Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. From its humble beginnings in thebylanes of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India. For thepast 125 years, we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle.
Through our comprehensive range of products, we touch thelives of all consumers, in all age groups, across all social boundaries. And this legacy has helped us develop a bond of trust with our consumers. That guarantees you thebest in all products carrying theDabur name.
COMPANY PROFILE
Dabur India Limited is thefourth largest Company in India with interests in Health Care, Personal Care and Food Products. It is most famous for Dabur Chyawanprash and Hajmola.
Dabur had a turnover of approximately Rs. 19 billion (approx. US$ 420 million) during thefiscal year 2005-2006, with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real. Thecompany's growth rate rose from 10% to 40%. Theexpected growth rate for two years was twofold. Dabur operates in more than 5 countries and distributes its products worldwide. Thecompany was founded by Dr. S. K. Burman in 1884 as a small pharmacy in Calcutta (now
Kolkata), West Bengal, India, and is now led by his great-grandson V.C. Burman. Thecompany
headquarters are in Ghaziabad, Uttar Pradesh, India, near theIndian capital of New Delhi, where it is registered. Dabur's manufacturing operations are in India, Africa and theUnited Arab Emirates. Thecompany, through Dabur Pharma Ltd. does toxicology tests and markets yurvedic
medicines in a scientific manner. They have researched new medicines which will find use in O.T. all over thecountry therein opening a new market. Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make it themarket leader in theFruit Juice Category. Dabur is theco-owner of theIPL team Kings XI Punjab.
Expansion and investments
• Dabur has major expansion plans for overseas market and considering acquisitions and alliances outside India as it aims to increase its foreign sales from 11.4% to 15% in thenext four years.
• Dabur will be investing Rs 100 crore for processing and procurement to compete with Pepsi's Tropicana and other juice brands.
BACKGROUND
ï‚·ï€ Dabur Pharma Limited is theleading Indian company for cancer research and anticancer products. Thecompany also markets a range of products in thecardiovascular, antibacterial, antidiabetic & digestive segments. Dabur Pharma Limited, a public limited company incorporated in March 2003, is an associate company of Dabur India Limited, a US $ 450 million healthcare company founded in 1884. Dabur Pharma Limited operates in Europe and in some other markets through its fully owned subsidiary - Dabur Oncology Plc. TheDabur group of companies have a legacy of trust and excellence in thehealthcare business.
During this passage of time, Dabur went through several structural and strategic changes to maintain its market strength. Thereal mass production started in 1896. Early 1900's saw Dabur emerge as thefirst company to provide health care through scientifically tested methods. It achieved significant improvements after setting up Research and Development centers and manufacturing automation. Thelaunch of Dabur's Amla hairoil and Chyawanprash was a boon to theexpanding business. To keep up with thetimes, Dabur computerized its operations in 1957. Its Dant Manjan and digestive tablets were widely accepted as well.
However with a large product portfolio in themarket, Dabur had to maintain operational efficiency. To make sure it adjusted to thebusiness environment it became a public limited company in 1986 followed by diversification in Spain in 1992. A major change came when Dabur came up with its IPO in 1994. Because of its position, Dabur's issue was 21 times oversubscribed. Dabur further divided its business into three separate groups:
Health Care Products Division
Family Products Division
Dabur Ayurvedic Specialties Limited
In 1998, for thefirst time in thehistory of Dabur, a non-family member took charge. Dabur handed over theoperations to professionals. Successful implementation of procedures, timely changes and maintaining its essence, Dabur achieved its highest-ever sales figure of Rs 1166.5 crore in 2000-01.
As FMCG sector was struggling with theslow growth in theIndian economy, Dabur decided to take numerous strategic initiatives, reorganize operations and improvise on its brand architecture beginning 2002. It decided to concentrate its marketing efforts on Dabur, Vatika, Anmol, Real and Hajmola to strengthen their brand equity, create differentiation and emerge as a pure FMCG player recognized as a herbal brand. This was chosen after a study with Accenture, which revealed that Dabur was mainly perceived as a Herbal brand and connected more with theage group above 35.
Also, larger retailers were making their foray into theFMCG market. Apart from HLL, P&G, Marico and Himalya, ITC was also posing a challenge. Thesupply chain of Dabur was becoming complex because of thelarge array of products. Southern markets share in thesales figure was negligible. These factors posed a threat to Dabur and hence small changes were not enough.
