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SUN PHARMACEUTICAL INDUSTRIES LIMITED

SUBMITTED TO PROFF- SAMRESH CHHOTRAY ( PIBM, BHILWARA) SUBMITTED BY BHAWANEE SINGH ( PIBM, BHILWARA)

2010-11 was a good year for Sun Pharma,

as were the preceding years. Our financial performance was strong, we completed a significant acquisition, enriched the portfolio of products we offer in the US, strengthened our specialist rankings in India and rest of world markets, added to our intellectual capital, and yet again reaffirmed our commitment to high standards of corporate governance and stakeholder transparency. We are today the largest Indian company in the US generics space, the largest pharma company in India in chronic therapies, and an emerging force in the rest of the world markets. We believe each development over the past year, incremental as it may seem in isolation, is part of a natural growth trajectory that builds from strength to strength. We will endeavor to drive future value through our steadily growing base business, complemented with acquisitions and alliances, while retaining the same respect for the bottom line.

BALANCE SHEET OF SUN PHARMACEUTICAL INDUSTRIES LIMITED As on 31st march 2011 and 31st march 2010

LIABILITIES

AMOU NT MILLIO N
31 MARCH 2011

AMOU ASSETS NT MILLIO N


31 MARCH 2010

AMOU NT MILLIO N
31 MARCH 2011

AMOU NT MILLIO N
31 MARCH 2010

Shareholders Funds

1,035.6

1,035.6 56,144.2

Reserves and Surplus 65,769.7

Loan Funds Secured Loans Deferred Tax Liability (Net) Current Liabilities and Provisions Current Liabilities Provisions

505.3
1,285.1

294.9 1,153.3

Fixed Assets Gross Block Less: Depreciation / Amortisation / Impairment Net Block Capital Work-inProgress (including advances on capital account) Investments Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and

12,687.6 (4,743.7) 7,943.9

11,597.6 (4,192.4) 7,405.2

2,280.6 36,014.2

921.5 40,516.9

3,139.3 4,331.0

2,633.0 3,424.8

6,182.6 5,426.2 12,509.0 183.7 5,525.8

5,701.4 5,532.9 888.7 57.9 3,661.3

Advances

TOTAL

68,595. 7

58,628. 0

TOTAL

68,595. 7

58,628. 0

PROFIT& LOSS A/C OF SUN PHARMACEUTICAL INDUSTRIES LIMITED As on 31st march 2011 and 31st march 2010

PARTICULAR

AMOU NT IN MILLIO N

AMOU PARTICULAR NT IN MILLIO N 8,152.9 Gross Sales 0 Less: Excise Duty 1,747.1 Net Sales 0 4,720.4 Other 0 Operating Income 1,277.7 Other Income 0 694.7

AMOU NT IN MILLIO N 19,857. 8 (526.6) 19,331. 20 11,715. 80 1,941.7 0

AMOUN T IN MILLIO N 18,528. 80 (450.3) 18,078. 50 6,776.6 0 1,229.3 0

Cost of 8,969.3 Materials / Goods 0

Personnel Cost Operating and Other Expenses Research and Development Expenditure Depreciation / Amortisation / Impairment

2,140.6 0 5,340.4 0 1,355.9 0 642.3

PROFIT (B.F) Tax

13,838. 00 702.2

8,986.5 0 505.1

TOTAL

32,988.7

26,084.4

TOTAL

32,988.7

26,084.4

P&L APPROPRIATION A/C OF SUN PHARMACEUTICAL INDUSTRIES LIMITED

As on 31st march 2011 and 31st march 2010

Particular

Amou nt MILLI ON

AMOU NT MILLLI ON
2,847.9 473.0 3,000.0

PARTICUL AMOU AR NT MILLLI ON


BY NET 13,838.0 PROFIT

AMOU NT MIILLI ON
8,986.5

TO Proposed 3,624.5 Dividend TO Corporate 588.0 Dividend Tax TO Transfer to 5,000.0 General Reserve

