DCF calculation for ITC Ltd.

Group Members
Abhishek Dasgupta (1A)
Mahendra Kumawat (14A)
Radhika Gangadhar (26A)
Rajeev Kumar Tyagi (27A)
Satya Prakash Varshney (35A)
Sunil Kumat Singh (38 A)

All data was collected from Moneycontrol.com

Standalone ------------------- in
Profit & Loss Rs. Cr.
account -------------------

Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales
55,448.46 51,944.57 50,389.01 47,068.66 42,105.51
Turnover
Excise Duty 15,359.78 15,107.18 13,881.61 13,830.06 12,204.24
Net Sales 40,088.68 36,837.39 36,507.40 33,238.60 29,901.27
Other Income 1,985.91 1,803.74 1,543.13 1,107.14 938.7
Stock
-644.17 -58.17 214.53 128.41 246.35
Adjustments

Total Income 41,430.42 38,582.96 38,265.06 34,474.15 31,086.32

Expenditure
Raw Materials 15,594.36 13,893.28 15,117.82 13,522.04 12,531.44
Power & Fuel
550.32 541.57 581.65 613.19 550.11
Cost
Employee
2,444.31 1,883.51 1,780.04 1,608.37 1,387.01
Cost
Miscellaneous
6,277.48 6,222.63 5,768.87 5,168.57 5,051.55
Expenses
Total
24,866.47 22,540.99 23,248.38 20,912.17 19,520.11
Expenses