Given below is theproduct portfolio of Dabur (Consumer Care Division 2006):
Product Category
Products
Hairoil
Vatika, Amla, Sarso
(Anmol coconut)
Shampoo
Vatika heena conditioning, root-strengthening
Anmol-natural shine, silky
Baby & Skin Care
Vatika fairness, Gulabari, Vatika fairness face pack
Janmaghutti, Olive oil, Gripewater, Dabur lal tel
Digestive
Hajmola range, Hingoli, Pudin hara
Health Supplements
Chyawanprash, chyawanshakti, Dabur Honey, Glucose
Oral Care
Babool (rural market), Meswak (unani method), promise, Lal paste, Binaca, Promise
Home Care
Odomos, Odonil, Odopic, Sanifresh
Given Below is a Segment Wise Competitor list:
Category
Dabur's Share
Main Competitors
Fruit Juice
58% Real and Active
Tropicanna
Fruit Drinks (coolers)
1% Coolers
Frooti And Maaza
Hair oil Coconut base
6.4% Vatika
HLL
Shampoo Vatika
7.1%
HLL and P&G
Hair care (overall)
27%
HLL, P&G and Himalaya
Chyawanprash
64%
Himani, Zhandu and Himalaya
Honey
40%
Himani, Hamdard and local Players
Digestives
37%
Paras and local players
Recent Initiatives
Following its plans, Dabur made significant changes in thetime period 2002-2007.
Brand Rejuvenation
With youth forming a major population of India, Dabur decided to revamp its brand identity. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and Virender Sehwag for endorsements. New packaging and advertising campaign saw thesales of Chyawanprash grow by 8.5 per cent in 2003-04.
Theyear 2004-05 saw a whole new brand identity of Dabur. Theold Banyan tree was replaced with a new, fresh Banyan tree.
Thelogo was changed to a tree with a younger look. Theleaves suggesting growth, energy and rejuvenation, twin colors reflecting perfect combination of stability and freshness, thetrunk represented three people raising their hands in joy, thebroad trunk symbolized stability, multiple branches were chosen to convey growth, and warmth and energy were displayed through thesoft orange color. 'Celebrating Life' was chosen as a new tag that completely summarized thewhole essence.
TheChairman in his annual report message said, "If I were to summarize your Company's performance during theyear under review (2004-2005), it would be 'Pursuit of Profitable Growth'".
HR Initiaves
Theculture at Dabur gives full autonomy to its employees. Various training and development programs like Young Manager Development Program, Prayas, Leading and Facilitating Performance, Campus to Corpora and a Balanced scorecard approach to performance evaluation, helps employees realize their potential.
Recently, Dabur has adopted an innovative HR program of offering ESOPs to new engineering and management trainees at thetime of joining. Also in 2005, Dabur gave Bonus to its employees after 12 years. This boosted theemployee morale further.
Dabur was listed as a "Great Place to Work", in a survey conducted by Grow Talent & Company and Great Place to Work Institute, USA. Dabur was listed as the10th "Great Place to Work". Theresults were published in Business World dated February 2006.
IT initiatives
Dabur installed centralized SAP ERP system from 1st April 2006 for all business units. It also implemented a country wide new WAN Infrastructure for running centralized ERP system. Further it set up new Data Center at KCO Head Office.
Supply chain Initiatives
Dabur has undertaken e-procurement in a big way. In 2003-04 Dabur India procured Rs.210 crore of raw materials through e-sourcing - or almost 50 per cent of total raw material expenditure - and, in theprocess, considerably controlled raw material costs which were on a rise.
For better production and operation management, Dabur included automation, debottlenecking, Kaizen and wastage control. It set up production units in locations providing tax holidays to reduce cost and improve efficiency.
Other important changes
Dabur made its largest acquisition by taking over Balsara hygiene and home products business. Dabur bought theentire promoters' stake of three Balsara companies through an all-cash deal of Rs.140 crore. This was done to ensure Dabur's presence in all price segments in theherbal oral care market. Moreover, it allowed Dabur's entry in thehousehold care segment, where Balsara has well-established brands.
Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player
Dabur estimated that thesouthern region was contributing as low as 7% to its overall growth. For this purpose, thesouth team adopted a three-phase approach. First, it focused on point of sale promotions and stocking practices. Second phase included better marketing efforts in terms of advertising and packaging. Finally, it envisioned customized product launches for theSouthern states. Thecompletion of first two phases by 2005-06 resulted in increasing contribution to 10%.
Vision 2010
After thesuccessful implementation of the4-year business plan from 2002 to 2006, Dabur has launched another plan for 2010. Themain objectives are:
Doubling of thesales figure from 2006
Thenew plan will focus on expansion, acquisition and innovation. Although Dabur's international business has done well - growing by almost 29 per cent to Rs.292 crore in 2006-07, plans are to increase it by leaps and bounds.
Growth will be achieved through international business, homecare, healthcare and foods.
Southern markets will remain as a focus area to increase its revenue share to 15 per cent.
With smoothly sailing through its previous plans, this vision seems possible. Time and again, Dabur has made decisions that have led to its present position. However, if Dabur could be more aggressive in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year performance table from Dabur's website.
* Stock split from Rs 10/share to Rs 1/ share
** Consolidated results from FY02 onwards
***Dabur Pharma got de-merged.
#Bonus issue of 1:1 was issued during theyear
^ Bonus Issue of 1:2 was issued during theyear
BALANCE SHEET
In financial accounting, a balance sheet or statement of financial position is a summary of thefinancial balances of a sole proprietorship, a business partnership or a company. Assets, liabilities and ownership equity are listed as of a specific date, such as theend of its financial year. A balance sheet is often described as a "snapshot of a company's financial condition".[1] Of thefour basic financial statements, thebalance sheet is theonly statement which applies to a single point in time.
