Advanced financial analysis of itc with its competitor by using Liquidity Ratio, Solvency ratio, Profitability Ratio, Turnover ratio, and cash flow analysis

1. COMPANY ANALYSIS
TEAM 11
Jemilton Isaac J 1813033
Prabhakaran B 1813060
Sethu N 1813088
Shreya Roy 1813092
Shubham Singh 1813093

2. INDUSTRY ANALYSIS
 The FMCG sector is 4th largest sector in Indian economy.
 Rapid growth in FMCG business for FY19 at 12%.
 ITC’s ranking is 5th among all listed private sector companies.
 In Indian tobacco industry ITC has highest market share with 84.27%.
 ITC snacks has 30% share and Bingo is market leader .
 In personal products of ITC, Engage deodorant is No. 2 in the category
and No.1 in women’s segment.
 Classmate is market leader in notebook segment.
 ITC hotels is fasted growing hospitality chain in India and trailblazer in
Green Hoteliering.
 It is Market leader in paperboard segment .
 Leading agri-business player in India.

3. COMPANY PROFILE
About ITC
• ITC is one of India's foremost private sector companies and a diversified conglomerate company
headquartered in Kolkata, India.
• Sanjiv Puri is chairman and managing director of ITC.
• The Company is acknowledged as one of India's most valuable business corporations with a market
capitalisation of around US$ 50 billion.
• It has diversified presence in Fast Moving Consumer Goods, Hotels, Paperboards and Packaging,
Agri Business and Information Technology.
• A global exemplar in sustainable business practices.
Vision
Sustain ITC position as one of India’s most valuable corporations through world class performance , creating
growing value for the Indian economy and the Company’s stakeholders.
Mission
To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior
and sustainable stakeholder value.
Core Values
ITC believes that its core values of trusteeship, customer focus, respect for people, excellence, innovation and
nation orientation have been the guiding principles behind the Company's phenomenal growth.

4. SWOT ANALYSIS OF ITC
STRENGTH
Strong and experienced management
Strong brand presence, excellent products advertising
Diversified product and services portfolio
ITC limited employees over 25,000 people
Excellent R&D facilities
WEAKNESS
Dependence on tobacco revenues
Hotel industry has not been able to create
a huge market share
OPPORTUNITY
Tap rural markets and increase penetration in urban
areas
Mergers and acquisitions to strengthen the brand
Increasing purchasing power of people thereby
Increasing demand
THREAT
Strict govt regulations and policies regarding
cigarettes
Intense and increasing competition amongst other
FMCG companies and hotel chains
FDI in retail thereby allowing international brands
SWOT
ANALYSIS

5. COMPETITIVE ADVANTAGE
 Blend diverse core competencies in various businesses to enhance the
competitive power.
 ITC focuses on product design, manufacturing technology , marketing
and distribution.
 Create distributed leadership within the organisation by nurturing talented
and focused top management teams for each of the business.
 Position each business to attain leadership on the strength of world-class
standards in quality and costs.
 Strong corporate governance policies and systems.
 ITC is high in quality and low in innovation compared to HUL and P&G.

6. Sales Growth in %
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 10.38% 1.55% 8.68% 1.09% 9.73%
HUL 11.01% 8.40% 2.62% 1.09% 10.08%
Marico 15.03% 6.32% -2.11% 5.75% 27.07%
Britannia 12.9% 10.7% 5.6% 10.8% 13.93%
Cost of Good Sold in %
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 28.9% -6.7% 8.1% -10.0% 14.8%
HUL 10.65% 3.49% 2.48% -2.04% 8.92%
Marico 24.5% 15.8% -1.9% -5.6% 35.5%
Britannia 8.73% 11.06% 12.46% 7.08% 13.31%

7. Liquidity Ratios
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 3.07 2.77 3.59 1.65 2.05
HUL 1.36 1.29 1.3 1.43 1.05
Marico 2.41 2.45 2.44 1.9 2.03
Britannia 1.94 2.03 1.84 1.06 1.19
Current Ratio
Quick Ratio
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 2.28 1.95 2.44 1.07 1.38
HUL 1.07 1.02 0.97 1.05 0.76
Marico 1.32 1.07 1.11 1.03 0.9
Britannia 1.49 1.59 1.29 0.77 0.9

8. Working Capital
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 19,947.40 15,646.40 17,707.32 9,546.88 12,273.12
HUL 3,021.00 2,503.00 2,163.00 2,878.00 480.73
Marico 1,590.00 1,383.33 1,174.83 797.39 723.23
Britannia 1,487.91 1,401.49 915.46 74.69 226.85
Working Capital Rs. In cr.

