ITC reports 24% rise in Rs 1 Crore+ salaries amid expansion and profit surge
ITC reports 24% rise in Rs 1 Crore+ salaries amid expansion and profit surge
ITC Ltd has reported a significant increase in the number of employees earning over Rs 1 crore annually, with a 24.11% rise in FY24 compared to the previous year. According to the company’s annual report, 68 additional high-ranking officials joined the top salary bracket, bringing the total to 350 in the financial year 2023-24, up from 282 in 2022-23.
The substantial increase in high-earning employees highlights ITC's expanding operations and profitability. The company spent Rs 6,134.35 crore on employee benefits, including Rs 5,352.94 crore in salaries and wages, on a consolidated basis in FY24. This marks a 6.9% increase from the previous year when the company spent Rs 5,736.22 crore, including Rs 4,885.49 crore in salaries and wages.
A report by The Telegraph attributes this trend to ITC’s expanding portfolio, which has necessitated increased hiring. Over the past two to three years, ITC has opened eight new factories and two hotels across India, boosting its human resource deployment.
ITC's profitability has also seen substantial growth, with a 24.5% increase in profit to Rs 18,753.31 crore in FY23. This growth has led to an upward adjustment in employee remuneration. As of March 31, 2024, ITC employed 24,567 permanent employees. The median remuneration of employees increased by 5%, while the average remuneration rose by 10% in FY24. Excluding key managerial personnel (KMP), the average remuneration increased by 9%.
The median salary for male employees, excluding KMPs and board members, was Rs 7,14,281, while female employees earned a median salary of Rs 7,03,725. ITC has diversified its presence across various sectors, including tobacco, packaged foods, paper and paperboards, hospitality, agri commodities, and health and personal care (FMCG).
Notably, as per Business Standard’s report, ITC's top executives received substantial pay hikes. Sanjiv Puri, chairman and managing director, saw a 49.6% increase in gross remuneration, reaching Rs 28.62 crore in FY24 compared to Rs 19.12 crore the previous year. Executive Director B. Sumant received a 52.4% hike, bringing his pay to Rs 13.6 crore. Other executive directors, Supratim Dutta and Hemant Malik, received pay increases of 59% and 30%, respectively.
ITC’s remuneration policy allows the chairman and executive directors to earn performance bonuses up to 300% and 200% of their basic/consolidated salary, respectively, based on the company's performance.
In a related development, The Economic Times reported that ITC Ltd has surpassed Britannia Industries to become the second-largest listed packaged foods company by sales in India, behind Nestle. ITC's foods business posted consolidated sales of Rs 17,194.5 crore for the fiscal year ended March 31, 2024. In comparison, Britannia reported consolidated sales of Rs 16,769.2 crore, while Nestle India reported total sales of Rs 24,275.5 crore for fiscal 2024, a 15-month period due to a change in the company's financial year.