Surprised by ITC’s underperformance, says Chairman and MD Sanjiv Puri

The company has “recovered well since the days of lockdown,” Sanjiv Puri, Chairman and Managing Director of ITC, told CNBC-TV18 on October 13.

Commenting on sector performance, Puri said fast moving consumer goods (FMCG) segment, especially staples, has 'done well' while discretionary segments “are a bit muted” and cigarettes “has been hit due to certain restrictions.”

“In FMCG, we will aim for industry leading growth. The margin expansion trajectory looks good. When tax rate increases, cigarette revenue grows slower. The company’s cigarette business does well during stable tax regime,” he said.

#CNBCTV18Exclusive | #ITC's Chairman & Managing Director Sanjiv Puri joins us for an exclusive conversation.

'Have recovered well since the days of lockdown', he says

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— CNBC-TV18 (@CNBCTV18Live) October 13, 2020

“FMCG's earnings before interest and tax (EBIT) margin are on a robust trajectory on scale advantages and premiumisation efforts. We have launched 41 new products in the first three to four months of the lockdown and are in a good position to harness growth in consumer business,” he added.

Puri said shareholder value is top priority, adding that he was 'surprised' by the stock price underperformance. “We have looked at various suggestions which have come in with respect to the capital allocation, dividend distribution, restructuring, among others,” he said.

On the hotels business, Puri said the company will “explore alternate structures” and that “timelines may get delayed due to COVID-19.”

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