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1QFY2014 Result Update | FMCG

July 29, 2013

ITC
Performance Highlights
Quarterly result (Standalone)
(` cr) Revenue EBITDA OPM (%) PAT 1QFY14 7,339 2,719 37.1 1,892 1QFY13 6,652 2,307 34.7 1,602 % chg 10.3 17.8 237bp 18.1 4QFY13 8,180 2,629 32.1 1,928 %qoq (10.3) 3.4 491bp (1.9)

NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code FMCG 291,408 (8,605) 0.8 380/251 468,933 1 19,748 5,886 ITC.BO ITC@IN

`369 -

Source: Company, Angel Research

For 1QFY2014, ITC posted a robust 18.1% yoy growth in its net profit to `1,892cr, in-line with our estimate. The healthy performance on the bottom-line front is attributable to the healthy 237bp yoy expansion in OPM even as top-line came in below estimates. Key highlights: ITCs top-line for the quarter rose by 10.3% yoy to `7,338cr. The companys major segments of operation, ie Cigarettes and the Non-cigarette FMCG business, posted lower-than-estimated sales. The Cigarettes business posted a top-line growth of 7.1% yoy, while the growth in its other FMCG business stood at 18.4% yoy. The Agri-business continued with its impressive performance with a top-line growth of 29.4%. The performance of the Hotels business continued to remain muted with a top-line growth of 7.5% yoy for the quarter. Paper boards and Packaging posted a top-line growth of 12.3%. The Cigarette division posted a healthy 18% improvement in its EBIT, despite an ~2%. yoy de-growth in volume. The non-cigarette FMCG business, which turned profitable for the first time in 4QFY2013 posted a loss of `19cr in 1QFY2014 (loss of `39cr in 1QFY2013) Outlook and valuation: We expect ITC to report a top-line and bottom-line CAGR of 16.2% and 19.2% respectively over FY2013-15E, driven by the companys diversified business model and ability to invest in growing businesses. At the current market price, the stock is trading at 27.6x FY2015E EPS. We maintain our Neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 0.0 33.8 20.5 45.7

Abs. (%) Sensex ITC

3m 2.4 15.5

1yr 18.7 47.7

3yr 9.6 143.8

Key financials (Standalone)


Y/E March (` cr) Net Sales % chg Net Profit (Adj) % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2012 24,799 17.2 6,162 23.6 34.2 7.9 46.8 15.3 35.5 42.3 11.3 33.0 FY2013 29,606 19.4 7,418 20.4 34.9 9.4 39.3 13.1 36.1 43.8 9.4 27.0 FY2014E 34,294 15.8 8,909 20.1 36.8 11.3 32.7 10.8 36.1 45.5 8.1 21.9 FY2015E 39,991 16.6 10,543 18.3 37.0 13.3 27.6 8.7 34.9 44.5 6.8 18.4
V.Srinivasan 022 3935 7800 Ext: 6831 v.srinivasan@angelbroking.com

Source: Company, Angel Research; Note: CMP as of July 27, 2013

Please refer to important disclosures at the end of this report

ITC | 1QFY2014 Result Update

Exhibit 1: Quarterly performance (Standalone)


Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM Interest Depreciation & Amortization Other Income PBT (excl. Extraordinary Items) Extraordinary Income/(Expense) PBT (incl. Extraordinary Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT PATM Equity shares (cr) EPS (`)
Source: Company, Angel Research

1QFY14 7,339 2,869 39.09 427 5.8 1,324 18.0 4,619 2,719 37.1 17 215 275 2,762 2,762 37.6 871 31.5 1,892 26 788 2.4

1QFY13 6,652 2,577 38.73 412 6.2 1,356 20.4 4,345 2,307 34.7 14 195 238 2,337 2,337 35.1 734 31.4 1,602 24 788 2.0

% yoy 10.3 11.3 3.4 (2.4) 6.3 17.8 237 23.2 10.5 15.9 18.2 18.2 18.6 18.1

4QFY13 8,180 3,548 43.4 343 4.2 1,660 20.3 5,551 2,629 32.1 24 207 331 2,729 2,729 33.4 801 29.4 1,928 24 788

%qoq (10.3) (19.1) (9.9) 24.2 38.5 (20.3) (11.1) (16.8) 3.4 491 (30.2) 4.2 (16.8) 1.2 1.2 12.8 8.7 7.4 (1.9) 9.4 0.0 (1.9)

FY2013 29,606 12,066 40.8 1,387 4.7 5,821 19.7 19,274 10,332 34.9 86 796 1,229 10,679 10,679 36.1 3,266 30.6 7,413 25 788 9.4

