COMPANY PROFILE:

Dabur India Limited is the fourth largest FMCG Company in India with Revenues of over Rs 6,146 Crore &
Market Capitalization of US $5 Billion. Building on a legacy of quality and experience of over 127 years, Dabur
operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care and Home Care
& Foods.
Dabur (Dabur India Ltd.) is India's largest Ayurvedic medicine manufacturer. Dabur was founded by Dr SK
Burman in the year 1885. Headquarters is situated at Dabur Tower, Ghaziabad (UP), India. The product
offerings are Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real. There is approximately 3000
employees.

BALANCE SHEET

Balance Sheet of Dabur India

------------------- in Rs. Cr. ------------------Mar '13 Mar '12 Mar '11 Mar '10

Mar '09

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities

174.29
174.21
174.07
174.29
174.21
174.07
0
0
0
0
0
0
1,420.49 1,128.28
927.09
0
0.78
0
1,594.78 1,303.27 1,101.16
22.47
19.12
17.57
219.11
254.15
235.78
241.58
273.27
253.35
1,836.36 1,576.54 1,354.51

86.76
86.76
0.14
0
662.48
0
749.38
24.27
81.8
106.07
855.45

86.51
86.51
0
0
651.69
0
738.2
8.26
130.72
138.98
877.18

Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets

959.11
342.53
616.58
17.07
729.41
499.74
255.32
319.4
1,074.46
390.37
0
1,464.83
0
771.96
219.57
991.53
473.3
0
1,836.36

883.23
766.88
297.9
269.32
585.33
497.56
25.12
11.92
552.72
519.23
528.57
460.58
224.17
202.46
261.2
26.08
1,013.94
689.12
603.61
461.81
30.09
166.33
1,647.64 1,317.26
0
0
695.7
539.05
592.4
535.36
1,288.10 1,074.41
359.54
242.85
53.83
82.95
1,576.54 1,354.51

687.23
236.28
450.95
23.31
348.51
298.44
130.48
48.8
477.72
348.94
115.11
941.77
0
471.73
440.1
911.83
29.94
2.74
855.45

518.77
210.45
308.32
51.71
232.05
261.72
112.36
32.16
406.24
455.65
111.53
973.42
0
381.87
315.1
696.97
276.45
8.64
877.17

Contingent Liabilities
Book Value (Rs)

1,719.03 1,337.82 1,075.89

9.15
7.48
6.33

173.48
8.64

174.15
8.53

PROFIT & LOSS STATEMENT

Profit & Loss account of Dabur India ------------------- in Rs. Cr. ------------------Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
Income
Sales Turnover
4,399.11 3,798.05 3,305.42 2,891.00 2,435.85
Excise Duty
49.72
38.72
30.99
23.58
27.52
Net Sales
4,349.39 3,759.33 3,274.43 2,867.42 2,408.33
Other Income
86.89
6.89
39.16
27.95
29.3
Stock Adjustments
-25.83
59.33
78.31
9.68
38.89
Total Income
4,410.45 3,825.55 3,391.90 2,905.05 2,476.52
Expenditure
Raw Materials
2,301.80 2,092.87 1,740.68 1,393.97 1,271.74
Power & Fuel Cost
48.12
46.41
42.39
35.43
36.63
Employee Cost
281.24
243.36
230.84
212.34
167.32
Other Manufacturing Expenses
5.76
25.22
25.21
22.74
17.59
Selling and Admin Expenses
0
605.84
589.09
557.26
425.16
Miscellaneous Expenses
932.22
145.04
100.15
103.84
84.68
Preoperative Exp Capitalised
0
0
0
0
0
Total Expenses
3,569.14 3,158.74 2,728.36 2,325.58 2,003.12
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

754.42
841.31
18.4
822.91
73.24
0
749.67
-1.09
748.58
157.66
590.98
1,267.34
0
261.44
43.56

659.92
666.81
13.4
653.41
36.81
29.07
587.53
0
587.53
123.79
463.24
1,065.87
0
226.47
36.74

624.38
663.54
12.93
650.61
37.73
16.6
596.28
0.25
596.53
124.85
471.41
987.68
0
200.19
32.82

551.52
579.47
13.28
566.19
31.91
5.66
528.62
-0.19
528.43
93.7
433.33
931.61
0
173.6
29.5