A standard company balance sheet has three parts: assets, liabilities and ownership equity. Themain categories of assets are usually listed first, and typically in order of liquidity.[2] Assets are followed by theliabilities. Thedifference between theassets and theliabilities is known as equity or thenet assetsor thenet worth or capital of thecompany and according to theaccounting equation, net worth must equal assets minus liabilities.[3]
Another way to look at thesame equation is that assets equals liabilities plus owner's equity. Looking at theequation in this way shows how assets were financed: either by borrowing money (liability) or by using theowner's money (owner's equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in theother section with thetwo sections "balancing."
Records of thevalues of each account or line in thebalance sheet are usually maintained using a system of accounting known as thedouble-entry bookkeeping system.
A business operating entirely in cash can measure its profits by withdrawing theentire bank balance at theend of theperiod, plus any cash in hand. However, many businesses are not paid immediately; they build up inventories of goods and they acquire buildings and equipment. In other words: businesses haveassets and so they can not, even if they want to, immediately turn these into cash at theend of each period. Often, these businesses owe money to suppliers and to tax authorities, and theproprietors do not withdraw all their original capital and profits at theend of each period. In other words businesses also haveliabilities.
Balance sheet
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Sources of funds
Owner's fund
Equity share capital
86.51
86.40
86.29
57.33
28.64
Share application money
-
-
-
-
-
Preference share capital
-
-
-
-
-
Reserves & surplus
651.69
441.92
316.90
390.54
309.43
Loan funds
Secured loans
8.26
16.45
19.28
19.23
15.70
Unsecured loans
130.72
0.24
0.26
1.25
32.77
Total
877.17
545.01
422.73
468.35
386.54
Uses of funds
Fixed assets
Gross block
518.77
467.93
404.30
328.23
317.46
Less : revaluation reserve
-
-
-
-
-
Less : accumulated depreciation
210.45
189.77
168.97
142.46
135.12
Net block
308.32
278.17
235.33
185.77
182.35
Capital work-in-progress
51.71
16.26
3.71
13.07
9.26
Investments
232.05
270.37
145.35
275.08
270.94
Net current assets
Current assets, loans & advances
973.42
576.82
397.78
285.68
253.35
Less : current liabilities & provisions
696.97
610.57
379.27
324.12
335.16
Total net current assets
276.45
-33.75
18.52
-38.44
-81.81
Miscellaneous expenses not written
8.64
13.95
19.82
32.87
5.81
Total
877.17
545.01
422.73
468.35
386.54
Notes:
Book value of unquoted investments
319.12
67.99
65.99
234.43
227.12
Market value of quoted investments
118.48
205.19
80.82
43.43
46.18
Contingent liabilities
174.15
171.24
153.25
190.02
175.62
Number of equity sharesoutstanding (Lacs)
8650.76
8640.23
8628.84
5733.03
2864.20
PROFIT AND LOSS
An official quarterly or annual financial document published by a public company, showingearnings, expenses, and net profit. Net income is determined from this financial report by subtracting total expenses from total revenue. Theprofit and loss statement and thebalance sheet are thetwo major financial reports that every public company publishes. Thedifference between this statement and thebalance sheet deals with theperiods of time that each one represents. Theprofit and loss statement shows transactions over a given period of time (usually quarterly or annually), whereas thebalance sheet gives a snapshot holdings on a specific date. also called income statement or earnings report.
Profit loss account
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Income
Operating income
2,408.33
2,093.63
1,745.14
1,345.50
1,231.10
Expenses
Material consumed
1,232.85
1,023.94
778.27
582.43
546.73
Manufacturing expenses
54.22
54.02
39.24
27.10
22.45
Personnel expenses
167.32
149.69
118.66
98.31
82.09
Selling expenses
358.75
337.69
403.42
316.46
322.30
Adminstrative expenses
153.67
138.69
100.90
80.24
76.22
Expenses capitalised
-
-
-
-
-
Cost of sales
1,966.81
1,704.03
1,440.48
1,104.55
1,049.78
Operating profit
441.52
389.60
304.66
240.95
181.31
Other recurring income
10.72
9.76
3.14
1.05
2.93
Adjusted PBDIT
452.24
399.36
307.80
242.01
184.24
Financial expenses
14.47
10.92
4.43
5.73
4.66
Depreciation
27.42
25.75
21.98
19.05
17.10
Other write offs
3.94
5.67
6.49
4.26
1.49
Adjusted PBT
406.41
357.01
274.90
212.97
160.99
Tax charges
51.44
48.40
32.15
25.78
17.00
Adjusted PAT
354.97
308.61
242.76
187.19
143.99
Non recurring items
18.58
8.16
9.32
1.90
4.03
Other non cash adjustments
-0.72
-0.86
-0.13
0.21
-0.05
Reported net profit
372.84
315.92
251.94
189.29
147.97
Earnigs before appropriation
696.07
545.07
426.95
314.52
229.09
Equity dividend
151.39
129.60
122.13
100.32
71.59
Preference dividend
-
-
-
-
-
Dividend tax
25.73
22.03
17.13
14.07
9.77
Retained earnings
518.95
393.44
287.70
200.13
147.73
Cash flow
Cash flow (also "cashflow") refers to themovement of cash into or out of a business, a project, or a financial product. It is usually measured during a specified, finite period of time. Measurement of cash flow can be used
To determine a project's rate of return or value. Thetime of cash flows into and out of projects are used as inputs in financial models such as internal rate of return, and net present value.
