Vous êtes sur la page 1sur 32

Competitive Financial Analysis

V/s

Presented By,
Tejas Patil 15-M-502
Sagar M Shah 15-M-522
Shraddha Shinde 15-M-530
Kavita Sundakar 15-M-537
Mitesh Tank 15-M-538
Sankil Pandya 14-M-505
Overview
• Introduction

• Growth rates

• Balance sheet & P/L

• Ratio Analysis

• Analysis of Profit & Loss Balance sheet

• Comparison of costs

• Selling and distribution expenses

• Product mix comparison

• Management decisions
About Dabur

What started with a dream of our founder, Dr.


S. K. Burman of making health care products
in 1884, has over the past 130 years turned
into the World's Largest Ayurveda Company.

Dabur India Ltd is one of India’s leading FMCG


Companies with Revenues of over Rs 7,680
Crore & Market Capitalisation of over Rs
48,800 Crore. Building on a legacy of quality
and experience of over 133 years, Dabur is
today India’s Most Trusted Name and the
World’s Largest Ayurvedic and Natural Health
Care Company.
About Marico

Marico is an Indian consumer goods company


providing consumer products and services in the
areas of Health and Beauty based in Mumbai.

Currently present in 25 countries across


emerging markets of Asia and Africa, Marico has
nurtured multiple brands in the categories of
hair care, skin care, edible oils, health foods,
male grooming, and fabric care. Marico's India
business markets household brands such as
Parachute, Parachute Advansed, Saffola, Hair &
Care, Nihar, Nihar Naturals, Livon, Set Wet,
Mediker and Revive among others that add
value to the life of 1 in every 3 Indians.

The International business offers unique brands


such as Parachute, HairCode, Fiancée, Caivil,
Hercules, Black Chic, Isoplus, Code 10, Ingwe, X-
Men and Thuan Phat that are localized to fulfil
the lifestyle needs of international consumers.
Growth Rates

Dabur
Dabur India Ltd ended Q2 of 2017-18 financial year with a
Consolidated Revenue of Rs 1,958.9 Crore as against Rs
1,981.6 Crore a year earlier.

Consolidated Net Profit for the second quarter stood at Rs


361.9 Crore as against Rs 357.3 Crore a year earlier. However,
adjusted for GST and currency translation, the Comparable
Consolidated Net Profit marked a 7.2% growth during the
quarter while the Comparable Standalone Net Profit also
reported a 7.2% growth.

In constant currency terms, Dabur’s business in Egypt grew by


38%, Nigeria by 30% and Turkey by 27%. These businesses
were, however, impacted in translation due to steep currency
devaluations.

Dividend
The Board of Directors of Dabur India Ltd declared an interim
dividend of 125% for 2017-18. “Continuing with their payout
policy, the Board has declared an interim dividend of Re 1.25
per share, aggregating to a total payout of Rs 265.02 Crore,
including tax”
Growth Rates

Marico
FMCG major Marico reported an in-line net profit for
September quarter at Rs 185.04 crore.

The company’s revenue was higher by around 7 percent at


Rs 1,536.3 crore against Rs 1.439.5 year on year.

