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School of Business and Management

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FMCG Sector -
(All amounts in Rs.crores)
PARTICULARS 2017 2018
ASSET
Non-current assets
Property, plant and equipment 3,968 4,080
Capital work-in-progress 229 461
Goodwill 0 0
Other intangible assets 370 367
Goodwill on consolidation 81 81
Investments in subsidiaries, associates and joint venture
Financial assets
Investments 6 2
Loans 168 184
Other financial assets 6 6
Non-current tax assets (net) 461 635
Deferred tax assets (net) 170 302
Other non-current assets 75 84
CURRENT ASSET
Inventories 2541 2513
Financial assets
Investments 3,788 2871
loans - 4
Trade receivables 1085 1310
Cash and cash equivalents 628 649
Bank balances other than cash and cash equivalents 1200 2836
Other financial assets 331 805
Other current assets 552 656
Assets held for sale 47 16
TOTAL ASSET 15,706 17,862
EQUITY AND LIABILITIES
Equity
Equity share capital
216 216
Other equity 6,528 7,065
Non-controlling interests 22 20
Liabilities
Non-current liabilities
Financial liabilities
Other financial liabilities 73 119
Provisions 514 800
Non-current tax liabilities (net) 432 558
Deferred tax liability(net) - -
Other non current liabilities 207 197
Current liabilities
Financial liabilities
Borrowings 277 -
Trade payables 6,186 7,170
Other financial liabilities 195 214
Other current liabilities 664 815
Provisions 392 688
Total Equity and Liabilities 15706 17862
 2019 2020 2021

4,192 4,960 6,116

406 597 745
36 36 17,316
406 402 27,930
81 81 81

2 2 2
215 238 251
11 3 617
835 1083 1,246
373 284 17
158 146 219

2,574 2,767 3,579

2,714 1,253 2,707

4 - -
1,816 1,149 1,758
621 3,216 1,842
3,136 1897 2,629
605 1,420 1,188
440 601 497
4 18 17
18,629 20,153 68,757

216 216 235

7,651 8,013 47,439
18 17 20

394 939 1,027

1,082 1,227 1,578
601 424 1,367
 - - 5,988
- - -
9104

99 - -
7,206 7,535 8802
492 932 1,206
347 428 588
523 422 507
18629 29257 68757
Check
ASSETS
Property, plant and equipment
Capital work in progress
Long-term financial assets
Total Non Current Assets
Inventories
Trade and other receivables
INVESTMENTS
Cash and Cash Equivalents
Other current assets
Total Current Assets
TOTAL ASSETS

Issued capital
other reserves
Equity attributable to owners of the parent
Deferred revenue, accrued expenses and other deferred non-current liabilities
Bank loan
Non Current liabilitieis
Trade and other payables
Provisions for other liabilities and charges
Other current liabilities
Total Current liabilities
Total equity and liabilities

2020
Current Assets 14,217
Current Liabilities 9104
Working capital 5,113
Change in working capital
2021 2022 2023 2024 2025

6,116 17393.93333 20003.03333 34505.25 38645.9

745 745 745 745 745
30363 23643 23643 24114 26660.5
37,224 41781.93333 44391.03333 59364.25 66051.4
3,579 387.6164384 600.4438356 690.509589 794.0876712
1,758 6433.372603 7398.382192 8508.143836 9529.126027
21209 21209 28209 28209 27300
4,471 1565.454 1800.273 2070.315 2318.754
516 3860.023562 3288.169863 3214.187671 3388.133699
31,533 33455.4666 41296.26889 42692.1561 43330.1014
68,757 75237.39993 85687.30222 102056.4061 109381.5014

235 300 400 300 300

47439 55,438 67,149 75,836 85,827
47674 55738 67548.574 76135.98373 86126.56387
20 25 30 75 20
0 0 0 0 0
9392 9392 7648 9392 9392
8802 5718.553425 6576.339726 11344.19178 8470.334247
2301 2301 1515 2424 2301
588 2087.272 2400.364 2760.42 3091.672
11691 10106.82543 10491.70373 16528.61178 13863.00625
68757 75236.82543 85688.27773 102056.5955 109381.5701

2021 2022 2023 2024 2025

31,533 33455.47 41296.27 42692.16 43330.10
11691 10106.83 10491.70 16528.61 13863.01
19,842 23348.64 30804.57 26163.54 29467.10
14,729 3506.64 7455.92 -4641.02 3303.55
(All amounts in Rs.crores)
Cash Flow Statement 2017 2018 2019
A. CASH FLOW FROM OPERATING ACTIVITIES:
Profit Before Tax 6,229 7,337 8,604
Cash generated from operations before working capital 6,350 7,555 8,909
Cash generated from operations 7,065 8,346 8,567
(-) Taxes paid -1,859 -2,268 -2,767
Cash flow before exceptional items 5,206 6,078 -
net cash (used in) / generated from operating activiti 5,185 6,064 5,800

