Performance Analysis of

FMCG Sector in India

SUBMITTED BY: PRATHAM JAIN

21BCMN017
 Overview of FMCG Sector in India
The fast-moving consumer goods (FMCG) industry or consumer packaged goods (CPG) industry is mainly responsible
for producing, distributing and marketing fast-moving consumer goods. The FMCG industry is the fourth largest sector
in the Indian economy. Household and personal care products accounts for 50% of the sales in the industry, healthcare
accounts for 31-32% and food and beverage accounts for the remaining 18-19%.

In the last 10 years, the revenue in FMCG industry in India has been growing at the rate of 21.4%. There was a drastic
change in revenues in FMCG sector growing from US$31.6 billion to US$52.8 from 2011 to 2017-2018
respectively. FMCG industry in India is expected to grow at the rate of 27.9% CAGR (Compounded Annual Growth
Rate) to sum to US$103.7 billion by 2020. Additionally, the rural FMCG market is projected to grow at a CAGR of
14.6% to reach US$100 billion by 2020 and US$220 billion by 2025. The rural setting accounts for 45% revenue share
while the urban setting dominates with 55% revenue share of the total revenue of the FMCG industry.
SWOT Analysis of ITC Ltd
 Ratio Analysis Of ITC
1. Profitability Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
38.97 37.07 39.85 44.24 42.56
Gross Profit Margin (%)

Operating Margin (%) 36.42 34.22 36.51 40.91 39.67

27.38 25.52 27.17 31.54 26.52

Net Profit Margin (%)
27.75 24.4 21.8 23.44 21.29
Return on Net worth / Equity (%)
ROCE (%) 35.81 31.89 28.49 29.8 31.04
Return On Assets (%) 22.34 19.72 17.82 19.78 17.53

2. Liquidity Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Current Ratio 2.89 2.81 3.27 4.13 3.17
Quick Ratio 2.02 1.91 2.29 3.19 2.38

3. Leverage or Solvency Ratio -

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Debt to Equity 0 0 0 0 0
Interest Coverage Ratios 639.94 571.51 403.54 369.66 422.36

4. Turnover Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Asset Turnover Ratio 0.83 0.76 66.74 63.85 67.34

Inventory Turnover Ratio 1.84 1.57 4.69 5.51 6.09

 Returns
Profit margins
40 35.81
50
44.24 35 31.04 31.89
45 42.56 29.8
39.67 40.91 39.85 28.49 27.75
38.97 30
40 36.51 37.07 36.42 24.4
34.22 23.44 22.34
25 21.29 21.8
35 31.54 19.78 19.72
20 17.53 17.82
30 26.52 27.17 27.38
25.52
25 15

20 10
15 5
10 0
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
5
0 Return on Net worth / Equity (%) ROCE (%)
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
Return On Assets (%)
Gross Profit Margin (%) Operating Margin (%) Net Profit Margin (%)

Liquidity ratio Solvency ratio

700 639.94
4.5 4.13
571.51
4 600
3.17 3.19 3.27
3.5 500
2.81 2.89 422.36 403.54
3 369.66
2.38 2.29 400
2.5 2.02
1.91
2 300
1.5 200
1
100
0.5 0 0 0 0 0
0
0 Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23

Debt to Equity Interest Coverage Ratios

Current Ratio Quick Ratio
SWOT Analysis of HUL Ltd
 Ratio Analysis Of HUL
1. Profitability Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
24.2 25 25.59 26.37 23.98
Gross Profit Margin (%)

Operating Margin (%) 22.32 22.92 23.3 23.85 22.55

16.74 16.95 17 16.98 15.41

Net Profit Margin (%)
20.11 18.09 16.77 82 76.95
Return on Net worth / Equity (%)
ROCE (%) 22.14 20.29 19.01 87.58 88.98
Return On Assets (%) 13.84 12.59 11.62 33.48 32.49

2. Liquidity Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Current Ratio 1.41 1.38 1.28 1.32 1.37
Quick Ratio 1.06 1.01 0.96 1.03 1.08

3. Leverage or Solvency Ratio -

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Debt to Equity 0 0 0 0 0.01
Interest Coverage Ratios 128.61 123.73 93.69 80.43 268.64