FY2012 24,798 9,631 38.8 1,258 5.1 5,410 21.8 16,299 8,499 34.3 78 699 1,175 8,898 8,898 35.9 2,735 30.7 6,163 25 788 7.8

% chg 19.4 25.3 10.3 7.6 18.3 21.6 62.4 11.0 13.9 4.6 20.0 20.0 19.4 20.3

18.1

2.4

20.3

Top-line growth at 10.3% yoy


ITCs top-line rose by 10.3% yoy to `7,338cr; the major segments - Cigarettes and other FMCG business - posting lower-than-estimated sales. The Cigarettes business posted a top-line growth of 7.1% yoy, with volumes declining by 2% yoy. Although growth in the Non-cigarette FMCG business is reasonably healthy at 18.4% yoy, it has come-off significantly from a growth of 26.4% posted in FY2013. The Agri-business continued to post an impressive performance with a top-line growth of 29.4%. Performance of the Hotels business continued to remain muted with a top-line growth of 7.5% yoy. Paper boards and packaging posted a top-line growth of 12.3%.

July 29, 2013

ITC | 1QFY2014 Result Update

Exhibit 2: Top-line growth at 10.3% yoy


8,000 7,000 6,000 (` cr) 4,000 3,000 5,767 5,974 6,195 6,861 6,652 7,146 7,627 8,180 1,000 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 7,339 2,000 ( %)
(%)

25.0 20.0 15.0 10.0 5.0 -

5,000

Top-line (LHS) Source: Company, Angel Research

yoy growth (RHS)

Earnings grew by 18.1% yoy led by Cigarettes business


The earnings for the quarter grew by a robust 18.1% yoy to `1,892cr driven by an 18% increase in the earnings of the Cigarettes business. The profitability of the Cigarettes business has been driven by the price hikes executed by the company. The Non-cigarette FMCG business, which turned profitable for the first time in 4QFY2013, posted a loss of `19cr in 1QFY2014 (loss of `39cr in 1QFY2013). The Hotel business posted a 66% de-growth in its profit despite a higher top-line during the quarter. Profits of the Paperboards and Packaging business fell 5%, impacted by a steep hike in prices of inputs such as wood and coal.

Exhibit 3: OPM expands by 237bp yoy to 37.1%


70.0 65.0 60.0 55.0 50.0 45.0 40.0 35.0 30.0 25.0 20.0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 32.5 35.3 59.9 61.2 64.7 59.1 61.3 59.9 59.7 62.1 56.6

Exhibit 4: Strong earnings growth at 18.1% yoy


2,500 24.5 2,000 1,500 1,000 1,333 1,514 1,701 1,614 1,602 1,836 2,052 1,928 500 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 1,892 21.5 22.5 26.0 20.2 30.0 21.3 20.6 19.4 18.1 25.0 20.0 15.0 10.0 5.0 -

37.1 31.6

34.7

36.5

36.4 32.1

37.1

(` cr)

(%)

OPM

Gross margin

PAT (LHS)

yoy growth (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

July 29, 2013

ITC | 1QFY2014 Result Update

Exhibit 5: Segment-wise performance (Standalone)


Y/E Mar (` cr) Net Income Cigarettes Others Hotels Agri Business Paperboards & Packaging Less: Inter-segmental Revenues Total Net Income (Excl Other Income) PBIT Cigarettes Others Hotels Agri Business Paperboards & Packaging Total PBIT PBIT Margin (%) Cigarettes Others Hotels Agri Business Paperboards & Packaging
Source: Company, Angel Research

1QFY14

1QFY13

% yoy

4QFY13

% qoq

FY13

FY12

% chg

3,537 1,745 250 2,189 1,163 1,546 7,339 2,242 (19) 9 199 252 2,683 63.4 (1.1) 3.6 9.1 21.6

3,304 1,473 232 1,691 1,036 1,085 6,652 1,900 (39) 26 171 265 2,323 57.5 (2.6) 11.3 10.1 25.5

7.1 18.4 7.5 29.4 12.3 42.4 10.3 18.0 (65.9) 16.3 (5.0) 15.5

3,623 2,036 315 1,854 1,058 707 8,180 2,112 12 41 128 188 2,481 58.3 0.6 12.9 6.9 17.8

(2.4) (14.3) (20.8) 18.0 10.0 118.7 (10.3) 6.1 (78.0) 56.3 33.7 8.1

13,970 6,983 1,074 7,201 4,237 3,860 29,605 8,326 (81) 138 731 964 10,078 59.6 (1.2) 12.8 10.2 22.8