B. CASH FLOW FROM INVESTING ACTIVITIES:

net cash (used in) / generated from investing activiti -1,173 -1,068 -438

C. CASH FLOW FROM FINANCING ACTIVITIES:

net cash (used in) / generated financing activities - [ -4,214 -4,975 -5,390

Net increase/(decrease) in cash and cash equivalents - -202 21 -28

Add: Cash and cash equivalents at the beginning of the 830 628 649
Cash and cash equivalents at the end of the year 628 649 621
2020 2021

9,173 10,606
9,723 11,672
10,134 11,571
-2,505 -2,407
- -
7,623 9,163

1,791 -1,528

-6,819 -9,309

2,595 -1,674
621 3,216
3,216 1,842
(All amounts in Rs.crores)
Particulars 2021 2022 2023 2024 2025
Net profit 7,999 11,711 8,687 9,991 15,921
add: depreciation 1,074.00 489.28 1,391.51 1,600.24 2,760.42
less; change in new 14,729 3506.64 7455.92 4641.02 3303.55
less: Capital Expenditure 12,078 7,190 489.28 0 0
add: change in debt 0 -1744 -1744 0
add: change in ncl -267 -17 0 0 0
net cashflow -18,001 1,486 390 5,206 13,634
beg cashflow 1,842 1,469 2,955 3,345 8,551
ending -16,159 2,955 3,345 8,551 22,185
0
Particulars
INCOME 2017 2018
Revenue from operations 35,759 36,238
Other income 369 384
TOTAL INCOME 36,128 36,622
EXPENSES
Cost of materials consumed 11,946 12,927
Purchases of stock-in-trade 4,223 3,875
Changes in inventories of finished goods
work-in-progress 144 -72
Excise duty 2597 693
Employee benefits expenses 1,743 1,860
Finance costs 35 26
Depreciation and amortisation expense 432 520
Other expenses 8,766 9,456
TOTAL EXPENSES 29,886 29,285
Profit before exceptional items and tax 6,242 7,337
Exceptional items 237 -33
Profit before tax from Continuing Operation 6,479 7,304
Tax expenses
Current tax -1,947 -2,216
Deferred tax credit/(charge) -30 137
PROFIT AFTER TAX FROM CONTINUING OPERATIONS (A) 4,502 5,225
Profit/(Loss) from discontinued operations before tax 37A 2 (13)
Tax expenses of discontinued operations 37A - 1
PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS AFTER TAX (B) 2 (1 -12 2
PROFIT FOR THE YEAR (A+B) 4490 5227
 (in crores)
2019 2020 2021 2022 2023 2024 2025
39,310 39,783 47,028 51,731 59,490 68,414 76,624
550 632 410
39,860 40,415 47,438

13,707 11,976 15,432 25,865 35,694 41,048 38,312

4,755 6,391 7,121

12 -108 -405
-
1,875 1,820 2,358 3,621 4,164 4,789 5,364
33 118 117
565 1002 1074 489.28
10,081 9843 10,896
31,028 31,042 36,593
8,832 9,373 10,845
-228 -200 -239
8,604 9,173 10,606 10,606

-2,610 -2243 -2520

66 -166 -86
6,060 6764 8000

0 -8 -1
6060 6756 7999
Particulars 2017 2018 2019
Total operating revenue
EXPENSES
Changes in inventories of finished goods and work in progress
Raw materials and consumables used
Employee benefit expense
Administrative expenses
Other expenses by nature
Total Operating Expenses (excl D&A)
EBITDA
Depreciation, amortization and impairment charges
Operating profit (EBIT)
Finance Expenses
other non-operating gain (loss)
Profit before income tax
Income tax
Profit after income tax
Other Extraordinary Items
Net Profit (Loss) for the Period
2020 2021 2022 2023 2024 2025
47,438 52181.8 60009.1 69010.5 77291.8

