When Sanjiv Puri took over as Chairman and MD of ITC from Y.C. Deveshwar, his mandate was clear — carry forward the vision of transforming the cigarette company into a diversified consumer-centric conglomerate. ITC’s dependence on cigarettes had begun to dent its stock market performance even during Deveshwar’s tenure. In his 21-year stint as Chairman and CEO, ITC entered many consumer categories, including staples, snacks, biscuits and personal care. By the time he hung up his boots, the FMCG business was a sizeable ₹10,500 crore.
Under Puri, the FMCG business is now almost ₹15,000 crore. FY21 has been one of the best years for the non-cigarette FMCG business with EBITDA margins at 9 per cent, up 180 basis points over FY20. “Our segment EBITDA margins have improved by 640 basis points between FY17 and FY20. In FY21, ITC’s FMCG revenue grew 16 per cent on a comparable basis, which is nearly double the industry peer group average and all of that is led by organic growth. Almost 75 per cent of our FMCG portfolio has grown by as much as 20 per cent,” says Puri.
Despite disruptions caused by the pandemic, ITC’s revenue grew 3.3 per cent to ₹53,155.12 crore in FY21. Its profit after tax fell 13.3 per cent to ₹13,389.80 crore but is still 40 per cent higher than rival Hindustan Unilever’s (HUL’s) ₹7,963 crore.
However, none of this has rubbed off on the company’s stock market performance. ITC’s stock was at ₹202 on July 2, 2021, down 16 per cent from ₹245 on June 30, 2016. In contrast, stock prices of HUL and Nestle have sky-rocketed and are at ₹2,475 (₹898 five years ago) and ₹17,698 (₹6,488 five years ago), respectively.
Esta historia es de la edición July 25, 2021 de Business Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 25, 2021 de Business Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
All That Glitters
The price of gold has been rising unabated. It has soared to more than 73,000 per 10 gm in 2024 from *31,000 in early 2018. Is the rally sustainable or is this a bubble?
"Hire for attitude, not ability"
Thryve Digital is a player in the healthcare technology sector delivering next-generation solutions
Road Warrior
For Khalid Wani, Senior Director of Sales at Western Digital India, life is much more than just the corner office. Biking across the world is one way he derives meaning for his life
WIDENING THE POOL
THERE HAS BEEN A JUMP IN INDIVIDUALS INVESTING DIRECTLY IN THE STOCK MARKETS, BUT MUMBAI AND AHMEDABAD STILL ACCOUNT FOR THE LION'S SHARE. THERE DEFINITELY IS SCOPE FOR IMPROVEMENT IN TERMS OF PENETRATION LEVELS ACROSS THE COUNTRY
CRISIS IN THE CLOUDS
INDIAN AVIATION IS IN CRISIS. AIRLINES ARE GRAPPLING WITH FLIGHT CANCELLATIONS, CREW SHORTAGES, AND COMPLAINTS ABOUT POOR SERVICE, ARE BLEEDING DUE TO RISING COSTS WILL THE FASTEST-GROWING AVIATION MARKET RECOVER?
"India should start privatising public sector banks"
Arvind Panagariya, Chairman of the 16th Finance Commission, on growth, inequality, jobs, the banking sector, and more
THE DARK SIDE OF GOLD LOANS
THERE HAS BEEN A SHARP RISE IN GOLD LOANS IN RECENT YEARS. BUT THERE IS A SEEDIER SIDE TO THIS, AS IS EVIDENT FROM THE RED FLAG THE RBI RAISED RECENTLY. WILL THE REGULATOR'S MOVE PROTECT CUSTOMERS?
"I LET MY WORK DO THE TALKING"
Megha Engineering & Infrastructures MD P.V. Krishna Reddy on being low profile, the infra opportunity and much more
"Core of insurance lies in long-term security"
Vibha Padalkar, MD & CEO of HDFC Life, on the insurance provider's performance, surrender charges, and future innovations
Distress in the Books
Bandhan Bank, the brainchild of Chandra Shekhar Ghosh, has made the journey from an MFI to a bank, but with many hurdles. Now with his resignation as MD & CEO, is the lender staring at more uncertainty?