12,324 5,526 1,096 5,695 3,929 3,674 24,896 6,908 (195) 279 643 936 8,571 56.1 (3.5) 25.5 11.3 23.8

13.4 26.4 (2.0) 26.4 7.8 5.0 18.9 20.5 (50.7) 13.7 3.0 17.6

Cigarettes divisions growth driven by price hikes


During 1QFY2014 ITCs Cigarettes division posted a 7.1% yoy growth in net sales (gross sales growth at 13.5%) to `3,537cr, aided by price hikes. Cigarette volumes fell 2-3% yoy during the quarter. That said, the newly launched 64mm cigarettes continued to perform well. On the margin front, the Cigarette divisions EBIT margin rose by 588bp yoy to 63.4%.

Exhibit 6: Cigarettes division grows at 13.5% yoy


8,000 7,000 6,000 5,486 5,685 (` cr) 5,270 5,000 4,000 3,000 2,000 1,000 1Q12 2Q12 13 14 11 3Q12 11 4Q12 15 1Q13 17 2Q13 17 18 14 1Q14 5,810 6,061 54.9 58.2 57.0 54.1 57.5 61.4 61.1 6,808 58.3 6,694 63.4 70 60 6,880 50 (%) 40 30 20 10 3Q13 4Q13

Gross revenue (LHS) Source: Company, Angel Research

6,419

yoy growth (RHS)

July 29, 2013

ITC | 1QFY2014 Result Update

Non-cigarette FMCG witnessing strong revenue traction


ITCs non-cigarette FMCG business, comprising of branded packaged foods and personal care products, posted a healthy 18.4% yoy growth in its net revenue (gross sales growth at 18.3% yoy) to `1,745cr. Although growth in the Noncigarette FMCG business is reasonably strong at 18.4% yoy, it has come-off significantly from a 26.4% growth posted in FY2013. The branded Packaged Foods business launched a number of differentiated and innovative products during the quarter. In the Bakery and Confectionery Foods business, the Biscuits and Confectionery categories saw the launch of premium and innovative products with the introduction of Sunfeast Delishus gourmet cookies in two delectable variants viz, Nut Biscotti and Nut and Raisins, and Candyman Jellicious in the jelly segment. During the quarter, the Personal Care Products business expanded its product portfolio with the launch of 'Engage' a first-to-market range of deodorants for couples. During the quarter, the 'Vivel Cell Renew' Skin Care range was expanded with the launch of a new variant of Body Lotion and two variants of Face Wash. In the Personal Wash category, the Vivel range of soaps was modernised with the objective of fortifying the brand. A new range of soaps, comprising 4 variants, was launched during the quarter.

Exhibit 7: Non-cig FMCG revenue growth at 18.3% yoy


2,500 2,000 1,500 1,000 1750.09 1,201 1,345 1,375 1,623 1,479 1789 2043 500 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 1,700 19.4 27.2 24.5 23.4 23.2 26.4 18.3 30.1 25.9 35.0 30.0 25.0 (%)

Exhibit 8: Non-cig. FMCG posts PBIT loss of `19cr


20 10 (10) (20) (30) (40) (50) (60) (70) (80) (90) 12

(` cr)

(` cr)

20.0 15.0 10.0 5.0 -

(17) (30) (47) (56) (76) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 (39)

(24)

(19)

3Q13

4Q13

Gross revenue (LHS)

yoy growth (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

July 29, 2013

1Q14

ITC | 1QFY2014 Result Update

Investment rationale
Cigarettes to continue to grow in double digits: We believe ITCs cigarette business is well poised to continue to post a healthy profit growth over FY2013-15E. The company has strong pricing power and we expect the volumes to pick-up in the ensuing quarters. Non-cigarette businesses to register an ~17% CAGR over FY2013-15E: While cigarettes remain the main profit center for the company, investments in the non-cigarette businesses such as FMCG, hotels and paperboards have given the company a foothold in the respective businesses. We expect these businesses to play a major role in driving the companys long-term growth.

Outlook and valuation


We expect ITC to report a top-line and bottom-line CAGR of 16.2% and 19.2% respectively over FY2013-15E, driven by the companys diversified business model and ability to invest in growing businesses. At the current market price, the stock is trading at 27.6x FY2015E EPS. We maintain our Neutral rating on the stock.