444.1
473.4
14.47
458.93
27.42
3.94
427.57
-0.72
426.85
51.44
373.55
731.38
0
151.39
25.73

17,429.35 17,421.01 17,407.24

3.39
2.66
2.71
150
130
115
9.15
7.48
6.33

8,675.86
4.99
200
8.64

8,650.76
4.32
175
8.53

FINANCIAL RATIOSS
Key Financial Ratios of Dabur India
Investment Valuation Ratios
Face Value
Dividend Per Share
Operating Profit Per Share (Rs)
Net Operating Profit Per Share (Rs)
Profitability Ratios
Operating Profit Margin(%)
Profit Before Interest And Tax Margin(%)
Gross Profit Margin(%)
Cash Profit Margin(%)
Adjusted Cash Margin(%)
Net Profit Margin(%)
Adjusted Net Profit Margin(%)
Return On Capital Employed(%)
Return On Net Worth(%)
Adjusted Return on Net Worth(%)
Return on Long Term Funds(%)
Liquidity And Solvency Ratios
Current Ratio
Quick Ratio
Debt Equity Ratio
Long Term Debt Equity Ratio
Debt Coverage Ratios
Interest Cover
Total Debt to Owners Fund
Financial Charges Coverage Ratio
Management Efficiency Ratios
Inventory Turnover Ratio
Debtors Turnover Ratio
Investments Turnover Ratio
Fixed Assets Turnover Ratio
Total Assets Turnover Ratio
Asset Turnover Ratio
Average Raw Material Holding
Average Finished Goods Held
Number of Days In Working Capital
Profit & Loss Account Ratios
Material Cost Composition
Imported Composition of Raw Materials Consumed
Selling Distribution Cost Composition
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit
Dividend Payout Ratio Cash Profit
Earning Retention Ratio

Mar '13

Mar '12

Mar '11

Mar '10

Mar '09

1
1.5
4.33
24.95

1
1.3
3.79
21.58

1
1.15
3.59
18.81

1
2
6.34
33.05

1
1.75
5.1
27.84

17.34
15.35
15.66
14.99
14.99
13.32
13.32
41.82
37.05
37.12
48.13

17.54
16.36
16.56
14.9
14.9
12.17
12.17
40.51
37.09
40.13
43.91

19.06
17.76
17.91
15.58
15.58
14.27
14.27
44.16
46.29
45.21
53.79

19.17
17.97
18.06
15.88
15.88
15.03
15.03
61.62
58.04
56.29
68.96

18.33
17.11
17.19
15.97
15.97
15.44
15.44
47.98
51.2
48.65
55.29

1.17
0.97
0.15

1.15
0.85
0.21
0.12

0.99
0.78
0.23
0.01

0.93
0.68
0.14
0.02

1.19
0.99
0.19
0.03

41.74
0.15
45.72

53.91
0.21
52.55

56.06
0.23
50.47

52.35
0.14
42.53

38.34
0.19
31.26

8.8
18.14
8.8
4.7
2.41
2.55

7.19
17.62
7.19
4.38
2.43
2.57
86.17
28.16
34.43

8.65
19.67
8.65
4.39
2.46
2.96
63.26
29.32
26.7

11.31
23.62
11.31
4.31
3.44
3.31
52.96
22.08
3.76

10.94
22.63
10.94
4.84
2.81
3.39
45.18
21.28
41.32

52.92
1.47

55.67
0.91
13.44

53.15
0.93
14.89

48.61
1.22
16.55

52.8
1.06
14.89

51.6
45.91
48.49

56.81
49.74
47.48

49.42
44.32
49.4

46.86
43.13
51.67

47.41
43.74
50.11

--

--39.18

--

ANALYSIS OF MULTIPLE CORRELATION AND MULTIPLE REGRESSION

Multiple Correlation
Years
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004

CR
1.17
1.15
0.99
0.93
1.19
0.91
0.97
0.82
0.67
0.8

QR
0.97
0.85
0.78
0.68
0.99
0.58
0.63
0.52
0.37
0.45

ITR
8.8
7.19
8.65
11.31
10.94
12.52
11.11
11.65
9.64
9.97

DTR
CASR
CATAR
18.14
0.11
0.26
17.62
0.10
0.23
19.67
0.07
0.18
23.62
0.01
0.03
22.63
0.11
0.32
25.94
-0.02
-0.06
39.7
0.01
0.04
35.3
-0.03
-0.08
26.95
-0.07
-0.21
13.75
-0.02
-0.08

ROI
81.02
83.81
90.79
124.34
160.98
117.16
173.43
68.74
54.63
59.07

Correlation between CR & ROI

Moderately Positive correlation
There is significant association between ROI & CR for Dabur India.

