Unaudited Financial Results for the

Quarter ended 30th June, 2010

HISTORY OF ITC

iTC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As
the Company's ownership progressively Indianised, the name of the Company was changed from Imperial
Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then toI.T.C.
Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of
businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty
Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in
the Company's name were removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited'.

The Company’s beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of
the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the
plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs
310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of
a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which
came up on that plot of land two years later, would go on to become one of Kolkata's most venerated
landmarks.

Though the first six decades of the Company's existence were primarily devoted to the growth and
consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of
a corporate transformation that would usher in momentous changes in the life of the Company.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's
Cigarettes business. It is today India's most sophisticated packaging house.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was
rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was
rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn
high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect
employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100
owned and managed properties spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited,
which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the
Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards
Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the
Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an immense contribution
to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is
directly involved in education, environmental protection and community development. In 2004, ITC acquired
the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil
Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product
range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception,
its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya
Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major
supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division
(TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards
Division to form the Paperboards & Specialty Papers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of
agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely
acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to
10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated
in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states
of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of
Expressions range of greeting cards. A line of premium range of notebooks under brand  “Paperkraft”was
launched in 2002. To augment its offering and to reach a wider student population, the popular range of
notebooks was launched under brand “Classmate” in 2003. “Classmate” over the years has grown to
become India’s largest notebook brand and has also increased its portfolio to occupy a greater share of
the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens
and Pencils under the “Classmate” brand. In 2008, ITC repositioned the business as the Education and
Stationery Products Business and launched India's first environment friendly premium business
paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive
stationery and office consumables segment. Paperkraft entered new categories in the office consumable
segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed
wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to
include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a
foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle
became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week -
that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion
Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward
to consumers.

In 2000, ITC spun off its information technology business into a wholly owned subsidiary,  ITC Infotech
India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one
of India’s fastest growing global IT and IT-enabled services companies and has established itself as a key
player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers
across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R
(Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media &
Entertainment.

ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal
competencies to create a new driver of business growth. It began in August 2001 with the introduction
of'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and
staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaadatta
(wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment.
ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the Foods
business has grown to a significant size with over 200 differentiated products under six distinctive brands,
with an enviable distribution reach, a rapidly growing market share and a solid market standing.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found
yet another expression in the Safety Matches initiative. ITC now markets popular safety matchesbrands
like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its
partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeepacross
a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for
men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a
comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio
Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company
launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October
and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos
in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivelrange of soaps
in February and Vivel range of shampoos in June 2008.

The ITC Profile

ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 22 billion
and a turnover of US $ 6 billion.* ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and
the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by
BusinessWorld and among India's Most Valuable Companies by Business Today. ITC ranks among India's
`10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the
Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-
Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care,
Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its
traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining
market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal
Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly
nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the
market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides
the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each
of its businesses towards international competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth
anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time,
the strategic forays into new businesses are expected to garner a significant share of these emerging high-
growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's
biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative
is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers
through the power of the Internet. This transformational strategy, which has already become the subject
matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural
distribution infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and
solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer
challenges through innovative IT solutions.

ITC's production facilities and hotels have won numerous national and international awards for quality,
productivity, safety and environment management systems. ITC was the first company in India to
voluntarily seek a corporate governance rating.

ITC employs over 26,000 people at more than 60 locations across India. The Company continuously
endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward
more than 3,85,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations.
This over-arching vision of the company is expressively captured in its corporate positioning statement:
"Enduring Value. For the Nation. For the Shareholder."

(* as on 31st March 2010)

Three final remarks

1. The "official" verification of ITC in laboratories has not yet been realized. The
experiences gained so far by private persons justify scientific research.

2. In the cases observed the technique is clearly secondary as compared with the
psychic conditions. These are not events which can be compared with terrestrian
 telecommunication in which the function of any device is independent upon the special
user. The purely technical TC-systems are yet to be developed.

3. It remains questionable whether the current communication-model "sender

transmits information to receiver via a channel" can be applied in ITC. For deeper
understanding more generalized conceptions are probably necessary in the sense of
synchronistic harmonic (hyper-) resonance of complex informational structures in
information-space (or: hypernet) not subject to the time-depending cause-effect
principle or causality.