To determine problems with a business's liquidity. Being profitable does not necessarily mean being liquid. A company can fail because of a shortage of cash, even while profitable.
As an alternate measure of a business's profits when it is believed that accrual accounting concepts do not represent economic realities. For example, a company may be notionally profitable but generating little operational cash (as may be thecase for a company that barters its products rather than selling for cash). In such a case, thecompany may be deriving additional operating cash by issuing shares, or raising additional debt finance.
Cash flow can be used to evaluate the'quality' of Income generated by accrual accounting. When Net Income is composed of large non-cash items it is considered low quality.
To evaluate therisks within a financial product. E.g. matching cash requirements, evaluating default risk, re-investment requirements, etc.
Cash flow
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Profit before tax
425.00
365.18
284.22
214.36
165.02
Net cashflow-operating activity
323.57
313.29
234.43
194.34
206.99
Net cash used in investing activity
-238.38
-179.77
-60.57
-27.51
-60.38
Netcash used in fin. activity
-9.77
-119.30
-168.06
-139.45
-60.38
Net inc/dec in cash and equivlnt
75.42
14.22
5.79
27.39
-1.23
Cash and equivalnt begin of year
68.26
54.04
44.45
10.65
11.89
Cash and equivalnt end of year
143.68
68.26
50.25
38.04
10.65
CAPITAL STRUCTURE
In finance, capital structure refers to theway a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm's capital structure is then thecomposition or 'structure' of its liabilities. For example, a firm that sells $20 billion in equity and $80 billion in debt is said to be 20% equity-financed and 80% debt-financed. Thefirm's ratio of debt to total financing, 80% in this example, is referred to as thefirm's leverage. In reality, capital structure may be highly complex and include tens of sources. Gearing Ratio is theproportion of thecapital employed of thefirm which come from outside of thebusiness finance, e.g. by taking a short term loan etc.
Capital structure
From Year
To Year
Class Of Share
Authorized Capital
Issued Capital
Paid Up Shares (Nos)
Paid Up Face Value
Paid Up Capital
2008
2009
Equity Share
145.00
86.51
865076249
1
86.51
2007
2008
Equity Share
145.00
86.40
864022973
1
86.40
2006
2007
Equity Share
125.00
86.29
862883808
1
86.29
2005
2006
Equity Share
125.00
57.33
573302784
1
57.33
2004
2005
Equity Share
50.00
28.64
286419713
1
28.64
2003
2004
Equity Share
50.00
28.62
286249052
1
28.62
2002
2003
Equity Share
50.00
28.57
285749934
1
28.57
2001
2002
Equity Share
50.00
28.56
285593520
1
28.56
2000
2001
Equity Share
50.00
28.52
285214830
1
28.52
1999
2000
Equity Share
50.00
28.52
28521483
10
28.52
1998
1999
Equity Share
50.00
28.51
28508950
10
28.51
1997
1998
Equity Share
50.00
28.51
28508950
10
28.51
1996
1997
Equity Share
50.00
28.51
28508950
10
28.51
1995
1996
Equity Share
50.00
28.51
28508950
10
28.51
1994
1995
Equity Share
50.00
28.51
28508950
10
28.51
1993
1994
Equity Share
30.00
28.51
28508950
10
28.51
1992
1993
Equity Share
5.25
4.55
4550520
10
4.55
1991
1992
Equity Share
5.25
4.55
4550520
10
4.55
Ratios
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Per share ratios
Adjusted EPS (Rs)
4.10
3.57
2.81
3.27
5.03
Adjusted cash EPS (Rs)
4.47
3.94
3.14
3.67
5.68
Reported EPS (Rs)
4.32
3.67
2.92
3.30
5.17
Reported cash EPS (Rs)
4.68
4.03
3.25
3.70
5.82
Dividend per share
1.75
1.50
1.75
2.50
2.50
Operating profit per share (Rs)
5.10
4.51
3.53
4.20
6.33
Book value (excl rev res) per share (Rs)
8.43
5.95
4.44
7.24
11.60
Book value (incl rev res) per share (Rs.)
