ITC Annual General Meeting July 2024 Summary:
ITC's Triple Bottom Line Performance:
- Revenue Growth: ITC's overall revenues grew at a Compound Annual Growth Rate (CAGR) of 10.8%, reaching approximately Rs. 79,000 crores.
- Non-Cigarette Revenues: These grew at a CAGR of 11.6%, now constituting 65% of Net Revenue, with Segment EBIT showing impressive growth of 17.9%.
- Cigarettes and Hotels Recovery: Both segments recovered well post-pandemic, with cigarette business revenue and results growing at a CAGR of nearly 13.5%, and the hotels business reaching Rs. 3,000 crores in revenue with EBITDA surpassing Rs. 1,000 crores in FY24.
- Foreign Exchange Earnings: ITC’s brands have expanded to over 100 global markets, doubling foreign exchange earnings to Rs. 9,500 crores since FY20.
Strategic Outcomes Across Businesses:
- Future-Ready FMCG Portfolio: ITC launched nearly 100 superior and differentiated offerings annually, focusing on evolving segments like health, nutrition, hygiene, and convenience.
- Digital Transformation: Investments in digital technologies have transformed operations, enhancing market coverage and efficiency. ITC's Trade Marketing & Distribution infrastructure evolved into a smart omni-channel network, covering nearly 7 lakh outlets.
- Expansion in Hotels Business: Adhering to an 'asset right' strategy, ITC added 32 new hotels in the last 24 months, enhancing segment ROCE by nearly 1,100 bps.
- Paperboards & Packaging Innovations: The business sustained leadership with focused innovations and sustainable packaging solutions, launching the ‘Filo’ brand and commissioning a Moulded Fibre plant for sustainable packaging.
- ITCMAARS in Agri Business: This ‘phygital’ initiative currently covers over 1.5 million farmers, promoting value-added agriculture and enhancing productivity.
Resilient Performance Amidst Global Challenges:
Despite global challenges and subdued domestic consumption, ITC delivered a resilient performance:
- Revenue and PAT Growth: Gross Revenue increased by 6.8% (excluding Agri Business), and PAT grew by 8.9%.
- FMCG-Others Segment: This segment registered a growth of 14.5%, with Segment PBIT growing by 38.8%.
Commitment to Sustainability:
ITC’s commitment to sustainability is reflected in its achievements and initiatives:
- Global Sustainability Distinctions: ITC has maintained positive metrics in water, carbon, and solid waste recycling for over 17 years, achieving several global sustainability distinctions.
- Renewable Energy: ITC has met its 2030 renewable energy sourcing target, with 50% of its total energy consumption now from renewable sources.
- LEED® Certifications: ITC Hotels and other properties achieved LEED® Zero Carbon and Water certifications, underscoring their commitment to sustainable practices.
India's Economic Transformation:
Shri Puri highlighted India's potential to significantly contribute to global GDP growth, driven by government policies and public investments in infrastructure and digital advancements. The consumer market is projected to exceed US$ 5.2 trillion by 2031, spurred by the rise of Aspirational India.
Role of Indian Enterprises: Progressive enterprises are expected to enhance competitiveness while embedding societal value creation at their core. Investments in state-of-the-art assets, R&D, and social infrastructure are crucial for national competitiveness.
Focus Areas for Socio-Economic Progress: ITC focuses on accelerating livelihood generation, building climate resilience, and enhancing productivity in agriculture through strategic initiatives and innovations.
FAQs:
What is ITC's Triple Bottom Line performance? ITC’s Triple Bottom Line performance refers to its balanced focus on economic, social, and environmental sustainability, resulting in resilient revenue growth, strategic expansions, and significant contributions to national priorities.
How has ITC recovered post-pandemic? Post-pandemic, ITC’s Cigarettes and Hotels Businesses have shown significant recovery, with both segments achieving robust revenue growth and surpassing pre-pandemic performance levels.
What are ITC’s sustainability achievements? ITC has achieved numerous sustainability milestones, including maintaining positive water, carbon, and solid waste recycling metrics for over 17 years, and sourcing 50% of its energy from renewable sources.
What is the ITCMAARS initiative? ITCMAARS is a ‘phygital’ initiative that leverages digital technology to enhance agricultural productivity and resilience, currently covering over 1.5 million farmers across India.
How does ITC contribute to India's economic transformation? ITC contributes to India's economic transformation by creating globally competitive brands, investing in state-of-the-art infrastructure, and driving significant employment and sustainable practices across its value chains.
What are ITC’s strategic priorities for future growth? ITC’s strategic priorities include expanding its FMCG portfolio, leveraging digital investments, enhancing climate resilience, and accelerating value-added agriculture to drive sustained growth and competitiveness.
Conclusion: Shri Puri reiterated ITC's unwavering commitment to building a future-ready enterprise aligned with national priorities. The ITC Next strategy aims to leverage digital and sustainability trends to drive growth and profitability. ITC seeks continued support from shareholders as it partners with the nation on its journey to becoming a developed economy.