A Study on Financial Performance Analysis of ITC Limited

Financial performance analysis is one of the most important tools used for evaluating the financial stability, profitability, efficiency, and sustainability of business organizations. The present study focuses on analyzing the financial performance of ITC Limited over a five-year period from FY2019 to FY2023. ITC Limited is one of India’s leading diversified conglomerates with business operations in FMCG, cigarettes, hotels, paperboards and packaging, agri-business, and information technology services. The study uses secondary data collected from annual reports, financial statements, industry reports, and financial databases. Various tools and techniques such as ratio analysis, comparative financial statements, common-size analysis, trend analysis, and Du Pont analysis have been applied to evaluate the company’s financial health and operational efficiency. The study reveals that ITC Limited maintained strong profitability, excellent liquidity, efficient asset management, and an almost debt-free capital structure. The company experienced temporary financial challenges during the COVID-19 pandemic, particularly in FY2021; however, ITC demonstrated strong recovery in FY2022 and FY2023 through operational efficiency, growth in FMCG products, and effective cost management. The findings indicate that ITC Limited possesses strong long-term growth potential supported by its diversified business model and sustainable business practices.