Key Financial Ratios of ITC ------------------- in Rs. Cr. -------------------

Mar
Mar '07 Mar '08 Mar '09 Mar '
'06

Investment Valuation Ratios

Face Value 1.00 1.00 1.00 1.00 1.
Dividend Per Share 2.65 3.10 3.50 3.70 10.
Operating Profit Per Share (Rs) 8.97 10.64 11.76 13.04 16.
Net Operating Profit Per Share (Rs) 26.09 32.73 37.23 39.70 48.
Free Reserves Per Share (Rs) 22.00 25.62 29.88 34.27 34.
Bonus in Equity Capital 87.29 87.12 86.98 86.84 85.
Profitability Ratios
Operating Profit Margin(%) 34.36 32.51 31.57 32.84 33.
Profit Before Interest And Tax Margin(%) 30.13 28.86 27.50 28.37 28.
Gross Profit Margin(%) 35.98 34.05 28.44 29.17 29.
Cash Profit Margin(%) 25.49 24.28 23.45 24.22 23.
Adjusted Cash Margin(%) 25.73 23.98 23.45 24.22 23.
Net Profit Margin(%) 22.19 21.40 21.50 21.18 21.
Adjusted Net Profit Margin(%) 22.43 21.10 21.50 21.18 21.
Return On Capital Employed(%) 36.26 37.24 36.60 34.60 42.
Return On Net Worth(%) 24.83 26.01 25.99 23.85 28.
Adjusted Return on Net Worth(%) 25.09 25.64 24.71 23.26 28.
Return on Assets Excluding Revaluations 16.80 27.59 31.85 36.24 36.
Return on Assets Including Revaluations 16.87 27.74 32.00 36.39 36.
Return on Long Term Funds(%) 36.36 37.51 36.88 34.75 42.
Liquidity And Solvency Ratios
Current Ratio 1.25 1.33 1.36 1.42 0.
Quick Ratio 0.57 0.58 0.56 0.61 0.
Debt Equity Ratio 0.01 0.02 0.02 0.01 0.
Long Term Debt Equity Ratio 0.01 0.01 0.01 0.01 0.
Debt Coverage Ratios
209.6
Interest Cover 456.67 258.92 168.97 82.
3
Total Debt to Owners Fund 0.01 0.02 0.02 0.01 0.
172.5
Financial Charges Coverage Ratio 268.33 199.51 112.17 73.
2
122.6
Financial Charges Coverage Ratio Post Tax 191.95 145.60 81.02 52.
9
Management Efficiency Ratios
Inventory Turnover Ratio 3.82 3.76 5.51 5.26 6.
Debtors Turnover Ratio 18.22 20.79 20.43 21.32 24.
Investments Turnover Ratio 6.43 6.05 5.51 5.26 6.
Fixed Assets Turnover Ratio 2.31 2.42 1.59 1.44 1.
Total Assets Turnover Ratio 1.08 1.17 1.16 1.09 1.
Asset Turnover Ratio 1.59 1.75 1.59 1.44 1.
223.3
Average Raw Material Holding 213.12 220.61 185.08 187.
1
Average Finished Goods Held 48.89 52.68 43.88 64.35 36.
Number of Days In Working Capital 40.51 49.56 52.39 62.19 -13.
Profit & Loss Account Ratios
Material Cost Composition 43.53 47.16 44.95 45.80 38.
Imported Composition of Raw Materials
16.35 16.92 12.78 12.98 12.
Consumed
Selling Distribution Cost Composition 6.39 6.52 7.44 7.12 6.
Expenses as Composition of Total Sales 18.30 18.54 15.45 14.85 12.
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 50.76 50.53 49.45 50.06 109.
Dividend Payout Ratio Cash Profit 44.19 44.54 43.36 42.84 95.
Earning Retention Ratio 49.78 48.75 47.98 48.67 -12.
Cash Earning Retention Ratio 56.22 54.90 54.68 56.23 2.
AdjustedCash Flow Times 0.05 0.07 0.06 0.05 0.

Mar
Mar '07 Mar '08 Mar '09 Mar '
'06

Earnings Per Share 5.95 7.18 8.28 8.65 10.

Book Value 23.97 27.59 31.85 36.24 36.

