of raw materials,
etc.
1242.83 805.41 2714.49 1843.41 4124.90
c) Staff cost 149.67 136.45 302.22 260.19 541.40
d) Other
expenditure
534.15 417.67 1030.25 859.02 1938.52
INTEREST (Net) [ 4 ] 3.48 (0.32) 4.20 0.76 11.93
DEPRECIATION [ 5 ] 90.97 82.98 178.61 163.04 332.34
PROFIT BEFORE
TAX AND
EXCEPTIONAL
ITEMS
(1+2-3-4-5)
[ 6 ] 957.76 815.24 1924.91 1645.38 3269.19
Less:
PROVISION FOR
TAXATION
(Including prior
year
adjustments)
[ 7 ] 278.16 242.91 593.03 514.75 988.82
PROFIT AFTER
TAX BEFORE
EXCEPTIONAL
ITEMS (6-7)
[ 8 ] 679.60 572.33 1331.88 1130.63 2280.37
EXCEPTIONAL
ITEMS (NET OF
TAX)
[ 9 ] - - - - (45.02)
PROFIT AFTER
TAX (8+9)
679.60 572.33 1331.88 1130.63 2235.35
PAID &P EQ&ITY
SHARE CAPITAL
(Ordinary shares
of Re. 1/- each)
[10] 375.73 250.34 375.73 250.34 375.52
RESERVES
EXCL&DING
REVAL&ATION
RESERVES
[11] - - - - 8626.79
EARNINGS PER
SHARE (Rs.)
[12]
On Profit after
Tax before
Exceptional
Items
- Basic (Rs.) 1.81 1.53 3.55 3.02 6.08
- Diluted (Rs.) 1.80 1.52 3.53 3.01 6.05
On Profit after
Tax and
exceptional
items

- Basic (Rs.) 1.81 1.53 3.55 3.02 5.96
- Diluted (Rs.) 1.80 1.52 3.53 3.01 5.93
AGGREGATE OF
P&BLIC
SHAREHOLDING
[13]
- N&MBER OF
SHARES
3696501569 2446052120 3696501569 2446052120 3686478363
- PERCENTAGE
OF
SHAREHOLDING
98.38 97.71 98.38 97.71 98.17
Notes
(i) The above results were reviewed by the Audit Committee and approved at the meeting of the
Board of Directors of the Company held on 30th October, 2006.
(ii) Figures for the corresponding previous quarter and half year ended 30th September, 2005 have
been re-arranged, wherever necessary, to conform to current presentation.
(iii) Gross Income comprises Segment Revenue and Other Income.
(iv) During the quarter, 21,69,670 Ordinary Shares of Re.1/- each were issued and allotted under the
ITC Employee Stock Option Scheme. Consequently, the issued and paid-up share capital of the
Company as on 30th September, 2006 stands increased to Rs. 375,73,48,530/-.
(v) During the quarter, 1 investor complaint was received, which was promptly attended to by the
Company. No complaints were pending either at the beginning or at the end of the quarter.
(vi) Provision for Taxation includes Rs. 3.17 Crores and Rs. 6.25 Crores for Fringe Benefit Tax for the
quarter and half year ended 30th September, 2006 respectively. (Corresponding previous
quarter and half year ended 30th September, 2005 - Rs. 5.20 Crores and Rs. 9.52 Crores
respectively).
(vii) The Company has increased its shareholding in King Maker Marketing, Inc., USA (KMM), from
50% to 50.98%, effective 25th October, 2006. Consequently, KMM, which is primarily in the
business of distribution of tobacco products, became a subsidiary of the Company from the said
date.
(viii) The above is as per Clause 41 of the Listing Agreement.

Limited Review
The Limited Review, as required under Clause 41 of the Listing Agreement has been completed and the
related Report forwarded to the Stock Exchanges. This Report does not have any impact on the above
'Results and Notes' for the Quarter and half year ended 30th September, 2006 which needs to be
explained.

