DELHI SCHOOL OF MANAGEMENT

DELHI TECHNOLOGICAL UNIVERSITY

INNOVATIVE PROJECT

MGT-12 FINANCIAL ACCOUNTING AND COST

ACCOUNTING

“WORKING ON FINANCIAL STATEMENT OF

DABUR INDIA LTD”

SUBMITTED TO
DR. GC MAHESHWARI

SUBMITTED BY
KANISHK SAXENA (2K21/DMBA/60) SECTION A
What are Fast Moving Consumer Goods (FMCG)?

Fast Moving Consumer Goods (FMCG) are products with a high turnover rate and a low cost
(FMCG). Fast-moving consumer goods (FMCG) are those that are replaced within a year.
FMCG products include toiletries, soap, cosmetics, tooth cleaning products, shaving
products, and detergents, as well as non-durables like glassware, bulbs, batteries, paper
products, and plastic goods. Electronics, packaged food products, soft drinks, tissue paper,
and chocolate bars are all examples of FMCG.

Indian FMCG Sector

The FMCG sector in India is now the fourth largest in the economy, with a market worth
$13.1 billion. This sector is characterised by well-established distribution networks as well as
fierce competition between organised and unorganised segments. Across the entire value
chain, FMCG in India has a strong and competitive MNC presence. The FMCG market is
expected to grow to US$ 33.4 billion in 2015, up from US$ 11.6 billion in 2003. The middle
class and rural segments of India's population are the most promising markets for FMCG,
providing opportunities for brand makers to convert them to branded products. In India, most
product categories, such as jams, toothpaste, skincare, shampoos, and so on, have low per
capita consumption and penetration, but the potential for growth is enormous. The Indian
economy is accelerating at a breakneck pace, keeping up with rapid urbanisation, rising
literacy rates, and rising per capita income.

INTRODUCTION TO DABUR

Dr. S. K. Burman, a Bengali physician, started Dabur with a small but visionary idea. His
mission was to provide ordinary people in far-flung villages with effective and affordable
treatment. Dr. Burman set out to prepare natural cures for the killer diseases of the time, such
as cholera, malaria, and plague, with missionary zeal and fervour.

The news of his medicines quickly spread and became well-known. As a dependable 'Daktar,'
or doctor, who devised effective cures. Dabur is derived from the Devanagri rendition of
DaktarBurman, which is how his company got its name. In 1884, Dr. Burman founded Dabur
to manufacture and distribute Ayurvedic medicines. Contacting out to a large number of
people who did not have access to proper medical care. The company grew from a fledgling
medicine manufacturer thanks to Dr. S. K. Burman's dedication and never-ending efforts.
With revenues of over US$1.14 billion (Rs 7,073 crore) and a market capitalization of more
than US$5 billion, Dabur India Limited is India's fourth largest FMCG company (Rs 31,310
Crore). Dabur is a trusted name and the world's largest Ayurvedic and Natural Health Care
Company, with a 129-year legacy of quality and experience.

Hair Care, Oral Care, Health Care are among Dabur's key consumer product categories. The
company with their largest distribution network, with over 5.3 million retail outlets with
strong presence in both urban and rural areas. Dabur's products are also well-known in
international markets, with over 60 countries currently stocking them. Its brands are well-
known in the Middle East, Africa, the SAARC region, and the United States. Over 32% of
Dabur's total revenue comes from outside India.

LITERATURE REVIEW

Dr. SK Burman, a physician in Bengal, embarked on a small but visionary venture that began
with a small but visionary endeavour. His mission was to provide ordinary people in far-flung
villages with effective and affordable treatment. Dr. Burman set out to prepare natural cures
for the killer diseases of the time, such as cholera, malaria, and plague, with missionary zeal
and fervour. Soon, word of his medicine spread, and he became known as the dependable
'Daktar,' or Doctor, who could come up with effective cures. And that's how his company,
Dabur, got its name: it's derived from Daktar Burman's Devanagri rendition.

