This document is a financial analysis report on ITC Ltd submitted by four MBA students under the supervision of four professors. It provides an overview of ITC including its founding, diversified business segments, vision, SWOT analysis, products, social initiatives, and financial performance over three years through income statements and ratio analysis. ITC is an Indian conglomerate founded in 1910, with businesses spanning FMCG, hotels, paperboards, agriculture, and IT. The report analyzes ITC's financials and compares it to competitor HUL.

1. 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 Of
Mr. 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 2014
Place. Quantum School Of Business
1

2. 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
2

3. 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
3

4. Logo Of ITC
4

5. 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
5

6. 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
6

7. 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
7

8. SWOT Analysis
STRENGTH:
Cigarette market is 22,000 crore
Strong brand recognition and product portfolio
Distribution network Management
WEAKNESS
Dependence on tobacco revenues
Negative connection of Tobacco
8

9. Cont...
OPPORTUNITY:
 Consumption of personal care products
 Rural Market
 E-Chaupal
THREATS:
 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
9

10. 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

11. Cigarette as Starters
 Insignia
 India Kings
 Classic
 Gold Flake
 Silk Cut
 Navy Cut
 Scissors
 Capstan
 Berkeley
 Bristol
 Flake
11

12. 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, Agra 12

13. Organization Structure
 Board of Directors : Strategic supervision
 Corporate Management Committee : Strategic Management
 Divisional Management Committees : Executive Management
13

14. 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
14

15. 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
15

16. 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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17. 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
17

18. Balance Sheet
Particulars Mar 14
12 mths
Mar 13
12 mths
Mar 12
12 mths
Sources of funds
Total Share Capital 790.18 781.84 773.81
Reserves 21,497.67 17,957.00 15,126.12
Networth 22,287.85 18,791.89 15,953.27
Total Debt 66.40 79.09 99.20
Total Liabilities 22,354.25 18,870.98 16,052.47
Application Of Funds
Net Block 11,209.34 9,106.68 8,345.07
Capital 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 9,772.94
Net Current Assets 2,596.83 875.65 819.34
Total Assets 22,354.25 18,870.98 16,052.47
In crores 18

19. Particular Mar-14 Mar-13 Mar-12
Sales 33238.6 29901.27 35247.25
Other Income 1107.14 938.7 761.25
raw material 13522.04 12531.44 9933.19
power & fuel 613.19 550.11 453.19
employee.cost 1608.37 1387.01 1265.41
Gross Profit 12326.43 22018.11 40947.76
miscelleneous expenses 5168.57 5741.03 1339.6
operating profit 5349.85 2078.26 2474.29
Ebdit 13561.98 11566.21 9683.06
dep 899.92 795.56 698.51
Ebit 12659.11 10684.18 8897.53
interest 2.95 86.07 87.02
Ebt 12659.11 10684.18 8900.04
tax 3873.9 3265.79 2737.08
Net Profit 8785.21 7418.39 6162.37
Income Statement
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20. Particulars Mar-14 Mar-13 Mar-12
Liquidity ratios
Current Ratio 1.25 1.22 1.08
Quick Ratio 0.68 0.66 0.51
Cash Ratio 1.36 1.12 1.45
Profitability Ratios
Gross 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 Ratios
Fixed Asset Turnover Ratios 1.83 1.8 1.81
Current Asset Turnover Ratios 1.37 1.45 1.44
Total Asset Turnover Ratios 1.27 1.34 1.34
Stock Turnover Ratios 4.52 4.53 6.53
Working Capital Ratios 37.96 98.54 25.4
Ratios
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21. Analysis of Income Statement
0
20
40
60
80
100
120
12 mths 12 mths 12 mths
Mar-14 Mar-13 Mar-12
Total Income
Total Expenses
Reported Net Profit%
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22. ITC VS HUL
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23. 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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24. Bibliography
 The content have been taken through :
 www.moneycontrol.Com
 Principles of Accounting Book

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