FTR
4.7

4.38
4.39
4.31
4.84
4.67
8.51
7.3
7.41
6.16

ITP
1.16
0.99
0.72
0.10
0.71
-0.19
0.09
-0.44
-1.41
-0.49

46.68%

Correlation between QR & ROI

Moderately Positive correlation
41.47%
Higher the companys margin to safety of short term creditors, higher is the profitability of the company.
Correlation between CATAR & ROI
Moderately Positive correlation
Greater the CATAR, greater is the profitability of the company.

40.71%

Correlation between CASR & ROI

Moderately Positive correlation
32.64%
Lower the CASR, greater the efficiency of the employment of working capital and larger the scope of
profitability.
Correlation between ITR & ROI
Moderately Positive correlation
42.58%
Higher the ITR, greater is the efficiency of inventory management and larger is the scope of profitability.
Correlation between DTR & ROI
Moderately Positive correlation
42.45%
Faster the DTR, the lower is the relative investment in receivables and higher the profitability.

Correlation Matrix
CR
QR
ITR
DTR
CASR
CATAR
ROI
CR
1
QR
0.975436
1
ITR
-0.35111 -0.36153
1
DTR
-0.28892 -0.32348 0.580032
1
CASR
0.964545 0.979457 -0.50316 -0.41879
1
CATAR
0.970931 0.982667 -0.43865 -0.35917 0.994755
1
ROI
0.466774 0.41467 0.425771 0.424496 0.326417 0.40711
1
FTR
-0.56847 -0.61901 0.29128 0.728344 -0.61508 -0.58589 0.015262
ITP
0.953688 0.94167 -0.44199 -0.35839 0.955111 0.954114 0.340567
Correlation between CR & QR
Correlation between CR & ITR
Correlation between CR & DTR
Correlation between CR & CASR
Correlation between CR & CATAR
Correlation between CR & ROI
Correlation between QR & ITR
Correaltion between QR & DTR
Correlation between QR & CASR
Correlation between QR & CATAR
Correlation between QR & ROI
Correlation between ITR & DTR
Correlation between ITR & CASR
Correlation between ITR & CATAR
Correlation between ITR & ROI
Correlation between DTR & CASR
Correlation between DTR & CATAR
Correlation between DTR & ROI
Correlation between CASR & CATAR
Correlation between CASR & ROI
Correlation between CATAR & ROI
Correlation between FTR & CR
Correlation between FTR & QR
Correlation between FTR & ITR
Correlation between FTR & DTR
Correlation between FTR & CASR
Correlation between FTR & CATAR
Correlation between FTR & ROI
Correlation between FTR & ITP
Correlation between ITP & CR
Correlation between ITP & QR
Correlation between ITP & ITR
Correlation between ITP & DTR
Correlation between ITP & CASR
Correlation between ITP & CATAR
Correlation between ITP & ROI

Table 1

0.975436
-0.35111
-0.28892
0.964545
0.970931
0.466774
-0.36153
-0.32348
0.979457
0.982667
0.41467
0.580032
-0.50316
-0.43865
0.425771
-0.41879
-0.35917
0.424496
0.994755
0.326417
0.40711
-0.56847
-0.61901
0.29128
0.728344
-0.61508
-0.58589
0.015262
-0.63009
0.953688
0.94167
-0.44199
-0.35839
0.955111
0.954114
0.340567

Strong positive correlation

Moderately Negative correlation
Moderately Negative correlation
Strong positive correlation
Strong positive correlation
Moderately Positive correlation
Moderately Negative correlation
Moderately Negative correlation
Strong positive correlation
Strong positive correlation
Moderately Positive correlation
Moderately Positive correlation
Moderately Negative correlation
Moderately Negative correlation
Moderately Positive correlation
Moderately Negative correlation
Moderately Negative correlation
Moderately Positive correlation
Strong positive correlation
Moderately Positive correlation
Moderately Positive correlation
Moderately Negative correlation
Moderately Negative correlation
Less positive correlation
Moderately Positive correlation
Moderately Negative correlation
Moderately Negative correlation
Virtually no correlation
Moderately Negative correlation
Strong positive correlation
Strong positive correlation
Moderately Negative correlation
Moderately Negative correlation
Strong positive correlation
Strong positive correlation
Moderately Positive correlation

