Q2 FY25 Results

24th October, 2024

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Forward-Looking Statements

This presentation contains certain forward-looking statements including those describing the Company’s strategies,
strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements”
are based on certain assumptions of future events over which the Company exercises no control. Therefore there can be no
guarantee as to their accuracy and readers are advised not to place any undue reliance on these forward looking
statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise. These statements involve a number of risks, uncertainties and
other factors that could cause actual results or positions to differ materially from those that may be projected or implied by
these forward looking statements. Such risks and uncertainties include, but are not limited to: growth, competition,
acquisitions, domestic and international economic conditions affecting demand, supply and price conditions in the various
businesses in the Company’s portfolio, changes in Government regulations, tax regimes and other statutes, and the ability
to attract and retain high quality human resource.

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Macro Economic Context

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Macro Economic Environment

Global outlook steady with downside risks India remains resilient

Real GDP Growth YoY

8.2
7.7 7.0 7.2
6.5
3.7
2.1 2.4
1.4
3.2 1.8 2.8 0.8 4.8

World Adv. Eco US Euro Area China Real GDP growth YoY

2023 2024f 2010-19 average FY19 FY23 FY24 FY25e

Source: IMF WEO Oct’24 Source: MOSPI, RBI

▪ Heightened Geo political & Climate uncertainties → downside risk ▪ FY25 GDP expected to grow by 7.2% (vs 8.2% in FY24)

▪ Structural weakness in Chinese economy persists

▪ Resilient Macros
- Central Bank rolls out a sizeable stimulus
- Strong Bank and Corporate Balance Sheets
▪ Debt distress in emerging and low income economies - Forex Reserves at all time high
▪ Some Central Banks initiate policy easing as inflation moderates in Advanced - Purposeful policy interventions by Government
Economies

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Weakening trend in Consumption Amidst Overall Macroeconomic Stability

Food inflation remains sticky (YoY%) Passenger vehicle and 2W retail sales declining (YoY%)
40
%

33% PV 2W
Sep'23 Jun-24 Sep-24 28%
9.4% 9.2% 30
%

22%
20
%
17%
6.6% 10
%

5.0% 5.1% 5.5% 1%

0%
6%
3%
-10%

-6% -7% -5%

-7% -9%
-20%
-13%
-19%
-30%

CPI CPI Food

Source: MOSPI Source: FADA
GST collection slows to a 39-month low (YoY%) Fuel Consumption degrowth in recent months (YoY%)
Diesel Petrol 14.5%
15.1% 15. 0%

10.4% 11.0%
13. 0%

11. 0%

12.3%
11.5% 9.0 %

10.2% 5.2% 7.0 %

11.6% 5.0 %

3.0 %

1.0 %

6.5% -1.0%

0.9%
-3.0%

-1.7%
-5.0%
-3.1% -2.7%

FY24 FY25
Source: Ministry of Finance Source: PPAC

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High Frequency Indicators Indicate Deceleration in Economic Activity in Q2 FY25
Unusually heavy rains in August/September 2024
Real rural wages remain weak Slower growth in credit card spends (YoY%)
9.0%

Real Farm YoY% Real Non Farm YoY%

6.0%
35
3.0%

0.0%

25
-3.0%

-6.0%

-9.0% 15

Source: Labour Bureau, CMIE Source: RBI

Core sector declines (YoY%) Services supporting overall export growth ($ bn)
13.4 12.7 Eight Core
Service Export Merchandise
9.4 130 Export
7.9
7.1
6.3 6.9 6.9 6.1
5.1 5.1
4.2
100

-1.8 70
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY23 FY24 FY25
Source: Office of the Economic Advisor Source: Ministry of Commerce, RBI
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Macro Economic Environment

Key Key
Positives Monitorables

Stable growth Strong Bank & Geopolitical

Corporate Food Inflation
outlook disruptions
Balance Sheets

Fiscal & Current

Account Deficits Rural Consumer
Capital
relatively Recovery Sentiment &
Expenditure
comfortable Wage growth

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 Q2 FY25 Results
Headline Financials & Business Highlights

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 Resilient performance amidst a
Key Highlights: Q2 FY25 challenging operating environment

Gross Revenue EBITDA

+16% +5%
ex-Paper up 6.3% YoY

Profit Before Tax Profit After Tax

+3.7% +3.7%
Post adjusting for LTCG^
tax related changes

^ Long Term Capital Gains |9|

Key Highlights: Q2 FY25

▪ Resilient performance amidst a challenging operating environment

̶ Gross Revenue records strong growth; up 16% YoY driven by Agri Business and Hotels
̶ EBITDA up 5% YoY, ex-Paper up 6.3% YoY
̶ Subdued demand conditions, unusually heavy rains in parts of the country, high food inflation and sharp escalation in certain
input costs (leaf, wood, etc.) witnessed during the quarter