-
15,432 26090.9 36005.5 41406.3 38645.9
2,358 3652.7 4200.6 4830.7 5410.4
-239 4174.5 4800.7 5520.8 6183.3
10,896 1043.6 1200.2 1380.2 1545.8
28,447 34961.7 46207 53138 51785.4
18,991 17220.1 13802.1 15872.5 25506.4
1,074 489.28 1391.514667 1600.242667 2760.42
17,917 16730.82 12410.58533 14272.25733 22745.98
117 0 0 0 0
-
10,606 16730.82 12410.58533 14272.25733 22745.98
2,606 5019.246 3723.1756 4281.6772 6823.794
8,000 11711.574 8687.409733 9990.580133 15922.186
-1 -1 0 0 -1
7,999 11,711 8,687 9,991 15,921
 Item Method 2022 2023
Revenue growth Horizontal 10% 15%
material cost as % of sales 50% 60%
Employee cost 7% 7%
administrationve cost as % of sales 8% 8%
other operating exp as % of sales 2% 2%
Depreciation (% of net Fixed Assets @ beg 8% 8%
interest on loan (% of loan at end) 8.00% 8.50%
Income tax % of pre tax income 30% 30%
Day's sales outstanding No.of days sales(365D) 45 45
inventory No.of days of cost of sales 60 60
OCA No.of days sales(365D) 27 20
PPE Asset turn 3 3
OCLs (as% sales) as % of sales 4.0% 4.0%
Trade Payables no. of days of sales 40 40
Investment % of PPE 3% 3%
cash
Paid in Capital Same as previous years
Defered tax Same as previous years
other non current liabiltie Same as previous years Same as previous years
other Non current assets Same as previous years
 2024 2025
15% 12%
60% 50%
7% 7%
8% 8%
2% 2%
8% 8%
9.00% 8.00%
30% 30%
45 45
60 60
17 16
2 2
4.0% 4.0%
60 40
3% 3%

as previous years
 FY 17 FY 18 FY 19 FY 20
Horizontal Analysis Formulas
Revenue growth Yn/Yn-1-1 3.30% 1.34% 8.48% 1.20%
EBITDA growth Yn/Yn-1-2 12.21% 18.28% 18.42% 11.05%
EBIT growth Yn/Yn-1-3 11.53% 18.13% 19.14% 6.54%
PAT Growth Yn/Yn-1-4 7.83% 16.49% 16.11% 11.46%

Common size statement

Income Statement
Material cost Material cost/Sa 31.52% 33.52% 33.01% 27.70%
Employee cost Employee cost/s 4.87% 5.13% 4.77% 4.57%
Other expenses Other exp/sales 27.06% 20.51% 19.54% 23.53%

Balance sheet
Tangible assets Tangible asset/t 25.26% 22.84% 22.50% 24.61%
Intangible assets Intangible asset 2.87% 2.51% 2.81% 2.58%
Inventory Inventory/total 16.18% 14.07% 13.82% 13.73%
Accounts receivable Accounts receiva 6.91% 7.33% 9.75% 5.70%

Ratio Analysis
Profitability
EBITDA margin EBITDA/Sales 17.73% 20.69% 22.59% 24.79%
EBIT margin EBIT/Sales 16.52% 19.26% 21.15% 22.27%
PAT margin PAT/Sales 11.93% 14.51% 16.00% 17.50%
Return on Assets Return/Sales 28.50% 29.19% 32.50% 33.48%
ROE PAT/equity 63.04% 72.02% 79.75% 84.45%

Efficiency

Inventory turnover sales/inventory 14.07 14.42 15.27 14.38

Inventory days inventory/sales 25.94 25.31 23.9 25.39
Receivable days Receivable/sale 11.07 13.37 18.54 11.73

Solvency
Long term
Debt to Equity Debt/Equity 0.04 0 0.01 0
Debt to Capital debt/equity+de 0.04 0 0.01 0
Interest Coverage EBIT/Interest -168.8 -268.42 -251.97 -75.08
Short term
Current ratio CA/CL 0.79 0.92 0.97 1.05
Quick ratio CA - inventory/ 0.51 0.68 0.73 0.82
DUPONT analysis
Net profit margin NP/Sales 12.52% 14.39% 15.40% 16.96%
Asset turn Sales/Assets 2.28 2.03 2.11 1.97
Equity multiplier Assets/Debt 2.32 2.45 2.36 2.44
ROE [Net profit marg 66.15% 71.41% 76.78% 81.83%

Competitor's Report -

Companies Operational ProfitInventory days ROA Net income/ net sales p/e
Dabur India Ltd 17.35 113.54 15.48 16.83 63.75
Marico Ltd 17.96 131.99 20.99 14.38 51.19
Hindustan Unilever limited 22.07 54.56 33.56 17.24 52.38
godrej 21.74 142.58 10.01 15.1 38.3
FY 21

18.21%
17.90%
19.11%
18.48%

31.84%
5.01%
20.99%

8.90%
65.92%
5.21%
2.56%

24.72%
22.44%
17.52% In percentage
11.63%
17.27%

13.14
27.78
17.94 Sales per day 97.96986301

0
0
-90.19

0.92
0.68
17.00%
0.68
1.44
16.76%