Bolstered by a 24 per cent increase in its post-tax profit in 2009-10, ITC is planning to reward its shareholders with a dividend of Rs. 10 per share of Re. 1 each, including a special centenary dividend of Rs. 5.50 per share. The ITC board is also planning to consider the issue of bonus shares, the company said. A board meeting has been convened on June 18 to consider this issue and that of an increase in the authorised capital.
The company is now focussed on four business groups: FMCG, hotels, paperboards, paper and packaging and agri-business. The FMCG business includes its core business of cigarettes and branded packaged foods, garments, matches, agarbattis and personal care products.
A company release said that notwithstanding a challenging environment in the first-half of the year, net turnover increased by 16.3 per cent to Rs. 18,153.20 crore from Rs. 15,611.92 crore while post-tax profit increased by 24.4 per cent to Rs. 4,061 crore from Rs. 3,263.50 crore.
During the year, while cigarette business grew by 19.8 per cent, there was a 20.9 per cent growth in non-cigarette FMCG business, and a 17.4 per cent growth in the paperboards, paper and packaging segment.
In the fourth quarter, net turnover grew by 27.9 per cent driven by robust growth in cigarettes, other FMCG businesses and the agri-business segment with a post-tax profit increase of 27.1 per cent which touched Rs. 1,028 crore.
Standing at the threshold of 100 years, ITC said that it was today among the country's leading FMCG marketers, the second largest hotel chain and the market-leader in the paperboard and packaging segment and the country's foremost agri-business player. The company said that its board has recommended a special dividend of Rs. 5.50 per share of Re. 1 each in addition to the dividend of Rs. 4.50 per share (previous year Rs. 3.70 per share) for the year-ended March 31, 2010. ITC completes 100 years in August this year.
Total cash outflow on this account will be Rs. 4,452.30 crore, including a dividend distribution tax of Rs. 634 crore, making it one of the highest-ever dividend payouts by a private sector company.
An analysis of the segment-wise results show that the top line as well as the bottom line of the hotels business was still under pressure although a recovery has started to set in. Its non-cigarette FMCG business is showing top line growth although the margins are under pressure. Agribusiness bottom line was good as was paper and paperboards business. During the year, the company launched its cigars in select markets. It said that larger scales were being planned in the foods business, while in the hotels business several new projects, including joint ventures and management contracts, were on the anvil.