4. Turnover Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Asset Turnover Ratio 0.83 0.74 68.39 197.4 211.01

Inventory Turnover Ratio 4.73 4.25 13.14 14.38 15.27

 Returns
Profit margins
100 88.98
30 87.58
26.37 90 82
25.59 25 76.95
23.98 23.85 24.2 80
25 22.55 23.3 22.92 22.32 70
60
20
16.98 17 16.95 16.74 50
15.41
40 32.49 33.48
15
30 19.01 20.29 22.14
20.11
16.77 18.09
20 11.62 12.59 13.84
10
10
5 0
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
0
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23 Return on Net worth / Equity (%) ROCE (%)
Return On Assets (%)
Gross Profit Margin (%) Operating Margin (%) Net Profit Margin (%)

Liquidity ratio Solvency ratio

300 268.64
1.6 1.41
1.37 1.38
1.32 1.28
1.4 250
1.2 1.08 1.03 1.06
0.96 1.01 200
1
150 123.73 128.61
0.8
93.69
0.6 100 80.43

0.4
50
0.2 0.01 0 0 0 0
0
0 Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23

Debt to Equity Interest Coverage Ratios

Current Ratio Quick Ratio
SWOT Analysis Of Nestle
 Ratio Analysis Of Nestle
1. Profitability Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
24.00 22.56 25.23 25.07 25.65
Gross Profit Margin (%)
21.76 20.18 22.58 22.29 22.65
Operating Margin (%)
15.67 14.14 14.58 15.59 15.91
Net Profit Margin (%)
96.95 97.20 102.89 103.12 102.58
Return on Net worth / Equity (%)
ROCE (%) 66.04 57.81 59.24 55.05 56.25
Return On Assets (%) 29.70 26.62 26.12 26.36 27.44

2. Liquidity Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Current Ratio 0.95 1.13 1.05 1.68 1.74
Quick Ratio 0.45 0.51 0.45 1.11 1.16

3. Leverage or Solvency Ratio -

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
Debt to Equity 0.84 1.08 1.31 1.57 2.76
Interest Coverage Ratios 38.50 24.67 18.45 20.39 21.71

4. Turnover Ratio -
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
2.01 1.97 1.83 1.77 172.43
Asset Turnover Ratio
Inventory Turnover Ratio 4.24 4.36 4.11 4.11 9.64
 Profit margins Returns
30
120
25.65 25.07 25.23 102.58 103.12 102.89
24 97.2 96.95
25 22.65 22.29 22.58 22.56 100
21.76
20.18
20 80
66.04
15.91 15.59 15.67 59.24 57.81
14.58 14.14 56.25 55.05
15 60

40 27.44 26.62 29.7

10 26.36 26.12

20
5
0
0 Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
Return on Net worth / Equity (%) ROCE (%)
Gross Profit Margin (%) Operating Margin (%) Net Profit Margin (%) Return On Assets (%)

Liquidity ratio Solvency ratio

2 45
1.74 38.5
1.8 1.68 40
1.6 35
1.4 1.16 30
1.11 1.13 24.67
1.2 1.05 25 21.71
0.95 20.39
1 18.45
20
0.8
0.51 15
0.6 0.45 0.45
10
0.4 2.76
5 1.57 1.31 1.08 0.84
0.2
0 0
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23 Mar-19 Mar-20 Mar-21 Mar-22 Mar 23

Current Ratio Quick Ratio Debt to Equity Interest Coverage Ratios

 Comparative Analysis
Return on Equity (ROE)
Net Profit margins
120
35
100
30

25 80

20 60

15 40

10
20
5
0
0 Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
ITC HUL Nestle
ITC HUL Nestle

Current ratio Interest Coverage Ratio

700
4.5
4 600
3.5 500
3
400
2.5
2 300
1.5 200
1
100
0.5
0
0 Mar-19 Mar-20 Mar-21 Mar-22 Mar 23
Mar-19 Mar-20 Mar-21 Mar-22 Mar 23

ITC HUL Nestle

ITC HUL Nestle
THANK YOU!