Financial Reporting, Statement and Analysis

Assignment No.1 (Academic Year 2023- 24)

Group No. TEAM 8

1.TARUNIKA
2.SHIBA
Members with USN No.
3.SIONA
4.VINITH
5.SWETHA
Section:
K
Company Name DABUR LIMITED

Title BUSINESS FINANCIAL REPORT

Evaluation:(For Faculty
Use)Scores
Student Conten Discussio Tim Tota Assignment
Name t(10) n(10) e(10) l(30) Score(Converted
to 10)

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 BUSINESS FINANCIAL REPORT OF DABUR

INTRODUCTION

Dabur India limited was incorporated on September. 16 .1975 for manufacture of High-
grade edible and industrial Guar gam powder and its sophisticated derivates. Multinational
consumer goods company and one of the fast-moving consumer goods (FMCG) company in
India. Dabur derives around 60% of its revenues from the consumer care, 11% from the food
business and remaining from international businesses

Dabur's major business is leading FMCG company and also a leader in Ayurveda with
portfolio of over 250 herbal / Ayurvedic products. They operate in Key consumer products
categories like hair care oil. oral care, health, skin care, home care and foods are the major
business of Dabur in market.

Dabur is a consumer goods producing company with a huge market share and India fast
moving consumer goods and manufactures Ayurvedic medicine and natural consumer products.
which produces the end product for consumer usage purpose is called and Dabur falls under
consumer goods producing company which has good market share in ayurvedic producing and
both domestic and international.

KEY MANAGEMENT PEOPLE

Dabur has the good brand image in people mindset to maintain that Dabur has appointed
good team to continue legacy of throughout. The key decision are taken by the boar of directors
all are from Burman family. The board of directors has 12 members.

Mr. Amit Burman, Mohit Burman, Anand Burman

- AK Tain - Executive vice president

- Adity Burman - Director

- Ajay - Director

- Mohit Burman - Vice Chairman

- Saket Burman - Director

- Mohit Malhotra – CE
 - Ankush Jain – CFO

SHARE HOLDING PATTERN

Dabur has a total of Approx 5 lakh shareholders with 99.83 percent holding in Demat form

BOARD MANAGEMENT DISCUSSION AND ANALYSIS

1) In April outlook IMF has further moderated its global growth outlook to 36% in 2022 and
2023 and 2023.

2) Russia Ukraine war, Corona out-break all made world economy slower to 3.6% and supply
chain disruption around the world.

3) Government announce outlay of Rs 1.97 lakh crore for production link incentive.
4) (FMCG) industry reported strong growth during 2021-2022 driven by price.

5) Growing awareness, access through online and delivery channels and changing lifestyle have
key growth drivers for the sector.

6) Dabur India leveraged the emerging growth. Opportunities and braved the growing
headwinds.

7) Dabur also expanded its basket of digital first innovations co-orating special offerings with
online retailors

8) Dabur Ayurvedic is most trusted brand and one of the world largest Ayurvedic and natural
health care company.

9) Ayurvedic products demand growth in covid across the country

AUDITOR REPORT - SUMMARY

1- Audit matters are those that in our professional Judgement.

2- Revenues of the company consists primarily of sale products and is recognized when
of products being sold no unfilled obligation.
3- Ansesed modification other impact on the contracts of covid-19 outbreak.
4- Company involved direct, indirect tax and other litigation is considered high.
5- Ansesed the appropriates of the company. Accounting policies relating to provisions
and contingent liability.
 6- Substantive procedures on the underlying calculations supporting the provisions
needed.
7- The company board of directors are responsible for the other information report on
corporate governance, and directors

8- The accompanying stand lone financial statement have been approved by the company
board codirectors Management has represented that to the best this knowledge and belief.

→ walker Chandiok and coLLP charted accountant

9- Depreciation is calculated on a straight-line basis over the estimated useful lives of the

Here's the ratio/financial analysis of DABUR for the past 5 years.

FY19 FY20 FY21 FY22 FY23

Operating Profit Margin (%) 19.6 19.5 20.9 19.9 18.7

Net Profit Margin (%) 17.0 16.7 17.7 16.0 14.8

Debt to Equity Ratio (x) 0.0 0.0 0.0 0.0 0.0

DABUR Income Statement Analysis

 Operating income during the year rose 5.9% on a year-on-year (YoY) basis.
 The company's operating profit decreased by 0.2% YoY during the fiscal. Operating
profit margins witnessed a fall and stood at 18.7% in FY23 as against 19.9% in FY22.
 Depreciation charges increased by 23.0% and finance costs increased by 102.7% YoY,
respectively.
 Other income grew by 13.3% YoY.
 Net profit for the year declined by 2.4% YoY.
 Net profit margins during the year declined from 16.0% in FY22 to 14.8% in FY23.