FTR

1
-0.63009

97.54%
-35.11%
-28.89%
96.45%
97.09%
46.68%
-36.15%
-32.35%
97.95%
98.27%
41.47%
58.00%
-50.32%
-43.86%
42.58%
-41.88%
-35.92%
42.45%
99.48%
32.64%
40.71%
-56.85%
-61.90%
29.13%
72.83%
-61.51%
-58.59%
1.53%
-63.01%
95.37%
94.17%
-44.20%
-35.84%
95.51%
95.41%
34.06%

ITP

Positive correlation
Negative correlation

Significant association between variables.

Insignificant association between variables.

Since there is high degree of correlation between independent variables, there is existence of
multicollinearity. Refer table 1 (bolded font indicates multicollinearity). Multicollinearity refers to the
existence of high correlation between the independent variables. Therefore we eliminate the independent
variables with high correlation for multiple regression.

Multiple Regression
Years
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004

ITR
8.8
7.19
8.65
11.31
10.94
12.52
11.11
11.65
9.64
9.97

DTR
18.14
17.62
19.67
23.62
22.63
25.94
39.7
35.3
26.95
13.75

FTR
4.7

4.38
4.39
4.31
4.84
4.67
8.51
7.3
7.41
6.16

ITP
1.16
0.99
0.72
0.10
0.71
-0.19
0.09
-0.44
-1.41
-0.49

ROI
81.02
83.81
90.79
124.34
160.98
117.16
173.43
68.74
54.63
59.07

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.791145
R Square
0.625911
Adjusted R Square
0.326639
Standard Error
33.93892
Observations
10

ANOVA
df
Regression
Residual
Total

Intercept
ITR
DTR
FTR
ITP

SS
MS
F
Significance F
4 9636.147 2409.037 2.091449 0.219526755
5 5759.252 1151.85
9 15395.4

Coefficients Standard Error

-108.38803
121.6785956
14.670026
10.57561549
1.3304577
2.844385436
4.0562541
15.33667092
40.826084
22.48856281

t Stat
-0.89077
1.387156
0.467749
0.264481
1.815415

P-value
0.413855
0.224047
0.659643
0.801965
0.129169

Lower 95%
Upper 95%
-421.1728218 204.396753
-12.51545864 41.8555115
-5.981267827 8.64218324
-35.36791355 43.4804218
-16.98260721 98.6347749

Lower 95.0%
-421.172822
-12.5154586
-5.98126783
-35.3679135
-16.9826072

Upper 95.0%
204.396753
41.8555115
8.64218324
43.4804218
98.6347749

ROI = b0 + b1*ITR + b2*DTR + b3*FTR + b4*ITP where b0 is the constant

= -108.39 + 14.67*ITR + 1.33*DTR + 4.06*FTR + 40.83*ITP
The dependent variables ITR, DTR, FTR & ITP have no significance on ROI. Since the value of level of
significance is 0.219, which is greater than 0.05. The regression (R square) is 62.59%. It signifies that the
independent variables are related to dependent variable by 62.59%. Adjusted R square signifies that 32.66% of
factors are taken into consideration.

ANALYSIS OF WORKING CAPITAL LEVERAGE

Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

CA
TA
-24.4
308.37
-81.82
386.53
-38.44
468.35
18.52
422.73
-33.76
544.98
276.45
877.17
29.94
855.45
242.85 1,354.51
359.54 1,576.54
473.3 1,836.36

DCA
0
43.38
56.96
-52.28
310.21
-246.51
212.91
116.69
113.76
-473.3

WCL
-0.08
-0.19
-0.07
0.05
-0.04
0.44
0.03
0.17
0.21
0.35

WCL measures the sensitivity of ROI due to the changes in the level of CA. The higher degree of WCL, the
greater is the risk and vice versa. But, it increases the possibility of higher ROI.
2009: Highest WCL of 0.44
2005: Lowest WCL of -0.19