ANALYSIS OF FINANCIAL STATEMENTS

A company's operating, financing, and investment activities are summarised in financial

statements. Both investors and creditors should be able to use financial statements to make
credit, investment, and other business decisions. Investors and creditors can use the
statements to predict, compare, and evaluate the amount, timing, and uncertainty of potential
cash flows because of their utility. Financial statements provide the information needed to
evaluate a company's future earnings and, as a result, the expected cash flows. The income
statement, balance sheet cash flow statement, and statement of shareholders' equity are the
four basic financial statements covered in this chapter. The financial statement analysis is
covered in Part Six of this book.

The financial statements and the auditors' findings are made public in the company's annual
and quarterly reports to shareholders, as well as in the Securities and Exchange Commission's
10K and 10Q filings (SEC). A discussion by management, providing an overview of
company events, is also included in the reports, among other things. Annual reports are much
more detailed and contain a lot more financial data than quarterly reports.

There are three basic financial statements:

Balance sheet

Income statement

Cash Flow statement

THE BALANCE SHEET

Statement of a company's assets, liabilities, and equity at a specific point in time, usually the
end of its fiscal year is called a balance sheet. The statement of financial condition or the
statement of financial position is another name for the balance sheet. The balance sheet
values for the various accounts are not supposed to reflect current market values; rather, they
are supposed to reflect historical costs.
Assets are a company's resources, such as plant and equipment, that are used to generate
future benefits. If a company owns plant and equipment that will be used to produce goods
for sale in the future, the company can anticipate cash inflows from these assets.

Liabilities are obligations of the business. They represent commitments to creditors in the
form of future cash outflows. When a firm borrows, say, by issuing a long-term bond, it
becomes obligated to pay interest and principal on this bond as promised. Equity, also called
shareholders' equity or stockholders' equity, reflects ownership. The equity of a firm
represents the part of its value that is not owned by creditors and is left over for the owners.
In the most basic accounting terms, equity is the difference between what the firm owns

THE INCOME STATEMENT

Income statement is a summary of a company's revenues and expenses over a specific time
period, usually for one or three months, or a year. The profit and loss statement is another
name for this statement. It depicts the outcomes of the company's operating and financing
decisions at the time. Sales or revenues are generated by the company's operating decisions,
which apply to production and marketing, and the cost of goods sold is incurred by the
company's operating decisions (also referred to as the cost of sales or the cost of products
sold).

The difference between sales and cost of goods sold is gross profit. Operating decisions also
result in administrative and general expenses, such as advertising fees and office salaries.
Deducting these expenses from gross profit leaves operating profit, which is also referred to
as earnings before interest and taxes (EBIT), operating income, or operating earnings.
Operating decisions take the firm from sales to EBIT on the income statement. The results of
financing decisions are reflected in the remainder of the income statement.

CASH FLOW STATEMENT:

It's a financial statement that tracks cash inflows and outflows for any type of business
activity. The cash flow statement is a report on a company's cash flow activities, particularly
its operating activities, investing activities, and financing activities, as well as the reasons for
such inflows and outflows of cash.

FINANCIAL ANALYSIS

Financial analysis is a tool used in the field of finance. It entails assessing the financial health
and operating performance of a company, an industry, or even the entire economy, as well as
forecasting future health and performance. In other words, it's a tool for assessing risk and
expected return

Financial analysis can be used within a company to assess not only the overall performance
of the company, but also the performance of its divisions, departments, and product lines.
Analyses can be done on a regular basis or as needed, not only to ensure that informed
investing and financing decisions are made, but also to assist in the implementation of
personnel policies and reward systems.

Financial analysis can be used outside of the company to determine a new customer's
creditworthiness, assess a supplier's ability to fix to the terms of a long-term contract, and
assess competitor market performance.

