You are on page 1of 10

Santosh

J K

Balance Sheet
Particulars EQUITY AND LIABILITIES (1) Shareholders Funds (a) Share Capital (b) Reserves and Surplus (2) Non Current Liabilities (a) Other long term liabilities (b) Long term provisions (3) Current Liabilities (a) Trade payables (b) Other current liabilities (c) Short term provisions TOTAL ASSETS (1) Non Current Assets (a) Fixed assets (i) Tangible assets (ii) Intangiable assets (iii) Capital work-in-progress (b) Deferred tax assets (net) (c) Long term loans and advances (2) Current Assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets TOTAL 17.26 367.13 384.39 5.49 5.99 11.48 74.98 28.75 27.41 131.14 527.01 80.38 0.48 11.13 91.99 2.72 8.15 102.86 195.78 129.68 50.27 18.99 17.61 11.82 424.15 527.01 As of 31st Mar 2012 (in crore) As of 31st Mar 2011

8.63 365.69 374.32 5.04 5.47 10.51 53.49 24.54 20.92 98.95 483.78 86.49 1.15 5.08 92.72 2.96 8.03 103.71 151.36 130.32 40.85 17.17 29.45 10.92 380.07 483.78

Profit Loss Statement


Particulars I II III IV Revenue from Operations (Gross) Less: Excise Duty Revenue from Operations (Net) Other Income Total Revenue (I + II) Expense (a) Cost of materials consumed and other inputs (b) Purchase of Stock-in-Trade - Agricultural chemicals (c) Changes in inventories of finished goods, work-in-progress and Stock-in-Trade (d) Employee benefits expense (e) Finance costs (f) Depreciation and amortization expense (g) Other expenses TOTAL EXPENSES V Profit before exceptional items and tax (III- IV) VI Exceptional Items (a) Diminution in value of Fixed Assets held for Sale (b) Profit on Sale of Fixed Assets held for Sale VII Profit before tax (V + VI) VIII Tax expense: (a) Current tax (b) Tax provision in respect of earlier years (c) Deferred tax expense/ (credit) IX Profit for the year from continuing operations (VII- VIII) X Earnings per equity share of face value of Rs 10/- each (1) Basic (in Rs) (2) Diluted (in Rs) As of 31st Mar 2012 385.99 12.22 373.77 15.15 388.92 (in crore) As of 31st Mar 2011 374.71 11.3 363.41 8.35 371.76 98.89

155.38 0.34

7.24 45.61 1.28 9 110.19 329.04 59.88 0.26 60.14 7.14 2.57 0.24 50.19 29.07 29.07

50.01 43.26 0.28 10.81 106.05 309.3 62.46 -12.17 50.29 6.11 1.82 -0.47 42.83 24.81 24.81

Financial Statement Analysis


Earnings per share Earnings per share for 2011,
Earnings per share

Rs. 29.07
Rs. 24.81

The Earnings per share has increased significantly over the previous year, shows the company is in good health financially. Price earning multiple Earnings per share Rs. 29.07 Market price per share Rs. 657.65 !"#$%& !"#$% !"# !!!"# = !"#$%$&' !"# !"#$% Price earning multiple = 657.65/29.07 = Rs. 22.62 Return on Investment (ROI) Net Income Rs. 50.19 Cr Interest Rs. 1.28 Cr Total Shareholder fund Rs. 384.39 Cr Long term liability Rs. 11.48 Cr Tax 30% = !"# !"#$%& ! !!!"# !"#$% !!!"#!!"#$% !"#$ ! !"#$ !"#$ !"#$"%"&'

Return on Investment (ROI) = (50.19 + 1.28*(1-0.3))/(384.39 + 11.48) = 0.13


for 2011, Return on Investment (ROI) = 0.11

Return on Investments has increased over the previous year, meaning the business has become more profitable.

Return on Equity (ROE) Net Income Total Shareholder fund

Rs. 50.19 Cr Rs. 384.39 Cr = 0.13

Return on Equity (ROE)


for 2011, Return on Equity (ROE) = 0.11

= 50.19/384.39

Return on Equity has increased over the previous year, meaning the business has become more profitable to the shareholders.

Gross Margin Gross Profit Rs. 165.2 Cr Net Sales Rs. 373.77 Cr !"#$$ !"#$%& = !"# !"#$% Gross Margin = 165.2/373.77 = 0.44 for 2011,
Gross Margin = 0.47

Gross Margin is relatively lower than the previous year; the percent change in cost of consumption is more than the Sales Revenue.

