DABUR 2017-18 Annual Report Analysis

Sat, 31 Mar

DABUR has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

DABUR Income Statement Analysis

• Operating income during the year rose 2.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.8% in FY18 as against 20.1% in FY17.
• Depreciation charges increased by 13.5% and finance costs decreased by 10.1% YoY, respectively.
• Other income grew by 0.6% YoY.
• Net profit for the year grew by 6.0% YoY.
• Net profit margins during the year grew from 17.0% in FY17 to 17.6% in FY18.

DABUR Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	75,257	76,954	2.3%
Other income	Rs m	3,033	3,052	0.6%
Total Revenues	Rs m	78,291	80,005	2.2%
Gross profit	Rs m	15,089	16,029	6.2%
Depreciation	Rs m	1,429	1,622	13.5%
Interest	Rs m	590	531	-10.1%
Profit before tax	Rs m	16,104	16,929	5.1%
Tax	Rs m	3,303	3,354	1.5%
Profit after tax	Rs m	12,801	13,575	6.0%
Gross profit margin	%	20.1	20.8
Effective tax rate	%	20.5	19.8
Net profit margin	%	17.0	17.6

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DABUR Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 24 billion as compared to Rs 22 billion in FY17, thereby witnessing an increase of 9.4%.
• Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY17, a fall of 22.5%.
• Current assets rose 10% and stood at Rs 34 billion, while fixed assets rose 14% and stood at Rs 53 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 87 billion as against Rs 77 billion during FY17, thereby witnessing a growth of 13%.

DABUR Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	47,583	56,139	18.0
Current Liabilities	Rs m	22,245	24,344	9.4
Long-term Debt	Rs m	4,704	3,643	-22.5
Total Liabilities	Rs m	77,322	87,016	12.5
Current assets	Rs m	31,145	34,398	10.4
Fixed Assets	Rs m	46,178	52,619	13.9
Total Assets	Rs m	77,322	87,016	12.5

DABUR Cash Flow Statement Analysis

• DABUR's cash flow from operating activities (CFO) during FY18 stood at Rs 11 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -265 million from the Rs 809 million net cash flows seen during FY17.

DABUR Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	12,269	10,915	-11.0%
Cash Flow from Investing Activities	Rs m	-8,069	-5,400	-
Cash Flow from Financing Activities	Rs m	-3,390	-5,771	-
Net Cash Flow	Rs m	809	-265	-

Current Valuations for DABUR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.7, an improvement from the EPS of Rs 7.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 327.0, stands at 42.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.3 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 36.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	42.7	43.7
TTM Earnings per share	Rs	7.3	7.7
Diluted earnings per share	Rs	7.2	7.7
Price to Cash Flow	x	34.4	36.7
TTM P/E ratio	x	38.4	42.6
Price / Book Value ratio	x	10.5	9.9
Market Cap	Rs m	497,718	557,609
Dividends per share (Unadj.)	Rs	2.3	7.5

Ratio Analysis for DABUR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.4x during FY17. 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 32.9x during FY18, from 28.3x during FY17. 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 24.2% during FY18, from 26.9% during FY18. 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 29.2% during FY18, from 31.9% during FY17. 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 16.2% during FY18, from 17.3% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.4	1.4
Debtors’ Days	Days	3	3
Interest coverage	x	28.3	32.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	17.3	16.2
Return on equity	%	26.9	24.2
Return on capital employed	%	31.9	29.2

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 277.2 to Rs 327.0, registering a gain of Rs 49.9 or around 18.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,290.1 (down 0.4%). Over the last one year it has moved up from 9,270.3 to 10,290.1, a gain of 1,020 points (up 11.0%).

Overall, the S&P BSE SENSEX is up 12.1% 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