(Rs. in Crores)
 Quarter Quarter Twelve
ended ended months
 
30.06.201 30.06.200 ended
0 9 31.03.2010

GROSS  INCOME 7172.15 6268.70 26862.98

NET SALES (1) 4816.63 4147.58 18153.19

OTHER OPERATING INCOME (2) 30.71 50.24 229.05

NET INCOME (1+2) (3) 4847.34 4197.82 18382.24

EXPENDITURE        

a) (Increase) / decrease in stock-in-trade and

  (99.78) 58.33 175.24
work in progress

b)Consumption of raw materials   1568.53 1245.21 5797.96

c)Purchase of traded goods   322.38 217.77 998.20

d)Employees cost   341.92 282.16 1002.77

e)Depreciation   159.68 151.59 608.71

f)Other expenditure   1077.20 1007.02 4105.02

g) Total (4) 3369.93 2962.08 12687.90

PROFIT FROM OPERATIONS BEFORE OTHER

(5) 1477.41 1235.74 5694.34
INCOME AND INTEREST (3-4)

OTHER INCOME (6) 98.48 87.57 374.33

PROFIT BEFORE INTEREST (5+6) (7) 1575.89 1323.31 6068.67

INTEREST (Net) (8) 5.80 5.84 53.36

PROFIT AFTER INTEREST AND BEFORE TAX  (7-8) (9) 1570.09 1317.47 6015.31

(10
TAX EXPENSE 499.78 438.77 1954.31
)

(11
NET PROFIT AFTER TAX  (9-10) 1070.31 878.70 4061.00
)

(12
PAID UP EQUITY SHARE CAPITAL 381.82 377.44 381.82
)

(Ordinary shares of Re. 1/- each)        

(13
RESERVES EXCLUDING REVALUATION RESERVES     13628.17
)

(14
EARNINGS PER SHARE (Rs.)      
)

-Basic (Rs.)   2.80 2.33 10.73

-Diluted (Rs.) 2.77 2.32 10.62

(15
PUBLIC SHAREHOLDING      
)

380423142 375610428
-NUMBER OF SHARES   3803475806
6 8
 -PERCENTAGE OF SHAREHOLDING   99.63 99.52 99.61

PROMOTERS AND PROMOTER GROUP (16

Nil Nil Nil
SHAREHOLDING )

a)Pledged / Encumbered   N.A. N.A. N.A.

b)Non - encumbered   N.A. N.A. N.A.

Notes :

i. The above results were reviewed by the Audit Committee and approved at the meeting of the Board
of Directors of the Company held on 22nd July, 2010.

ii. Figures for the previous quarter are re-arranged, wherever necessary, to conform to the figures for
the current quarter. The Company does not have any Exceptional or Extraordinary item to report for
the above periods.

iii. Gross Income comprises Gross sales / Income from operations, Other Operating Income and Other
Income.

iv. Gross Income includes Rs. 2226.33 Crores for the quarter ended 30th June, 2010 being Excise
Duties, and Taxes on Sales of Services. (Corresponding previous quarter ended 30th June 2009 -
Rs. 1983.31 Crores).

v. The launch and rollout costs of the Company's brands 'Fiama Di Wills', 'Vivel Di Wills', 'Vivel' and
'Superia' covering the range of personal care products of soaps, shampoos, conditioners and shower
gels, and the continuing significant brand building costs of the Foods business are reflected under
'Other Expenditure' stated above and in Segment Results under 'FMCG-Others'.

vi. The Board of Directors of the Company at its meeting held on 18th June, 2010 recommended for
the approval of the Members at the 99th Annual General Meeting convened on 23rd July, 2010,
issue of Bonus Shares in the proportion of 1 (One) Bonus Share of Re. 1/- each for every existing 1
(One) fully paid-up Ordinary Share of Re 1/- each.

vii. During the quarter, no investor complaint was received. There were no complaints pending at the
beginning of the quarter.

viii. The above is as per Clause 41 of the Listing Agreement.

Limited Review :

The Limited Review, as required under Clause 41 of the Listing Agreement has been completed and the
related Report forwarded to the Stock Exchanges. This Report does not have any impact on the above
'Results and Notes' for the Quarter ended 30th June, 2010 which needs to be explained.
 Segment-wise Revenue, Results and Capital Employed 
for the Quarter ended 30th June, 2010

(Rs. in Crores)