Exhibit 9: Peer valuation


Company Reco Mcap (` cr) Asian Paints Neutral Britannia Colgate Dabur GCPL GSKCHL* HUL ITC Marico Nestle* Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral
48,718 8,541 19,581 29,761 29,392 21,030 143,439 291,181 13,994 52,523 9,669

CMP (`)
5,079 714 1,440 171 864 5,001 663 369 217 5,447 156

TP Upside (`)
-

P/E (x) FY14E


36.6 33.6 32.6 31.8 34.4 40.9 38.8 32.7 29.9 42.7 20.0 31.7 28.1 27.8 27.2 29.1 33.6 36.1 27.6 25.1 35.3 18.2

EV/Sales (x)
3.8 1.3 5.3 4.1 3.9 5.3 4.7 8.1 2.6 5.5 1.1 3.2 1.1 4.5 3.5 3.3 4.4 4.1 6.8 2.2 4.6 1.0

RoE (%) FY14E


35.2 35.7 108.6 41.5 24.8 34.1 113.4 36.1 21.4 57.7 9.5

CAGR # Sales
15.4 16.1 15.7 16.5 18.8 17.6 14.7 16.2 14.8 14.9 11.0

(%)
-

FY15E FY14E FY15E

FY15E
32.5 34.6 96.2 40.1 24.2 33.7 87.0 34.9 21.0 50.7 9.7

EPS
17.5 15.3 19.0 19.5 18.9 19.6 11.7 19.2 24.0 16.2 14.9

Tata Global Neutral

Source: Company, Angel research; Note: # Denotes CAGR over FY2013-15E, *December Year Ending.

Exhibit 10: Angel vs. consensus estimates


Top-line (` cr) Angel estimates Consensus Diff. (%)
Source: Company, Angel Research

FY2014E 34,294 34,316 (0.1)

FY2015E 39,991 39,932 0.1

EPS (`) Angel estimates Consensus Diff. (%)

FY2014E 11.3 11.2 1.0

FY2015E 13.3 13.3 0.3

July 29, 2013

ITC | 1QFY2014 Result Update

Exhibit 11: One year forward PE


50.0 45.0 40.0 35.0 30.0 (x) 25.0 20.0 15.0 10.0 5.0 Dec-12 Jul-08 Jul-09 Jul-10 Jul-11 Jun-12 Jan-09 Jan-10 Jan-11 Jan-12 Jun-13

Exhibit 12: One year forward premium over Sensex


140% 120% 100% 80% 60% 40% 20% 0% -20% -40% Dec-07 Aug-07 Apr-08 Aug-08 Mar-09 Mar-10 Mar-11 Mar-12 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Mar-13 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13

Source: Company, Angel Research ( Blue line indicates 5-year Average PE)

Source: Company, Angel Research, (Blue line indicates 5-year Avg. premium

Company Background
ITC is a diversified conglomerate, present across various categories cigarettes (41% of revenue); hotels (3% of revenue); paperboards and packaging(13% of revenue); agri-business (22% of revenue); and other FMCG (brandedapparel, personal care, stationery, safety matches and specialty papers; (21%of revenue). Although ITC is a market leader in the cigarettes category, it is rapidly gaining market share even in its evolving businesses of packaged foods and confectionery, branded apparel, personal care and stationery.

July 29, 2013

ITC | 1QFY2014 Result Update

Profit and loss statement (Standalone)


Y/E March (` cr) Total operating income % chg Total Expenditure Cost of Materials Advertising Exp Personnel Others EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of associates ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
previous year numbers

FY10 18,153 16.3 12,079 7,007 512 1,003 3,557 6,074 25.0 33.5 609 5,465 26.8 30.1 65 615 10.2 6,015 24.7 6,015 1,954 32.5 4,061 4,061 24.4 22.4 5.2 5.2 24.4

FY11 21,168 16.6 14,046 8,161 624 1,140 4,122 7,121 17.2 33.6 656 6,465 18.3 30.5 68 871 12.0 7,268 20.8 7,268 2,281 31.4 4,988 4,988 22.8 23.6 6.4 6.4 22.8

FY12 24,798 17.2 16,318 9,633 687 1,256 4,743 8,480 19.1 34.2 699 7,782 20.4 31.4 78 1,201 13.5 8,904 22.5 8,904 2,742 30.8 6,162 6,162 23.5 24.8 7.9 7.9 23.6

FY13 29,606 19.4 19,274 12,066 759 1,387 5,062 10,332 21.8 34.9 796 9,536 22.5 32.2 86 1,234 11.6 10,684 20.0 10,684 3,266 30.6 7,418 7,418 20.4 25.1 9.4 9.4 19.1

FY14E 34,294 15.8 21,688 12,720 995 1,783 6,190 12,606 22.0 36.8 826 11,780 23.5 34.3 66 1,349 10.3 13,062 22.3 13,062 4,154 31.8 8,909 8,909 20.1 26.0 11.3 11.3 20.1