Dividend
The company also declared dividend at Rs.1.75 per equity
share of Re. 1 each, being 175% on the paid-up equity share
capital of Rs. 129.07 crore. The payment date for the said
interim dividend shall be November 29, 2017.
Balance sheet – Mar-17
------------------- Dabur India Marico
in Rs. Cr. ---------
Mar '17 Mar '17
Balance Sheet ----------
Dabur India Marico Application Of Funds
Gross Block 1,450.61 618.08
Less: Accum. Depreciation 508.63 122.59
Mar '17 Mar '17 Net Block 941.98 495.49
Capital Work in Progress 51.35 23.86
Sources Of Funds Investments 3,054.15 1,664.25
Inventories 599.27 1,082.96
Total Share Capital 176.15 129.05 Sundry Debtors 333.25 227.61
Equity Share Capital 176.15 129.05 Cash and Bank Balance 26.16 68.53
Total Current Assets 958.68 1,379.10
Share Application Money 0 0 Loans and Advances 181.44 161.57
Fixed Deposits 0 0
Preference Share Capital 0 0 Total CA, Loans & Advances 1,140.12 1,540.67
Deffered Credit 0 0
Reserves 3,481.73 2,795.19 Current Liabilities 1,161.44 635.69
Revaluation Reserves 0 0 Provisions 112.03 63.93
Networth 3,657.88 2,924.24 Total CL & Provisions 1,273.47 699.62
Net Current Assets -133.35 841.05
Secured Loans 209.82 108.35 Miscellaneous Expenses 0 0
Unsecured Loans 74.68 0 Total Assets 3,914.13 3,024.65
Total Debt 284.5 108.35
Contingent Liabilities 1,214.56 261.47
Total Liabilities 3,942.38 3,032.59 Book Value (Rs) 20.77 22.66
Profit & Loss –Mar-17
-------------------
Dabur India Marico
in Rs. Cr. -------
Profit & Loss account ------------
Dabur India Marico Mar '17 Mar '17

Mar '17 Mar '17 Operating Profit 1,111.37 956.55


PBDIT 1,386.01 1,218.41
Interest 16.23 12.59
Income PBDT 1,369.78 1,205.82
Sales Turnover 5,369.84 4,868.88 Depreciation 75.43 64.1
Excise Duty 79.19 18.13 Other Written Off 0 0
Net Sales 5,290.65 4,850.75 Profit Before Tax 1,294.35 1,141.72
Other Income 274.64 261.86 Extra-ordinary items 0 0
Stock Adjustments 8.19 47.44 PBT (Post Extra-ord Items) 1,294.35 1,141.72
Total Income 5,573.48 5,160.05 Tax 296.02 299.02
Reported Net Profit 998.33 842.7
Expenditure
Total Value Addition 1,399.69 1,401.22
Raw Materials 2,787.78 2,540.42 Preference Dividend 0 0
Power & Fuel Cost 48.91 26.46 Equity Dividend 396.34 451.59
Employee Cost 425.3 250.92 Corporate Dividend Tax 80.69 57.03
Other Manufacturing Expenses 0 0 Per share data (annualised)
Selling and Admin Expenses 418.03 659.46 Shares in issue (lakhs) 17,615.21 12,904.71
Miscellaneous Expenses 507.45 464.38 Earning Per Share (Rs) 5.67 6.53
Pre-operative Exp Capitalised 0 0 Equity Dividend (%) 225 350
Total Expenses 4,187.47 3,941.64 Book Value (Rs) 20.77 22.66
Ratio Analysis
Ratio Formula
Current Ratio Current Assets/Current Liabilities
Liquidity Ratio CA- Inventory/ CL
Inventory TO Ratio COGS/ Average Inventory
Employee TO Ration Sales/ No. of Employees
Capital T/O ratio Sales/ Capital Employed
Fixed Assets TO Ratio Sales/ Net FA
GP Ratio GP*100/ Net Sales
ROI PBIT *100/ Capital Employed
DEBT EQUITY Ratio Debt/ Equity
Earning Per Share (PAT- Pref Dividend)/ No. of Shares
Ratio Analysis
2017
Ratio Formula Implications
Dabur Marico
Dabur has liabilities more than its assets compared
Current 0.895
CA/CL 2.2022 to Marico having 1.2 times more assets of its
Ratio 3
Current liabilities
Though both companies are not at par with its
Liquidity CA- Inventory/ 0.424 ability to meet short term obligations, Marico has
0.6542
Ratio CL 7 higher potential vs Dabur to meet its short term
demands
With current inventory turnover of dabur, it will be
Inventory COGS/ Avg
6.99 3.64 able to last its stock for atleast 52 days VS Maricos
TO Ratio Inventory
100 days
Dabur has Higher no. of Employees, it can reduce
Employee Sales/ No. of
0.73 2.02 the cost of Employees by reducing Non Performers
TO Ratio Employees
and save costs.
Sales revenue generated against the capital
Capital T/O Sales/ Capital
1.47 1.67 employment of Dabur is lesser VS Marico. This can
ratio Employed
be improved with Higher Productivity and efficiency
Ratio Analysis
2017
Ratio Formula Implications
Dabur Marico