FINANCIAL RATIO ANALYSIS

The use of ratio analysis in financial analysis is extremely important. It denotes the
relationship between two mathematical expressions as well as two or more things. A financial
ratio are comparison of two or more values on a company's financial statement. There are a
variety of standard ratios that can be used to assess a company's or organization's overall
financial health. Financial ratios are used by company executives, current and potential
stockholders, and a company's creditor. Financial ratios are used by financial analysts to
compare the strengths and weaknesses of different businesses.

Financial ratios are calculated using data from the company's balance sheet, income
statement, and cash flow. Financial ratio analysis divides ratios into categories that reveal
information about a company's finances and operations. Below is the list of few different
types of ratios.

Liquidity Ratios: These ratios demonstrate a company's ability to meet short-term financial
obligations.

Activity Ratios, also known as Turnover Ratios, measure how effectively a company uses its
assets to generate sales.

Profitability Ratios: The profitability of a firm can be measured by its profitability ratios.

Solvency Ratios: These ratios are calculated to judge the long-term financial position of the
business. Solvency means firm's ability to meet its long-term liabilities.

The purpose of financial ratio analysis is to determine how profitable a company is, whether
there is enough to pay debts, and whether or not its shareholders are satisfied.

Financial ratios enable comparisons to be made:

1. between businesses

2. industry to industry

3. for a single company, between different time periods

4. the difference between a single business and the industry average

The current ratios of a company will be compared to its previous ratios in order to assess its
performance. Time series or trend analysis is the process of comparing financial ratios over a
period of time. It reflects whether the firm's financial performance has improved,
deteriorated, or remained the same over that time period. It is not only necessary to determine
simple changes, but it is also necessary to understand why those ratios have changed.
Another method is to compare the ratios of one company to another company in the same
industry at the same time. The cross sectional analysis is the term for this comparison.
Selecting some competitors with similar operations and comparing their ratios to the firm's
may be more useful. This comparison depicts the firm's relative financial position and
performance. This type of analysis is simple to carry out because it is easy to find the
financial statements of similar firms through publications.

DATA ANALYSIS & INTERPRETATION

Assets

Fixed Assets

Plant and machinery, or assets directly needed for production, account for 1132.99 crores, or
63 percent of total fixed assets. Buildings have been significantly increased by the company.
It's worth noting that there's no depreciation for freehold land or livestock. In comparison
with last year, the company increased leasehold land by a small amount while increasing
freehold land by a large amount.

Investments that are not currently in use

The total investment is a significant portion of the total asset value. As a result, it can be said
that the company has excess cash in the bank that it invests. The company is a firm believer
in making investments. In addition, the company has invested nearly 87 crores in its
subsidiaries. As a result, by deciding to acquire FEM, the company has taken a significant
step toward expanding its business. Investments are reported at the lower of cost and fair
value.

Current Assets

The company has 675 cores in debtors, with a total sales of around 7073 cores. As a result,
it's a smaller picture in comparison. In addition, the number of debts that are considered
doubtful is around 21 cores, which is a small number when compared to the total number of
debtors. For a period of less than six months, no provision has been made for the debtors.

Dabur's cash balances are around 308 cores. They are a minor part of the current assets, but
they are critical to operations. The company has recently invested 171 crores in term
deposits, according to the evidence.

Other non-current assets have experienced a significant decline, owing to a change in

company policy regarding bank deposits maturing after 12 months; now, the company invests
in bank deposits with a maturity value of less than 3 months.There has been a significant
reduction in short-term loans and advances to suppliers, indicating that the company's cash
management is effective. In the notes to the accounts, it is also stated that the Current Assets,
Loans, and Advances, in the opinion of the Board, have realisable value at least equal to the
amount stated. It has also been stated that the company's director/officers owe no debts.

Capital Shares of Liability

The company's authorised share capital was 207 crore equity shares valued at $1 each.
During the year 2016, the company's authorised share capital was increased by Rs. 7 crore.
Following that, the company's authorised share capital remained at 207 crore at $1 each.

Reserve and Surplus

The increase in general reserves is primarily responsible for the increase in reserves and
surplus in 2018. It can also be seen that the company's transfer from P/L acc to general
reserve has steadily increased over time.

