DABUR 2022-23 Annual Report Analysis

Sun, 9 Jul

DABUR has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

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 Mths 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

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DABUR Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 36 billion as compared to Rs 33 billion in FY22, thereby witnessing an increase of 8.6%.
• Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY22, a growth of 19.4%.
• Current assets fell 2% and stood at Rs 42 billion, while fixed assets rose 18% and stood at Rs 94 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 137 billion as against Rs 123 billion during FY22, thereby witnessing a growth of 11%.

DABUR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	82,331	89,142	8.3
Current Liabilities	Rs m	33,225	36,094	8.6
Long-term Debt	Rs m	2,504	2,988	19.4
Total Liabilities	Rs m	122,839	136,523	11.1
Current assets	Rs m	43,165	42,490	-1.6
Fixed Assets	Rs m	79,670	94,033	18.0
Total Assets	Rs m	122,839	136,523	11.1

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

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	18,023	14,884	-17.4%
Cash Flow from Investing Activities	Rs m	-12,755	-5,865	-
Cash Flow from Financing Activities	Rs m	-4,905	-10,352	-
Net Cash Flow	Rs m	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 Mths 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

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.3x during FY22. 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 29.4x during FY23, from 59.8x during FY22. 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 19.1% during FY23, from 21.2% during FY23. 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 24.9% during FY23, from 27.2% during FY22. 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 13.0% during FY23, from 14.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

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

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 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)