Quarter  Quarter  Twelve months

  ended ended ended
30.06.2010 30.06.2009 31.03.2010

1. Segment Revenue

a) FMCG- Cigarettes - Gross 4669.74 4160.56 17283.03

- Net 2483.62 2210.21 9321.15

- Others - Gross 1005.63 759.39 3641.68

- Net 1001.38 757.54 3633.90

Total FMCG             - Gross 5675.37 4919.95 20924.71

- Net 3485.00 2967.75 12955.05

b) Hotels - Gross 225.13 185.74 910.81

- Net 209.92 172.81 850.71

c) Agri Business - Gross 1349.80 940.61 3862.14

- Net 1349.80 940.61 3862.14

d) Paperboards, Paper & Packaging -

829.12 730.59 3233.61
Gross

- Net 793.71 702.62 3107.79

Total - Gross 8079.42 6776.89 28931.27

- Net 5838.43 4783.79 20775.69

Less :  Inter-segment revenue - Gross 1036.46 646.00 2671.67

- Net 1021.80 636.21 2622.50

Gross sales / Income from operations 7042.96 6130.89 26259.60

Net sales / Income from operations 4816.63 4147.58 18153.19

2.Segment Results      

a)FMCG- Cigarettes 1304.98 1125.39 4938.12

 - Others (89.25) (99.77) (349.51)

Total FMCG 1215.73 1025.62 4588.61

b) Hotels 38.52 30.59 216.64

c) Agri Business 123.10 99.89 436.36

d) Paperboards, Paper & Packaging 188.46 127.81 684.26

Total 1565.81 1283.91 5925.87

Less :i) Interest (Net) 5.80 5.84 53.36

ii) Other un-allocable income  net of un-
(10.08) (39.40) (142.80)
allocable expenditure

Profit Before Tax 1570.09 1317.47 6015.31

Tax Expense 499.78 438.77 1954.31

Profit After Tax 1070.31 878.70 4061.00

3.Capital Employed      

a) FMCG- Cigarettes * 3031.55 2632.15 2997.50

 - Others 1888.05 1928.92 1719.05

Total FMCG 4919.60 4561.07 4716.55

b) Hotels 2511.14 2272.31 2457.35

c) Agri Business 1440.55 1389.03 1579.56

d)Paperboards, Paper & Packaging 3635.82 3707.29 3711.27

Total Segment Capital Employed 12507.11 11929.70 12464.73

 
* Segment Liabilities of FMCG-Cigarettes is before considering Rs. 656.81 Crores (2009 - Rs.
553.80 Crores) in respect of disputed Taxes, the recovery of which has been stayed or where
States' Special Leave Petitions are pending before the Supreme Court. These have been
included under 'Unallocated Corporate Liabilities'.

 
Notes
(1 The Company's corporate strategy aims at creating multiple drivers of growth anchored on
) its core competencies. The Company is currently focused on four business groups : FMCG,
Hotels, Paperboards, Paper & Packaging and Agri Business. The Company's organisational
structure and governance processes are designed to support effective management of
multiple businesses while retaining focus on each one of them.
(2 The business groups comprise the following :
)
FMCG : Cigarettes - Cigarettes & Smoking Mixtures.
: Others - Branded Packaged Foods (Staples, Biscuits, Confectionery, Snack
Foods and Ready to Eat Foods), Garments, Educational and other
Stationery products, Matches, Agarbattis and Personal Care
products.
Hotels - Hoteliering.
Paperboards, Paper - Paperboards, Paper including Specialty Paper & Packaging
& Packaging including Flexibles.
Agri Business - Agri commodities such as rice, soya, coffee and leaf tobacco.
   
(3 Segment results of 'FMCG : Others' are after considering significant business development,
) brand building and gestation costs of Branded Packaged Foods and Personal Care Products
businesses.
(4 The Company's Agri Business markets agri commodities in the export and domestic
) markets; supplies agri raw materials to the Branded Packaged Foods Business and sources
leaf tobacco for the Cigarettes Business. The segment results for the quarter are after
absorbing costs relating to the strategic e-Choupal initiative.
(5 Figures for the corresponding previous quarter are re-arranged, wherever necessary, to
) conform to the figures of the current quarter. 
 
