FINANCIAL REPORTING AND

ANALYSIS

- Dr. Akanksha Saxena

FINAL GROUP PRESENTATION

Presented by

GROUP 1
Aashi Arya PGP13003 Aayushi PGP13005
Aanchal Singh PGP13002 Aryan Bokde PGP13043
Aditya Miglani IPM01003 Arnav Gupta PGP13042
Ayush Raut PGP13049 Ankurita Debnath PGP13030

FAST MOVING CONSUMER GOODS

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 INDIAN FMCG INDUSTRY MARKET SIZE - $110
BILLION
1 STATISTICS 2 ADVANTAGES
220
MARKET SIZE OF INDIAN FMCG INDUSTRY GROWING
($ BILLIONS) DEMAND
Packaged food industry to reach $70 billion by
2025
110
Rising digital connectivity in urban and rural
83.3 areas
68.4
49 52.8
43.1
31.6 33.3 35.7 38.8
OPPORTUNITIES
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025E Increase in disposable income in rural areas and
low penetration in rural market

REVENUE (2020) E-commerce to contribute 11% of the total

revenue by 2030
$110 BILLION
ONLINE FMCG MARKET SIZE HIGHER
INVESTMENT
$2.9 BILLION FMCG attracts investors as demand is stable
throughout the year

EXPECTED CAGR (2020-25) FDI inflow of $20.11 billion from March 2000 to
14.9% March 2022

2
Source: Statista
 Nestle CMP 19,038
Nestle India is a subsidiary of Nestle SA, the largest FMCG company in the world by Revenue
Market Capital ₹183,649Cr Current Price ₹19,038 52Week H/L ₹20,609/16,000
Stock P/E 80.0 Book Value ₹241 Dividend Yield 1.05%

ROCE 147% ROE 113% Face Value ₹10

Third Largest Company by One of the highest in the FMCG Company is maintaining a healthy
Market Capital Industry dividend payout of 117%

Milk Product Prepared Dishes &

and Nutrition
46 Beverages 29 Confectionary 13 Cooking Aids 12
% % % %
Profit & Loss Statement for the Year 2017-2022 Profit & Loss Ratios
Figures in Crores 2018 2019 2020 2021 2022 Ratios 5-Year 3-Year 1-Year

Revenue 11,292 12,369 13,350 14,709 15,639 Compounded 10% 9% 11%

Expense 8,675 9,443 10,149 11,118 12,081 Sales Growth

Operating Profit 2,618 2,926 3,202 3,592 3,558

Compounded 18% 13% 4%
OPM% 23% 24% 24% 24% 23% Profit Growth
DII -189 -252 -388 -707 -710
Stock Price 21% 14% -7%
Profit Before Tax 2,429 2,673 2,813 2,884 2,848 CAGR
Tax% 34% 26% 26% 26% 25%
Return on 67% 93% 113%
Net Profit 1,607 1,968 2,082 2,145 2,114 Equity
EPS in Rs. ₹166. ₹204.2 ₹215.9 ₹222. ₹219.
 Nestle CMP 19,038
Balance Sheet for the Year 2017-2022 Ratios
Figures in Crores 2018 2019 2020 2021 2022 Days Cash
Conversion
Working
Capital
ROCE
%
Share Capital 96 96 96 96 96 Cycle Days

Reserves 3,577 1,822 1,923 1,988 2,232 2018 -22 -21 71%
Borrowings 35 189 147 266 280 2019 -14 -19 96%
Other Liabilities 4,379 5,065 5,733 5,860 6,008 2020 -3 -21 139%
Total Liabilities 8,088 7,173 7,900 8,210 8,616 2021 -7 -15 147%
Fixed Assets 2,401 2,341 2,179 2,994 3,054
Investments 2,658 1,751 1,464 774 809 Promoter’s Holding Pattern
Other Assets 3,029 3,080 4,257 4,342 4,753
Total Assets 8,088 7,173 7,900 8,210 8,616

Cashflow for the Year 2017-2022

Figures in Crores 2018 2019 2020 2021 2022

63.24%
63.24%
62.24%
Cash from Operating 1,818 2,052 2,295 2,454 2,271

7.32%
7.11%
6.69%
29.66%
30.09%
29.45%
Cash from Investing -131 -52 83 -321 -1,957
Cash from Financing -997 -1,317 -3,602 -1,956 -2,019 Promoters Institutional Investors Public

Net Cash Flow 691 683 -1,223 177 -1,704 2020 2021 2022
 Dabur CMP 571
Dabur is a leading FMCG Players leading in Consumer Care and Food Products
Market Capital ₹101,097Cr Current Price ₹571 52Week H/L ₹659/482
Stock P/E 56.0 Book Value ₹47.4 Dividend Yield 0.91%

ROCE 27.2% ROE 22.5% Face Value ₹1.00

Health
Suppliments 20.5 Hair Care 19.4 Oral Care 17.6 Food & Beverages 16.9
OCT and % % % %
Ethicals
9.9 Home Care 5.9 Digestive 5.5 Skin Care 4.3
% % % %
Profit & Loss Statement for the Year 2017-2022 Profit & Loss Ratios
Figures in Crores 2018 2019 2020 2021 2022 Ratios 5-Year 3-Year 1-Year

