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Annual Performance 2007-08 | History of Growth rates | Quarterly Results |  Annual Reports

For the year ended 31st March 2008, the Company achieved a sales growth of 17.5% on an expanded base arising from 27.5% growth in the previous year. Net Profit of the Company increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in 2006-07. Operating Margin increased by 307 basis points to 7.5%.

The Company witnessed all round growth in key categories with Biscuits recording sales of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn mark during 2007-08. This business has doubled in two years.

In an intensely competitive biscuit environment, all ³Power Brands² of the Company recorded double digit growth, with Tiger and Good Day growing in excess of 20%. The Company¹s innovation forays have successfully addressed new benefit clusters and NutriChoice Digestive has claimed its position in the health and vitality space. The Company continues to maintain its leadership edge in 6 out of 7 key product segments, the only exception being Glucose.

The business continued to face inflationary pressure in key raw materials such as wheat flour, refined palm oil, skimmed milk powder and other dairy products, as well as energy costs. These were more than offset on the cost side through operational and procurement efficiencies, productivity improvements, cost reduction programs and on the revenue side through improved product mix and higher realisation, aided by strong consumer off take.

Exceptional items for the year include Rs 130.5 Mn towards amortisation of VRS costs. Earnings per Share are Rs. 80 compared with Rs.45.1 last year.

SIGNIFICANT RATIOS     2007-08 2006-07   Measures of Investment   Return on equity Profit after tax % 26.1 18.3 Shareholders’ funds       Book value per share Shareholders' funds Rs. 306.6 246.6 Number of equity shares       Dividend cover Earnings per share times 3.8 2.6 Dividend (plus tax) per share       Measures of Performance       Profit margin Profit before tax & exceptional item % 9.2 5.7 Net Sales + Other Income       Debtors turnover Gross Sales times 56.5 81.0 Debtors + Bills receivable       Stock turnover Gross Sales times 8.7 10.8 Stock       Measures of Financial Status       Debt ratio Borrowed capital % 14.5 0.8 Shareholders’ funds       Current ratio Current assets times 1.6 1.2 Current liabilities       Tax ratio Tax provision % 17.8 9.1 Profit before tax