▪ FMCG – Others Segment Revenue up 5.4% YoY; up 7% YoY ex-Notebooks

̶ Staples, Biscuits, Snacks, Frozen Snacks, Dairy, Premium Soaps, Homecare & Agarbatti drive growth
̶ Notebooks impacted by high base effect and opportunistic play by local brands led by sharp drop in paper prices
̶ Segment EBITDA up c.2% YoY; marginal drop of 35 bps in margins amidst inflationary headwinds in input costs
• 2-yr CAGR up 13%

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Key Highlights: Q2 FY25

▪ Cigarettes Net Segment Revenue up 7.3% YoY, Segment PBIT up 5.1% YoY
̶ Market standing continues to be re-inforced through strategic portfolio and market interventions with focus on competitive
belts and to counter illicit trade
̶ Differentiated & premium offerings continue to perform well
̶ Severe cost escalation in leaf tobacco partially mitigated through improved mix, strategic cost management and calibrated
pricing actions

▪ Hotels Segment delivered strong performance on a high base (LY includes G20 related business); Revenue up
12.1% YoY (2 yr. CAGR +16.5%); Segment PBIT up 20.2% YoY
̶ F&B, Retail & Wedding segments drive growth
̶ EBITDA margin expands 70 bps YoY driven by higher RevPAR, operating leverage and strategic cost management
̶ Demerger update: Scheme sanctioned by NCLT on 4th October 2024 (certified copy of the Order awaited)

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Key Highlights: Q2 FY25

▪ Agri Business Segment Revenue up 47% YoY led by Leaf Tobacco & Value Added Agri products; Segment PBIT
up 27.5% YoY
̶ Strong growth in Leaf Tobacco exports leveraging strong customer relationships & new business development
̶ Value Added Agri portfolio (e.g. Coffee, Fruits & Vegetables, Spices) performed well

▪ Paperboards, Paper and Packaging Segment remains impacted due to low priced Chinese supplies in global
markets including India, soft domestic demand conditions and unprecedented surge in wood prices
̶ Segment Revenue up 2.1% YoY driven by exports; up 7% QoQ
̶ Subdued realisation, surge in domestic wood prices and ocean freight continue to weigh on margins
▪ Unseasonal rains adversely impact wood availability, quality and procurement price
̶ Strategic interventions, including sharp focus on portfolio augmentation, export customer/market development & structural
cost management, continue to be made to mitigate near term challenges

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FMCG Others
Q2 FY25

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 Resilient performance amidst
FMCG Others – Q2 FY25 muted demand conditions

FMCG Segment Revenue

▪ Segment Revenue up 5.4% YoY, up 7% YoY ex-Notebooks
- Staples, Biscuits, Snacks, Frozen Snacks, Dairy, Premium Soaps,
Homecare & Agarbatti drive growth

▪ Incessant rains/flooding in certain parts of the country adversely

impacted discretionary/out-of-home consumption

▪ Notebooks impacted by high base effect, sharp drop in paper prices

and consequent opportunistic play by local brands ▪ Multipronged interventions to accelerate
growth across categories leveraging strong
growth platforms
▪ Heightened competitive intensity (incl. local players) in certain
- Fortifying the Core, addressing Value Added
categories – Noodles, Snacks, Biscuits & Popular Soaps
adjacent opportunities & scaling up new
vectors of growth
▪ Strong growth in emerging channels (viz. e-Commerce, Quick ▪ Focused investments to enhance distribution
Commerce, Modern Trade) infrastructure and drive penetration

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FMCG Others – Q2 FY25

▪ Q2 Segment EBITDA margins remained resilient

- Steep inflationary headwinds in input costs largely mitigated by premiumisation, supply chain optimisation, calibrated
pricing actions, digital initiatives & strategic cost management

Annual Trends Q2 Trends

Full Year Seg. EBITDA Seg. EBITDA Margin %

11.2%
2300 10.2% 12.0%

2100
9.1%
1900
8.9% 10.0%

7.1%
1700

8.0%

1500

1300

6.0%

1100

900

4.0%

700

914 1317 1449 1954 2339

500 2.0%

FY20 FY21 FY22 FY23 FY24

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 Future-Ready Portfolio Recent Launches

Fortifying the Addressing New Growth

Core Adjacencies Vectors

Bingo! Sunfeast Aashirvaad Svasti Milk Aashirvaad Dermafique Sunfeast Fantastik!