Revenue 7,722 8,515 8,685 9,562 10,889 Compounded 7% 9% 9%

Expense 6,104 6,775 6,892 7,560 8,637 Sales Growth

Operating Profit 1,617 1,740 1,792 2,002 2,252 Compounded 7% 6% 1%

OPM% 21% 20% 21% 21% 21% Profit Growth

DII +76 -15 -65 +54 +16

Stock Price 13% 8% -11%
Profit Before Tax 1,693 1,725 1,728 2,056 2,269 CAGR
Tax% 20% 16% 16% 18% 23%
Return on 24% 24% 22%
Net Profit 1,358 1,446 1,448 1,695 1,742 Equity
EPS in Rs. ₹7.69 ₹8.17 ₹8.18 ₹9.58 ₹9.84
 Dabur CMP 571
Balance Sheet for the Year 2017-2022 Ratios
Figures in Crores 2018 2019 2020 2021 2022 Days Cash
Conversion
Working
Capital
ROCE
%
Share Capital 177 177 177 177 177 Cycle Days

Reserves 5,530 5,455 6,429 7,486 8,204 2018 13 21 28%

Borrowings 937 700 522 509 1,030 2019 17 16 29%
Other Liabilities 2,057 2,105 2,208 2,660 2,872 2020 22 22 28%
Total Liabilities 8,701 8,436 9,336 10,833 12,283 2021 3 5 27%
Fixed Assets 2,028 1,969 2,253 2,243 2,308
Investments 3,805 3,359 2,800 4,160 6,220 Promoter’s Holding Pattern
Other Assets 2,874 3,109 4,284 4,430 3,757
Total Assets 8,701 8,436 9,336 10,833 12,283

Cashflow for the Year 2017-2022

Figures in Crores 2018 2019 2020 2021 2022

63.24%

63.24%
62.24%

30.09%
29.66%
29.45%
Cash from Operating 1,092 1,499 1,614 2,115 1,802

7.32%
7.11%
6.69%
Cash from Investing -541 338 -517 -1,404 -1,273
Cash from Financing -577 -1,888 -1,043 -613 -490 Promoters Institutional Investors Public

Net Cash Flow -27 -51 54 97 38 2020 2021 2022

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 Godrej Consumer Products CMP 943
Godrej Consumer Products is engaged in manufacturing, marketing household and personal care
Market Capital ₹96,429Cr Current Price ₹943 52Week H/L ₹1,138/660
Stock P/E 56.0 Book Value ₹113 Dividend Yield 0.00%

ROCE 18.5% ROE 17% Face Value ₹1.00

Stock P/E is at par with the Though the company is giving repeated profits,
Industrial Average it is not paying out Dividends

Personal Care 58 Home Care 39 Others 3%

% %
Profit & Loss Statement for the Year 2017-2022 Profit & Loss Ratios
Figures in Crores 2018 2019 2020 2021 2022 Ratios 5-Year 3-Year 1-Year

Revenue 9,847 10,314 9,911 11,029 12,276 Compounded 6% 6% 8%

Expense 7,763 8,183 7,757 8,629 9,869 Sales Growth

Operating Profit 2,084 2,132 2,154 2,399 2,407 Compounded 7% -6% -4%
OPM% 21% 21% 22% 22% 20% Profit Growth

DII -46 -46 -393 -319 -242

Stock Price 8% 14% -17%
Profit Before Tax 2,039 2,085 1,760 2,080 2,155 CAGR
Tax% 20% -12% 15% 17% 17%
Return on 22% 19% 17%
Net Profit 1,634 2,342 1,497 1,721 1,783 Equity
7
EPS in Rs. ₹15.9 ₹22.91 ₹14.64 ₹16.8 ₹17.4
 Godrej Consumer Products CMP 943
Balance Sheet for the Year 2017-2022 Ratios
Figures in Crores 2018 2019 2020 2021 2022 Days Cash
Conversion
Working
Capital
ROCE
%
Share Capital 68 102 102 102 102 Cycle Days

Reserves 6,190 7,165 7,796 9,337 11,454 2018 -20 -25 21%
Borrowings 3,508 3,382 3,575 1,864 1,704 2019 -33 -11 20%
Other Liabilities 4,098 3,445 3,407 2,941 2,822 2020 -24 -22 19%
Total Liabilities 13,86 14,094 14,880 14,244 16,082 2021 11 11 20%
4
Fixed Assets 8,315 8,670 9,231 8,905 9,219 Promoter’s Holding Pattern
Investments 2,658 1,751 1,464 774 809
Other Assets 997 516 672 679 1,015
Total Assets 13,86 14,094 14,880 14,244 16,082
4
Cashflow for the Year 2017-2022
Figures in Crores 2018 2019 2020 2021 2022

63.24%
63.24%
62.24%
Cash from Operating 1,723 1,729 1,588 2,030 1,451

7.32%
7.11%
6.69%
30.09%
29.66%
29.45%
Cash from Investing -336 274 -552 -292 -844
Cash from Financing -1,384 -2,039 -1,295 -1,816 -380 Promoters Institutional Investors Public

Net Cash Flow 3 -36 -259 -79 227 2020 2021 2022
 Industry Comparison
160
Nestle Dabur Godrej Industry (Large Cap)
140

120 Higher the better

Lower the better
100
Cannot be Determined
80

60

40

20

0
ROCE ROE ROA ROS PE Ratio PB Ratio DE Ratio Inventory Ratio

Nestle Dabur Godrej

Industry Leader in terms of
ROCE, ROE, ROA and ROS
Higher PB and PE ratio indicates
that the company is overvalued
Negligible Debt Burden
Low Returns compared to Low Returns compared to
industry average industry average
High Inventory Ratio High Debt compared to
indicating strong sales industry average
THANK YOU

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