Segment-wise Revenue, ResuIts and CapitaI EmpIoyed
for the Quarter and HaIf Year Ended 30th September, 2006
(Rs. in Crores)
Quarter
Ended
30.09.2006
Quarter
Ended
30.09.2005
Half Year
Ended
30.09.2006
Half Year
Ended
30.09.2005
Twelve
months
Ended
31.03.2006
. Segment Revenue
a) FMCG - Cigarettes 3101.74 2723.11 6260.94 5566.18 11329.74
- Others 409.60 246.90 769.28 447.22 1013.47
TotaI FMC 35.34 2970.0 7030.22 6013.40 12343.21
-) Hotels 200.96 153.97 399.73 300.84 783.35
c) Agri-:siness 868.78 465.61 1979.87 1219.54 2678.44
d) Paper-oards, Paper &
Packaging
522.00 469.95 1023.48 930.69 1895.73
TotaI 503.08 4059.54 0433.30 8464.47 17700.73
ess : nter-segment reven:e 478.20 321.36 1174.30 850.24 1476.30
ross saIes / Income from
operations
4624.88 3738.8 9259.00 7614.23 16224.43
2. Segment ResuIts
a) FMCG - Cigarettes 786.63 682.97 1602.19 1377.59 2708.78
- Others (48.98) (35.34) (107.16) (90.00) (171.81)
TotaI FMC 737.65 647.63 495.03 1287.59 2536.97
-) Hotels 57.78 27.55 115.33 83.66 258.09
c) Agri-:siness 46.09 30.86 93.22 67.19 90.86
d) Paper-oards, Paper &
Packaging
110.86 91.86 215.48 181.41 351.42
TotaI 952.38 797.90 99.06 1619.85 3237.34
ess:
i) nterest (Net) 3.48 (0.32) 4.20 0.76 11.93
ii) Other :n-alloca-le
expendit:re
net of :n-alloca-le income (8.86) (17.02) (10.05) (26.29) (43.78)
TotaI Profit Before Tax and
ExceptionaI Items 957.76 85.24 1924.9 1645.38 3269.19
3. CapitaI EmpIoyed
a) FMCG-Cigarettes * 1697.37 841.12 1463.28
- Others 902.70 476.43 489.30
TotaI FMC 2600.07 1317.55 1952.58
-) Hotels 1385.88 1369.56 1374.22
c) Agri-:siness 970.81 718.42 1059.65
d) Paper-oards, Paper &
Packaging
2047.00 1772.09 1908.07
TotaI Segment CapitaI
EmpIoyed
7003.76 5177.62 6294.52

efore considering provision of Rs. 475 Crores (30.09.2005 - Rs. 383 Crores) in respect of
disp:ted State taxes, the levy/collection of which has -een stayed.


Notes
(1) The Company's corporate strategy aims at creating multiple drivers of growth anchored on its core
competencies. The Company is currently focused on four business groups : FMCG, Hotels,
Paperboards, Paper & Packaging and Agribusiness. The Company's organisational structure and
governance processes are designed to support effective management of multiple businesses while
retaining focus on each one of them.
(2) The business groups comprise the following :
FMCG : Cigarettes - Cigarettes & Smoking Mixtures.
: Others - Branded Garments, Greeting, Gifting & Stationery, Agarbattis, Matches
and Packaged Foods (Staples, Confectionery, Snack Foods and Ready
to Eat Foods).
Hotels - Hoteliering
Paperboards, Paper &
Packaging
- Paperboards, Paper including Specialty Paper & Packaging.
Agribusiness - Agri commodities such as Rice, Soya, Wheat, Coffee and Leaf Tobacco.
(3) Segment results of the new business activities namely 'FMCG : Others' largely reflect business
development and gestation costs.
(4) The Company's Agribusiness markets agri commodities in the export and domestic markets;
supplies agri raw materials to the Branded Packaged Foods Business and sources leaf tobacco for
the Cigarettes Business. The segment results for the quarter and half year are after absorbing
costs relating to the expansion of the strategic e-Choupal initiative.
(5) Figures for the corresponding quarter and half year ended 30.09.2005 have been recast to
conform to current presentation.