Transcript
Presented by:-
Sachin Soni
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INTRODUCTION
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• Incorporated on August 24, 1910, completes 100 years on 24th August, 2010.
• India’s premier privates sector companies with a turnover of US $3Billion
• Positioning of ITC “TOUCHING YOUR LIFE EVERYDAY”
• Over 26,000 people at more than 60 locations across India and is listed on Forbes 2000.
• India's second largest exporter of agricultural products.
• Second largest Hotel chain in India.
• Market leader in the Indian Paperboard and Packaging industry.
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Hotel
Cigarettes
Incense Sticks
Personal Care
Safety Matches
Agricultural Industry
Information Technology
Paperboards
Packaged Foods
Stationery
Branded Apparel
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HISTORY
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• 24 Aug1910 – ITC incorporated under the name of 'Imperial Tobacco Company of India Limited'.
• 1925 – ITC’s Packaging & Printing Business Division was set up as a strategic backward integration for ITC’s Cigarettes business.
• 1974 – The Company's ownership progressively Indianised, and the name of the Company was changed to ITC Limited (Indian Tobacco Company).
• 1975 – The Co. launched its HOTEL BUSINESS which was named ‘ITC-Welcome group Hotel Chola’.
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• 1979 – ITC entered the Paperboards Business, which today has become the market leader in India.
• 1990 – International Business Division (IBD) for export of agri-commodities.
• 2000 – Lifestyle Retailing Business with Wills Sport range of international quality relaxed wear for men and women.
• 2000 – ITC Infotech India Ltd.• 2001 – ITC entered in Food Business with launch of
‘Kitchen Of India’ ready-to-eat Indian gourmet dishes.• 2002 – Started FMCG business.
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ANALYSIS
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Ratio analysis is the process of determining and interpreting numerical relationship based on financial statements. It is the technique of interpretation of financial statements with the help of accounting ratios derived from the balance sheet and profit and loss account.
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2009 2010 2011 2012 20130
5
10
15
20
25
17.76 19.120.59
22.65 23.55
ROA
2009 2010 2011 2012 201305
10152025303540
25.3129.22
33.23 35.47 36.12
ROE
2009 2010 2011 2012 20130
10
20
30
40
50
60
35.1140.89
46.13 49.04 49.72
Return on invested capital
2009 2010 2011 2012 201305
101520253035
21.5424.78
28.13 28.7932.92
PE ratio
Overall performance
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2009 2010 2011 2012 201327
28
29
30
31
32
33
34
29.1729.74
30.97
32.77 32.88
Gross profit margin
2009 2010 2011 2012 201319.5
2020.5
2121.5
2222.5
2323.5
2424.5
21.18 21.3
22.91
23.97 24.05
Net profit margin
Profitability
2009 2010 2011 2012 20130
2
4
6
8
10
4.295.31
6.457.88
9.39
Earnings per share
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Investment utilization
2009 2010 2011 2012 20131.18
1.21.221.241.261.28
1.31.321.341.36
1.261.24
1.271.29
1.34
Asset turnover
2009 2010 2011 2012 20132.12.22.32.42.52.62.72.8
2.37 2.33
2.49
2.622.71
Capital intensity
2009 2010 2011 2012 201301234567
4.53
6.536.05 6.04
5.26
Invested capital turnover
2009 2010 2011 2012 20130
20
40
60
80
100
120102.27
67.6383.61
91.83101.88
Interest coverage
Investment utilization
2009 2010 2011 2012 20130
1020304050607080
68.21 63.5858.14 56.52 53.04
Days inventory
2009 2010 2011 2012 20130
0.5
1
1.5
2
2.52.15
1.55 1.54 1.58 1.7
Current ratio
2009 2010 2011 2012 20130
0.20.40.60.8
11.21.4
1.170.99 0.92 0.97
1.06
Quick ratio
2009 2010 2011 2012 20130
2
4
6
8
10
12 11.27 10.8 10.419.68 9.3
Days receivable
Financial Condition
2009 2010 2011 2012 20130
0.002
0.004
0.006
0.008
0.01
0.0120.01 0.01 0.01
0.0040.003
Debt-Equity ratio
2009 2010 2011 2012 20130
50
100
150
200
250
300264.41
93.9 107.29 115.19 124.56
Times interest earned
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2009 2010 2011 2012 20130
0.51
1.52
2.53
3.54
2
3.8
2.451.98
1.7
Dividend yield
2009 2010 2011 2012 20130
20
40
60
80
100
120
50.06
109.63
80.2466.35 65.42
Dividend payout ratio
Dividend policy
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COMPARISON
ITC, HUL & IHCL
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ITC, HUL & IHCL
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CONCLUSION
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• Major sectors of ITC are strong – FMCG major source of revenue.
• Strong cash generation and management – High ROE
• Diversification and market share – Different product ranges, good market share in operating areas
• Able management – strategies proved to be good
• Low risk stock – being a high capital company operating with high market share in stable markets
• ITC is expected to continue in its path of growth and diversification
CONCLUSION
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