Dabur India announced that CRISIL (Indian analytical company providing ratings, research, and risk and policy advisory services) has reaffirmed its ‘CRISIL AAA/Stable/CRISIL A1+’ ratings on the bank facilities and debt programs of Dabur India. The ratings reflect the company’s strong financial power and market position in India’s FMCG industry, despite the impact of the COVID-19 pandemic and the overall economic recession.
The rating agency reaffirmed the CRISIL A1+ rating on the Rs 200 Crore commercial paper of Dabur India. The rating agency reaffirmed its CRISIL AAA/Stable rating on the Rs 20 Crore non-convertible debentures of Dabur India. Instruments with these ratings are considered to have a strong degree of safety regarding timely payment of financial obligations and carry lowest credit risk.
“Dabur has a strong balance sheet with healthy levels of cash reserves. These ratings not only reflect our strong financial power and market position in India, but also our healthy financial risk profile, supported by strong cash accrual and a comfortable net worth position,” Dabur India Group director PD Narang said.
For the full year 2019-20, Dabur reported a 2% growth in revenue from operations at Rs 8,704 crore, up from Rs 8,533 Crore a year earlier. International Business for Dabur reported a 4.9% growth during the 2019-20 financial year. Net profit for the full year stood at Rs 1,445 crore, up 0.2% from Rs 1,442 crore a year earlier. The 2019-20 Net Profit was impacted by one-time impairment in value of Investments to the tune of Rs 100 Crore. Excluding this impairment, the Net Profit for the year marked a 5.8% growth year-on-year. But for Covid-19, Dabur was on track to deliver a best-in-class 6% growth in revenue and 13.8% growth in Net Profit before Exceptional for 2019-20 fiscal.