9. Profitability Ratios
Net Profit Margin Ratio in %
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 27.7 27.62 25.44 26.72 26.31
HUL 15.79 15.16 14.07 13.31 14
Marico 18.95 13.89 17.37 14.18 11.64
Britannia 10.7 10.18 10.02 9.42 8.67
Return on Equity in %
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 21.5 21.83 22.49 29.94 31.31
HUL 78.8 74.02 69.18 65.88 115.87
Marico 32.26 23.61 28.81 27.01 23.26
Britannia 27.78 29.29 32.67 44.05 50.37

10. Return on Asset in %
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 17.85 17.99 18.81 19.88 21.73
HUL 33.78 30.53 30.43 29.71 31.65
Marico 24.39 17.86 22.39 20.09 16.87
Britannia 19.85 20.48 22.82 24.42 25.28

11. Turnover Ratios
Inventory Turnover Ratio
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 5.93 5.61 5.1 4.32 4.66
HUL 15.78 14.64 13.5 12.29 11.84
Marico 4.84 3.94 4.48 6.45 5.91
Britannia 14.58 15.65 13.96 20.7 20.76
Inventory Days
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 62 65 72 84 78
HUL 23 25 27 30 31
Marico 75 93 81 57 62
Britannia 25 23 26 18 18

12. Receivables Turnover Ratio
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 15.06 19.26 28.25 30.26 29.00
HUL 26.70 33.36 34.03 35.65 40.98
Marico 16.46 19.97 23.12 30.65 35.83
Britannia 35.74 52.00 73.58 91.15 102.41
Receivables Days
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 24 19 13 12 13
HUL 14 11 11 10 9
Marico 22 18 16 12 10
Britannia 10 7 5 4 4

13. Payable Turnover Ratio
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 5.233 4.61 6.09 6.51 7.92
HUL 2.53 2.49 2.72 2.83 2.95
Marico 5.333 5.394 5.14 5.67 5.14
Britannia 6.61 7.64 7.97 7.25 5.51
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 70 79 60 56 46
HUL 143 146 134 129 124
Marico 68 68 71 64 71
Britannia 55 48 46 50 66
Payable Days

14. Working Capital Days
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 16 5 25 41 45
HUL -106 -111 -96 -89 -84
Marico 29 43 26 4 1
Britannia -20 -17 -15 -29 -45

15. Solvency Ratios
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 0.0001441 0.000222 0.000408 0.00092 0.001293
HUL 0 0 0 0 0
Marico 0.037343216 0.040241 0.037052 0.00994 0.07571
Britannia 0 0 0 0 0
Debt to Equity Ratio
Interest Coverage Ratio- Interest coverage ratio is
not required because the firm is having negative interest
expenses

16. Advertisement to Net sales Ratio in %
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
ITC 17.23 16.91 17.88 19.22 18.24
HUL 26.23 27.33 27.27 27.65 27.82
Marico 20.53 21.68 24.29 26.17 23.69
Britannia 21.37 19.83 21.30 25.22 26.91

17. Cash flow Statement in Cr.
Particular Mar-19 Mar-18 Mar-17 Mar-16 Mar-15
PBT 18444.16 16851.70 15502.96 14958.39 13997.52
Operating
Activity
11749.05 12650.85 10002.02 9,251.35 9308.87
Investing
Activity
-5081.75 -6691.24 -2780.33 -3,750.33 -4822.57
Financing
Activity
-6600.57 -6019.85 -7137.62 -5,461.52 -4573.61
Net
(decrease)/incr
ease In Cash
and Cash
Equivalents
66.73 -60.24 84.07 39.50 -87.31

18. Thank You