Profit and loss account: Over time, the transfer of remaining profits from the P/L account has
increased steadily. This indicates that the company's profit has been increasing over time.

Long Term borrowing

Dabur's secured loans have decreased from 539.09 crores to 194.92 crores. Banks have
provided the company with long-term and short-term loans. The company has repaid nearly
half of its loans this year, bringing the total amount of secured loans down. The ratio of
secured loans to other sources of funds is very low, implying that the company is not overly
reliant on borrowed funds. However, the company has taken out large unsecured loans this
year. Unsecured loans at the company have increased from less than 0.84 crores to 65 crores.
There has been no default in the repayment of the principal loan or the interest thereon.

Related Ratios

Liquidity Ratios: The ability of a company to meet its current obligations is referred to as
liquidity. As a result, liquidity tests concentrate on the size of current liabilities and current
assets, as well as their relationships. (It's assumed that current assets will be converted to cash
in order to pay current liabilities.) The significance of adequate liquidity in terms of a
company's ability to meet current/short-term obligations when they become due cannot be
overstated. Liquidity is, in fact, a requirement for a company's survival. The firm's short-term
creditors are concerned with the firm's short-term solvency or liquidity. Illiquidity, on the
other hand, implies that the firm's funds are either idle or earning very little. For effective
financial management, a proper balance between the two contradictory requirements of
liquidity and profitability is required. The liquidity ratios measure the ability of a firm to
meet its short-term obligations and reflect the short-term financial strength and solvency of a
firm.

The ratios which indicate the liquidity of a firm are:

(i) Networking capital,

(i) Current ratios,

(iii) Acid test/quick ratios.

Working Capital of Dabur India Ltd

A firm's total capital is found from its balance sheet by subtracting its total liabilities from its
total assets. This is represented by the balance sheet equation:

Assets (A) – Liabilities (L) = Capital (C)

Working capital can similarly be found by subtracting current liabilities from current assets:

Current assets – Current liabilities = Working capital

CA – CL = WC

Year 2016 2017 2018

Current Assets 2360.47 2689.07 3127.89
Current Liabilities 1489.95 1976.19 2293.79
Net Working Capital 870.52 712.88 834.10

Working capital is the type of short-term capital needed to keep a business running on a daily
basis. It is an important indicator of a company's liquidity. The greater a company's working
capital, the less likely it is that it will be unable to pay its creditors when their bills are due.
Conversely, the lower a company's working capital is, the more likely it is that it will be
unable to pay its creditors when their bills are due.

There have been ups and downs in Networking capital, which is primarily due to a change in
the company's strategy of investing in term deposits with maturities of less than three months.

Current Ratio:

This ratio measures the relationship between current assets and current liabilities. As current
liabilities should technically be paid from current assets, this ratio highlights the firm's ability
to meet its short-term liabilities from its short-term assets. In other words, the firm should not
have to sell fixed assets to pay suppliers for raw materials: if it does, then it is clearly in
trouble. The current ratio will be very important to anyone who is supplying short-term funds
to the firm such as banks and trade creditors.

Year 2016 2017 2018

Current Assets 2360.47 2689.07 3127.89
Current Liabilities 1489.95 1976.19 2293.79
 Current Ratio 1.58 1.36 1.36

Dabur India's current ratio is favourable. It can meet its current liabilities with the help of its
current assets. A low current ratio, in general, indicates the possibility of a strained liquidity
position.

However, because of the ready and quick conversion of inventory into cash, FMCG
companies typically do not have a high current ratio. As a result, Dabur's Current Ratio is
lower than average. Another reason for the low ratios is that the company is very
conservative and has high provisions (nearly half of the liabilities), causing the liabilities to
grow and the ratio to decrease. Rather than making short-term investments, the company has
invested in long-term ventures and mutual funds. In fact, it has invested in 27 different
mutual funds over the last ten years.