Original Style Mangaldeep Scent Biscuits Creamy Rich Roasted Short Vermicelli Face Serum 4D Chocolate
Himalayan Crystal Waters | Super Egg & Aqua Cloud
Pink Salt Mystic Amber Milk

Bingo! Tedhe Medhe Classmate pen Fabelle Exquisite Chocolates ITC Master Chef
YiPPee! Korean Noodles Vivel Soap Bhavnagari Gathiya | Loop Ball Pen Hazelnut Mousse Sabudana Tikki
Fiery Hot | Spicy Kimchi Pure Sandal Oil Papdi Gathiya
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Celebrating Festivities with Exquisite Gifting Collections

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Deepening Consumer Engagement
Sharpening Value Proposition Digital @ Consumer

#Farsh Par Bachpan Basta Hai

#BingoKoreanStyle

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Deepening Consumer Engagement

Marketing Campaigns Across Platforms Brands with purpose

Be elegantly eco-friendly
Cover made with
80% Recycled Plastic
PET Bottles

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FMCG Cigarettes
Q2 FY25

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 FMCG Cigarettes – Q2 FY25 Portfolio Vitality | Product Availability | Execution Excellence

▪ Q2 Net Segment Revenue* up 7.3% YoY

Segment Revenue ▪ Business continues to counter illicit trade and make strategic portfolio & market
interventions with focus on competitive belts to reinforce market standing
8177 cr. 6.8% - Differentiated variants & premium segment continue to perform well
- Product portfolio continues to be strengthened through the scale up of
innovative & differentiated offerings as well as strategic laddering interventions,
Segment Results leveraging mainstream trademarks
- Agile last mile execution leveraging deep and wide distribution network
5023 cr. 5.1% ▪ Sharp cost escalation in leaf tobacco, partly mitigated through improved mix,
calibrated pricing & strategic cost management
▪ Trade marketing spends restructured for sharper last mile execution

Stability in taxes, backed by deterrent actions by enforcement agencies → volume

recovery from illicit trade

*Net of Excise Duty/NCCD on Sales | 21 |

FMCG Cigarettes Reinforcing market standing

Innovation Portfolio Fortification

• Classic Connect • Flake Spl

• American Club Clove Mint • Classic Burst Portfolio

• Gold Flake Indie Mint • Scissors

• Uni Klov • Silk Cut Red

Recent Introductions

• Bristol Maja Mix • American Club Super Slims

• Classic Icon
` • Flight
• Gold Flake Social Red • Gold Flake SLK

• Gold Flake Social 2-Pod • Gold Flake Tango Mix

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Hotels Business
Q2 FY25

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Hotels – Q2 FY25 Strong Growth on a High Base

▪ Strong performance on a high base (LY includes G20 related business)

Segment Revenue
▪ F&B, Retail & Wedding segments drive growth
728 cr. 12.1%
▪ 2 new F&B outlets launched → Ottimo at ITC Grand Goa & Avartana at ITC
2-Yr CAGR +16.5% Maurya
▪ ITC Ratnadipa, Colombo, continues to garner widespread appreciation
Segment Results ▪ 250 Rooms and 8 F&B outlets operational
151 cr. 20.2% ▪ Demerger update: Scheme sanctioned by NCLT on 4th October 2024 (certified copy
2-Yr CAGR +34.2% of the Order awaited)

Asset Right Strategy F&B offerings being expanded

30 Hotels in last 24 months

(Oct 2022 – Sep 2024)

28 Hotels in next 24 months

(Oct 2024 – Sep 2026)

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Curated offerings to drive demand
Special occasions leveraged F&B collaborations Celebrations on Gourmet couch

Culinary rendezvous featuring Asia’s best

Michelin Star renowned

Chef Thitid (Le Du & Nusara) | Chef Pam (Potong)

ITC Maurya, ITC Grand Chola, ITC Royal Bengal & ITC Maratha

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 9 Openings & 15 Signings in
Executing ‘Asset Right’ Strategy
H1 FY25

Welcomhotel, Belagavi Fortune Beach Resort ECR, Chennai

Healthy Pipeline of Management Contracts – Phased openings over the next few quarters | 26 |
Agri Business
Q2 FY25

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 Segment Revenue up 47% YoY led by Leaf Tobacco & Value
Agri Business Added Agri products; Segment PBIT up 27.5% YoY

▪ Value-Added Agri portfolio (e.g. Coffee, Fruits & Vegetables, Spices etc.) recorded robust growth

