Thread by @banyanfa

Going through the Annual Report of ITC and several interesting facts coming out. This thread is going to focus all on that. Tagging the most tracked #ITC twitter handle @dmuthuk :)
1. First 20 pages talk about key brands and businesses. Doesn't even mention a word of Cigarettes.

Is this a hint of ITC towards 'Sustainability' where ITC is moving away from the 'negative' brand image of Cigarettes ?
2. I wasn't aware that #ITC is into Techology via ITC Infotech
3. Launched over 60 new products in last year.
4. Produces a free cash flow of over 11500 cr p.a

5. Launched several products catering to hygiene during lockdown. One that standouts is Savlon spray, wipes and 50 paise sachet along with Veg washes ?
6. Unlike other FMCG majors, partnered with Zomato, Swiggy, Dunzo, Amways and even Dominos to deliver their products

7. One of the few (if not the only one) to have end to end integration - from growing wheat, potatoes, fruits, milk to processing and getting them to the stores. All under one umbrella. This is a massive and the tightest integration in my opinion.

8. 12.5 lakh shareholders (96.5%) hold total of 35.82 crore shares (2.91%). In other words, an avg shareholder holds less than 300 shares.

9. While the Cigarette business continues to get hit with increased taxation and demand being driven towards illegal ciggs in the Country, the FMCG continues to grow robustly. FMCG segment EBITDA grew 32% with revenue of 12800 cr. See chart below for growth path

As per the Annual report @AashirvaadAtta is #1 in Branded atta, Bingo! is #1 in Bridges segment of Snack Foods, #2 overall in Snacks & Potato Chips), Sunfeast is
#1 in the Cream Biscuits, Classmate is
#1 in Notebooks, YiPPee! is #2 in Noodles,

Engage is # 2 in Deodorants (# 1 in women’s segment)
and Mangaldeep is # 2 in Agarbattis (#1 in
Dhoop segment).

ITC aims to scale up 'significantly' in FMCG business and will continue to make investments in R&D, Supply chain, consumer insights in the new normal.

10. To expand its presence in spices market, acquired in May 2020 Sunrise Foods which is a market leader in Eastern India and has a brand legacy & loyalty within spices segment of 70 yrs.

11. Quite funny, Of its Balance sheet size of 75K crore, it has got over 25K crores worth of investments in Equities, Mutual Funds - Short Term, Lqiuid, FMPs, Bonds, Debentures. They must be having a full time fund manager at their disposal to manage this money :)

It is churning out so much cash that despite of huge dividend payouts, it is sitting on so much investments. Wondering if they even paid this all back to the shareholders, the Return on Equity of 22% could jump up close to 30% if not more. Even more action in ROCE.