ITC Limited Vireinia House 37 J:. L. Nehru Road Kolkata 700 071, krdia Tel,:91-33-2288 9371 EuiluringValue Foc 91-33-2288 0655 October 31,2014 Media Statement Hishliqhts Underlying Net Revenue uP 14'8% gro;ilin PiofitBefore Tax at1l'8% Non.cigaretteFMGGSegmentregistersarevenuegrowthofll.g%amidst e nviron ment' a pe rsistenuy sl u iii J ion="e-r demand Revenue driven by trading opportunities Robust growth in Agri Business in wheat, soya and Goffee' Revenue up 8'9% aided by Paperboards, Paper & Packaging Segment improvement and scale up of frix capacity higher C.lion= and Fllxibles packaging businesses' Xrii,Jri*"0ffi* Hospitalityindustrycontinues-tobeimpactedbyweakeconomic segment Results for the quarter conditions and pricing environmJnt. in useful life of depreciati"n include additional "targ;;;;-to,':I"ion Act, 2013' fixed asseb in.""ot Lnce with Companies lTCpostedanotherquartelo|impressivesrgwthinrevenueandprofits by a steep hike in ' notwithstanding a challenging busine.rLnui.n._"I^:f"erbated in the Union third yg^ar ln s_y_c33311n as announced Excise Duties on c;g;"td*.i6rtre driven 14'8% of dgso.ez crores recorded a srowth Budset zo14.N"t After Foods, Personat Care and Cigarettes' Packaged ilr*O"O Business, Agri by (towa1{s Rates & Taxes and interest in oz adjusting for liabitity written back crores)' underlying growLh 19?-u' thereon pertaining {o earlier ye{s,"gilg"ting pror,iiuii"ng th'" q.uarter stood aifi'a% and 15'6% in profit Before r"* ""J-r.r6t the qriarter stood at Rs' 3'04' respectivefy. earn'ilgJpir Snrre for d&;;;;;Fi;. iii+ ht FMGG- Others Amidstasluggishconsumerdemandenvlronment,theBrandedPackagedFoods in market standing dUring the qUartef Businesses recorded further i*proi.mentmost categories' tn ifre Staples' Spices growing well aheal of tn" industry ltrr"i robust growth driven and Read,-to-eaiioods gusindsl n".f,lrurd'attJ recorded *.".HoTELs.?APERBoARDS&PACI(AGING.AGRI-BUSINE,SSoINFoRMATIoNTECIINoLoGY visitusatwu/[email protected]:L16005wBl9l0PLc00i985oe-mail:[email protected] 2 Foods bypremiumvariantsandthe,selectofferingyrr]chcontinuestogainimpressive Bakery anJ Conteclonery tf," During in two 9y3rt"i,-tnuconsumer franchrse. range of premium cookies Magic' -"no ,ni.r,Lrtt"-r;- Tne ausiness also forayed into the tauncnei'triu-"s"int"r.t'rt+or;i Business ,casrrew-a'irrn-ono products variants in select markets' The th: segment.wlth target to rolled out Chewing Gums have met with faviurable markets. "fl6rrOn' anO are being consr*"r'?Jpo;; =d"n ,B.1ngo!, registered robust growth driven.by the finger Business, rn the snack Foods MeJne" 'Tansles' and 'Galata comprising portfolio snacks Y"9i;;ili;;;i;orre Styte; variants oi Bingo! Yumitos tauncfruE;Oiigin'l il"ntty and Masti, sub-brandr. ttie ayartbt. ln tt'" lnstant Noodles grinJO S""O potato chips rr.o high growth trajectory and pasta categones] 'Sunflast YiPPeeJ' ,rltuln"b its enhanced market standing' its product Care Products B.!:.iness augmented During the quarter, the Personal variants six in tf'" L"ntrt ot'Engage' Coiogne range in the Deodorants category *iif, p"ironrrwash cate;;ry, tlrg !.usi11-s expanded of - 3 each for men and women. tn the groo-ming tugrlni with the introduction the its presence in th" r".t-groyng under Sh;;"lG-""1" u,nd F?-":-y,1* severat new vanants of Gel eathing-;a;t, consumer ,Fiama Di wi*s, brand. These pioducts have received encouraging markets' and are being extended to target i[u *.: iir:tfil;;.g ,rt" iuupon"" Cigarettes smuggling coupled.with the growing incidence--of Discriminatory and punitive taxation ""nJf"ng"= faiing the legal ciga.rette industry and i,egat ,rnuiriri" ,r" tne UiggIIt quafer with the *"r1--torpourided ouiing in lndia. These chalengesBudgei Duty rates 2Q14'ot a steep increase in Excise announcement in the Union ;tengtn not exceeding 65 mm'' Such inctuding a 7Z"i ni[" on fitter ciiaiett"t "1 by some t"rpi"o *i-tn trttt'''"r increase in VAT on cigarettes increase in outy pressure on legal industry.volumes and states during the quarter, will "I9rt further the tobacco sector' The recent Government sub-optimise the revenue potential from heatth warnings covering 85% of the notification mandating larger t,r" oigi"pttic to be effectiu6 from April 1st 2015, will principaroisprav aierin oitn sides-of i."'pr"r, industny vls-i-vis both illegal cigarette adversely irpr"t ir," domestic r"gJ.igri"tt" products' trade and other unbranded tobacco th; ;i;, Highincidenceoftaxationandadiscriminatoryregula.toryregimeoncigarettesinlndia to lightly taxed to a signii.rnt inin in ioOa."o co-nsumption have, over the chewing ro9.?".