FY15E 39,991 16.6 25,212 14,754 1,160 2,080 7,218 14,780 17.2 37.0 881 13,899 18.0 34.8 66 1,626 10.5 15,458 18.3 15,458 4,916 31.8 10,543 10,543 18.3 26.4 13.3 13.3 18.3

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

July 29, 2013

ITC | 1QFY2014 Result Update

Balance Sheet (Standalone)


Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Long term Provisions Other long term liabilities Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long term loans and adv. Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets
previous year numbers

FY10 382 13,683 14,064 108 785

FY11 774 15,179 15,953 89 802 94 21

FY12 782 18,010 18,792 79 873 107 16 19,866 13,926 4,820 9,107 2,269 6,317 1,194 10,080 2,819 637 6,624 9,100 980 19,866

FY13 790 21,498 22,288 66 1,204 126 3 23,687 16,668 5,615 11,052 1,645 7,060 1,728 12,532 3,615 1,154 7,764 10,331 2,201 23,687

FY14E 790 26,257 27,047 66 802 126 3 28,044 17,868 6,441 11,427 1,787 8,698 1,728 15,209 4,207 1,029 9,973 10,805 4,404 28,044

FY15E 790 32,649 33,440 66 802 126 3 34,437 19,068 7,322 11,745 1,907 12,333 1,728 17,933 5,103 1,200 11,630 11,210 6,723 34,437

14,957 11,968 3,825 8,142 1,009 5,727 8,143 1,126 1,595 5,422 8,064 79 14,957

16,958 12,601 4,245 8,356 1,323 5,555 1,146 9,054 2,243 657 6,154 8,476 579 16,958

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

July 29, 2013

ITC | 1QFY2014 Result Update

Cash flow statement (Standalone)


Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Interest / Dividend (Net) Direct taxes paid Others Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Interest / Dividend (Net) Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances
previous year numbers

FY10 6,015 609 291 (267) 1,954 206 4,901 (1,204) (2,889) (4,093) 721 (70) 1,630 (267) (712) 95 1,031 1,126

FY11 7,268 656 4 (326) 2,281 (188) 5,133 (947) 172 (775) 904 (19) 4,452 (326) (3,241) 1,117 1,126 2,243

FY12 8,905 699 (822) (516) 2,742 903 6,426 (2,272) (762) (3,034) 765 (9) 4,088 (516) (2,816) 576 2,243 2,819

FY13 10,684 796 (301) (588) 3,266 (321) 7,004 (2,117) (744) (2,860) 8 (13) 3,931 (588) (3,347) 796 2,819 3,615

FY14E 13,062 826 (1,892) (678) 4,154 (121) 7,044 (1,342) (1,638) (2,980) 4,150 (678) (3,472) 592 3,615 4,207

FY15E 15,458 881 (1,476) (955) 4,916 53 9,047 (1,320) (3,635) (4,955) 4,150 (955) (3,195) 897 4,207 5,103

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

July 29, 2013

10

ITC | 1QFY2014 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Returns (%) RoCE Angel RoIC (Pre-tax) RoE Turnover ratios (x) Asset Turnover Inventory / Sales (days) Receivables (days) Payables (days) Net Working capital (days)
previous year numbers

FY10 70.9 30.1 10.0 2.7 15.6 46.7 18.9 5.2 5.2 12.2 10.0 36.8 36.8 50.2 29.2 1.6 91 18 71 (21)

FY11 57.8 50.5 17.9 1.2 13.3 39.6 16.6 6.4 6.4 7.3 4.5 20.6 40.5 56.7 33.2 1.7 91 15 77 (29)

FY12 46.8 42.0 15.3 1.2 11.3 33.0 14.1 7.9 7.9 8.8 4.5 24.0 42.3 53.4 35.5 1.9 83 15 71 (27)

FY13 39.3 35.4 13.1 1.2 9.4 27.0 11.8 9.4 9.4 10.4 4.3 28.2 43.8 55.0 36.1 1.9 91 15 64 (17)

FY14E 32.7 29.9 10.8 1.2 8.1 21.9 9.9 11.3 11.3 12.3 4.5 34.2 45.5 58.7 36.1 1.9 91 15 57 2

FY15E 27.6 25.5 8.7 1.2 6.8 18.4 7.9 13.3 13.3 14.5 4.5 42.3 44.5 57.6 34.9 1.9 91 15 52 15

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

July 29, 2013

11

ITC | 1QFY2014 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

ITC No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

July 29, 2013

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