Fixed Assets Higher Fixed Asset ratio of Marico Indicates its ability to
Sales/ Net FA 5.70 9.83
TO Ratio generate earnings much better than Dabur.

Indicates the amount gross revenue utilized for cost of


GP*100/ Net 21.006 19.719
GP Ratio goods sold. Dabur has marginally higher cost than Marico, it
Sales 3 6
can improve further to reduce it.

PBIT *100/ The ROI of both indicates, for every 1 Re. of Shareholder, Rs.
35.401 39.052
ROI Capital 35.40/- and Rs. 39.05/- revenue is generated by Dabur and
9 9
Employed Marico respectively.

DEBT Both companies are at par, incase of solvency there wont be


EQUITY Debt/ Equity 0.0779 0.0369 hardship to pay off debts. Dabur and Marico both have
Ratio marginal difference and are negligible

(PAT- Pref
Earning Per
Dividend)/ No. 5.67 6.53 Marico generates higher earnings compared to Dabur
Share
of Shares
Sources Of Funds
3658
4000 3482
3500
2795 2924
3000

2500
Dabur India Mar '17
2000
Marico Mar '17
1500

1000
176 129
500

0
Share Capital Reserves Networth

1) Share capital of Dabur is more than Marico by 47 crore


2) Reserves of Dabur is more than Marico by 687 crore
3) As result Networth of Dabur is more than Marico by 733 crore
Debt & liabilities
285
300
250 210

200
150 108 108 Dabur India Mar '17
Marico Mar '17
100 75

50 0
0
Secured Unsecured Total Debt
Loans Loans

1) Secured loan of Dabur is more than Marico by 101 crore


2) Unsecured Loans of Dabur is more than Marico by 75 crore
3) As result Total Debt of Dabur is more than Marico by 733 crore

• Net worth + Total debt =Total liability


• Liability of Dabur is more than Marico by 910
Net block
1,451
1,600
1,400
1,200 942
1,000
800
618 Dabur India
509 495
600 Marico
400 123
200
0
Gross Block Less: Accum. Net Block
Depreciation

1) Gross block of Dabur is more than Marico by 833 Crore


2) Net block of Dabur is more than Marico by 446 Crore
Current Total assets
3,500
3,054
3,000

2,500

2,000 1,664
1,379 Dabur India Mar '17
1,500
1,083 Marico Mar '17
959
1,000 599
333
500 228
26 69
0
Investments Inventories Sundry Cash and Total
Debtors Bank Current
Balance Assets

1) Investment of Dabur is more than Marico by 1390 Crore


2) Inventories of Dabur is Less than Marico by 484 Crore
3) Sundry Debtors of Dabur are more than Marico by 106 Crore
4) Cash at bank of dabur is less than Marico by 42 Crore
5) Total current Assets of Dabur are less than Marico by 420 Crore
1,541 Loans and Advances
1,600 1,379
1,400
1,200 959
1,140 1) Total current Assets – Total CA,
1,000 loans & advances = loans and
800 Dabur India Mar '17
600
181 162 Marico Mar '17
advances
400
200 * Loans and advances of Dabur
0
Total Current Total CA, Loans and are more than Marico by 20 Crore
Assets Loans & Advances
Advances

1,400 1,273
1,161 Total CL & Provisions
1,200
1,000
700
1) Total current Assets – Total CA,
800 636
Dabur India Mar '17 loans & advances = loans and
600
400
Marico Mar '17 advances
200
112 64 * Total CL & provisions of Dabur
0 are more than Marico by 573 Crore
Current Provisions Total CL &
Liabilities Provisions
Net Current Assets
1,541
1,600
1,273
1,400 1,140
1,200
1,000 841
800 700
Dabur India Mar '17