Registered Office :  For and on behalf of the Board
Virginia House, 37 J.L. Nehru Road, 
Kolkata 700 071, India  Executive Director Chairman
Dated : 22nd July, 2010 
Place : Kolkata, India

Click here for Commentary on Performance

Audited Financial Results for the

Quarter and Twelve Months ended 31st March, 2010

(Rs. in Crores)

Quarter Quarter Twelve Twelve

ended ended months months
 
31.03.201 31.03.200 ended ended
0 9 31.03.2010 31.03.2009

GROSS  INCOME 7295.74 5958.55 26862.98 23678.46

NET SALES (1) 5053.79 3950.32 18153.19 15611.92

OTHER OPERATING INCOME (2) 77.82 35.60 229.05 194.62

NET INCOME (1+2) (3) 5131.61 3985.92 18382.24 15806.54

EXPENDITURE          

a) (Increase) / decrease in stock-in-

  202.83 74.36 175.24 (136.35)
trade and work in progress

b) Consumption of raw materials   1562.36 1163.87 5797.96 4896.22

c) Purchase of traded goods   413.29 236.00 998.20 1198.00

d)Employees cost   255.84 222.15 1002.77 890.88

e) Depreciation   153.86 145.11 608.71 549.41

f) Other expenditure   1079.33 991.23 4105.02 3904.63

g)Total (4) 3667.51 2832.72 12687.90 11302.79

PROFIT FROM OPERATIONS BEFORE (5) 1464.10 1153.20 5694.34 4503.75

OTHER INCOME AND INTEREST (3-
4)

OTHER INCOME (6) 59.20 52.25 374.33 340.31

PROFIT BEFORE INTEREST (5+6) (7) 1523.30 1205.45 6068.67 4844.06

INTEREST (Net) (8) 18.51 13.68 53.36 18.32

PROFIT AFTER INTEREST AND

(9) 1504.79 1191.77 6015.31 4825.74
BEFORE TAX  (7-8)

(10
TAX EXPENSE 476.57 382.78 1954.31 1562.15
)

(11
NET PROFIT AFTER TAX  (9-10) 1028.22 808.99 4061.00 3263.59
)

(12
PAID UP EQUITY SHARE CAPITAL 381.82 377.44 381.82 377.44
)

(Ordinary shares of Re. 1/- each)          

RESERVES EXCLUDING (13

    13628.17 13302.55
REVALUATION RESERVES )

(14
EARNINGS PER SHARE (Rs.)        
)

- Basic (Rs.)   2.71 2.15 10.73 8.66

- Diluted (Rs.)   2.68 2.14 10.62 8.64

(15
PUBLIC SHAREHOLDING        
)

380347580 375308812
- NUMBER OF SHARES   3803475806 3753088129
6 9

- PERCENTAGE OF SHAREHOLDING   99.61 99.44 99.61 99.44

PROMOTERS AND PROMOTER GROUP (16

Nil Nil Nil Nil
SHAREHOLDING )

a) Pledged / Encumbered   N.A. N.A. N.A. N.A.

b) Non - encumbered   N.A. N.A. N.A. N.A.

Notes :

i. The above results were reviewed by the Audit Committee and approved at the meeting of the Board
of Directors of the Company held on 21st May, 2010.

ii. Figures for the previous periods are re-arranged, wherever necessary, to conform to the figures for
the current period. The Company does not have any Exceptional or Extraordinary item to report for
the above periods.

iii. Gross Income comprises Segment Revenue, Other Operating Income and Other Income.
 iv. Gross Income includes Rs. 2105 Crores and Rs. 8106 Crores for the quarter and year ended 31st
March, 2010 being Excise Duties and Taxes on Sales of Services. (Corresponding previous quarter
and year ended 31st March, 2009 - Rs. 1920 Crores and Rs. 7532 Crores respectively).

v. The launch and rollout costs of the Company's brands 'Fiama Di Wills', 'Vivel Di Wills', 'Vivel' and
'Superia' covering the range of personal care products of soaps, shampoos, conditioners and shower
gels, and the continuing significant brand building costs of the Foods business are reflected under
'Other Expenditure' stated above and in Segment Results under 'FMCG-Others'.

vi. During the quarter, 2,28,51,630  Ordinary Shares of Re. 1/- each were issued and allotted under
the Company's Employee Stock Option Schemes. Consequently, the issued and paid-up Share
Capital of the Company as on 31st March, 2010 stands increased to Rs. 381,81,76,790/-.

vii. During the quarter, no investor complaint was received. There were no complaints pending at the
beginning of the quarter.

viii. The above is as per Clause 41 of the Listing Agreement.