Quick Ratio/ Acid Test Ratio:

This is a more thorough liquidity test than the current ratio. It is known as the "acid test" of
liquidity because it compares a company's quick assets (current assets minus stocks) to its
current liabilities. It is suggested that by removing the stock figures from the equation, this
ratio provides a more immediate indication of the firm's ability to settle its current debts.

Year 2016 2017 2018

Quick Assets 1388.18 1844.63 2303.67

Current Liabilities 1489.95 1976.19 2293.79

Quick Ratio 0.931 0.933 1.004

Dabur's inventory makes up a large portion of its current assets, so the quick ratio is low.
However, over the last two years, the ratio has improved, indicating that the company's
ability to meet short-term obligations with quick assets has improved
 2018, Quick Ratio,
1.004

2016
2016, Quick Ratio, 2017, Quick Ratio,
0.933 2017
0.931
2018

Solvency Ratios

The long-term solvency of a business is affected by the extent of debt used to finance the
assets of the company. The presence of heavy debt in a company's capital structure is thought
to reduce the company's solvency because debt is more risky than equity. Important
indicators of a firm's solvency are discussed below:-

Debt-Equity Ratio :

It measures the relationship of the capital provided by creditors to the amount provided by
shareholders. Debt includes interest-bearing liabilities, both short-term & long-term, but
excludes operating liabilities. Whereas shareholder funds includes the amount of capital
invested by stockholders into the company, including equity share capital surplus and all
reserves and excludes minority interest .A lower Debt-Equity Ratio is better for the company.

Year 2016 2017 2018

Total Debt 1074.32 1151.35 708.14
Shareholder Fund 1716.91 2094.49 2655.96
Debt-Equity Ratio 0.625 0.549 0.266

These ratios are very low. This indicates that in the coming future, the company can easily
increase the amount of leverage in its capital structure. Also, over the years the ratio has
decreased continuously, indicating that the company has started relying more on internal
borrowings in the form of trade payables. However, the proportion of Deb is very low in
comparison to the Equity of the company.

Debt-Assets Ratio :

Determines how much of the company's assets have been financed by debt. It is calculated by
adding short-term and long-term debt and then dividing by the company's total assets. The
lower it is, the better it is for the company.
 Year 2016 2017 2018

Total Debt 1074.32 1151.35 708.14

Total Assets 4622.31 4708.54 5311.78

Debt-Assets Ratio 0.232 0.244 0.133

A lower Debt-Asset Ratio indicated that most of the assets of the company are financed
through its Equity Funds. Also, the ratio has decreased from the years 2017-18, which signify
an increasing dependence of the company on equity funds for the purpose of financing its
assets & less dependence on its Debt. This is a good sign for the company, as it reduces the
chances of default of payment.

2017, Debt-Assets
2016, Debt-Assets Ratio, 0.244
Ratio, 0.232

2016
2018, Debt-Assets
Ratio, 0.133 2017
2018

Related Ratios

Profitability ratios:

A company's ability to generate earnings in relation to sales, assets, and equity is measured
using profitability ratios. These ratios evaluate a company's ability to generate earnings,
profits, and cash flows in comparison to some metric, usually the amount of money invested.
They draw attention to how well a company's profitability is managed. Different profitability
ratios offer different insights into a company's financial health and performance. Gross profit
and net profit ratios, for example, show how well a company manages its expenses. The
return on capital employed (ROCE) metric measures how effectively a company uses its
capital to generate profits. Return on investment (ROI) indicates whether a company is
profitable enough for its shareholders.
Gross Profit Margin:

It is used to evaluate a company's financial health by revealing the amount of money left over
after deducting the cost of goods sold. The gross profit margin is used to cover additional
costs and set aside money for the future. It's also referred to as "gross margin."

