INCOME STATEMENT

ITC IntroductionIndia Tobacco Company.ITC is one of Indias foremost private sector companiesITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information TechnologyITC is an outstanding market leader in its traditional businesses of Hotels, Paperboards, Packaging, Agri- Exports and Cigarettes, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery ITC. Touching your life.INCOME STATEMENTITC PERFORMANCE 2013 (Rs. in crores) 2014 (Rs. in crores)2015 (Rs. in crores)Growth YOY2013-2014Growth YOY2014-2015 SALES 44,224 49,579 53,160 12%7% EBITDA 12,051 14,022 15,458 16%10% EBDT 11,964 14,016 15,390 17%10% EBT 11,105 13,051 14,362 18%10% PAT 7,693 8,990 9,765 17%9%INCOME STATEMENT ANALYSISPerformance for the quarter impacted by: Continuing pressure on legal Cigarette industry volumes Lack of trading opportunities in wheat and soya Sluggish demand conditions especially in the FMCG and Hospitality sectorRevenue is majorly affected because over the last 3 years, the incidence of Excise Duty and VAT on cigarettes, at a per unit level, has gone up cumulatively by 98% and 104% respectively. Cigarette taxes account for approximately 38% of the retail price. This falls well below the rate recommended by the World Bank (from 65% to 80% of retail price) that is commonly present in countries with effective tobacco control policies.

BALALNCE SHEET ITC PERFORMANCE 2013 (Rs. in crores) 2014 (Rs. in crores)2015 (Rs. in crores) FIXED ASSETS 16,679 18,240 21,392 INVESTMENT 7,060 8,823 8,405 CAPITAL (WIP) 1,487 2,295 2,114 NET CURRENT ASSETS 2,600 3,181 6,076 SHAREHOLDERS FUND 790 795 801 TOTAL DEBT 66 51 38 BALANCE SHEET ANALYSISThe capital is increasing because theres a shift in the business of ITC, as in the focus isnt just on the tobacco productInvestment needs to be equal to the depreciation of assets of the company however that isnt the case here for ITCShareholders funds is increasing because of Issue of Shares under the ITC Employee Stock Option Schemes and Issue of Shares upon Demerger of the Non Engineering Business of Wimco Limited into the CompanyTotal debt of the company is decreasing which is undoubtedly good for the company and it also has a solid reserve

Ratio AnalysisLiquidity RatiosRatiosMar15Mar14Mar13Current Ratio1.451.251.22Quick Ratio0.870.680.66Debt Equity Ratio0.010.010.02Profitability RatiosRatiosMar15Mar14Mar13Net Profit Margin26.3126.4324.80Return on capital employed45.7448.2148.29Return on net worth31.3133.5133.36Turnover RatiosRatiosMar15Mar14Mar13Inventory Turnover Ratio = COGS ---------------- Total inventory6.434.524.53 Debtors Turnover Ratio = Net Sales ---------------- Avg Debtors18.7819.9727.82Fixed Asset turnover Ratio = Net Sales ---------------- Total Fixed Asset1.741.831.80 RatiosRatiosMar15Mar14Mar13No of days in Working capital = Average inventory holding period + avg collection period Avg payback period74.1037.9638.4513

Thank You