ITC analysts and investors meet 2021 – Key takeaways for investors

Contrary to the market expectation, the ITC Limited’s analysts and investors meet 2021 turned out to be a non-event as no major announcement was made. The markets expected the company speak on key issues including demerger and bonus, but no announcements on these issues were made. Zee Business Senior Research Analyst Varun Dubey tells viewers what came out from the first ever meet.

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This is what the company said:

1. The company said that it will look for growth triggers in all its business verticals
2. The company will be focusing on premiumization which has yielded great benefits to it.
3. The company will be focusing on Mergers & Acquisitions (M&A) going forward. The company will be looking at many acquisitions.
4. The company has been witnessing improvements in its margins business. It has gone up from 8 per cent in 2019 to 25 per cent now.
5. The company will be increasing its focus on exports in the Fast Moving Consumer Goods (FMCG) segment.
6. The company has also indicated that it will be stressing on the personal care segment which is a high potential segment for ITC.
7. The company has done agreements with Interglobe Aviation and Inox Leisure in its beverage segment that is expected to benefit its products portfolio.
8. In the aftermath of the pandemic, the focus among the consumers have now shifted to branded products.
9. The company has also gained from the launch of new products and the volumes have gone up by 11 per cent.
10. In the hotel business, the company has indicated that it will be working on an asset light model. It will also be working on improving margins.
11. The company has witnessed a free cash flow worth Rs 31,000 cr over the 3-year period.
12. This translates into free cash Rs 25 per equity share.     

The company today informed about this development in the meet, the details of which are now available on the exchanges. The company has filed a 290-page report on this.