▪ Strong growth in Leaf Tobacco exports leveraging strong customer relationships and new
business development

▪ Business continues to scale up interventions to build resilience against extreme weather events
across Agri value chains (including Wheat, Tobacco etc.) → enhancing crop competitiveness and
Segment Revenue protecting farmer incomes

5781 cr. 47.1% ▪ The state-of-the-art facility^ to manufacture and export Nicotine & Nicotine derivative products
commissioned; EU REACH approvals received. Product trials successfully completed on pilot
basis; trials at scale underway; export shipments expected to be scaled up progressively
Segment Results
455 cr. 27.5% Multiple Sourcing
Models
Farmer | Trader | Mandi

Multi Modal
Transportation
Railway | Coastal | Road
IIVL facility, Mysore
^ Set up by ITC IndiVision Limited (IIVL), the Company’s wholly owned subsidiary | 28 |
Paperboards, Paper &
Packaging
Q2 FY25

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 Challenging operating environment
Paperboards, Paper & Packaging Low-priced imports | Soft domestic demand | Subdued
realisation | Surge in wood costs

Segment Revenue up 2.1% YoY; up 7% QoQ

▪ Sharp focus on portfolio augmentation, export customer/market development and
Segment Revenue structural cost management to mitigate near term challenges
₋ Leadership position in VAP segment reinforced through anchor grades
2114 cr. 2.1%
▪ Surge in domestic wood cost
₋ Incessant rains in core plantation areas impacts wood availability, quality &
Segment Results procurement prices.

242 cr. 23.2% ▪ Strategic interventions underway (accelerating plantations, developing new areas, SAT
based monitoring) to mitigate wood crisis

▪ Continuous engagement with policy makers to address key industry challenges

₋ Collaborative Public-Private plantation models
₋ Arresting rapid increase of low priced imports

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Financials

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Key Financials

YoY
Rs. Cr. Q2 FY25 Q2 FY24
Growth
Gross Revenue 20,360 17,549 16.0%

Net Revenue 19,121 16,357 16.9%

EBITDA 6,335 6,042 4.9%

PBT 6,754 6,514 3.7%

PAT 5,078 4,927 3.1%

PAT up 3.7% on comparable basis, post adjusting for LTCG^ tax related changes in Union Budget 2024.

Standalone basis ^ Long Term Capital Gains | 32 |

Segment Revenue

• Cigarettes: Net Revenue up 7% YoY

Q2 • FMCG Others
YoY - Revenue up 5% YoY amidst subdued demand conditions &
Rs. cr. FY25 FY24 disruptions a/c excessive rains in parts of the country
growth • Up 7% YoY ex-Notebooks
Segment Revenue - Staples, Biscuits, Snacks, Frozen Snacks, Dairy, Premium
a) FMCG - Cigarettes 8177 7658 7% Soaps, Homecare & Agarbatti drive growth
- Notebooks : high base effect, sharp drop in paper prices →
- Others 5578 5292 5% opportunistic play by local brands
Total FMCG 13755 12949 6% • Hotels
b) Hotels 728 649 12% - Strong performance on a high base; Revenue up 12% (2-yr
CAGR 16.5%)
c) Agri Business 5781 3931 47%
- F&B, Retail & Wedding segments drive growth
d) Paperboards, Paper & Packaging 2114 2070 2%
• Agri Business
Total 22377 19600 14%
̶ Revenue up 47% led by Leaf Tobacco & Value Added Agri
Less : Inter Segment Revenue 2017 2051 -2% products
Gross Revenue from sale of products and • Paperboards, Paper & Packaging
20360 17549 16%
services - Segment performance remains impacted due to subdued
realisations, low priced Chinese supplies in global markets
including India & soft domestic demand conditions.

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Segment Results

Q2
YoY
Rs. cr. FY25 FY24
growth • FMCG Others
Segment Results ‒ Segment Results 2-yr. CAGR +17%
a) FMCG - Cigarettes 5023 4782 5% ‒ Marginal drop of 35 bps in Segment EBITDA
- Others 442 439 1% margins, amidst inflationary headwinds in input
Total FMCG 5465 5220 5% costs
b) Hotels 151 126 20%
c) Agri Business 455 357 27% • Hotels
d) Paperboards, Paper & Packaging 242 316 -23% ‒ Segment results up 20% YoY
Total 6314 6019 5%
• Paper
Less : i) Finance Cost 15 11
- Subdued realisation + steep increase in domestic
ii) Other un-allocable (income) wood costs & ocean freight continue to weigh on
(456) (505)
net of un-allocable expenditure margins
iii) Exceptional items 1 -
Profit Before Tax 6754 6514 4%