600 Marico Mar '17

400
200 -133
0
-200 Total CA, Total CL & Net Current
Loans & Provisions Assets
Advances

1) Total CA, Loans & advances-Total CL & Provisions = Net Current


Assets
2) Net current assets of Dabur are less than Marico by 974 Crore
2,788
3,000 2,540
Manufacturing cost
2,500

2,000
1) Raw Material of Dabur is
Dabur India Mar '17
more than Marico by 247
1,500
Marico Mar '17 Crore
1,000

500 49 26
2) Power and fuel of Dabur is
0 more than Marico by 22 Crore
Raw Materials Power & Fuel
Cost

659
700 507 464
600 425 Non- Manufacturing cost
418
500
400 251 1)Employee cost of Dabur is more than
300
200 Marico by 174 Crore
100 Dabur India Mar '17
0
Marico Mar '17 2) Selling and Admin Expenses of Dabur are
less than Marico by 241 Crore

3) Miscellaneous Expenses of Dabur are


more than Marico by 43 Crore
Profit and loss
6,000 5,573
5,160
5,000
4,187 3,942
4,000

3,000 Dabur India Mar '17


Marico Mar '17

2,000
1,111
957 998
1,000
843
6 7
0
Total Income Total Operating Reported Net Earning Per
Expenses Profit Profit Share (Rs)

1) Total Income of Dabur is more than Marico by 413 Crore


2) Total Expenses of Dabur is Less than Marico by 246 Crore
3) Operating Profit of Dabur is more than Marico by 155 Crore
4) Net Profit of Dabur is less than Marico by 156 Crore
5) Earning Per share of dabur is less than marico by 1 Crore
DISTRIBUTION FRAMEWORK

We reach to 6mn
Outlets Factory Factory

C&F C&F

GT Stockist MT Stockist Insti Stockist Super Sockist

Wholesaler
Sub Sockist

Retailer Retailer Retailer

Consumer Consumer Consumer Consumer


DISTRIBUTION EXPANSION

• Rolled out in FY13 to expand direct coverage in rural markets


Project • Direct Village coverage has increased from 14000 villages in FY11 to
44,000 villages in FY15
Double • Focus on increasing efficiency and productivity of the channel

• Aimed at leveraging the potential of Top 130 towns which contribute


Project to 50% of urban consumption
50-50 • Segregating the grocery channel teams for wholesale & retail
• Initiative is in line with renewed focus on urban markets

Project • To enhance chemist coverage and provide further impetus to our


Health Care portfolio
Core • Direct Chemist Coverage is currently 213,000
• Strategy is to increase coverage and range for better throughput
DISTRIBUTION INITIATIVES

Focus on enhancing field efficiencies

• Inducted around 1000 Village salesmen on


company rolls
• Increase the outlet coverage per SSM

Increasing Direct Reach

• Near term target to increase direct reach to 1


mn outlets

Product Focus
• Rural Focused Product Mix
• Innovative launches in Urban
Capability enhancement through training and IT
enablement
Strong Distribution Network (India)
• Indirect Reach: 4.6 million outlets out of 9.2 million outlets – Huge Headroom for
growth

• Direct Reach: Over 853,000 outlets - Initiatives in place to increase the reach
– Project ONE – Targeting direct coverage increase in top 20 towns
(Incremental Turnover ~INR circa 88 crores in FY 2017)
– Leveraged technology coupled with robust IT Infrastructure to drive impact

• Channel Split : Modern Trade has outpaced the other channels. E-commerce is still
small with a strong growth potential.

Channel Share of Business


General Trade 83%
Modern Trade 10%
CSD 7%

• Urban – Rural Split : Rural sales up from 26% in FY10 to 31% in FY17
Share of Business
Urban 69%
Rural 31%
Dabur v/s Marico

• Selling & distribution • Selling & distribution


expense 418.00 cr. expense 659.00 cr.

