Introduction:

Fiscal analysis is a systematic and comprehensive process used to evaluate the financial
health, stability, and efficiency of an entity, whether a government, corporation, or
nonprofit organization. This analysis involves a detailed examination of revenues,
expenditures, deficits, debt levels, and overall fiscal policies to determine financial
sustainability and economic viability. Through fiscal analysis, stakeholders—including
policymakers, investors, analysts, and business leaders—can gain valuable insights into the
financial decision-making and resource allocation of an entity.
A comprehensive fiscal analysis assists in evaluating the performance of financial
management, identifying strengths, weaknesses, and areas of strategic improvement.
It is an important tool in predicting financial trends, avoiding risks, and promoting long-
term economic stability. Through examination of historical and current financial
performance, fiscal analysis allows organizations to
make informed decisions, streamline budgets, and enhance financial governance.

In addition, fiscal analysis is important to assess an

entity's capability for financial obligation management and solvency sustenance. Fiscal ana
lysis scrutinizes important financial reports like the income statement, balance sheet, and
cash flow statement to ascertaining liquidity, profitability, and efficiency of
operations. Through the use of important financial ratios and performance measures,
fiscal analysis aids in quantifying fiscal discipline and financial resilience in
a changing economic environment.

In the ever-growing and competitive international market, fiscal analysis is a basis for
economic planning and decision. For a government seeking to retain fiscal balance, as well
as a company seeking to become profitable, an effective fiscal
analysis guarantees transparency, accountability, and long-term financial development.

Measures Of Fiscal Analysis :

1.1 Revenue Growth Rate

 Definition: Measures the percentage increase or decrease in total revenue over a

specific period (YoY or QoQ).
 Formula:
Revenue Growth Rate=Current Year Revenue−Previous Year RevenuePrevious Year Reve
nue×100\text{Revenue Growth Rate} = \frac{\text{Current Year Revenue} - \
text{Previous Year Revenue}}{\text{Previous Year Revenue}} \times
100Revenue Growth Rate=Previous Year RevenueCurrent Year Revenue−Previous Year R
evenue×100
 Significance: Indicates the company’s ability to increase sales over time.

1.2 Gross Profit Margin

  Definition: The percentage of revenue left after deducting the cost of goods sold
(COGS).
 Formula: Gross Profit Margin=Gross ProfitRevenue×100\text{Gross Profit Margin} = \
frac{\text{Gross Profit}}{\text{Revenue}} \times
100Gross Profit Margin=RevenueGross Profit×100
 Significance: Higher margin means better cost control and pricing power.

1.3 EBITDA Margin

 Definition: Measures operating profitability before interest, taxes, depreciation, and

amortization (EBITDA).
 Formula: EBITDA Margin=EBITDARevenue×100\text{EBITDA Margin} = \frac{\
text{EBITDA}}{\text{Revenue}} \times 100EBITDA Margin=RevenueEBITDA×100
 Significance: Shows the core profitability of the business operations.

1.4 Net Profit Margin

 Definition: The percentage of revenue remaining after all expenses, taxes, and
interest are deducted.
 Formula: Net Profit Margin=Net ProfitRevenue×100\text{Net Profit Margin} = \frac{\
text{Net Profit}}{\text{Revenue}} \times 100Net Profit Margin=RevenueNet Profit
×100
 Significance: Reflects the overall profitability of the company.

1.5 Return on Equity (ROE)

 Definition: Measures how efficiently a company uses shareholder funds to generate

profit.
 Formula: ROE=Net IncomeShareholders’ Equity×100\text{ROE} = \frac{\text{Net
Income}}{\text{Shareholders' Equity}} \times
100ROE=Shareholders’ EquityNet Income×100
 Significance: Higher ROE indicates better efficiency in generating returns for
shareholders.

2. Liquidity Ratios

2.1 Current Ratio

 Definition: Measures the company’s ability to cover short-term liabilities with short-
term assets.
 Formula: Current Ratio=Current AssetsCurrent Liabilities\text{Current Ratio} = \frac{\
text{Current Assets}}{\text{Current
Liabilities}}Current Ratio=Current LiabilitiesCurrent Assets
 Significance: A ratio above 1 indicates good short-term financial health.

