Analysis of Profitability Position of Dabur India Limited
Dr. Meenakshi Shrivastava1, Dr.Meeta Sharma Moghe2
1Dean, Department of Commerce & Management , Mansarovar Global University, Sehore
2 Associate Professor, Department of Management , Mansarovar Global University, Sehore
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Abstract: Every business firm requires funds for its day-to-day operations. Profitability is consisting or combination of two words profit & ability. Profit means the return that earn by a business entity on its activity performed and the term ability means the supremacy of a business entity to earn profits. This study analyzes the profitability position of Dabur India Limited, one of the leading consumer goods companies in India, known for its diverse product range in health care, personal care, and food products. The analysis focuses on key profitability metrics over a five-year period, including net profit margin, gross profit margin, operating profit margin, return on equity (ROE), and return on assets (ROA).
The findings indicate a consistent upward trend in revenue, growing from 4,574.23 million INR in 2019-20 to 6,915.37 million INR in 2023-24. Despite this revenue growth, the net profit margins have experienced slight fluctuations, with a notable decline from 25.63% in 2020-21 to 21.82% in 2023-24. This decline suggests challenges in maintaining profitability, possibly due to increasing operational costs and competitive pressures in the market.
The mean net profit margin of approximately 23.86% indicates a robust overall profitability position, while a low standard deviation of 1.71% reflects stability in performance across the years. The study underscores the importance of operational efficiency and market adaptation to enhance profitability in a dynamic consumer landscape.
Overall, the analysis highlights that while Dabur India Limited has successfully sustained its profitability amidst market challenges, strategic initiatives focused on cost management and innovation will be crucial for future growth and competitive advantage.
Key word:-Profitability, Net Profit ,Return on Assets , Return on Equity
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