8.43
5.95
4.44
7.24
11.60
Net operating income per share (Rs)
27.84
24.23
20.22
23.47
42.98
Free reserves per share (Rs)
6.84
4.33
2.80
5.21
9.69
Profitability ratios
Operating margin (%)
18.33
18.60
17.45
17.90
14.72
Gross profit margin (%)
17.19
17.37
16.19
16.49
13.33
Net profit margin (%)
15.44
15.06
14.41
14.04
11.99
Adjusted cash margin (%)
15.97
16.16
15.51
15.63
13.17
Adjusted return on net worth (%)
48.65
59.99
63.32
45.10
43.33
Reported return on net worth (%)
51.20
61.58
65.75
45.56
44.54
Return on long term funds (%)
55.29
68.93
68.63
48.02
47.57
Leverage ratios
Long term debt / Equity
0.03
0.01
0.01
0.01
0.02
Total debt/equity
0.18
0.03
0.04
0.04
0.14
Owners fund as % of total source
84.15
96.93
95.37
95.62
87.46
Fixed assets turnover ratio
4.84
4.67
4.50
4.24
4.02
Liquidity ratios
Current ratio
1.40
0.94
1.05
0.88
0.75
Current ratio (inc. st loans)
1.19
0.91
0.96
0.81
0.66
Quick ratio
0.98
0.57
0.63
0.52
0.36
Inventory turnover ratio
10.94
12.52
13.44
14.44
11.74
Payout ratios
Dividend payout ratio (net profit)
47.41
47.86
55.24
60.49
54.96
Dividend payout ratio (cash profit)
43.74
43.54
49.63
53.85
48.83
Earning retention ratio
50.11
50.87
42.64
38.89
43.50
Cash earnings retention ratio
54.16
55.41
48.66
45.66
49.96
Coverage ratios
Adjusted cash flow time total debt
0.35
0.04
0.07
0.09
0.29
Financial charges coverage ratio
31.26
36.56
69.48
42.26
39.53
Fin. charges cov.ratio (post tax)
28.99
32.87
64.33
38.09
36.75
Component ratios
Material cost component (% earnings)
52.80
49.05
45.86
42.97
45.05
Selling cost Component
14.89
16.12
23.11
23.52
26.18
Exports as percent of total sales
4.56
4.49
3.96
1.97
3.02
Import comp. in raw mat. consumed
1.06
0.97
1.22
0.72
1.38
Long term assets / total Assets
0.36
0.48
0.48
0.61
0.64
Bonus component in equity capital (%)
87.35
87.46
87.58
81.74
63.55
Share holding
Share holding pattern as on :
31/03/2010
31/12/2009
30/09/2009
Face value
1.00
1.00
1.00
No. Of Shares
% Holding
No. Of Shares
% Holding
No. Of Shares
% Holding
Promoter's holding
Indian Promoters
598080925
68.94
598180925
69.09
605267473
69.91
Foreign Promoters
267000
0.03
267000
0.03
267000
0.03
Sub total
598347925
68.97
598447925
69.12
605534473
69.94
Non promoter's holding
Institutional investors
Banks Fin. Inst. and Insurance
70255377
8.10
69547762
8.03
73668111
8.51
FII's
124052133
14.30
115994585
13.40
104368002
12.06
Sub total
210675766
24.28
206047384
23.80
199250083
23.01
Other investors
Private Corporate Bodies
8835174
1.02
12505508
1.44
8240732
0.95
NRI's/OCB's/Foreign Others
3998040
0.46
4016133
0.46
4094113
0.47
Sub total
12833214
1.48
16521641
1.91
12334845
1.42
General public
45728925
5.27
44763216
5.17
48644227
5.62
Grand total
867585830
100.00
865780166
100.00
865763628
100.00
Annual results in brief
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Sales
2,417.91
2,117.79
1,778.02
1,369.68
1,268.72
Operating profit
444.44
377.24
300.61
233.71
174.93
Interest
13.34
8.55
4.43
5.66
4.30
Gross profit
452.42
396.60
312.69
233.40
182.13
EPS (Rs)
4.32
3.67
2.92
3.30
5.17
Annual results in details
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
Other income
21.32
27.91
16.51
5.35
11.50
Stock adjustment
-38.89
-3.04
-22.19
4.24
-7.96
Raw material
892.13
737.20
595.64
401.52
327.04
Power and fuel
-
-
-
-
-
Employee expenses
167.32
149.69
118.66
91.23
74.99
Excise
-
34.39
-
-
-
Admin and selling expenses
284.93
248.10
197.60
151.66
171.79
Research and development expenses
-
-
-
-
-
Expenses capitalised
-
-
-
-
-
Other expenses
667.98
574.21
587.70
487.32
527.93
Provisions made
-
-
-
-
-
Depreciation
27.42
31.42
28.47
19.05
17.10
Taxation
51.44
48.41
32.14
25.78
17.00
Net profit / loss
373.56
316.77
252.08
189.08
148.03
Extra ordinary item
-
-
-
0.51
-
Prior year adjustments
-
-0.86
-
-
-
Equity capital
86.51
86.40
86.29
57.33
28.64
Equity dividend rate
-
-
-
-
-
Agg.of non-prom. shares (Lacs)
2532.42
2521.89
2260.42
1484.77
627.13
Agg.of non promotoHolding (%)