2.2 Quick Ratio (Acid Test Ratio)

  Definition: Measures a company’s ability to pay short-term obligations without
relying on inventory.
 Formula: Quick Ratio=Current Assets−InventoryCurrent Liabilities\text{Quick Ratio} =
\frac{\text{Current Assets} - \text{Inventory}}{\text{Current
Liabilities}}Quick Ratio=Current LiabilitiesCurrent Assets−Inventory
 Significance: A higher quick ratio indicates better liquidity without dependence on
stock sales.

2.3 Cash Conversion Cycle (CCC)

 Definition: The time it takes for a company to convert its investments in inventory
into cash from sales.
 Formula:
CCC=Days Inventory Outstanding+Days Sales Outstanding−Days Payable Outstanding
\text{CCC} = \text{Days Inventory Outstanding} + \text{Days Sales Outstanding} - \
text{Days Payable
Outstanding}CCC=Days Inventory Outstanding+Days Sales Outstanding−Days Payable
Outstanding
 Significance: A lower CCC means better cash flow management.

3. Leverage & Solvency Ratios

3.1 Debt-to-Equity (D/E) Ratio

 Definition: Compares total debt to shareholders’ equity.

 Formula: D/E Ratio=Total DebtShareholders’ Equity\text{D/E Ratio} = \frac{\
text{Total Debt}}{\text{Shareholders'
Equity}}D/E Ratio=Shareholders’ EquityTotal Debt
 Significance: A higher ratio indicates higher financial risk.

3.2 Interest Coverage Ratio

 Definition: Measures a company’s ability to pay interest on outstanding debt.

 Formula: Interest Coverage Ratio=EBITInterest Expense\text{Interest Coverage Ratio}
= \frac{\text{EBIT}}{\text{Interest
Expense}}Interest Coverage Ratio=Interest ExpenseEBIT
 Significance: A ratio above 2 is considered safe, while a lower ratio indicates financial
distress.

4. Efficiency Ratios

4.1 Inventory Turnover Ratio

 Definition: Measures how many times inventory is sold and replaced during a period.
  Formula: Inventory Turnover=Cost of Goods Sold (COGS)Average Inventory\
text{Inventory Turnover} = \frac{\text{Cost of Goods Sold (COGS)}}{\text{Average
Inventory}}Inventory Turnover=Average InventoryCost of Goods Sold (COGS)
 Significance: A high ratio indicates efficient inventory management.

4.2 Asset Turnover Ratio

 Definition: Measures a company's ability to generate revenue from its assets.

 Formula: Asset Turnover Ratio=RevenueAverage Total Assets\text{Asset Turnover
Ratio} = \frac{\text{Revenue}}{\text{Average Total
Assets}}Asset Turnover Ratio=Average Total AssetsRevenue
 Significance: A higher ratio shows efficient use of assets.

5. Cash Flow Analysis

5.1 Operating Cash Flow (OCF)

 Definition: The cash generated from core business operations.

 Formula: OCF=Net Income+Non-Cash Expenses+Changes in Working Capital\
text{OCF} = \text{Net Income} + \text{Non-Cash Expenses} + \text{Changes in
Working Capital}OCF=Net Income+Non-Cash Expenses+Changes in Working Capital
 Significance: Strong OCF indicates sustainable operations.

5.2 Free Cash Flow (FCF)

 Definition: The cash left after capital expenditures are deducted from OCF.
 Formula: FCF=Operating Cash Flow−Capital Expenditures\text{FCF} = \text{Operating
Cash Flow} - \text{Capital
Expenditures}FCF=Operating Cash Flow−Capital Expenditures
 Significance: Positive FCF means the company can fund growth without external
financing.

6. Fiscal Policy & Taxation Analysis

6.1 Effective Tax Rate

 Definition: The percentage of profit paid as tax.

 Formula: Effective Tax Rate=Total Tax ExpensePre-tax Income×100\text{Effective Tax
Rate} = \frac{\text{Total Tax Expense}}{\text{Pre-tax Income}} \times
100Effective Tax Rate=Pre-tax IncomeTotal Tax Expense×100
 Significance: Lower tax rates improve profitability.

6.2 Government Regulations & Fiscal Policies

  Definition: Government rules affecting taxation, subsidies, and operational costs.
 Significance: Tax incentives and GST policies impact financial performance.