TO BAL (B.F)

C/D 4625.5

2665.6

TOTAL

1383 8

8986. 5

13838 8986. 5

1.Kd = interest (1 t) / face value


2011 = 5.9 ( 1- .21) / 505.3 = 5.9 (.79 )/ 505.3 = .00922 2010 = 4.4 (1- .21 ) / 294.9 = 0.0117

2. COST OF EQUITY :KE = D1/ P0 + G 2011 = 2.743 / 442 + 0 = 0.006205 2010 = 2.746 / 360 = 0.007677

P1 = 442 (market price as on 31st march 2011) P0= 360 (market price as on 31st march 2010)

3. WACC ( Weighted Average Cost of Capital)

2011 particular (1) (2) weighted average 0.015 0.977 0.007 (3) 3x2

Equity Reserves Debts


TOTAL

1,035.6 65,769.7 505.3

0.006205 0.006205 0.00922

0.000093 0.006062 0.000065

67310.6

0.006216

Ko = 0.006216

2010

particular

(1)

(2) weighted average


0.018 0.976 0.005

(3)

3x2

Equity
Reserves Debts

1,035.6 56,144.2 294.9

0.007677 0.007677 0.0117

0.000138 0.007492 0.0000585

TOTAL

57474.7

0.0076885

Ko = 0.0076885

4. EARNING PER SHARE :EPS = Profit after tax / total no. of equity share 2011 = 13,838000000 / 1,035,581,955 = 13.362 2010 = 8986500000 / 1,035,581,955 = 8.677

5. DIVIDEND PER SHARE:DPS = total dividend paid / total no. of equity share 2011 = 2,841,000,000 / 1,035,581,955 = 2.743 2010 = 2843900,000 / 1,035,581,955 = 2.746

6. DIVIDEND PAYOUTRATIO :2011 =DPS/EPS = 2.743/ 13.62 = 0.201 2010 = 2.746 / 8.667 = 0.3168

7. P/E RATIO :MPS / EPS 2011 = 442 / 13.62 = 32.45 2010 = 360 / 8.677 = 41.48

8. ROCE (Return on capital employment) :PBT / capital employed

2011 = 14,540.2/ 61125.4 = 2.373 2010 = 9491.6 / 52570.2 = 0.180

9. INTREST COVERAGE RATIO


EBIT/ INTREST PAID 2011 = 14546.1/ 5.9 = 2465.44 2010 = 9496 / 4.4 = 2158.18

Camparison Table
Particular Cost of debt Cost of equity WACC EPS DPS 2011 .00922 2010 0.0117 Campare
It increase but compare earning is good and better. Decrease but little and no impact of company. Has down up but better and stable level.

0.006205 0.007677 0.006216 0.0076885 13.362 2.743 8.677 2.746

EPS increase company.

and

good

sign

for

DPS is better and little decrease but no impact of company position.

P/E Ratio ROCE

32.45 2.373

41.48 0.180 2158.18

Price of market share is high. It s condition of company is good. Better compare to previous year. It is good point of view investor. Company s earning is better and easily pay interest but compare to previous year it is increase not good for company.

Interest coverage Ratio 2465.44

COMPARISON
PARTICUL AR EPS 2011 9.971 2012 12.025 ANALY SIS Becom e Better Better

DPS

6.5686

6.982

P/E RATIO DEBT EQUITY ROCE

28.793

34.0997

Becom e better No change Gone down , still very good Gone

Nil 81.72%

nil 77.10%

ICR

12066 TIMES

2804 TIMES

down, but still very good Cost Equity of 2.286% 8% Has increas ed but still No change Has gone up but very good and stable level

Cost Debt WACC

of

Nil 2.286%

nil 7.992%

V = EBIT/WA CC

2895.05/2.2 86% =

3477.16/7.99 2% =