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ITC – A Global Exemplar in Sustainability

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Impactful Social Performance

On-farm livelihood Off-farm livelihood

ITC e-Choupal Natural Resources
diversification – Afforestation diversification – Livestock
Climate Smart Agriculture Management – Water
4 Million Farmers Development
Over 28 lac* acres covered Stewardship Over 12.50 lac acres Over 22.5 lac milch
empowered Over 17.1 lac acres covered Greened animals covered

Primary Education Mother & Child Health and

Skilling & Vocational Training Solid Waste Management Women Empowerment
Reaching over Nutrition
Skilled over 1.1 lac youth Over 12.4 million households Over 3.6 lac poor
19.5 lac Children Over 9.2 lac beneficiaries
covered across programmes women covered
covered^

*Basis FY24 ^Basis H1 FY25 | 36 |

Sustainability 2.0 Sustainability Targets 2030
REDUCE I RECYCLE I RESTORE Raising the Bar

Strategic Interventions to Combat Climate Change

Renewable Specific GHG Recyclable Plastic Plastic
Energy Emissions Packaging Neutrality

De-Carbonization Climate Adaptation and 100%

Resilience 50% 50% 100% Collection
since FY22

Building Green
Circularity Water Security for All Biodiversity & Agriculture
Infrastructure
million
5x of ITC’s Net 1 acres
Biodiversity
Conservation
Consumption million Climate Smart

AWS Certification
3 acres Village

Nature based solutions Inclusive Value million Social Farm and

Chains
for High Water Stressed Sites
by 2035 1.5 acres Forestry

Proactively work towards achieving ‘Net Zero’ emission status

Supporting Sustainable Livelihoods: From 6 million to 10 million

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 Sustainability – Highlights
• Comprehensive policies & guidelines institutionalized

• 9 ITC Units have received AWS (Alliance for Water Stewardship) Platinum certification till date

• 50% energy from renewable sources achieved for the first time, well ahead of 2030 target

• Plastic Neutrality commitment exceeded - ~70,000 MT of plastic waste managed in FY24

• 100% critical tier-1 suppliers trained and ~40% assessed on ESG aspect

• Water +ve (for 22 years), Carbon +ve (for 19 years), and Solid waste recycling +ve (for 17 years)

• World class ESG credentials – MSCI, DJSI, CDP - Received ‘A’ rating in CDP water security for the first time

ITC’s CDP Scores

Water Security: ITC ahead of

Leadership Band
A | 38 |
Asia regional average of ‘C’.
In Water Security

Sustained ‘AA’ rating 6 years in a row Included in the Dow Jones Climate Change: ITC ahead of
Sustainability Emerging Markets Index A- Asia regional average of ‘C’
In Climate Change
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ITC Infotech

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ITC Infotech Customer Centricity | Employee Centricity | Operational Excellence

Rs. cr. Rs. cr.

Revenue H1 YoY +13%

Rs. cr. Rs. cr.
2200

1900

1600

1300

1768 1990
1000

H1 H1
23/24 24/25

• Broad based growth; Healthy Total Contract Value (TCV) signings

• Investments continue in Capability building in strategic focus areas, sales
org. & infrastructure.

Completed acquisition of 100% equity stake in Blazeclan Technologies. Acquisition

EBITDA margin is expected to augment ITC Infotech’s capabilities to service its customers in a
@ upper-end of mid-tier IT cos. multi-cloud and hybrid cloud environment with a focus on the Partner eco-system
to accelerate future growth.

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ITC: Enduring Value

A passion for in a way that is and

Profitable growth... Sustainable… Inclusive.

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Links

Product/initiative Link

Bingo! on Instagram https://www.instagram.com/bingo_snacks/

YiPPee! on Instagram https://www.instagram.com/sunfeast_yippee/

Aashirvaad on Instagram https://www.instagram.com/aashirvaad/

Sunfeast Dark Fantasy on Instagram https://www.instagram.com/sunfeastdarkfantasy/

Mom’s Magic on Instagram https://instagram.com/sfmomsmagic/

Classmate on Instagram https://instagram.com/classmatebyitc/

ITC : Abiding Commitment to Nation-Building https://youtu.be/oP8d-Q8AD1w

https://www.itcportal.com/sustainability/sustainability-integrated-report-
Details on the Company’s Sustainability 2.0 vision
2024/ITC-Sustainability-Integrated-Report-2024.pdf

Quarterly Media Statement https://www.itcportal.com/investor/pdf/ITC-Press-Release-Q2-FY2025.pdf

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