7. Market & Valuation Ratios

7.1 Price-to-Earnings (P/E) Ratio

 Definition: Measures how much investors are willing to pay for each rupee of
earnings.
 Formula: P/E Ratio=Market Price per ShareEarnings Per Share (EPS)\text{P/E Ratio}
= \frac{\text{Market Price per Share}}{\text{Earnings Per Share
(EPS)}}P/E Ratio=Earnings Per Share (EPS)Market Price per Share
 Significance: High P/E suggests strong future growth expectations.

7.2 Market Capitalization

 Definition: The total value of a company’s outstanding shares.

 Formula: Market Cap=Share Price×Total Outstanding Shares\text{Market Cap} = \
text{Share Price} \times \text{Total Outstanding
Shares}Market Cap=Share Price×Total Outstanding Shares
 Significance: Used to compare company size and industry position.

II)INDUSTRY PROFILE
2.1 BACKGROUND OF THE INDUSTRY
JUBILANT FOODWORKS LIMITED is an Indian food service company based in
Noida, Uttar Pradesh which holds the master franchise for Domino’s Pizza in
India ,Nepal, Sri Lanka, and Bangladesh, and for Popeyes in India , Bangladesh,
Nepal, and Bhutan and also Dunkin Donuts in India. Jubilant FoodWorks is a
part of the Jubilant Bharatiya Group. Jubilant Foodworks Ltd was incorporated
on March 16, 1995 as a private limited company with the name Domino’s Pizza
India Pvt Ltd.
2.2 MARKET SIZE
Dominos is the market leader in the organized pizza market with a 50% market
size and 70% in the pizza home delivery segment in India.
2.3 MAJOR PLAYERS
1.Dominos Pizza
2.Dunkin Donuts
3.Popeyes
4.Hong’s Kitchen
5.Ekdum
2.4 GOVERNMENT POLICIES AND REGULATIONS
Domino’s operates in many jurisdictions throughout Australia, New Zealand,
Japan and Europe and we work productively with governments. In Europe
and Australia, for example, we have engaged with local government to
strengthen safety measures for delivery drivers and riders. During the Covid-
19 pandemic, we actively worked with governments around enforced
shutdowns of stores to advocate for our franchisees and employees during
difficult times.
Domino’s is politically impartial and it is our policy to not make political
contributions in any region in which we operate. This is stated explicitly in
our Code of Conduct. Accordingly, we do not contribute funds to any political
party, politician or candidate for public office. We do not prohibit our
employees from making personal political contributions, but they are
required to not use their role with Domino’s for political interests at any
time.
Domino’s position is to engage on matters of policy, not politics. We spend
less than $100,000 per year on consultants to discuss matters of policy
relevant to our business and franchisees with government. Governments
may also ask Domino’s to make submissions to parliamentary committees to
help shape public policy – recent examples of this include franchisees, wage
theft and digital development.
2.5 RECENT TRENDS IN INDUSTRY
Jubilant Foodworks Announcement under Regulation 30 (LODR)
July 1, 2022 in Mint & Rashtriya Sahara with respect to notice to the
Shareholders for transfer of equity shares of the Company to Investor
Education and Protection Fund Authority. The Board of Directors of Jubilant
FoodWorks Limited in its meeting held on May 30, 2022, had inter-alia
recommended Dividend for FY 2021-22 subject to approval of shareholders in
the ensuing Annual General Meeting ("AGM").Pursuant to the Regulation 42 of
Listing Regulations, the Company has fixed Monday, July 11, 2022 as the
Record Date for the purpose of determining the names of Members eligible for
Dividend of Rs 1.20/- (i.e. 60%) per equity share of face value of Rs. 2/- each
for the Financial Year 2021-22. The dividend upon approval by the
shareholders will be paid/ dispatched within 30 days from the date of AGM
and also subject to deduction of tax at source.
2.6 CHALLENGES FACED BY THE INDUSTRY
With the increase in prices all around, Domino’s India saw a depression in
the quality. The decrease in quality wasn’t well-received by customers, and
many people shifted to other joints to fulfill their pizza needs. Domino’s
even tried to innovate and has brought many new lines of pizzas, including
the Chef’s Wonder pizzas which failed miserably, thus pushing Domino’s
further into the abyss. The addition of Burger Pizza was not able to impress
the customers, thus keeping Domino’s still off-track.
Adding to the despair of Domino’s, on May 23, 2016, The Centre for Science
and Environment (CSE) posted results of a research conducted by them.