Operating
14,578.04 14,238.23 13,473.55 12,454.84 10,627.51
Profit
PBDIT 16,563.95 16,041.97 15,016.68 13,561.98 11,566.21
Interest 22.95 49.13 57.42 2.95 86.47
PBDT 16,541.00 15,992.84 14,959.26 13,559.03 11,479.74
Depreciation 1,038.04 1,034.45 961.74 899.92 795.56
Profit Before
15,502.96 14,958.39 13,997.52 12,659.11 10,684.18
Tax
PBT (Post
Extra-ord 15,502.96 14,958.39 13,997.52 12,659.11 10,684.18
Items)
Tax 5,302.06 5,113.68 4,389.79 3,873.90 3,265.79
Reported Net
10,200.90 9,844.71 9,607.73 8,785.21 7,418.39
Profit
Total Value
9,272.11 8,647.71 8,130.56 7,390.13 6,988.67
Addition
Equity
6,840.12 6,840.12 5,009.70 4,771.91 4,148.46
Dividend
Corporate
1,333.52 1,392.48 1,019.86 810.99 705.03
Dividend Tax
Per share data (annualised)
Shares in
121,473.83 80,472.07 80,155.20 79,531.83 79,018.33
issue (lakhs)
Earning Per
8.4 12.23 11.99 11.05 9.39
Share (Rs)
Equity
475 850 625 600 525
Dividend (%)
Book Value
37.33 40.85 38.28 32.95 28.14
(Rs)
 ---------------
---- in Rs.
Standalone Balance Cr.
Sheet ---------------
----
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 1,214.74 804.72 801.55 795.32 790.18
Equity Share Capital 1,214.74 804.72 801.55 795.32 790.18
Reserves 44,126.22 32,071.87 29,881.73 25,414.29 21,444.92
Networth 45,340.96 32,876.59 30,683.28 26,209.61 22,235.10
Secured Loans 0.01 3.6 0.02 0.14 0
Unsecured Loans 17.99 25.83 38.69 51 66.4
Total Debt 18 29.43 38.71 51.14 66.4
Total Liabilities 45,358.96 32,906.02 30,721.99 26,260.75 22,301.50
Application Of Funds
Gross Block 16,843.67 22,256.11 21,392.12 18,239.65 16,679.17
Less: Revaluation 0 52.41 52.41 52.41 52.75
Reserves
Less: Accum. 1,963.43 8,051.58 7,213.63 6,226.91 5,469.83
Depreciation
Net Block 14,880.24 14,152.12 14,126.08 11,960.33 11,156.59
Capital Work in
3,537.02 2,500.83 2,114.14 2,295.73 1,487.79
Progress
Investments 18,585.29 12,854.24 8,405.46 8,823.43 7,060.29
Inventories 7,863.99 8,519.82 7,836.76 7,359.54 6,600.20
Sundry Debtors 2,207.50 1,686.35 1,722.40 2,165.36 1,163.34
Cash and Bank Balance 2,747.27 6,563.95 7,588.61 3,289.37 3,615.00
4,236.05
Total Current Assets 12,818.76 16,770.12 17,147.77 12,814.27 11,378.54
Loans and Advances 4,394.64 3,188.71 2,349.80 3,283.22 2,881.47
Total CA, Loans & 17,213.40 19,958.83 19,497.57 16,097.49 14,260.01
Advances
Current Liabilities 8,582.71 8,129.22 7,214.45 6,921.52 6,404.43
Provisions 274.28 8,430.78 6,206.81 5,994.71 5,258.75
Total CL & Provisions 8,856.99 16,560.00 13,421.26 12,916.23 11,663.18
Net Current Assets 8,356.41 3,398.83 6,076.31 3,181.26 2,596.83
Total Assets 45,358.96 32,906.02 30,721.99 26,260.75 22,301.50
Contingent Liabilities 2,837.17 2,648.78 1,864.99 1,916.00 2,149.23
Book Value (Rs) 37.33 40.85 38.28 32.95 28.14
8,640.90
4,404.85
Date Adj Close ITC Date Adj Close NSE
1/1/2017 239.088394 1/1/2017 8243.8
1/8/2017 245.934967 2.7839% 1/8/2017 8400.35 1.90%
1/15/2017 251.599396 2.2514% 1/15/2017 8349.35 -0.61%
1/22/2017 253.569641 0.7770% 1/22/2017 8641.25 3.50%
1/29/2017 268.986755 5.7316% 1/29/2017 8740.95 1.15%
2/5/2017 269.282288 0.1097% 2/5/2017 8793.55 0.60%
2/12/2017 264.159668 -1.9392% 2/12/2017 8821.7 0.32%
2/19/2017 261.696869 -0.9411% 2/19/2017 8939.5 1.34%
2/26/2017 257.657867 -1.5676% 2/26/2017 8897.55 -0.47%
3/5/2017 259.529633 0.7212% 3/5/2017 8934.55 0.42%
3/12/2017 277.064728 6.3289% 3/12/2017 9160.05 2.52%
3/19/2017 276.818451 -0.0890% 3/19/2017 9108 -0.57%
3/26/2017 276.128845 -0.2497% 3/26/2017 9173.75 0.72%
4/2/2017 268.592712 -2.8058% 4/2/2017 9198.3 0.27%
4/9/2017 274.995972 2.3285% 4/9/2017 9150.8 -0.52%
4/16/2017 270.267426 -1.7496% 4/16/2017 9119.4 -0.34%
4/23/2017 273.863098 1.3129% 4/23/2017 9304.05 2.03%
4/30/2017 273.025726 -0.3067% 4/30/2017 9285.3 -0.20%
5/7/2017 270.85849 -0.8001% 5/7/2017 9400.9 1.25%
5/14/2017 281.941071 3.9308% 5/14/2017 9427.9 0.29%
5/21/2017 304.500305 7.4086% 5/21/2017 9595.1 1.77%
5/28/2017 314.450012 3.1642% 5/28/2017 9653.5 0.61%
6/4/2017 301.446442 -4.3137% 6/4/2017 9668.25 0.15%
6/11/2017 306.799988 1.7450% 6/11/2017 9588.05 -0.83%
6/18/2017 311 1.3505% 6/18/2017 9574.95 -0.14%
6/25/2017 323.649994 3.9085% 6/25/2017 9520.9 -0.56%
7/2/2017 334.299988 3.1858% 7/2/2017 9665.8 1.52%
7/9/2017 337.149994 0.8453% 7/9/2017 9886.35 2.28%
7/16/2017 288.899994 -16.7013% 7/16/2017 9915.25 0.29%
7/23/2017 291.549988 0.9089% 7/23/2017 10014.5 1.00%
7/30/2017 280.75 -3.8468% 7/30/2017 10066.4 0.52%
8/6/2017 271.5 -3.4070% 8/6/2017 9710.8 -3.53%
8/13/2017 281.850006 3.6722% 8/13/2017 9837.4 1.30%
8/18/2017 281.850006 0.0000% 8/18/2017 9837.4 0.00%
Variance 0.000155871 in thousands
Debt 457000
Covariance 0.0001529659 184000

Beta 0.9813618652 Total Debt 641000000

Average 8% Equity 3430000000000

P0 242 Total 3430641000000
Div1 4.75 We 99.981315%
Wd 0.0187%
Ke 10.4%

Kd 5%
Tax 35%

CAPM Method
Rm 16%
Rf 7%

Ke 15.83%
 ITC LTD
Operating Input data crores
REVENUE 41,430.42
OPERATING MARGIN 36.4%
EBIT 15,502.96
TAX RATE 34.6%
EBIT(1-T) 10137.4
NET CAPEX (from annual report) 1997.8
CHANGE IN WC 4236
Reinvestment 6233.8
RR 61.5%
Growth 7%
Growth min 9.73%
Growth Steady 2%

1
EBIT(1-T) 10847.00
reinvst 6670.17
FCFF 4176.84
PVIF 0.86
PV of FCFF 3605.94

DCF (COMPANY-ASSETS) 39039.07

Growth state
Beta 0.98
Rf 7%
Rp 9%
Wd 0.0187%
We 99.9813%
Kd(1-T) 5.00%
Ke 15.83%
Ko 15.83%

Year
2 3 4 5
17517.17 28289.03 45684.85 73777.92
10771.86 17395.82 28093.07 45368.38
6745.31 10893.21 17591.79 28409.54
0.75 0.64 0.56 0.48
5027.39 7009.18 9772.19 13624.37