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Business Data Management · End Term · 13 Sept 2026 · May 2026 term · Set S2

Question 43: Case Study: Nova Consumer Products Ltd. Company Backgrou…

Question 43

+3 marksOne correct option

Case Study: Nova Consumer Products Ltd. Company Background Nova Consumer Products Ltd. manufactures packaged food and household products. During FY 2026, the company expanded its distribution network and invested in additional manufacturing capacity. The following simplified financial information is available for the year. All figures are in ₹ lakh unless otherwise stated. Statement of Profit and Loss - FY 2026

Simplified Balance Sheet - FY 2026

Additional Information • Current Market Price per Share = ₹120 • Earnings Per Share (EPS) = ₹6 • Dividend per Share = ₹1.80 • For this case study, Interest Coverage Ratio = EBITDA ÷ Interest Expense. • Assume year-end balances may be used where average balances are not provided.
Based on the above data, answer the given subquestions.

Assume that Nova's COGS is entirely variable while its Operating Expenses of ₹14,400 lakh are fixed. Management expects Revenue to increase by 10% next year. Assuming the COGS-to-Revenue relationship remains unchanged, what will the company's new EBITDA be?

  1. A

    ₹15,120 lakh

  2. B

    ₹17,280 lakh

  3. C

    ₹18,720 lakh

  4. D

    ₹21,600 lakh

Show answer

Correct answer

  • B

    ₹17,280 lakh

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Question 43 of 43 in the IIT Madras BS Business Data Management (BDM) End Term paper sat on 13 Sept 2026, in the May 2026 term (Business Data Management 13 Sep 26 (Session 2)). It carries 3 marks.

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