Selling & Distribution expenses


800
600 659
400
418
200
0
Dabur Marico
Product Mix by Dabur
Product Mix by Marico
Product mix comparison sales wise
Product Mix of Dabur India Ltd. Company
Sale value Product mix
Product name Year Months (INR Cr.) (INR)%
Personal care Mar-2017 12 2658.08 49.50
Health care Mar-2017 12 1768.67 58.93
Beverages Mar-2017 12 799.69 27.34
Scraps Mar-2017 12 9.3 2.39
Subsidy Mar-2017 12 3.7 3.44
Others Mar-2017 12 130.4 0.13
Total 5369.84

Product Mix of Marico Ltd. Company


Sale value Product mix
Product Category Year Months (INR Cr.) (INR)%
Personal care Mar-2017 12 357.58 7.51
Edible oil Mar-2017 12 2805.62 58.93
Hair oil Mar-2017 12 1301.89 27.34
Oil seeds Mar-2017 12 114.17 2.39
Others Mar-2017 12 164.12 3.44
Export incentives Mar-2017 12 10.63 0.22
Scraps Mar-2017 12 6.36 0.13
Total 4760.37
Product mix comparison sales wise

Product mix by Dabur Product mix by Marico


2% 2%0% 0%
0%
2%
4% 8%

19% Personal care Personal care


35%
Health care Edible oil
27%
Beverages Hair oil
Scraps Oil seeds
Subsidy Others
Others Export incentives
59% Scraps
42%

Dabur & Marico share almost equal sales in personal care & hair oil
category.
So competitive strategy should be there by Dabur to increase the sales
from this category than Marico.
Product mix competitiveness

• Advertisement in Maharashtra beg. Of May,16 by Dabur - Anmol Gold hair


oil @ Rs26 for 100ml and Rs45 for 175ml, which is 7-10% discount from
Marico’s Parachute oil.

• Marico’s Nihar Shanti Amla market share by value to 26.3% in fiscal 2016
from 23.7% at end of previous fiscal year. Dabur’s Amla hair oil and
Dabur Amla Sarso hair oil has lost five percentage points in the amla hair
oil category from 65.1% in fiscal 2015 to 60.1% in fiscal 2016.
Management Decision
• Dabur Can decide to compete against Marico considering the comparison and
parameters discussed.
• Dabur needs to reduce the Number of Non performing Employees which inturn
will improve Employee Turnover ratio and Productivity of each employee.
• Dabur has effectively managed and controlled inventory levels by maintaining
inventory of 52 days Versus Marico’s 100 days.
• Dabur has Higher Fixed Assets compared to Marico but the earnings are less, it
needs to identify the NPA’s and scrap them.
• Reduction in Inventory cost and Employment cost, will help improve the Gross
Profit Ratio. It indicates the amount gross revenue utilized for cost of goods sold
where Dabur can improve.
• The ROI of both indicates, for every 1 Re. of Shareholder, Rs. 35.40/- and Rs.
39.05/- revenue is generated by Dabur and Marico respectively, this can be
improved and will have direct impact through above decisions.
• Both companies are at par with each other on Debt to Equity Ratio, incase of
solvency there wont be hardship to pay off debts. Dabur and Marico both have
marginal difference and are negligible
REFERENCES
• http://www.livemint.com/Companies/Nh9pZN3ikwgfmmtQGd4edO/Dabu
r-takes-on-Marico-in-coconut-hair-oil-segment.html
• https://www.slideshare.net/SushmitaSaxena1/dabur-product-mix
• https://www.goodreturns.in/company/marico/product-mix.html
• https://www.goodreturns.in/company/dabur-india/product-mix.html
• http://www.moneycontrol.com/competition/daburindia/comparison/DI
• http://www.dabur.com/
• http://marico.com/
Thank You