DB CORP LTD

Presented by:
Harsha Chotrani
Kamal Sewani
 COMPANY PROFILE
 It was incorporated in 1995 and is one of the leading print media
companies in India .
 D B Corp is the only Newspaper Group which has presence in 10 states
and 1 Union territory, in 3 different languages namely Hindi, Gujarati
and English.
 DBCL has strong presence in the Tier II and Tier III cities and daily
readership of 15.5 million readers .
 It operates an FM radio business under the brand name MY FM through
its subsidiary, Synergy Media Entertainment (SMEL) . Through SMEL; it
operates 17 FM radio stations.
 Through I Media Corp Limited (IMCL), DBCL also operate Internet
portals.
 BUSINESS STRATEGY
 Strong connection with advertisers & Consumers
 Robust marketing strategy
 Ability to identify and capitalize upon new market opportunities in
local and regional areas.
 DBCL has grown from being a single-state, five-edition newspaper
business just over a decade ago to a strong player in the newspaper
industry with a presence in 11 states, publishing 48 editions in
three different languages. This has resulted in the growth of its
readership from 3.2 million in 1995 to 15.5 million in 2009.
 Efficient and speedy execution ability
 RATIO ANALYSIS
RATIOS 2007 2008 2009
Profitability Ratios

1. Gross Profit Ratio 12.75% 21.85% 15.66%

1. Net Profit Ratio 8.90% 11.96% 7.35%

Current Ratio 1.47 1.30 1.31

Liquid Ratio 0.71 0.81 0.70

Debt To Equity Ratio 1.89 1.07 1.69

Return On Capital Employed 14.3 % 26% 13.9%

EPS 3.1 4.2 2.6

DPS 1.00 0.50 0.50

Fixed Asset Turnover Ratio 2.98 2.90 2.63

Debtors Turnover Ratio 5.01 5.23 5.42

Creditors Turnover Ratio 7.15 5.09 5.98

 PROFITABILITY RATIO
25 14
21.85 11.96
12
20
10
15.66 8.9
15
12.75 8 7.35

10 6

4
5
2
0
2007 2008 2009 0
2007 2008 2009

Gross Profit Ratio(%) Net Profit Ratio(%)

 LIQUIDITY RATIO
0.82
1.5
0.8

1.45 0.78
0.76
1.4
0.74
1.35 0.72 0.81
1.47
0.7
1.3
0.68 0.71
1.3 1.31 0.7
1.25 0.66

1.2 0.64
2007 2008 2009 2007 2008 2009

Current Ratio Liquid Ratio

 EPS and DPS
5
4.5
4
3.5
3
2.5 EPS
DPS
2
1.5
1
0.5
0
2007 2008 2009
 2 30
26
1.8
25
1.6
1.4 20

1.2 14.3 13.9

15
1
1.89
0.8 1.69 10

0.6 5
1.07
0.4
0
0.2 2007 2008 2009
0
2007 2008 2009
Debt to equity ratio Return On Capital Employed(%)
 Fixed Asset Turnover Ratio
Fixed Asset Turnover Ratio

2.98
2.9

2.63

2007 2008 2009

 Debtors Turnover Ratio Creditors Turnover Ratio
Debtors Turnover Ratio Creditors Turnover Ratio

5.42
7.15
5.23
5.98
5.09
5.01

2007 2008 2009

2007 2008 2009

 CASH FLOW ANALYSIS
2007 2008 2009

Profit Before Tax 66.92 164.14 111.32

Cash Flow From Operations 111.57 201.39 130.73

Cash Flow From Investment -68.95 -101.23 -307.80

Activities

Cash Flow From Financing Activities -32.90 -81.75 177.34

Net Increase in Cash & Cash 9.71 18.40 0.28

Equivalents

Opening Cash & Cash Equivalents 7.96 15.38 33.78

Closing Cash & Cash Equivalents 17.67 33.78 34.06

 Du Pont Analysis
2007 2008 2009

Net Income (PAT) / 8.9 % 11.98 % 7.3 %

Sales

EBIT / Sales 14.26 % 22.94 % 15.55 %

EBT / EBIT 0.72 0.80 0.74

Net Income / EBT 9.56 5.38 8.64

PAT / Equity 4.5 0.17 0.11

PAT / Assets 8.49 % 11.95% 5.79%

Assets / Equity 53.00 1.44 2.01

 FUND FLOW ANALYSIS

 Both Internal and External sources are used.

 Less emphasis on borrowing.

 Investment in fixed assets

 Capital Work-In-Progress is continuously increasing.

 Current assets showing downward trend.

 CONCLUSION
 Effect of slowdown on the company.

 Shortage of liquid cash

 Creditor turnover ratio is more.

 EPS and DPS

 Debt
Thank You