As both BAT and domestic financial institutions hold about a third of the ITC's equity capital, each could be richer by over Rs 290 crore (Rs 2.9 billion) in the bargain.
The ITC stock rose by 2.53 per cent on the Bombay Stock Exchange to close the day at Rs 1,570.35 and by 2.54 per cent on the National Stock Exchange to close at Rs 1,570.70.
The ITC announcements came on the back of a 37.6 per cent rise in profit after tax and exceptional items for the year ended March 31, 2005, at Rs 2,191 crore (Rs 21.91 billion) from Rs 1,592 crore (Rs 15.92 billion) for the year ended March 31, 2004, driven by an 17.6 per cent rise in net income to Rs 7,875 crore (Rs 78.75 billion) in 2004-05 from Rs 6,695 crore in 2003-04.
The company's reserves rose to Rs 7,586 crore (Rs 75.86 billion) from Rs 6,101 crore (Rs 61.01 billion) during the period, while earnings per share rose to Rs 87.70 per from Rs 64.22.
Its equity capital has grown from Rs 247.68 crore (Rs 2.47 billion) in the fiscal ended March 2004 to Rs 249 crore (Rs 2.49 billion) in the fiscal ended Rs 249.43 crore (Rs 2.49 billion) following the merger of ITC Hotels Ltd and Ansal Hotels Ltd.
Exceptional items that boosted the company's bottomline totaled Rs 354 crore (Rs 3.54 billion), and included taxes on tobacco products refunded by a favourable court order totalling Rs 1,365 crore (Rs 13.65 billion), but also deductions relating to excise settlement of Rs 350 crore (Rs 3.5 billion), written-down inventories and staff compensation charges of Rs 92 crore (Rs 920 million), charges on account of its wound-up financial services business of Rs 230 crore (Rs 2.3 billion), and related income-tax deductions.
Profit after tax but before exceptional items for fiscal ended March 2005 was Rs 1,837 crore (Rs 18.37 billion), up from Rs 1,592 crore (Rs 15.92 billion) in the fiscal ended March 2004.
Operationally, the big news was that non-cigarette businesses now accounts for 42 per cent of ITC's net turnover.
The gross turnover grew 13 per cent to Rs13,350 crore (Rs 133.5 billion), driven by 8.4 per cent rise in cigarette sales, and 29.5 per cent growth in non-cigarette businesses. The growth was driven by the paperboards, hotels and other FMCG businesses, the company said.
Non-cigarette business turnover tripled to touch Rs 3197 crore (Rs 31.97 billion) in fiscal 2004-05.
This offset the costs of product development and brand-building and resulted in improvement of operating profits of the non-cigarette businesses at a CAGR of 28 per cent during 2004-05 to touch Rs 587 crore (Rs 5.87 billion).
The hotel's revenue grew to touch Rs 577 crore (Rs 5.77 billion) in 2004-05 from Rs 257 crore (Rs 2.57 billion) in 2003-04, while agri-business revenues rose to Rs 1,780 crore (Rs 17.8 billion). Paper sales to Rs 1,565 crore (Rs 15.65 billion) from Rs 1,253 crore (Rs 12.53 billion).
Gross cigarette revenues climbed to Rs 10,002 crore (Rs 100.02 billion) and non-cigarette FMCG revenue to Rs 563 crore (Rs 5.63 billion) in 2004-05, from Rs 9,230 crore (Rs 92.30 billion) and Rs 304 crore (Rs 3.04 billion) for the two categories in 2003-04.
Paperboards, specialty paper and packaging sales were aided by value-added products, while raw material supply was aided by its award-winning plantation programme covering 29,000 hectares and 100 million saplings.
Strong sales were recorded by other product lines like branded packaged foods, 'Aashirvaad' wheat flour, salt, cooking pastes and meals, as well as Sunfeast biscuits and pastas.
Premium and economy segment Wills Lifestyle garment range, the greeting, gifting and stationery business under the Expressions brand, and the safety matches and incense sticks product lines made gains in market share as well.
The 5,200-outlet e-choupals network covering 3 million farmers in Madhya Pradesh, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh and Kerala reported channel throughput of nearly Rs 50 crore from agri-inputs, FMCG products, vehicles, consumer durables, insurance products and other marketing services.
Exports of leaf tobacco in 2004-05 grew by nearly 10 per cent over 2003-04 in value terms, despite the challenging global demand-supply situation coupled with the appreciation of the rupee.