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DABUR 2018-19 Annual Report Analysis
Sun, 31 Mar

DABUR has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

DABUR Income Statement Analysis

  • Operating income during the year rose 10.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 3.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.6% in FY19 as against 20.8% in FY18.
  • Depreciation charges increased by 9.1% and finance costs increased by 12.3% YoY, respectively.
  • Other income declined by 3.0% YoY.
  • Net profit for the year grew by 6.5% YoY.
  • Net profit margins during the year declined from 17.6% in FY18 to 17.0% in FY19.

DABUR Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 76,954 84,969 10.4%
Other income Rs m 3,052 2,962 -3.0%
Total Revenues Rs m 80,005 87,931 9.9%
Gross profit Rs m 16,029 16,642 3.8%
Depreciation Rs m 1,622 1,769 9.1%
Interest Rs m 531 596 12.3%
Profit before tax Rs m 16,929 17,239 1.8%
Tax Rs m 3,354 2,786 -16.9%
Profit after tax Rs m 13,575 14,453 6.5%
Gross profit margin % 20.8 19.6
Effective tax rate % 19.8 16.2
Net profit margin % 17.6 17.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

DABUR Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 27 billion as compared to Rs 24 billion in FY18, thereby witnessing an increase of 9.3%.
  • Long-term debt down at Rs 261 million as compared to Rs 4 billion during FY18, a fall of 92.9%.
  • Current assets rose 4% and stood at Rs 36 billion, while fixed assets fell 8% and stood at Rs 49 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 84 billion as against Rs 87 billion during FY18, thereby witnessing a fall of 3%.

DABUR Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 56,139 55,567 -1.0
 
Current Liabilities Rs m 24,344 26,603 9.3
Long-term Debt Rs m 3,643 261 -92.9
Total Liabilities Rs m 87,016 84,366 -3.0
 
Current assets Rs m 34,398 35,862 4.3
Fixed Assets Rs m 52,619 48,504 -7.8
Total Assets Rs m 87,016 84,366 -3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DABUR Cash Flow Statement Analysis

  • DABUR's cash flow from operating activities (CFO) during FY19 stood at Rs 15 billion, an improvement of 37.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -19 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -515 million from the Rs -265 million net cash flows seen during FY18.

DABUR Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 10,915 14,991 37.3%
Cash Flow from Investing Activities Rs m -5,400 3,369 -
Cash Flow from Financing Activities Rs m -5,771 -18,882 -
Net Cash Flow Rs m -265 -515 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DABUR

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 7.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 409.1, stands at 50.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 13.0 times, while the price to sales ratio stands at 8.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 44.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 43.7 48.1
TTM Earnings per share Rs 7.7 8.2
Diluted earnings per share Rs 7.7 8.2
Price to Cash Flow x 38.0 44.5
TTM P/E ratio x 42.6 50.0
Price / Book Value ratio x 9.9 13.0
Market Cap Rs m 557,609 722,148
Dividends per share (Unadj.) Rs 7.5 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DABUR

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.4x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 29.9x during FY19, from 32.9x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 26.0% during FY19, from 24.2% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 31.9% during FY19, from 29.2% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 17.8% during FY19, from 16.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.4 1.3
Debtors’ Days Days 3 4
Interest coverage x 32.9 29.9
Debt to equity ratio x 0.1 0.0
Return on assets % 16.2 17.8
Return on equity % 24.2 26.0
Return on capital employed % 29.2 31.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DABUR has performed over the last 5 years, please visit here.

DABUR Share Price Performance

Over the last one year, DABUR share price has moved up from Rs 327.0 to Rs 409.1, registering a gain of Rs 82.1 or around 25.1%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,741.5 (down 0.1%). Over the last one year it has moved up from 10,290.1 to 11,741.5, a gain of 1,451 points (up 14.1%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for DABUR and quarterly results for DABUR)

Annual Report FAQs

What is the current share price of DABUR?

DABUR currently trades at Rs 525.0 per share. You can check out the latest share price performance of DABUR here...

What was the revenue of DABUR in FY19? How does it compare to earlier years?

The revenues of DABUR stood at Rs 87,931 m in FY19, which was up 9.9% compared to Rs 80,005 m reported in FY18.

DABUR's revenue has grown from Rs 79,061 m in FY15 to Rs 87,931 m in FY19.

Over the past 5 years, the revenue of DABUR has grown at a CAGR of 2.7%.

What was the net profit of DABUR in FY19? How does it compare to earlier years?

The net profit of DABUR stood at Rs 14,453 m in FY19, which was up 6.5% compared to Rs 13,575 m reported in FY18.

This compares to a net profit of Rs 12,801 m in FY17 and a net profit of Rs 12,539 m in FY16.

Over the past 5 years, DABUR net profit has grown at a CAGR of 7.8%.

What does the cash flow statement of DABUR reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of DABUR reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 14,991 m as compared to Rs 10,915 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs 3,369 m as compared to Rs -5,400 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -18,882 m as compared to Rs -5,771 m in FY18.

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

(Rs m)FY15FY16FY17FY18FY19
From Operations10,47211,87012,26910,91514,991
From Investments-8,762-7,303-8,069-5,4003,369
From Financial Activity-4,168-3,743-3,390-5,771-18,882
Net Cashflow-2,455824809-265-515

What does the Key Ratio analysis of DABUR reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of DABUR reveals:

  • Operating profit margins witnessed a fall and stood at 19.6% in FY19 as against 20.8% in FY18.
  • Net profit margins declined from 17.6% in FY18 to 17.0% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.1 in FY18.

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

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)17.019.720.120.819.6
Net Profit Margin (%)13.816.317.017.617.0
Debt to Equity Ratio (x)0.10.10.10.10.0

Read: Latest Annual Report Analysis of DABUR

 

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1 Responses to "DABUR 2018-19 Annual Report Analysis"

Lokesh

Nov 28, 2020

Please send the full analysis

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