Segment-wise Revenue, Results and Capital Employed for the

Quarter and Twelve Months ended 31st March, 2010

(Rs. in Crores)

Twelve Twelve
Quarter Quarter
months months
  ended ended 
ended  ended
 31.03.2010 31.03.2009
31.03.2010 31.03.2009

1. Segment Revenue

a) FMCG- Cigarettes - Gross 4516.80 3949.26 17283.03 15115.07

- Net 2452.95 2070.06 9321.15 7780.65

- Others - Gross 1125.27 838.83 3641.68 3014.04

- Net 1122.70 836.79 3633.90 3005.64

Total FMCG - Gross 5642.07 4788.09 20924.71 18129.11

- Net 3575.65 2906.85 12955.05 10786.29

b) Hotels - Gross 274.28 241.34 910.81 1020.27

- Net 256.21 221.03 850.71 935.45

c) Agri Business 
988.09 525.89 3862.14 3845.98
- Gross

- Net 988.09 525.89 3862.14 3845.98

d) Paperboards, Paper &

836.01 747.03 3233.61 2821.96
Packaging - Gross
- Net 802.99 713.63 3107.79 2647.10

Total - Gross 7740.45 6302.35 28931.27 25817.32

 - Net 5622.94 4367.40 20775.69 18214.82

Less :  Inter-segment revenue

581.73 431.65 2671.67 2673.79
- Gross

- Net 569.15 417.08 2622.50 2602.90

Gross sales / Income from

7158.72 5870.70 26259.60 23143.53
operations

Net sales / Income from

5053.79 3950.32 18153.19 15611.92
operations

2. Segment Results        

a) FMCG - Cigarettes 1251.22 1081.35 4938.12 4183.77

 - Others (78.69) (117.28) (349.51) (483.45)

Total FMCG 1172.53 964.07 4588.61 3700.32

b) Hotels 78.20 71.10 216.64 316.18

c) Agri Business 58.31 53.06 436.36 256.18

d) Paperboards, Paper &

168.82 151.91 684.26 508.63
Packaging

Total 1477.86 1240.14 5925.87 4781.31

Less :i) Interest (Net) 18.51 13.68 53.36 18.32

ii) Other un-allocable income 

net of un-allocable (45.44) 34.69 (142.80) (62.75)
expenditure

Profit Before Tax 1504.79 1191.77 6015.31 4825.74

Tax Expense 476.57 382.78 1954.31 1562.15

Profit After Tax 1028.22 808.99 4061.00 3263.59

3.Capital Employed        

a) FMCG - Cigarettes *     2997.50 2935.63

 - Others 1719.05 2101.11

Total FMCG 4716.55 5036.74

b) Hotels 2457.35 2188.89

c) Agri Business 1579.56 1038.68

d) Paperboards, Paper &

3711.27 3771.15
Packaging

Total Segment Capital Employed     12464.73 12035.46

* Segment Liabilities of FMCG-Cigarettes is before considering Rs. 628.64 Crores (2009 - Rs. 542.86 Crores)
in respect of disputed Entry Taxes, the recovery of which has been stayed or where States' Special Leave
Petitions are pending before the Supreme Court. These have been included under 'Unallocated Corporate
Liabilities'.

Notes
(1 The Company's corporate strategy aims at creating multiple drivers of growth anchored on
) its core competencies. The Company is currently focused on four business groups : FMCG,
Hotels, Paperboards, Paper & Packaging and Agri Business. The Company's organisational
structure and governance processes are designed to support effective management of
multiple businesses while retaining focus on each one of them.
(2 The business groups comprise the following :
)
FMCG : Cigarettes - Cigarettes & Smoking Mixtures.
: Others - Branded Packaged Foods (Staples, Biscuits, Confectionery, Snack
Foods and Ready to Eat Foods), Garments, Educational and other
Stationery products, Matches, Agarbattis and Personal Care
products.
Hotels - Hoteliering.
Paperboards, Paper - Paperboards, Paper including Specialty Paper & Packaging
& Packaging including Flexibles.
Agri Business - Agri commodities such as rice, soya, coffee and leaf tobacco.
(3 Segment results of 'FMCG : Others' are after considering significant business development,
) brand building and gestation costs of Branded Packaged Foods and Personal Care Products
businesses.
(4 The Company's Agri Business markets agri commodities in the export and domestic
) markets; supplies agri raw materials to the Branded Packaged Foods Business and sources
leaf tobacco for the Cigarettes Business. The segment results for the quarter and nine
months are after absorbing costs relating to the strategic e-Choupal initiative.
(5 Figures for the corresponding previous periods are re-arranged, wherever necessary, to
) conform to the figures of the current period.