Year 2016 2017 2018

Gross Profit 893.73 1037.72 1233.74

Net Sales 5282.17 6146.38 7073.21

Gross Profit Margin 16.91 16.88 17.44

Dabur's GPM has risen steadily over time. Despite the fact that the margin decreased in 2017,
it remains at an attractive level. For a business, increasing gross profit margin can mean one
of two things. The company, for starters, has a strong pricing position. When a company
raises its price due to high demand, the gross profit margin rises. Second, a rising gross profit
margin could indicate that a company is becoming more productive. When the price per unit
remains constant while the cost of variable units decreases, the gross profit margin rises.

However, in the case of Dabur, it is primarily due to lower expenses as a result of lower long-
term and short-term debt.

Net Profit Margin:

A profitability ratio calculated by dividing net income by revenues or net profits by sales. It
calculates how much a company keeps in earnings for every dollar of sales. In comparison to
its competitors, a higher profit margin indicates a more profitable company with better cost
control.

Year 2016 2017 2018

Net Profit 644.89 763.42 913.92

Net Sales 5282.17 6146.38 7073.21

Net Profit Margin 12.20 12.42 12.92

The Net Profit Margin has increased over the years, but even though the firm has good gross
profit margin but a relatively lower not profit margin because of an increase in the operating
costs by Dabur. The firm will have to reallocate its resources & ensure efficient working so
as to improve its Net Profit Margin.

Return on Capital Employed:

It's a metric that shows how efficient and profitable a company's capital investments are.
Investors can get a clear picture of how leverage affects a company's profitability by
comparing net income to the sum of a company's debt and equity capital. Because it measures
management's ability to generate earnings from a company's total pool of capital, financial
analysts consider the ROCE measurement to be a more comprehensive profitability indicator.

Year 2016 2017 2018

PAT + Interest 698.73 822.32 968.07
Capital Employed 1716.91 2094.49 2655.96
ROCE 40.69 39.26 36.44

As indicated earlier, the operating costs of the firm have been on a rise for the past few years.
This is mainly due to a change in company policy of relying more on equity than debt. The
company kept on decreasing its long term and short term borrowings. This has been a major
reason for a decreasing ROCE.

ROE: Return on Equity

Year 2016 2017 2018

Net Income 644.11 765.79 916.45
Equity 1716.91 2094.49 2655.96
ROE 37.51 36.56 34.50

As a percentage of shareholders' equity, the amount of net income returned. Return on equity
is a metric for determining a company's profitability by revealing how much profit it
generates with the money invested by shareholders.

The return on investment (ROI) is expressed as a percentage and is calculated as follows:

Return on Equity = The ROE is a useful metric for comparing a company's profitability to
that of other companies in the same industry.

Cash Flow Statement

Cash Flow Statement

 Mar ‘18 Mar ‘17 Mar ‘16

Net Profit Before Tax 1135.53 948.42 790.49

Operating profits Before working 1202.00 994.27 808.69

Capital changes

Cash Generated from Operating 1284.49 1038.07 732.60

Activities

Taxes Paid 183.42 168.53 135.67

Net Cash From Operating 1101.07 869.54 596.93

Activities

Net Cash (used in)/from (107.28) (624.05) (260.50)

Investing Activities

Net Cash (used in)/from (803.69) (233.98) (198.46)

Financing Activities

Net (decrease)/increase In Cash 190.10 11.51 137.97

and Cash Equivalents

Opening Cash & Cash 125.88 109.70 192.41

Equivalents

Closing Cash & Cash Equivalents 315.78 121.21 330.38

Activity Wise Analysis

Operating Activities

Operating activities contributed all of Dabur India Limited's cash inflows during the period,
indicating a strong cash position.

Dabur India Limited had a net cash inflow in terms of working capital, which is a sign of
good working capital management.

The increase in net cash from operations was 26%, indicating strong operational financial
performance.

Investing Activites
Dabur India Limited has spent a significant amount of money on fixed assets, indicating that
the company is expanding and is likely to generate higher future revenues.

It also shows a significant increase in inflow from the sale of fixed assets when compared to
the previous year, indicating that the company is getting rid of its old fixed assets.

Dabur India Limited's outflow towards investments in its subsidiaries increased by 34%,
indicating that the company's future prospects are expected to improve. Dabur has paid
invested a huge sum of money in investments.