The study conducted tests on the products of 38 fast-food brands in Delhi
which sell ready-to-eat bread. It was found that almost 84% of the brands
including Domino’s and Subway sell bread which contains potassium
bromate and potassium iodate, components banned in many countries as
they may cause cancer. The results did not bring any joy to the
shareholders, and the prices of Domino’s shares dropped to a three-month
low. Attempts were made to deny usage of any such components by both
Jubilant and McDonald’s but the damage had already been done.
III) ORGANISATIONAL OVERVIEW
3.1 HISTORY
On the recommendation of a friend who owned other foreign pizza licences,
Shyam Sunder Bhartia and Hari Bhartia of the Jubilant Bhartia Group entered
into a master franchise partnership with Domino's Pizza. Domino's Pizza India
Private Ltd. was incorporated on 16 March 1995, and began operations in
1996. The company opened India's first Domino's Pizza outlet in New Delhi in
1996. The company changed its name to Jubilant FoodWorks Ltd in 2009. It
was headed by Ajay Kaul since 2005. Pratik Rashmikant Pota became the CEO
from April 2017.
Dominos Pizza Timeline
1960
Tom Monaghan and his brother James purchase “DomiNick’s ,” a pizza store in
Ypsilanti, Michigan. Monaghan borrowed $5500 to buy the store.
1961
James trades his half of the business to Tom for a Volkswagen Beetle.
1965
Tom Monaghan is sole owner of company, and renames the business ,
“dominos Pizza, Inc”
1967
The first Dominos Pizza franchise store opens in Ypsilanti, Michigan.
1968
Company headquarters and commissary are destroyed by fire.
First Dominos store outside of Michigan opens in Burlington, Vermont.
1975
Amstar Corp., maker of Dominos sugar , institutes a trademark infringement
lawsuit against Dominos Pizza . In 1980 , Federal court rules Dominos Pizza did
not infringe on the Domnios sugar trademark
1990
Dominos Pizza signs its 1000th franchise
1992
Dominos rolls out Breadsticks , the companys first national non-pizza menu
item.
1993
Crunchy Thin Crust Pizza is rolled out nationwide.
1994
Buffalo Wings are rolled out in all U.S stores.
1995
Dpminos Pizza International division opens its 1000th store.
First store opens on African continent , in Cario, Egypt.
1996
Dominos launches its web site on the internet (www.dominos.com). The
company reaches record sales $2.8 billion system- wide.
1997
Dominos Pizza opens its 1500th store outside the US, opening seven stores in 1
day on 5 continents consecutively.
Dominos Pizza launches a campaign to update the company logo and store
interior with brighter colors and a newer look.
1998
Dominos Pizza founder, Tom M onaghan, announces retirement and sells the
Company to Bain Capital, Inc.
1999
Dave Brandon is named Chairman and Chief Executive Officer of Dominos Pizza
announces record results for 1999.
2000
Dominos Pizza International opens its 2000th store outside the United States .
Dominos Pizza celebrates 40 years of delivering pizza and innovation to homes
around the world.
2001
Dominos 7000th store opens in Brooklyn , New York . Dominos launches
launches long -term national partnership with the Make-A-Wish Foundation.
2002
In February 2002, Dominos Pizza acquired 82 franchised stores in the Phoenix ,
Ariz., market , marketing it the largest store acquisition in the company’s
history. In August 2002, Dominos kicked delivery up a notch with the
introduction of Domnios Pizza Buffalo Chicken Kitchen and marked the
creation of a whole new surprising category – premium chicken delivered right
the door!
2003
Dominos announces an existing multi-yeaer partnership by becoming the “
Official Pizza of NASCAR” . Dominos is named Chain of the year by Pizza Today
magazine, a leading pizza trade publication. Dominos combines two culinary
classics – pizza and Philadelphia Cheese Steak – to create the all-new Dominos
Philly Cheese Steak Pizza.
2004
Dominos launches Dominos Cheest Dots, deliciousround balls of dough
covered in a blend of zesty melted cheese.
2005
Dominods Pizza Australia opens its 400th store in Aspley, Brisbane.
2006
Dominos Pizza introduces Brownie Squares – warm, delicious, bite-sized
brownies delivered with a fudge dipping sauce
2007
Dominos is ranked in the top 10 for the ninth time in Entrepreneur magazines
annual listing of great franchise opportunities .
2008
Dominos launches another food delivery industry first: Pizza Tracker. This
revolutionary technology allows Dominos Pizza customer to follow the
