Business
Analytics
Presentation
By- Mohammed Saalim 2553
Nishant Jatwani 2633
What are the Types of Data Analytics
Descriptive Analysis
1. Summarised Profit and Loss
Statement
2. Summarised Balance Sheet.
Summarised P/L Statement
NESTLE INDIA LTD
Narration Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Sales 8,175.31 9,141.34 10,009.60 11,292.27 12,368.90 13,350.03 14,740.59 16,896.96 19,126.30
Expenses 6,620.38 7,291.50 7,913.07 8,674.62 9,443.02 10,148.53 11,178.19 13,190.67 14,655.31
Operating Profit 1,554.93 1,849.84 2,096.53 2,617.65 2,925.88 3,201.50 3,562.40 3,706.29 4,470.99
Other Income -390.75 140.12 176.92 258.92 246.88 145.85 -112.38 107.26 115.50
Depreciation 347.26 353.67 342.25 335.67 370.15 370.38 391.02 403.01 428.91
Interest 3.29 90.91 91.90 111.95 129.12 164.18 201.68 154.57 119.29
Profit before tax 813.63 1,545.38 1,839.30 2,428.95 2,673.49 2,812.79 2,857.32 3,255.97 4,038.29
Tax 250.36 544.02 614.11 822.02 705.05 730.36 738.91 865.45 1,039.62
Net profit 563.27 1,001.36 1,225.19 1,606.93 1,968.44 2,082.43 2,118.41 2,390.52 2,998.67
EPS 5.84 10.39 12.71 16.67 20.42 21.60 21.97 24.79 31.10
Price to earning 99.76 58.05 61.94 66.51 72.42 85.15 89.69 79.08 85.47
Price 582.80 602.84 787.09 1,108.49 1,478.54 1,839.03 1,970.57 1,960.60 2,658.03
RATIOS:
Dividend Payout 83.02% 60.66% 67.68% 69.00% 167.52% 92.60% 91.03% 88.74% 55.95%
OPM 19.02% 20.24% 20.95% 23.18% 23.66% 23.98% 24.17% 21.93% 23.38%
TRENDS: 10 YEARS 7 YEARS 5 YEARS
Sales Growth 12.92% 13.57% 14.55%
OPM 22.80% 23.44% 23.45%
Price to Earning 75.06 75.74 77.83
SALES TREND
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
-
NET PROFIT TREND
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
Summarised Balance Sheet
NESTLE INDIA LTD
Narration Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Equity Share Capital 96.42 96.42 96.42 96.42 96.42 96.42 96.42 96.42 96.42
Reserves 2,721.42 3,185.91 3,324.17 3,577.32 1,822.45 1,922.92 1,849.96 2,362.75 2,362.75
Borrowings 17.73 33.15 35.14 35.14 188.94 147.49 266.46 270.52 270.52
Other Liabilities 3,250.76 3,494.98 3,906.86 4,379.20 5,065.13 5,732.90 6,021.29 6,249.05 6,249.05
Total Liabilities 6,086.33 6,810.46 7,362.59 8,088.08 7,172.94 7,899.73 8,234.13 8,978.74 8,978.74
Net Block 2,897.85 2,730.14 2,616.18 2,400.62 2,341.45 2,179.41 2,994.67 3,043.70 3,043.70
Capital Work in Progress 230.79 188.17 94.16 105.20 143.30 638.58 246.23 358.36 358.36
Investments 1,324.92 1,755.66 1,978.87 2,658.49 1,751.05 1,463.77 773.98 777.54 777.54
Other Assets 1,632.77 2,136.49 2,673.38 2,923.77 2,937.14 3,617.97 4,219.25 4,799.14 4,799.14
Total Assets 6,086.33 6,810.46 7,362.59 8,088.08 7,172.94 7,899.73 8,234.13 8,978.74 8,978.74
- - - - - - - - -
Working Capital 1,617.99 1,358.49 1,233.48 1,455.43 2,127.99 2,114.93 1,802.04 1,449.91 1,449.91
Debtors 78.42 97.93 88.97 124.59 124.33 164.93 165.97 191.89 191.89
Inventory 820.81 940.06 902.47 965.55 1,283.07 1,416.48 1,592.65 1,928.77 1,928.77
Debtor Days 3.50 3.91 3.24 4.03 3.67 4.51 4.11 4.15 3.66
Inventory Turnover 9.96 9.72 11.09 11.70 9.64 9.42 9.26 8.76 9.92
Return on Equity 20% 31% 36% 44% 103% 103% 109% 97% 122%
Return on Capital Emp 53% 57% 71% 96% 139% 140% 138% 152%
Assets and Liabilities
10,000.00
9,000.00
8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
-
Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec-
Dec-15
16 17 18 19 20 21 22 23
Total Liabilities 6,086. 6,810. 7,362. 8,088. 7,172. 7,899. 8,234. 8,978. 8,978.