Net Margin Net Income Rs. 50.19 Cr Net Sales Rs. 373.77 Cr !"# !"#$%& = !"# !"#$% Net margin = 50.19/373.77 = 0.13 for 2011,
Net margin = 0.12

Net margin has improved even though there is a drop in the Gross margin for the period, thats because of some asset released in the previous period, bringing down the net profits in the previous period.

Debt/Equity Ratio Long term liability Rs. 11.48 Cr Total Shareholder fund Rs. 384.39 Cr !"#$ !"#$ !"#$"!"%& / = !"#$% !!!"#!!"#$% !"#$

Debt/Equity Ratio
for 2011, Debt/Equity Ratio

= 11.48/384.39
= 0.03

= 0.03

Low debt/equity shows the companys preference to raise funds through equity rather than debt.

Interest Coverage Ratio Profit before Tax, Interest Rs. 58.60 Cr Interest Rs. 1.28 Cr !"#$%& !"#$%" !"#,!"#$%$&# = !"#$%$&# Interest Coverage Ratio = 62.18/1.28 = 45.78 for 2011,
Interest Coverage Ratio = 222.07

Interest Coverage ratio is impacted due to 450% increase in Interest payments.


Financial Leverage Ratio Total Assets Rs. 527.01 Cr Total Shareholder fund Rs. 384.39 Cr !"#$% !""#$" = !"#$% !"#$%"&'(%$ !"#$ Financial Leverage Ratio = 527.01/384.39 = 1.37


for 2011, Financial Leverage Ratio

= 1.29

Leverage has increased by creation of new Assets in the form of investments.


Debt to total capitalization Total Shareholder fund Rs. 384.39 Cr Long term liability Rs. 11.48 Cr = (Total Shareholder fund + Long term liability) Debt to total capitalization = 11.48/(384.39 + 11.48) = 0.03
for 2011, Debt to total capitalization = 0.03

The company has sufficient cover for the debt it owes.


Inventory Turnover Ratio Cost of Goods Sold Average Inventory

Rs. 208.57 Cr Rs. 12.19 Cr Average Inventory = 17.11

= Inventory Turnover Ratio


for 2011, Inventory Turnover Ratio

= 208.57/12.19
= 17.98

Rate of Inventory replenishment has increased.


Assets Turnover Ratio Net Sales Total Assets

Rs. 373.77 Cr Rs. 527.01 Cr

Assets Turnover Ratio

= 373.77/527.01

= 0.71

for 2011, Assets Turnover Ratio = 0.75

Ratio has dropped because the % of change of sales has been smaller than % change of assets.

No of Days to Collect Trade Receivables Net Sales

Rs. 50.27 Cr Rs. 373.77 Cr /365

= No of Days to Collect
For 2011, No of Days to Collect

= 50.27*365/373.77 = 49.09 Days


= 41.03 Days

Companys inefficiency to collect the money has worsened for this period.

No of Days to Pay Trade Payables Cost of Goods Sold No of Days to Pay


For 2011, No of Days to Pay

Rs. 74.98 Cr Rs. 208.57 Cr /365

= 74.98*365/208.57 = 131.22 Days


= 101.60 Days

Companys inefficiency to pay the money has worsened for this period.

No of Days Inventory Stays in entity Average Inventory Cost of Goods Sold

Rs. 12.19 Cr Rs. 208.57 Cr

Cost of Goods Sold/365

8 =

No of Days Inventory Stays in entity = 12.19*365/208.57 = 21.33 Days


for 2011 No of Days Inventory Stays in entity = 20.31 Days

Inventory utilization has worsened.


Current Ratio Current Assets Current Liabilitues Current Ratio


for 2011, Current Ratio

Rs. 424.15 Cr Rs. 131.14 Cr Current Liabilitues = 3.23

= 424.15/131.14
= 3.84

Current Liabilities for the current year has increased, which is evident in the drop in current ratio. But the company is still in very good shape financially, to cover for the current liabilities.

Quick Ratio Monetory Assets Current Liabilitues Quick Ratio


for 2011, Quick Ratio

Rs. 294.47 Cr Rs. 131.14 Cr = 2.25

= 294.47/131.14
= 2.52

Current Liabilities for the current year has increased, which is evident in the drop in Quick ratio. But the company is still in very good shape financially, to cover for the current liabilities.

Overall analysis The companys financial health is in good shape. The return on Investment, Return on Equity has increased. Equity per share is growing steadily. Market value of the share is over 22 times its Equity per share. Debt proportion of the company is less, so the ability to repay is significantly high. Most of the investments come from shareholders equity and reserves. Time period between Collection and Payment is significant enough to manage the flow of cash but the company seems to increase the number of days on both fronts. Inventory stay in entity and inventory replenishment is as less as 17 and 21 days. The goods are moving faster and regularly.