29.27
29.19
26.20
25.90
21.90
OPM (%)
18.38
17.81
16.91
17.06
13.79
GPM (%)
18.55
18.48
17.42
16.97
14.23
NPM (%)
15.31
14.76
14.05
13.75
11.56
Annual Balance Sheet
Top of Form
Bottom of Form
In Millions of Rupee
(except for per share items)
2009
2009-03-31
2008
2008-03-31
2007
2007-03-31
Reclassified
2008-03-31
2006
2006-03-31
Reclassified
2007-03-31
2005
2005-03-31
Cash
359.3
751.8
606.7
511.7
147.3
Cash & Equivalents
--
--
--
--
--
Short Term Investments
1,424.3
214.3
--
--
--
Cash and Short Term Investments
1,783.6
966.2
606.7
511.7
147.3
Accounts Receivable - Trade, Net
2.8
61.2
79.3
32.5
25.3
Notes Receivable - Short Term
--
--
--
--
--
Receivables - Other
2,295.3
2,410.6
3,147.6
2,041.2
1,871.3
Total Receivables, Net
2,298.1
2,471.9
3,226.9
2,073.7
1,896.7
Total Inventory
3,754.7
3,024.8
2,571.1
2,127.8
2,031.3
Prepaid Expenses
--
--
--
--
--
Other Current Assets, Total
1,671.7
1,276.2
--
--
--
Total Current Assets
9,508.0
7,739.0
6,404.6
4,713.2
4,075.3
Property/Plant/Equipment, Total - Gross
8,093.8
6,823.5
5,789.4
5,404.0
4,565.0
Accumulated Depreciation, Total
(2,873.0)
(2,562.6)
(2,333.0)
(2,053.3)
(1,802.4)
Property/Plant/Equipment, Total - Net
5,220.7
4,260.9
3,456.4
3,350.7
2,762.6
Goodwill, Net
214.6
214.6
214.6
1,699.5
96.8
Intangibles, Net
156.3
177.0
120.5
74.2
85.6
Long Term Investments
3,469.6
2,037.2
807.0
421.3
2,332.9
Note Receivable - Long Term
--
--
--
--
--
Other Long Term Assets, Total
321.7
379.6
212.6
341.9
71.9
Other Assets, Total
--
--
--
--
--
Total Assets
18,891.1
14,808.4
11,215.9
10,601.0
9,425.1
Accounts Payable
4,304.9
3,788.6
2,671.2
2,975.5
--
Payable/Accrued
--
--
--
--
--
Accrued Expenses
150.6
113.3
5.3
6.3
--
Notes Payable/Short Term Debt
452.7
737.4
844.6
0.0
0.0
Current Port. of LT Debt/Capital Leases
--
--
--
--
--
Other Current liabilities, Total
3,168.2
2,681.4
996.4
1,379.3
3,997.0
Total Current Liabilities
8,076.5
7,320.7
4,517.5
4,361.0
3,997.0
Long Term Debt
2,275.9
991.6
1,599.0
1,043.3
1,508.8
Capital Lease Obligations
--
--
--
--
--
Total Long Term Debt
2,275.9
991.6
1,599.0
1,043.3
1,508.8
Total Debt
2,728.6
1,729.0
2,443.5
1,043.3
1,508.8
Deferred Income Tax
304.9
272.8
259.0
171.5
127.8
Minority Interest
45.8
47.5
44.7
54.6
152.2
Other Liabilities, Total
--
--
--
--
--
Total Liabilities
10,703.0
8,632.6
6,420.2
5,630.4
5,785.8
Redeemable Preferred Stock, Total
--
--
--
--
--
Preferred Stock - Non Redeemable, Net
--
--
--
--
--
Common Stock, Total
865.1
864.0
862.9
573.3
286.4
Additional Paid-In Capital
588.5
632.4
597.6
911.3
847.3
Retained Earnings (Accumulated Deficit)
6,748.2
4,684.8
3,335.2
3,486.0
2,505.6
Treasury Stock - Common
--
--
--
--
--
ESOP Debt Guarantee
--
--
--
--
--
Unrealized Gain (Loss)
--
--
--
--
--
Other Equity, Total
(13.7)
(5.5)
--
--
--
Total Equity
8,188.1
6,175.8
4,795.7
4,970.6
3,639.3
Total Liabilities & Shareholders' Equity
18,891.1
14,808.4
11,215.9
10,601.0
9,425.1
Shares Outs - Common Stock Primary Issue
865.08
864.02
862.88
859.95
859.01
Shares Outstanding - Common Issue 2
--
--
--
--
--
Shares Outstanding - Common Issue 3
--
--
--
--
--
Shares Outstanding - Common Issue 4
--
--
--
--
--
Total Common Shares Outstanding
865.08
864.02
862.88
859.95
859.01
Total Preferred Shares Outstanding
--
--
--
--
--
Dividend policy
Thedividends that are distributed from thecurrent year earnings have a direct impact on thecapital structure, thefuture growth of thefirm, and thevalue of thecompany to outside investors and owners. From theavailable theoretical research and from writings of professional practitioners, there does not seem to be one optimal dividend distribution strategy (which would be similar to theoptimal capital structure theory seen in theprevious chapter). Instead, there are two or three guiding rules relating to dividend distribution which are presented below. However, some dividend policies may be detrimental to a firm, and for those, a financial analyst ought to be on thealert.