progress of their order online from ther time they click the “place order”
button or hung up the telephone until the Dominos claims the title as the
firstmajor quick-service restaurant chain in the US to deliver hot, oven-baked
sandwiches.
2009
Continuing its aggressive menu expansion, Dominos introduces a new line of
pastas thst include a handmade, oven-baked bowl.
2010
After years of languishing near the bottom of consumer taste perception
studies, Dominos proudly boasts its research-backed wins over Papa Johns and
pizza hut in a national taste test of hand-tossed pepperoni pizxza, sausage
pizza ands extra-cheese pizza chairman and CEO David.A.Brandon steps down
as CEO effective March 7
3.2 FOUNDER’S VISION AND MISSION AND VALUES
VISION:
Our vision is to lead the internet of food in every neighbourhood.
MISSION:
Our mission is to redefine convenience by creating inspired food, picked
up in three minutes or safely delivered in 10.
VALUES
Treat people as you'd like to be treated.
Produce the best for less.
Measure, manage and share what's important.
Think big and grow.
Set the bar high, train, never stop learning.
Promote from within.
We are not ordinary, we are exceptional.
QUALITY PROFILE
• The Domino’s maintains a quality management team and the team
makes sure to full fill basic set for the operations of Domino’s.
• The Domino’s also having a relationship with some of the scientific
communities to provide best and safe food among the people
• The HACCP (Hazard analysis and critical control point) is the system
applied to use for the Domino’s and this system ensures that the people
are getting good food items with high nutrition’s.
• Domino’s has introduced Antibiotic policy for all chicken and its
products.
• And for the first time they are coming with the new technique for
maintain the quality of the pizzas i.e they are introducing a smart
cameras to ensure the quality of the pizzas, the system tells us the pizza
is high quality or low so by using this system they are trying to introduce
the automated quality control system.
3.3 GOVERNENCE
Corporate Governance Principles One of Domino’s guiding principles is “We
demand integrity.” Domino’s success is driven by its strong commitment to
personal and professional integrity. The following principles and our Board
Committee Charters provide the framework for the governance of Domino’s
Pizza. The Domino’s Board of Directors recognizes that corporate governance
standards are evolving and, accordingly, is committed to reviewing and
assessing these corporate governance principles at least annually.
3.4 ORGANISATIONAL STRUCTURE
Andrew B Balson – Director
David A Brandon – Chairman
Diana F Cantor – Director
J Patric Doyle – President and CEO
Vernon O Hamilton – Director
Thomas S Monaghan – Founder
Mark K Nunnelly – Director
Gregory A Trojan - Director
3.5 PRODUCTS AND SERVICES
Products
Veg Pizza:
An enchantment for those people who loves veg can make a choice from broad
range of delectable vegetarian pizzas, it is loaded with cheese and soft, crusty
onions, crisp capsicum, juicy tomatoes and jalapeno with a liberal smattering
of exotic Mexican herbs.
Pizza Mania
Pizza Add-Ons
Make it a meal
Farm house
Margherita
Deluxe veg
Veg extravaganza
Non Veg Pizza:
Speciality chicken
Golden delight
Non veg supreme
Chicken dominator
Chicken fiesta
SERVICES
Fastest Home Delivery
Domino’s pizza comes home within 30 minutes of order if they fail to deliver
the pizza within 30 minutes the pizza will be free if the cost is less than 300
only if it is more than 4 pizzas guarantee does not apply. By this unique facility
Domino’s enjoys its competitive advantage over other competitors and
customer also happy with this offer.
This 30 minutes delivery is based on following (Heightened Time Awareness –
HTA)
Order Taking – 1 minute
Pizza making – 1 minute
Oven Baking – 6 minutes
Pizza Cutting – 15 seconds
Total = 8 minutes 15 seconds
Therefore it takes 10 minutes to prepare the pizza and 20 minutes to deliver
the pizza to customer so totally 30 minutes to deliver the pizza at the
customer’s residency. For Safe Delivery Person the allowed driving speed is
40kmKMPH.
3.6 MARKET, MARKET SHARE AND MARKET POSITION
Market capitalization , short for market cap, is the market value of a publicaly
traded company’s outsatanding shares. The market cap of Jubilant Foodworks
is Rs.33,737 Cr and it stands in the first position. . They have the market share
of fast food industry is 18Percent.

