ITC

Financial Analysis Of ITC Mega Project Report,

As a part of partial fulfillment of requirement of MBA degree. Submitted By

Amit Shukla (140701004)Priya Rani (140702048)Rakesh Pande (140702028)Rao Shakir (140701051)

Under The Supervision OfMr. Arun Kant Painoli (B.E)Mr. Commander R.N. Sharma (M.E)Mr. Pradeep Joshi (P.P.M)Dr. Y.P. Singh (F.A)

Submitted At

Date. 28th November 2014Place. Quantum School Of Business

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ITC At a Glance

Industry: Conglomerate; Public

Founded: On August 24,1910

CEO: Yogesh Chander Deveshwar

Headquartered: Kolkata;West Bengal

Employees: 25,959 app.

Diversification: FMCG,Hotels,Paperboard and Packaging,Agri

Business & IT

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History Of ITC

24 AUG1910 – ITC incorporated under the name of ‘Imperial Tobacco Company of India Limited’.

1925 – Started Packaging and Printing business beside cigarette manufacturing

1975 - started HOTEL BUSINESS as ‘ITC- Welcome Group Hotel Chola’

1979 – started Paperboard business 2000-10 – started manufacturing Greeting, Gifting and

Stationary Products

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Logo Of ITC

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ITC

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. ITC Limited is an Indian FMCG company headquartered in Kolkata, West Bengal. Its diversified business include 6 segment:-

FMCG Hotels Paperboards Packaging Agriculture Business Information Technology

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Vision & Mission

Sustain ITC’s position as one of India’s most valuable co-operation through world class performance, creating growing values for the Indian economy and the companies stakeholders

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior & sustainable stakeholder value

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Objective

Building awareness and improving the availability and use of

trade intelligence

Enhancing policies for the benefit of exporting enterprises

Building the export capacity of enterprises to respond to

market opportunities

Mainstream inclusiveness and sustainability into trade

promotion and export development

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SWOT Analysis

STRENGTH:

Cigarette market is 22,000 croreStrong brand recognition and product portfolioDistribution network ManagementWEAKNESS

Dependence on tobacco revenuesNegative connection of Tobacco

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Cont...

OPPORTUNITY: Consumption of personal care products Rural Market E-ChaupalTHREATS: Competition both Domestic and International Increasing Tax on Cigarette Excise Duty on Unfiltered Cigarettes lass than 60mm in length was

increased 387% last year Hike was 142% for those between 61mm and 71mm long Regulatory restrictions on cigarettes Ban on smoking

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FMCG Companies in India Hindustan Uniliver ITC Amul Godrej Consumer Products limited Dabur India Lit. Emami Colgate Palmolive India Limited Zydus Wellness Britannia Wipro Cavinkare Parle Agro Nirma 10

Cigarette as Starters

Insignia India Kings Classic Gold Flake Silk Cut Navy Cut Scissors Capstan Berkeley Bristol Flake

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ITC Hotels ITC Grand Chola, Chennai

ITC Grand Bharat, Gurgaon

ITC Maurya, New Delhi

ITC Maratha, Mumbai

ITC Gardenia, Bengaluru

ITC Windsor, Bengaluru

ITC Grand Central, Mumbai

ITC Sonar, Kolkata

ITC Kakatiya, Hyderabad

ITC Rajputana, Jaipur

ITC Mughal, Agra12

Organization Structure

Board of Directors : Strategic supervision

Corporate Management Committee : Strategic Management

Divisional Management Committees : Executive Management

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Some other products of ITC

Classmate

Ashirvad

Tobacco products

Vivel, Fiama di wils, Superia

Wills lifestyle and John Players

Mangaldeep agarbatti and Aim safety matches

Candyman and Dark Fantasy

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Social Initiative

Generates livelihood for 5 million people ITC’s E-choupal benefits over 4 million farmers ITC’s Farm and Forestry initiative have greened over 125,000

hectares of barren land creating 56 million person days of employment

ITC’s Watershed Development programme brings water to over 90,000 hectares of land which are dry and water stressed area