For investing activities Dabur India Limited has had a net cash outflow indicating a favorable
cash position.

Financial Activities

The amount of money generated by the issuance of shares has decreased by 7.5 percent
compared to last year.

Dabur India Limited has had a significant net outflow in terms of debt repayment, indicating
a strong cash position.

It also revealed a large amount of short-term borrowings, indicating that the company has
shifted its focus away from long-term borrowings.

Dividend payments have increased by 10% in the past year, indicating a strong desire to
maintain the company's market reputation. It also demonstrates that the company is
profitable.

Related Ratios

Debt Coverage Ratio

It measures the financial risk and financial leverage

Year 2016 2017 2018

CFO 596.93 869.54 1101.07
Total Debt 1074.32 1151.35 708.14
ROE 55.56 75.52 115.48

It has been seen that the ratio has been substantially increase over the last year , due to
increasing sales revenue and decreasing total expenses. As the revenue is increasing because
of operating activities it lessens the financial risk of the business too.

Interest Coverage Ratio:

It analysis the ability of the company to pay its interest obligations

Year 2016 2017 2018

CFO + Interest Paid +
762.99 1077.59 1317.46
Taxes Paid
Interest Paid 30.30 39.52 32.97
Interest Coverage 25.18 27.26 39.95

It has been increasing consistently ,during 2018 the company has repaid a huge amount of
long term borrowing . this is one of the main reason of a substantial increase.

If we look out at the dividend payment ratio, this ratio hoes slightly lower this year because
the company has paid 278.78 crores as dividend to boost up the morale of the investors.

Trend Analysis

In Rs crores FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

OPERATING

RESULTS

Net Sales 1,374 1,700 2,043 2,361 2,805 3,391 4,077 5,283 6146 7073

Other Income 9 13 26 34 47 48 59 80 132 153

EBITDA 217 300 376 443 517 667 833 948 1097 1288

EBITDA 16% 18% 18% 19% 18% 20% 20% 18% 17.8% 18.2%

Margins (%)

Profit Before 176 257 319 384 445 601 708 791 753 1136

Tax (PBT)

Taxes 19 30 39 52 54 100 139 146 183 219

Tax Rate (%) 11% 12% 12% 14% 12% 17% 20% 19% 19% 19%

Profit After Tax 156 214 282 333 391 501 569 645 763 914

(PAT)

PAT Margins 11% 13% 14% 14% 14% 15% 14% 12% 12.4% 12.9%

(%)
 EQUITY

SHARE DATA

Earnings Per 5.4 3.7 3.3 3.9 4.5 5.8 3.3 3.7 4.4 5.2

Share (Rs)

Dividend Per 2.5 1.8 1.4 1.5 1.8 2 1.3 1.4 1.5 1.8

Share (Rs)

No of Shares 28.6 57.3 86.3 86.4 86.5 86.9 174.1 174.2 174.3 174.4

(In Crs)

CONCLUSION

The financial statements of the Dabur for five consecutive years (2014-2018) were analyzed
and various ratios and analysis were done.

The company should try to increase the duration of the average collection period to compete
with its competitors, by offering the customer high cost in credit sales.

The company should try to maintain its net worth for having satisfactory fund for equity
shareholders.

The company should give more emphasis to sufficient utilization of the resources and funds.

The company should improve the return on capital employed, as a source of long term funds.

The company should reduce their variable cost to increase profit margin which is very low
relatively other FMCG

REFERENCES

http://www.dabur.com/

http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=DABUR:IN

http://financials.morningstar.com/ratios/r.html?t=DABUR&region=ind&culture=en_US

http://www.indianotes.com/research-analysis/company/company-
financial.php?cc=MTI1NDAxMDMuMDA=&i=capital-structure

http://economictimes.indiatimes.com/dabur-india-ltd/stocks/companyid-11796.cms

http://www.bseindia.com/stock-share-price/dabur-india-ltd/dabur/500096/