Registered Office :  For and on behalf of the Board

Virginia House, 37 J.L. Nehru Road, 
Kolkata 700 071, India  Executive Director Chairman
Dated : 21st May, 2010 
Place : Kolkata, India 
Disclosure as required under other clauses of the Listing Agreement

(Rs. in Crores)
 Twelve Months Twelve Months
 
Ended 31.03.2010 Ended 31.03.2009

NET PROFIT 4061.00 3263.59

PROFIT BROUGHT FORWARD 858.14 724.45

AVAILABLE FOR APPROPRIATION 4919.14 3988.04

APPROPRIATION OF PROFIT AND RESERVE    

a) Transfer to General Reserve 406.10 1500.00

b) Earlier Year's provision no longer required * (0.60) (3.97)

c) Profit carried forward 61.31 858.14

DIVIDEND INCLUDING DIVIDEND TAX    

 - Ordinary Dividend 2003.55 1633.87

 - Special Centenary Dividend 2448.78 -

* Pertains to Dividend Distribution Tax

Notes :
(i) The above was approved at the meeting of the Board of Directors of the Company held on
21st May, 2010.
(ii) The Board of Directors of the Company has recommended a special Centenary dividend of
Rs. 5.50 per Ordinary Share of Re.1/- each and a dividend of Rs. 4.50 per Ordinary Share
for the financial year ended 31st March, 2010. The dividend, if declared, will be paid on or
after 26th July, 2010 to those members entitled thereto.
(iii The Register of Members of the Company shall remain closed for the purpose of dividend
) from Friday, 11th June 2010 to Friday, 18th June, 2010, both days inclusive.
(iv) The 99th Annual General Meeting of the Company has been convened for Friday, 23rd
July, 2010. 
  For and on behalf of the Board

Executive Director Chairman

Audited Financial Results (Consolidated)

for the Twelve Months ended 31st March, 2010
Consolidated Financial Results for
 
Twelve Months ended

  31.03.2010 31.03.2009

GROSS INCOME   28242.33 24875.59

NET SALES [1] 19135.87 16556.14

OTHER OPERATING INCOME [2] 254.90 215.82

NET INCOME (1+2) [3] 19390.77 16771.96

EXPENDITURE      
a) (Increase) / decrease in stock-in-trade and work in
  194.77 (160.90)
progress

b) Consumption of raw materials   5951.20 5025.96

c) Purchase of Traded Goods   825.98 1040.62

d) Employees Cost   1464.02 1322.77

e) Depreciation   643.90 580.86

f) Other expenditure   4375.80 4255.26

g) Total [4] 13455.67 12064.57

PROFIT FROM OPERATIONS BEFORE OTHER INCOME

[5] 5935.10 4707.39
AND INTEREST (3-4)

OTHER INCOME [6] 363.99 296.06

PROFIT BEFORE INTEREST (5+6) [7] 6299.09 5003.45

INTEREST (Net) [8] 53.38 18.69

PROFIT AFTER INTEREST AND BEFORE TAX (7-8) [9] 6245.71 4984.76

Less:      

[10
TAX EXPENSE 2034.93 1625.38
]

PROFIT AFTER TAX BEFORE SHARE OF PROFIT/(LOSS) [11

4210.78 3359.38
OF ASSOCIATES AND MINORITY INTERESTS (9-10) ]

[12
SHARE OF PROFIT/(LOSS) OF ASSOCIATES 6.24 6.14
]

PROFIT AFTER TAX BEFORE MINORITY INTERESTS [13

4217.02 3365.52
(11+12) ]

[14
MINORITY INTERESTS 48.84 40.93
]

[15
NET PROFIT (13-14) 4168.18 3324.59
]

[16
PAID UP EQUITY SHARE CAPITAL 381.82 377.44
]

(Ordinary shares of Re. 1.00 each)      

[17
RESERVES EXCLUDING REVALUATION RESERVES 14017.27 13590.72
]

[18
EARNINGS PER SHARE  (Rs.)    
]

- Basic   11.01 8.82

- Diluted   10.90 8.81

[19
PUBLIC SHAREHOLDING    
]

- NUMBER OF SHARES   3803475806 3753088129

- PERCENTAGE OF SHAREHOLDING   99.61 99.44

 [20
PROMOTERS AND PROMOTER GROUP SHAREHOLDING Nil Nil
]

a) Pledged / Encumbered   N.A N.A

b) Non - encumbered   N.A. N.A.

For and on behalf of the Board
 
 
Executive Director Chairman
 

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