Imparting education to Farmers,Women,Children and other backward Un-Educated class

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Interesting Facts

WOW (Wealth Out of Waste Campaign)

Carbon Positive for nine years in a row

Water Positive for twelve consecutive years

Solid Waste recycling for last seven years

FSC-CoC (Forest Stewardship Council-Chain of Custody)

Certified

ITC Railway Catering Contract with Indian Railway

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Role of ITC in India

Improve the standard of living Creation of Employment Contribution in the revenue Produce good quality products Deals in various products that are useful in the development of

the society Contribution to the general welfare of society Development of human resources Reduce disparities among nation

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Balance SheetParticulars Mar 14

12 mthsMar 1312 mths

Mar 1212 mths

Sources of funds

Total Share Capital 790.18 781.84 773.81Reserves 21,497.67 17,957.00 15,126.12Networth 22,287.85 18,791.89 15,953.27Total Debt 66.40 79.09 99.20

Total Liabilities 22,354.25 18,870.98 16,052.47Application Of Funds

Net Block 11,209.34 9,106.68 8,345.07Capital Work in Progress 1,487.79 2,572.06 1,333.40

Total CA, Loans & Advances

14,260.01 11,395.32 10,592.28

Total CL & Provisions 11,663.18 10,519.67 9,772.94Net Current Assets 2,596.83 875.65 819.34

Total Assets 22,354.25 18,870.98 16,052.47

In crores 18

Particular Mar-14 Mar-13 Mar-12Sales 33238.6 29901.27 35247.25Other Income 1107.14 938.7 761.25raw material 13522.04 12531.44 9933.19power & fuel 613.19 550.11 453.19employee.cost 1608.37 1387.01 1265.41Gross Profit 12326.43 22018.11 40947.76miscelleneous expenses 5168.57 5741.03 1339.6operating profit 5349.85 2078.26 2474.29Ebdit 13561.98 11566.21 9683.06dep 899.92 795.56 698.51Ebit 12659.11 10684.18 8897.53interest 2.95 86.07 87.02Ebt 12659.11 10684.18 8900.04tax 3873.9 3265.79 2737.08Net Profit 8785.21 7418.39 6162.37

Income Statement

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Particulars Mar-14 Mar-13 Mar-12Liquidity ratiosCurrent Ratio 1.25 1.22 1.08Quick Ratio 0.68 0.66 0.51Cash Ratio 1.36 1.12 1.45Profitability RatiosGross Profit Margin 34.76% 32.88% 32.77%Operating Profit Margin 37.47% 35.54% 35.55%Return On Net Worth 33.45% 33.28% 32.88%Return On Capital Employed 48.12% 48.18% 46.95%Return On Total Asset 33.02% 28.21% 24.04%Turnover RatiosFixed Asset Turnover Ratios 1.83 1.8 1.81Current Asset Turnover Ratios 1.37 1.45 1.44Total Asset Turnover Ratios 1.27 1.34 1.34 Stock Turnover Ratios 4.52 4.53 6.53Working Capital Ratios 37.96 98.54 25.4

Ratios

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Analysis of Income Statement

12 mths 12 mths 12 mths Mar-14 Mar-13 Mar-12

0

20

40

60

80

100

120

Total Income Total Expenses Reported Net Profit %

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ITC VS HUL

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Conclusion

ITC promoting their brands through advertisement campaign as well as door to door promotion.

ITC is also focusing on retailers and wholesalers to promote

their brand. The demand for their product is very low,because people don’t

know about their brands very well. ITC knows their weakness in personal care market,so they are

applying new concept to overcome their weakness. ITC now offering more margin,exiting offers and long credit

period to retailers and wholesalers.

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Bibliography

The content have been taken through : www.moneycontrol.Com Principles of Accounting Book

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