a)- Interpretation of dividend data:
Dividends can be of different types. Ordinary dividends are cash payments which must come from current or prior year earnings (i.e. not from capital or paid-in capital because it is prohibited in most countries), which are decided by theboard of directors, which are paid (usually quarterly) to holders of common shares, and which come as a reduction of theearnings to be retained. Special or extraordinary dividends are also cash payments which are added to ordinary dividends in theyears when earnings are unusually large. There are also preferred shares dividends which are cash payments, but only for theholders of preferred shares: they are most often fixed (although a few are "participating" in earnings), and cumulative (i.e. if one year payment is missed it accrues for next year).
Common shareholders also may occasionally receive stock dividends which consist of thedistribution of one new share of thecorporation for a given number of existing outstanding shares. If theproportion is more than one new share for four existing shares, thedistribution is said to be a stock split rather than a stock dividend. From an accounting point of view, a stock dividend requires assigning a portion of retained earnings to capital (and possibly paid-in capital), whereas a stock split does not change capital, only thenumber and unit value of theshares outstanding. Instead of a stock dividend, shareholders may receive pre-emptive rights to acquire new shares at a reduced price. These rights have a value equal to thedifference between themarket price and thesubscription price. A right provides additional cash for theshareholder if sold, or theability to preserve thefractional ownership in thecorporation. Occasionally, there may be a dividend distributed in kind to shareholders, that is, a physical asset given to each shareholder, but this is only found in closely-held corporations. Finally, there are also liquidating dividends in cash or in kind, which are distributed when a firm is closing down.
What constitutes a dividend policy is primarily determined by theproportion of ordinary cash dividends paid from current year earnings. This proportion is known as thepayout ratio. Theportion that goes to retained earnings is known as theretention rate.
IPO OF DABUR
An initial public offering (IPO) referred to simply as an "offering" or "flotation," is when a company (called theissuer) issues common stock or shares to thepublic for thefirst time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.
In an IPO theissuer may obtain theassistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.
An IPO can be a risky investment. For theindividual investor, it is tough to predict what thestock or shares will do on its initial day of trading and in thenear future since there is often little historical data with which to analyze thecompany. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value.
NEWS
1.Equity Churn Pushes Up Dabur Pharma
In early trade, Dabur Pharma was trading up 1.51% to Rs 77.50 after 50 lakh shares changed hands in a single block deal at Rs 76 each on NSE.
Theblock deal of 50 lakh shares comprised 3.19% of Dabur Pharma's equity. Thecompany has theequity capital of Rs 15.67 crore, with 15.97 crore outstanding shares having face values of Rs 1 each.
During theday, thescrip touched a high peak of Rs 79.40 and a low of Rs 76.40. Today, there were 12,777 for trading on theBSE counter. In thelast one quarter, thescrip showed an average daily volume of 52,869 shares. At its existing price of Rs 77.50, thescrip trades at a PE multiple of 48.13, which is based on ear ended march 2007 earning per share (EPS) of Rs 1.61.
In one month to 3 july 2007, thescrip gained 6.89% against theSensex's 2.14% return. In thelast three months, it appended 12.78% as compared to theSensex's increase of 15.80%. On 9 January 2007, thestock has had its yearly high of Rs 86.30, and an yearly low of Rs 51 on 19 July 2006.
Dabur Pharma's net profit had surged 1,200% to Rs 2.73 crore in Q4 March 2007 as against Rs 0.21 crore in Q4 March 2006. Sales moved up 16.3% to Rs 57.73 crore in Q4 March 2007 (Rs 49.62 crore).
Dabur Pharma is theleading theIndian market in theoncology segment and various major Asian markets such as Malaysia and Thailand where thecompany is pitted against global pharma majors.
2.Dabur Pharma introduces Nanoxel in India
Dabur Pharma Ltd. (NSE: DABURPHARM, BSE: 532545), a leading Indian company in thefield of cancer research and a manufacturer of anti cancer drugs, today announced thelaunch of Nanoxel - a novel drug delivery system for thewidely used anti-cancer drug Paclitaxel. This nanoscale drug delivery system is India's first indigenously developed nanotechnology based chemotherapy agent.
"We are very excited to launch thefirst nanoparticle drug delivery system outside of theUnited States", said Dr. Anand Burman, Chairman, Dabur Pharma Ltd.
Dr. Rama Mukherjee, President R&D at Dabur Research Foundation (DRF) added, "Thedrug is a result of years of persevering research in theapplication of progressive technology for thetreatment of various types of cancer at DRF. Owing to its water insolubility, thewidely used chemotherapy agent paclitaxel that is known to have substantial anti-tumor activity is now used with a castor oil based solvent, cremophor which in turn is an agent for life threatening side effects. Theanticancer drug Nanoxel, based on theprinciples of nanotechnology, is a cremophor free water soluble formulation - and is indicated as an effective and safe therapy for advanced breast, non-small-cell lung, and ovarian cancinomas."
