Definitely not expected of a company like ITC.
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I don’t know if the biscuits are packed by hand or by machine, but this is negligible. The complainant may feel happy regarding the compensation, or may even feel proud to have complained against a large company, but these type of things are like drops in an ocean, in the long run, no one remembers these. To give you some context, I have been a member of this forum for a few years now, and I don’t remember all the posts I have made, I do remember many, but not all.
And errors human or otherwise happen from time to time, and if they are not deliberate or done with ill intent, and if there is no serious damage, I don’t think anyone thinks twice about these kind of things. Gandhi made mistakes, even Buffett did.
While I do appreciate and support what has happened, as a citizen and consumer, I find this to be a quickly forgotten news about the company and its future.
Invested.
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I will tend to agree with Chaitanya that, such incidents are easily forgotten by large population.
Many people do not remember that, few years back there were lot of issues found in packing of Cadbury chocolates and hence it was made mandatory to have double wrappers i.e. a silver colored foil wrapper inside and then the current Cadbury wrapper outside. This practice was followed by Cadbury for few years and now they are back to only paper wrapper and no one has any problem with this. KitKat chocolates still use two wrappers which was mandated at that time by Regulator.
So such things no one remembers, as large population have short memory!!!
I just thought of highlighting this as I still believe that, using two wrappers was good practice.
Similarly there were lot of concerns about Maggi noodles during 2018-2019 and now no one has any problem or health concern with Maggi noodles or for that matter, any other branded noodles or similar products. Such concerns keep surfacing after few years for some known or unknown reasons!!!
Disc : No investment in ITC nor in any FMCG business as of now.
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ITC Q2FY24 results announced yesterday.
Positives:
Cigarette and other FMCG continue to grow (although growth rate decline to single digit due to high base of Q2FY23). FMCG others EBITDA continue to remain in double digit.
Hotel and IT business continue remain in strong growth path.
Negative:
Paper segment sales and growth decline due to lower export demand and increased supply from China.
Agri Segment adversely afffected due to ban on exports of Wheat and Rice.
Overall, the company continue to remain in path of asset light growth. If it continue to show double digit revenue growth for next 3-5 years, ITC FMCG others may become eligible business for seperate company in my view. Hotel demerger continue to remain on course.
Dsicl: Among my Top 2 holding. My view may be positively biased. I may exit/add my position without informing forum. Not a SEBI registrered advisor. Not recommending any investment action. No trading in last 90 days.
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Interesting article
However the same thought process a decade ago…
Doing the same thing and expecting different results?
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BAT says cigarette brands to have finite life of around 30 years in US
How many years should we ascribe for India? Food, Hotels and Paper still constitute less than 20% profit if i am not wrong…
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Hard to say.
Vices, particularly physiological ones are hard to predict, I think. One may stop, but start again. With rising awareness about habits that are harmful to the body, sales may come down, but when, I don’t know.
If there is price appreciation, then there could be demergers, not necessarily in the immediate future, but eventually, so someone is buying. And if there isn’t any price rise, and even if tobacco sales are stagnant, but if the company is expanding other verticals, the value of the assets could be increasing, so there is always some buyer interest, and perhaps more so, when the price falls. And they pay more dividends even with stagnant sales.
Invested.
We should build similar hypotheses for ITC with 30 years or max 50 years.
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ITC has usually been an investor darling mostly thanks to its diverse businesses. Its various sectors include FMCG, Agri, Paper, Hotels and IT.
While Hotels business demerger has been announced, I assume we will see ITC Infotech to be the next demerger candidate.
Now, this should be good news. But, what is the next business sector for ITC to enter into? I had read about ITC entering into Hospitals business as I had shared on 11th july 2023.
There has not been any update on this since 2017. Linkedin profiles of Dr. Chandy Abraham still show them as hired by ITC healthcare project.
This can be an excellent lever for ITC to grow to the next level.
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With the kind of cash they generate, after capex if any and dividends, I think, they will always look to diversify and venture into a lot of things, along with M&A. Some of these ventures may fail, some may succeed, some may just stay on paper.
And I wish the company grows into an even bigger conglomerate, with many more diversified businesses, with no demergers, so as to keep all businesses under one roof, like Berkshire Hathaway, provided they use the cash diligently, without losing tobacco sales to illegal products, and FMCG becoming more profitable, with no additional allocations to hotels etc etc.
Invested.
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For somebody who doesn’t have too much of experience on FMCG, this interview was interesting.
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Hi,
Q3 results are out. Dividend 6.25 per share.
Results are exceptional for hotel business.
Results are good for FMCG others.
Results are ok for Cigarettes business.
Results are not good for Agri and Paper/Boards/Packaging business. However, this was expected considering the current environment.
Revenue Part:
Profits part:
Anyone, please explain what is this “Other un-allocable (income)- net of un-allocable expenditure” figure which is 718 core? Last year Q3 it was 576 crore.
Link for Presentation and results:
ca06d49c-f2bb-448d-a291-1e352bf932f3.pdf (bseindia.com)
Disclaimer: Views may be biased as I am invested in ITC.
Thanks,
Deb
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“Other un-allocable (income)- net of un-allocable expenditure” - snap you have posted you will get details about the Un-Allocable profit item in earning release file page number 6 footnote. I have captured the same line item in below snap at consolidated level and check the note , its saying about ITC ESOP charge. But there is more to it . Details you will get at ITC latest annual report page number 201 . Its more sort of Interest company earn for loan and deposits , profit loss on Investment - Finance Cost it pays out - Unallocated Corporate charge. As its segment reporting so corporate level income and expense which can’t put under segment shown in this fashion.
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Hi,
Appreciate you are taking time to respond to my query. Does this also include ITC infotech quarterly results? I don’t see them in the presentation.
Thanks,
Deb
BAT announced its intention to trim its Stake in ITC from current level of 29% to 25%
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To me, it looks like a great opportunity to add onto some of my ITC shareholdings. I was waiting for the Budget to be over. Was skeptical / afraid - of unfavourable actions on the part of GoI wrt taxation
That risk being out, next one year looks good for ITC’s business prospects
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Could this mean that ITC will eventually separate FMCG and Hotel business?
Hotel business is already approved for demerger by the exchanges -
“Demerger update: The Stock Exchanges have given their no-objection to the Scheme of Arrangement for demerger.”
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