Total Assets 6,086. 6,810. 7,362. 8,088. 7,172. 7,899. 8,234. 8,978. 8,978.
DIAGNOSTIC
ANALYTICS
Period Dec22-Dec23
1. Analysis of Profit and Loss Statement
2. Analysis of Balance Sheet.
NESTLE INDIA LTD
Narration Dec-22 Dec-23
Analysis of P/L Statement
Sales 16,896.96 19,126.30
Expenses 13,190.67 14,655.31
Operating Profit 3,706.29 4,470.99
Other Income 107.26 115.50
Depreciation 403.01 428.91
Interest 154.57 119.29
Profit before tax 3,255.97 4,038.29
Tax 865.45 1,039.62
Net profit 2,390.52 2,998.67
EPS 24.79 31.10
Price to earning 79.08 85.47
Price 1,960.60 2,658.03
RATIOS:
Dividend Payout 88.74% 55.95%
OPM 21.93% 23.38%
TRENDS: 7 YEARS 5 YEARS
Sales Growth 13.57% 14.55%
OPM 23.44% 23.45%
Price to Earning 75.74 77.83
1. Revenue Growth
Sales grew from 16,896.96 Cr to ₹19,126.30 Cr, reflecting strong business expansion.
Reasons
• Increased demand for Nestlé's products, particularly in the dairy, confectionery, and ready-to-eat segments.
• Expansion of distribution channels, including e-commerce and rural penetration.
• New product launches catering to evolving consumer preferences, like healthier alternatives.
2. Higher Expenses
Expenses increased from ₹13,190.67 Cr to ₹14,655.31 Cr.
Reasons
• Increased cost of raw materials like milk, coffee, and wheat.
• Higher logistics and energy costs due to inflation.
• Increased investments in advertising and new product development
3. Operating Profit Growth Increased from ₹3,706.29 Cr to ₹4,470.99 Cr, showing efficient operations.
4. Profit Before Tax (PBT) Growth Grew from ₹4,493.49 Cr to ₹5,288.87 Cr, indicating revenue growth
outpacing cost rise.
5. Higher Tax Expenses
Tax expenses rose from ₹865.45 Cr to ₹1,039.62 Cr, impacting net earnings due to higher taxable income.
6. Net Profit Growth
Increased from ₹3,363.26 Cr to ₹3,932.84 Cr, reflecting steady financial performance.
Reasons
• Effective cost control measures prevented excessive margin compression.
• Higher earnings per share (EPS) reflect the company’s ability to generate shareholder value
NESTLE INDIA LTD
Analysis of Balance Sheet
Narration Dec-22 Dec-23
Equity Share Capital 96.42 96.42
Reserves 2,362.75 2,362.75
Borrowings 270.52 270.52
Other Liabilities 6,249.05 6,249.05
Total Liabilities 8,978.74 8,978.74
Net Block 3,043.70 3,043.70
Capital Work in Progress 358.36 358.36
Investments 777.54 777.54
Other Assets 4,799.14 4,799.14
Total Assets 8,978.74 8,978.74
Working Capital -1,449.91 -1,449.91
Debtors 191.89 191.89
Inventory 1,928.77 1,928.77
Debtor Days 4.15 3.66
Inventory Turnover 8.76 9.92
Return on Equity 97% 122%
Return on Capital Emp 138% 152%
1. Stable Liabilities & Assets
Why?
• No major changes in capital structure, borrowings, or reserves.
• The company likely focused on maintaining financial stability without additional investments.
2. Reduction in Debtor Days (-11.8%)
Why?
• Faster collection of payments from customers.
• Improved credit terms with clients, enhancing cash flow.
3. Increase in Inventory Turnover from 8.76 to 9.92
Why?
• Faster sales and better inventory management.
• Increased demand for Nestlé's products resulted in quicker stock movement.
4. Higher Return on Equity from 97% to 122% (ROE)
Why?
• More efficient profit generation relative to shareholder equity.
• Improved profitability without requiring additional capital.
5. Higher Return on Capital Employed from 138% to 152% (ROCE)
Why?
• Increased efficiency in utilizing capital for generating profits.
• Stable liabilities and asset structure while improving profitability.