With thelaunch of Nanoxel, Dabur Pharma expects to bring hope of better and safer therapy to a number of ailing cancer patients in India who have suffered for want of a reliable yet cost effective cancer treatment
3. Dabur Pharma: Sell in market
Shareholders of Dabur Pharma may use theongoing open offer to exit thestock. Singapore-based Fresenius Kabi is making an open offer to theshareholders of Dabur Pharma.
Through a cash offer at Rs 76.50 per share, theacquirer hopes to mop up 3.13 crore shares out of the4.18 crore shares available with thenon-promoter shareholders. Fresenius Kabi, in April, agreed to acquire a 73.3 per cent stake in Dabur Pharma at Rs 76.50, from thepromoters, International Finance Corporation and select employees.
4. Dabur Pharma gets FDA nod for prostrate cancer drug
New Delhi: Oncology drug maker Dabur Pharma Ltd announced that theUS Food and Drug Administration (USFDA) has granted final approval to thecompany's Abbreviated New Drug Application (ANDA) to market its generic version of EMD Serono's Novantrone (Mitoxantrone Hydrochloride) Injection used in thetreatment for prostrate cancer.
5. Dabur Pharma to sell majority stake
MUMBAI, April 19 (Reuters) - Indian drug maker Dabur Pharma Ltd DABR.BO said on Saturday its founders and other shareholders have agreed to sell 73.27 percent in thecompany to Fresenius Kabi (Singapore) Pte Ltd, at 76.50 rupees a share.
TheSingapore firm is a unit of European healthcare firm Fresenius SE (FREG.DE).
TheIndian firm, which makes anti-cancer drugs, had earlier this year denied it was in talks with a German drug maker for a partnership or sale. Thedeal with Fresenius values it about 10 percent higher from its market capitalisation of $273 million.
Last year, thecompany had sold its non-oncology drugs business to local rival Alembic (ALMC.BO) to focus on cancer treatment drugs.
Ahead of theannouncement, Dabur Pharma shares ended at 69.15 rupees on Thursday, down 4.2 percent in a strong Mumbai market. (Reporting by Prashant Mehra; Editing by Ben Tan)
6. Dabur India strengthens skin care with acquisition
India-based consumer goods company Dabur India is expanding its presence in theskin care market by taking a controlling stake in Fem Care Pharma.
Thecompany has acquired 72.5 per cent of Fem Care Pharma for 2.04bn rupees ($41.23m).
A further offer will be made by Dabur for an additional 20 per cent of thecompany's shares.
"Acquisition of Fem Care Pharma is in line with our strategy to aggressively expand Dabur's operations and strengthen its presence in thefast moving consumer goods space," said Dabur India chairman Dr Anand Burman.
Strengthening skin care
In particular, theacquisition will help Dabur strengthen its position in thepersonal care market. Thecompany already offers hair and skin care products under theAmla, Vatika and Gulabari brands, but theaddition of theFem line will help build up theskin care sector.
"This transaction would give Dabur an entry into thehigh-growth skin care market with an established brand name, Fem," added Burman.
CLINICAL STUDY
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Fem Care Pharma's portfolio includes hair bleach and hair removal products as well as liquid soap products, although Dabur plans to extend therange in future.
In addition, Dabur will benefit from Fem Care Pharma's international presence, including theYemen, Maldives and Mauritius, Malaysia and theUnited Arab Emirates.
"Theacquisition brings to Dabur a portfolio of well-known household brands that enjoy a pole position in their respective categories, offering us a strong platform to enter newer product categories and markets. Fem's brands fit in well with Dabur's future growth plans, both for India and international markets," said Dabur India CEO Sunil Duggal.
7. Dabur India Ltd acquired 72% stake of Fem Care Pharma
Dabur India Ltd bought 72% stake of Fem Care Pharma for Rs 203 crore in an all-cash deal. This acquisition deal got approval from board of directors on Friday.
Dabur made this deal to enter skin-care market in India. As required under takeover regulations, Dabur will make an open offer for an additional 20% stake in Fem Care.
Sunil Duggal, chief executive officer, Dabur India said: "We will fund theentire acquisition from internal accruals. We have around Rs 250 crore of cash."
According to sources, Dabur has not bought Fem Care's speciality Chemical unit as it doesn't fit into its portfolio and constitutes only 3% of Fem's sales. Sources also reveal that a joint venture in US called Fem Mitechell in which Fem has 25% stake is also being retained by theFem's promoters as it was not adding much value to Dabur.
Anand Burman, Chairman of Dabur India said acquisition of Fem Care Pharma is in line with thecompany strategy to aggressively expand its scale of operations and strengthen its presence in FMCG space. This transaction would give Dabur an entry into high-growth skin care market with an established brand name Fem. Further, Dabur also has thepotential to extend thebrand into newer and related skin care categories.
