DABUR 2021-22 Annual Report Analysis

Sun, 17 Jul

DABUR has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

DABUR Income Statement Analysis

• Operating income during the year rose 13.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.9% in FY22 as against 20.9% in FY21.
• Depreciation charges increased by 5.3% and finance costs increased by 25.3% YoY, respectively.
• Other income grew by 20.9% YoY.
• Net profit for the year grew by 2.8% YoY.
• Net profit margins during the year declined from 17.7% in FY21 to 16.0% in FY22.

DABUR Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	95,617	108,887	13.9%
Other income	Rs m	3,253	3,932	20.9%
Total Revenues	Rs m	98,869	112,818	14.1%
Gross profit	Rs m	20,027	21,688	8.3%
Depreciation	Rs m	2,401	2,529	5.3%
Interest	Rs m	308	386	25.3%
Profit before tax	Rs m	20,570	22,705	10.4%
Tax	Rs m	3,611	5,264	45.8%
Profit after tax	Rs m	16,960	17,441	2.8%
Gross profit margin	%	20.9	19.9
Effective tax rate	%	17.6	23.2
Net profit margin	%	17.7	16.0

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DABUR Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 33 billion as compared to Rs 29 billion in FY21, thereby witnessing an increase of 13.2%.
• Long-term debt stood at Rs 3 billion as compared to Rs 13 million during FY21, a growth of 19011.5%.
• Current assets fell 10% and stood at Rs 43 billion, while fixed assets rose 32% and stood at Rs 80 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 123 billion as against Rs 108 billion during FY21, thereby witnessing a growth of 13%.

DABUR Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	75,398	82,331	9.2
Current Liabilities	Rs m	29,342	33,225	13.2
Long-term Debt	Rs m	13	2,504	19,011.5
Total Liabilities	Rs m	108,292	122,839	13.4
Current assets	Rs m	47,759	43,168	-9.6
Fixed Assets	Rs m	60,532	79,670	31.6
Total Assets	Rs m	108,292	122,839	13.4

DABUR Cash Flow Statement Analysis

• DABUR's cash flow from operating activities (CFO) during FY22 stood at Rs 18 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -13 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -5 billion, an improvement of 20% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 384 million from the Rs 970 million net cash flows seen during FY21.

DABUR Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	21,147	18,023	-14.8%
Cash Flow from Investing Activities	Rs m	-14,058	-12,755	-
Cash Flow from Financing Activities	Rs m	-6,134	-4,905	-
Net Cash Flow	Rs m	970	384	-60.4%

Current Valuations for DABUR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an improvement from the EPS of Rs 9.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 548.0, stands at 55.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.8 times, while the price to sales ratio stands at 8.9 times.
• The company's price to cash flow (P/CF) ratio stood at 51.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	54.1	61.6
TTM Earnings per share	Rs	9.6	9.9
Diluted earnings per share	Rs	9.6	9.8
Price to Cash Flow	x	49.5	51.4
TTM P/E ratio	x	56.5	55.7
Price / Book Value ratio	x	11.4	12.5
Market Cap	Rs m	860,559	1,026,020
Dividends per share (Unadj.)	Rs	4.8	5.2

Ratio Analysis for DABUR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.6x during FY21. 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 59.8x during FY22, from 67.8x during FY21. 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 declined and down at 21.2% during FY22, from 22.5% during FY22. 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 declined and down at 27.2% during FY22, from 27.7% during FY21. 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 14.5% during FY22, from 15.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.6	1.3
Debtors’ Days	Days	2	2
Interest coverage	x	67.8	59.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.9	14.5
Return on equity	%	22.5	21.2
Return on capital employed	%	27.7	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 down from Rs 580.4 to Rs 548.0, registering a loss of Rs 32.4 or around 5.6%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 15,091.9 (up 1.5%). Over the last one year it has moved up from 13,593.0 to 15,091.9, a gain of 1,499 points (up 11.0%).

Overall, the S&P BSE SENSEX is up 1.6% 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