ITC - Well Positioned For Long Term Value Creation: Centrum Broking

Centrum Broking Report

We recently attended 112th Annual General Meeting of ITC Ltd. The Chairman articulated ITCNext strategy provided agility, responsible competitiveness, growth and profitability in the face of global uncertainties.

The company has traversed a remarkable journey of transformation across each business vertical reporting revenue/Ebitda/profit after tax growth of 17.2%/26.7%/24.1% in FY23 with an improvement in gross margin at 55.8%. cigarette/fmcg/hotel/paper/agri revenues grew 20.3%/19.6%/18.8%/12.2%.

More importantly non-cigarette business today accounts for 67% of revenues and 28% of segment Ebitda. With new vectors of growth and competitiveness ITC is nurturing mega trends in digital through toodtech, ITCMAARS, Master-Chef, Sunfeast-baked-creations to create future-ready portfolio seeking structural competitiveness.

Company’s fmcg business has redefined the critical pathways to growth and profitability backed by 25 plus brand portfolio that represents an annual consumer spend of Rs 290 billion.

Under its commitment for rural transformation and to empower farmers ITC today procures 4.5 million tonne of agri commodities across value chains spread over 22 states.

The emerging trends for plastic substitution will provide further fillip to the demand for paperboard and plat based moulded fibre bio-degradable products.

The hospitality industry is poised for strong growth due to confluence of favourable factors.

That said we remain positive as ITC placed to deliver stronger, competitive and profitable growth in years to come.

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