3.7 SWOT ANALYSIS

1.BRAND RECOLLECTION:
The brand has gained the loyal customer by fulfilling customer demand
their aggressive nature to fulfil demand of customer as made them
recollection showcasing their durability to customers.
2.FANTASTIC CHANNEL NETWORK:
By this 1200 franchise plus association possessed channels Domino’s
consumes wide ranging structure skewered all over the world increasingly
has increased.
3. QUICK SERVICE & DEEP MENU:
Domino’s pizza services are quick within 30 minutes’ u have Pizza on your
table. It is one of the fast food industry and the menu list lot more verity food
are found.
4. LOW COST ALTERNATIVE:
They need bother with high class climate or beguilement in the shop so
the foundation cost is low for vendors and the cost of pizza is truly sensible for
the clients.
5.HEALTHIER ALTERNATIVES:
To warfare well-being awareness among consumers, domino’s changed their
dough by having the healthier fats, which is finished by joining all the more
entire wheat into crusts. The pizza garnishes are additionally turning out to be
healthier and some pizza are bringing plates of mixed greens into their menu.
6. EFFICIENT SUPPLY CHAIN:
Because of its proficient inventory network domino’s has made it workable
for speedier help so they don’t need to hang tight for long. The inclination of
domino’s is on the grounds that the clients can have home delivery within a
short time make a little breakfast at home itself takes 15 munities.
WEAKNESS
1. OPERATIONS:
Huge number of franchised outlets brings about challenges in taking care of
activities. Quality control excessively become testing. Becomes of this ii a
portion of the domino’s outlets got closed affecting the picture of the brand.
2. DECREASING SALES IN MATURE MARKETS:
Because of ascend in the wellbeing cognizant populace there is decline in
income affecting the organizations all in all.
3. LOW STAFF RETENTION:
High whittling down because of the nonappearances of appropriate
preparing and improvement is a significant test for domino’s. plus, the labor
engaged likewise incompetent so they rapidly change the employment when
they cannot acclimate to the furious condition. 4. LESSER NUMBER OF
EATERIES:
Domino’s has more conveyance outlets at that point eating joints which is
an issue particularly in places like shopping center and different areas where
obviously client need a sitting spot.
OPPURTUNITIES
1. MARKET EXPANSION:
Dominos has to expand the market and develop their market it ii may help
to Gain more profit as far as pizza production as considered. Target has to be
Develop financial prudence must be next step should be organization policy.
2. PENETRATION:
Promoting system utilized by organizations to pull in customer to another
item or administration by offering a lower cost during its underlying
contribution. The low cost attracts the customer to buy another item. In this
way penetration creates opportunities 16 to the organization.
3. HEALTH CONSCIOUS EATABLES:
For the health conscious low fat, low calories, food are available it’s not
only taste food but also health to consume. The health conscious eatables can
enjoy the food.
4. RESTAURANT:
By introducing special exclusive Domino’s pizza in a restaurant in an eatable
rush area will help the brand to recognized and increases sales Margin and
help to getting customer who are diehard fan of pizza Pushes them to check in
restaurant.
THREATS
1. DIRECT AND INDIRECT COMPETITION:
The company has to now the market incentive competition they have to
study the market local as well as international brand ex, KFC, Burger King,
McDonald’s etc. what kind of new product they are launching in the market.
2. COST:
As raw material cost rises as veggies and meet. The pizza chain and the
maintains of raw material rises, plus compotators cost also effect the ii
Company lowermost line. The cost of the company or the flow cash Will
become difficult to handle.