DABUR Income Statement 2022-23

No. of Moths Year Ending 12 Mar-22* 12 Mar-23* % Change

Net Sales Rs m 108,887 115,299 5.9%

Other income Rs m 3,932 4,454 13.3%

Total Revenues Rs m 112,818 119,753 6.1%

Gross profit Rs m 21,637 21,584 -0.2%

Depreciation Rs m 2,496 3,069 23.0%

Interest Rs m 386 782 102.7%

Profit before tax Rs m 22,687 22,187 -2.2%

Tax Rs m 5,264 5,174 -1.7%

Profit after tax Rs m 17,423 17,013 -2.4%

Gross profit margin % 19.9 18.7

Effective tax rate % 23.2 23.3

 Net profit margin % 16.0 14.8

DABUR Cash Flow Statement Analysis

 DABUR's cash flow from operating activities (CFO) during FY23 stood at Rs 15 billion
on a YoY basis.
 Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion on a YoY
basis.
 Cash flow from financial activities (CFF) during FY23 stood at Rs -10 billion on a YoY
basis.
 Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs
384 million net cash flows seen during FY22.

DABUR Cash Flow Statement 2022-23

No. of
12 12
months
%
Particulars
Change
Year Mar- Mar-
Ending 22 23

Cash Flow from Operating

Rs m 18,023 14,884 -17.4%
Activities

Cash Flow from Investing -

Rs m -5,865 -
Activities 12,755

Cash Flow from Financing -

Rs m -4,905 -
Activities 10,352

Net Cash Flow Rs m 384 -1,296 -

The cash flow statement of DABUR reveals:

 Cash flow from operations decreased in FY23 and stood at Rs 14,884 m as compared
to Rs 18,023 m in FY22.
 Cash flow from investments increased in FY23 and stood at Rs -5,865 m as compared
to Rs -12,755 m in FY22.
 Cash flow from financial activity decreased in FY23 and stood at Rs -10,352 m as
compared to Rs -4,905 m in FY22.

Here's the cash flow statement of DABUR for the past 5 years.

(Rs m) FY19 FY20 FY21 FY22 FY23

From Operations 14,991 16,136 21,147 18,023 14,884

From Investments 3,369 -5,168 -14,058 -12,755 -5,865

From Financial Activity -18,882 -10,430 -6,134 -4,905 -10,352

Net Cashflow -515 540 970 384 -1,296

Current Valuations for DABUR

 The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an
decline from the EPS of Rs 9.9 recorded last year.
 The price to earnings (P/E) ratio, at the current price of Rs 572.3, stands at 59.5 times
its trailing twelve months earnings.
 The price to book value (P/BV) ratio at current price levels stands at 11.4 times, while
the price to sales ratio stands at 8.8 times.
 The company's price to cash flow (P/CF) ratio stood at 48.2 times its end-of-year
operating cash flow earnings.

Per Share Data/Valuations

No. of Moths Year Ending 12 Mar-22* 12 Mar-23*

Sales per share (Unadj.) Rs 61.6 65.1

 TTM Earnings per share Rs 9.9 9.6

Diluted earnings per share Rs 9.8 9.6

Price to Cash Flow x 47.7 48.2

TTM P/E ratio x 54.5 59.5

Price / Book Value ratio x 12.5 10.9

Market Cap Rs m 1,026,020 967,914

Dividends per share (Unadj.) Rs 5.2 5.2

Ratio Analysis for DABUR

No. of Mths Year Ending 12 Mar-22* 12 Mar-23*

Current ratio x 1.3 1.2

Debtors’ Days Days 2 3

Interest coverage x 59.8 29.4

Debt to equity ratio x 0.0 0.0

Return on assets % 14.5 13.0

Return on equity % 21.2 19.1

Return on capital employed % 27.2 24.9

Over the last one year, DABUR share price has moved up from Rs 543.8 to Rs 572.3,
registering a gain of Rs 28.5 or around 5.2%.
Meanwhile, the S&P BSE FMCG Index is trading at Rs 18,985.5 (down 1.5%). Over the last
one year it has moved up from 14,868.3 to 18,985.5, a gain of 4,117 points (up 27.7%).
Overall, the S&P BSE SENSEX is up 22.9% over the year.
(To know more, check out historical annual results for DABUR and quarterly results for
DABUR)

CONCLUSION:

Dabur India’s brand portfolio now has 23 brands, each with sales higher than Rs 100
crore. In the last year, they added five new brands. Their juice brand, Real, achieved remarkable
growth, with revenues surpassing Rs 1,600 crore and a target to reach Rs 2,000 crore soon.
Dabur plans to spend more money on ads and promotions amid softening commodity prices,
which would help them make more profit in the fiscal year 2024.

Dabur has primarily faced the challenge of rigid competition and because of its brand
name and high-quality product, customers believe that Dabur provides 100 percent natural
products, it has always overcome the issue. The social factors that influenced the clients’
emotions were targeted by Dabur. The desire to change ahead of others and to always set new
standards in corporate governance & creativity is what separates Dabur.