Predictive and Prescriptive Analysis
NESTLE INDIA LTD Balance Sheet NESTLE INDIA LTD P/L Statement
Narration Dec-23 Dec-24 Narration Dec-23 Dec-24
Equity Share Capital 96.42 96.42
Sales 19,126.30 24,393.89
Reserves 2,362.75 3,244.47
Borrowings 270.52 344.53 Expenses 14,655.31 18,580.74
Other Liabilities 6,249.05 6,837.64 Operating Profit 4,470.99 5,813.15
Other Income 115.50 158.99
Total Liabilities 8,978.74 10,523.06
Depreciation 428.91 537.78
Net Block 3,043.70 3,460.25 Interest 119.29 145.49
Capital Work in Progress 358.36 1,741.71 Profit before tax 4,038.29 5,288.87
Investments 777.54 463.87 Tax 1,039.62 1,356.03
Other Assets 4,799.14 4,857.23 Net profit 2,998.67 3,932.84
Total Assets 8,978.74 10,523.06 EPS 31.10 40.79
Price to earning 85.47 64.29
Working Capital -1,449.91 -1,980.41 Price 2,658.03 2,622.35
Debtors 191.89 300.46
RATIOS:
Inventory 1,928.77 2,089.36 Dividend Payout 55.95% 78.94%
OPM 23.38% 23.83%
Debtor Days 3.66 4.50
Inventory Turnover 9.92 11.68
TRENDS: 5 YEARS 3 YEARS
Sales Growth 14.55% 18.28%
Return on Equity 122% 118% OPM 23.45% 23.16%
Return on Capital Emp 152% 169%
Price to Earning 77.83 73.03
1. Revenue Growth
Prediction:
• Sales are projected to grow from ₹19,126.30 Cr (Dec-23) to ₹24,393.89 Cr (Dec-24), a +27.5% increase.
• Growth will be driven by expansion in e-commerce, premium product lines, and rural markets.
• Higher demand for packaged foods, nutrition-based products, and beverages will contribute significantly.
Prescription:
Sales are forecasted to grow +27.5% YoY, but competition is increasing.
Action Plan:
• Expand Direct-to-Consumer (D2C) e-commerce sales to increase margins.
• Introduce high-margin premium products (organic dairy, plant-based nutrition, sugar-free chocolates).
• Focus on Tier-2 and Tier-3 cities, where demand for FMCG is rising.
2. Higher Expenses
Prediction:
• Expenses are expected to rise from ₹14,655.31 Cr to ₹18,580.74 Cr.
• Higher raw material prices (milk, cocoa, wheat), logistics, and energy costs may drive this increase.
• Marketing & R&D investments will also contribute to the expense rise.
Prescription:
Expenses will rise +26.8%, nearly matching revenue growth.
Action Plan:
• Implement AI-driven demand forecasting to reduce procurement costs.
• Negotiate better contracts with suppliers to offset inflation impacts.
• Use renewable energy & automation to reduce operational costs
3. Profitability & Margins → Net Profit to Reach ₹3,932.84 Cr
Prediction:
• Operating profit is expected to grow from ₹4,470.99 Cr to ₹5,813.15 Cr (+30%).
• Net profit will grow faster (+31.2%) than revenue due to improved operational efficiency.
• Operating profit margin (OPM) will slightly improve from 23.38% to 23.83%, indicating stable profitability.
Prescription:
Net profit is expected to grow 31.2%, but maintaining margins is critical.
Action Plan:
• Increase focus on personalized product offerings.
• Reduce dependency on volatile raw materials by expanding local sourcing.
• Strengthen brand positioning in health and wellness segments.
4. Capital Efficiency & Financial Stability
Prediction:
• Reserves to increase by 37% (₹3,244.47 Cr from ₹2,362.75 Cr), improving financial strength.
• Borrowings will rise to ₹344.53 Cr (+27.3%), indicating possible capital investments in expansion.
• Return on Capital Employed (ROCE) to rise from 152% to 169%, showing better capital utilization.
• Return on Equity (ROE) may decline slightly from 122% to 118%, likely due to increased retained earnings.
Prescription:
Borrowings will rise +27.3%, indicating future investments.
Action Plan:
• Invest in R&D and manufacturing automation to increase long-term profitability.
• Ensure higher capital efficiency to sustain strong ROCE (169% expected).
Nestle India: Inventory and Working Capital
Trends (Dec-23 V/S Dec-24)
3,000.00
2,000.00
1,000.00
-
Working Capital Debtors Inventory
(1,000.00)
(2,000.00)
23-Dec 24-Dec
5. Inventory & Working Capital Trends
Prediction:
• Inventory turnover will improve from 9.92 to 11.68, showing better inventory management.
• Debtor Days to increase from 3.66 to 4.50, meaning slower customer payments.
• Working capital deficit to expand from -₹1,449.91 Cr to -₹1,980.41 Cr, indicating higher short-term
liabilities.
Prescription:
Inventory turnover is improving, but Debtor Days (4.50) show slower customer payments.
Action Plan:
• Tighten credit policies to ensure faster receivables collection.
• Use Just-in-Time (JIT) inventory management to reduce stock holding costs.
Thanks!