* andGutkha' These ortax evaded,#;;;'ilar&"iir" eidi, Khrini, prlsen*y Eonstitute over 88% of total cheaper unO i"*nue inefiicie"t-;t;';i" overalt tobacco consumption is tobacco consumption in the couniry.-ih;";.*hile in overall tobacco consumption has increasing in tndia, the share 91 f."d'Ji^",glt^"*: to betow 12o/o in 2013-14' progressiverv oe"rin"Jt, zt"t iitgetlez ;;;;, i; rates by some States provides an The imposition of discriminatory and punitive VAT sale of illegal stocks by criminal attractive tax arbitrage opport;',d ;;iiting in 1 share' of their regitimate revenue the..state i-o"tl'"n'" collection and erements thus depriving "Governments trave-;;;;;;-Erim31ar punitive tax rates'on visible decrease ot cigarettes without any ["0" "i-,gur"ttes iregj in mu*i_foii have red to in overatt tobacco consumPtion' il;;;" TheCompanywillcontinuetoeng.agewjththe.:!n..:*"dauthorities,bothatthe tiii jl i%'#; fft G ove rn rn e";;; 56t"' U' lt ce ntrar revent on ciqarettes to maximize the in. giountn of the illegal segment' ;[[1fiJ;ffi ::1[i focus the.company's unwavering environment' business its leadership Despite such a challenging t" i""trrn"it LnaopJ it',io sustain *ofl41"ia"1 iroau.t. processes providing quality on innovation and ;rooua consumer.J.ffiiil industry. in the oosition to deliver superior value' ffi#i;H ih; iliin""t Hotels scenario in the impacted .bY weak pricing The Hotels industry continued. to be " overhang of excessive room ana ifre stuggish econom'". backdrop of -a-omestic inventory in key Seqment Revenue growth during Hotels Business includes 5 ?% in the quarte,,"."iiIi'"iLJ"t charge toi tte quarter due to revision depreciition ,oJitionrr to*riJJ the .r. ll to 13.4 Rs. wi*rirre provisions of schedule the usefur rife of fixed assets in acco'rianle ComPanies Act, 2013' uf:lll-"-Fortune banner in the'upscale'at 'My Fortune Bengalurrl', a fl3qship-property guests' Project activity has been well received by Gotf segment tauncnJJ'in May'14, and.=p, ,,"toi -'lo"cated at the classicFY15' luxury lolf super a Bharat in Q3 ITC Grand and is'exp""t"o to be launched is Hyderabad Resort, nn"n"."ri";;*g "o*prlti"* and at the rr*urv-ilGl proiects in Kolkata "oiOiiiJ* marfets."i".t"qr"ltiy, qfi;;i,q{{Tithe construction activity prog ressing satisfacto rilY' providing .asset.righf groMh strategy, the-.Business.commenced its ln line with the quarter' taking the total number operating serric"J.ItW"iCo*H"t"iiJiluituting the'S St"' category to 1150' of rooms under the management ""nti'it-t""UelIn PaPerboards, PaPer & Packaging product SegmentRevenuerecordedagrowthofS'9%wh1t-eSegmentResultsWereupg,To/o effrcieniies, improvement in il utifisatiJn capacity prices driven by higher "p"irting uusine"s. lloy:l:'' input ri"*tol,l. J""riging cartons quarter adversery mix and scate-up of remain-eJuilLurt"o te'u.ts ouring the _ tnit of wood _ "no particurarrv imPacting margins' up its in-house during the quarter towards scaring The Business made good progress gf'aOlachalam u-nit' in" proiect is expected to be pulp manutacturing ;ap-19t, at tne lommissioned in Q3 FY15' Developrnent Contribution to Sustainable TheCompany,ssociallnvestmentsProgrammeajlgtoaddressthechallenges change through a ranse por.frr]'lnri;;il""t"1d;d;'i;iil",iry:lTate of out arisrns ruririnrnre s6'rre= of livelihood overarching oui""iir"e of creating of activities with the for stakeholders. chart: ThefootprintoftheCompany,SsociallnvestmentsProgram,g.|"=.spread|o71 U" ri.*"A at a gtancJin ihe following districts across *".Jrii.i"ni "un lniervention Areas Toat oGtrlcts Covered $cEt and Farm Forestry Soit .nA Moisture Conservation ffil 181,887 167,?76 Number Artificial lnsemination doses (in lakhs 256 Practices susdinab-teLh/elihoodslnitiative Cattle DeveloPment Centres Animal Husbandry Services ffientofWomen Members Self HelP GrouP Livelihoods crq4!ec! erimary Education Beneficiaries ft Hectare Hectare 14.23 Persons Persons Children (in la(hg tati o n Low Cost Sanitary Units ea-ttna n A Sa n i New Dethi on october 31st 2014' approved The Board of Directors, at its meeting in SAt"'b;r 30h 2014'which are enclosed' the financial results for the quarter "nlf"i (Nazeeb Arif) Vice President Corporate Communications ITC Limited