DABUR 2020-21 Annual Report Analysis

Wed, 31 Mar

DABUR has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

DABUR Income Statement Analysis

• Operating income during the year rose 10.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in FY21 as against 19.5% in FY20.
• Depreciation charges increased by 8.9% and finance costs decreased by 37.8% YoY, respectively.
• Other income grew by 6.6% YoY.
• Net profit for the year grew by 17.1% YoY.
• Net profit margins during the year grew from 16.7% in FY20 to 17.8% in FY21.

DABUR Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	86,657	95,316	10.0%
Other income	Rs m	3,053	3,253	6.6%
Total Revenues	Rs m	89,710	98,568	9.9%
Gross profit	Rs m	16,924	20,027	18.3%
Depreciation	Rs m	2,205	2,401	8.9%
Interest	Rs m	495	308	-37.8%
Profit before tax	Rs m	17,277	20,570	19.1%
Tax	Rs m	2,797	3,611	29.1%
Profit after tax	Rs m	14,479	16,960	17.1%
Gross profit margin	%	19.5	21.0
Effective tax rate	%	16.2	17.6
Net profit margin	%	16.7	17.8

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DABUR Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 29 billion as compared to Rs 25 billion in FY20, thereby witnessing an increase of 19.1%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY20, a fall of 17.7%.
• Current assets fell 2% and stood at Rs 48 billion, while fixed assets rose 36% and stood at Rs 61 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 108 billion as against Rs 93 billion during FY20, thereby witnessing a growth of 16%.

DABUR Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	65,125	75,398	15.8
Current Liabilities	Rs m	24,639	29,342	19.1
Long-term Debt	Rs m	1,629	1,341	-17.7
Total Liabilities	Rs m	93,320	108,292	16.0
Current assets	Rs m	48,803	47,759	-2.1
Fixed Assets	Rs m	44,518	60,532	36.0
Total Assets	Rs m	93,320	108,292	16.0

DABUR Cash Flow Statement Analysis

• DABUR's cash flow from operating activities (CFO) during FY21 stood at Rs 21 billion, an improvement of 31.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -14 billion, an improvement of 172.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 970 million from the Rs 540 million net cash flows seen during FY20.

DABUR Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	16,136	21,147	31.1%
Cash Flow from Investing Activities	Rs m	-5,168	-14,058	-
Cash Flow from Financing Activities	Rs m	-10,430	-6,134	-
Net Cash Flow	Rs m	540	970	79.6%

Current Valuations for DABUR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 540.7, stands at 56.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.7 times, while the price to sales ratio stands at 10.0 times.
• The company's price to cash flow (P/CF) ratio stood at 44.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	49.0	53.9
TTM Earnings per share	Rs	8.2	9.6
Diluted earnings per share	Rs	8.2	9.6
Price to Cash Flow	x	47.7	44.4
TTM P/E ratio	x	55.0	56.4
Price / Book Value ratio	x	12.0	11.4
Market Cap	Rs m	779,629	860,559
Dividends per share (Unadj.)	Rs	3.0	4.8

Ratio Analysis for DABUR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY21, from 2.0x during FY20. 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 improved and stood at 67.8x during FY21, from 35.9x during FY20. 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 22.5% during FY21, from 22.2% during FY21. 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 27.2% during FY21, from 26.6% during FY20. 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 declined and down at 15.9% during FY21, from 16.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.0	1.6
Debtors’ Days	Days	3	2
Interest coverage	x	35.9	67.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.0	15.9
Return on equity	%	22.2	22.5
Return on capital employed	%	26.6	27.2

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 450.3 to Rs 540.7, registering a gain of Rs 90.5 or around 20.1%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,875.4 (up 1.1%). Over the last one year it has moved up from 10,254.9 to 12,875.4, a gain of 2,621 points (up 25.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of DABUR