RATIO ANALYSIS

Balance sheet of Ashok Leyland ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 118.93 122.16 132.39 133.03 133.03
Equity Share Capital 118.93 122.16 132.39 133.03 133.03
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 1,024.35 1,266.35 1,739.23 1,993.57 1,976.00
Revaluation Reserves 24.59 23.95 22.96 22.38 1,364.86
Networth 1,167.87 1,412.46 1,894.58 2,148.98 3,473.89
Secured Loans 263.5 184.69 360.22 190.24 304.41
Unsecured Loans 616.91 507.24 280.18 697.26 1,657.57
Total Debt 880.41 691.93 640.4 887.5 1,961.98
Total Liabilities 2,048.28 2,104.39 2,534.98 3,036.48 5,435.87
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 2,002.25 2,138.50 2,620.20 2,942.44 4,953.27
Less: Accum. Depreciation 1,108.40 1,195.23 1,313.16 1,416.89 1,554.16
Net Block 893.85 943.27 1,307.04 1,525.55 3,399.11
Capital Work in Progress 85.16 198.32 407.7 661.08 1,043.19
Investments 229.19 368.18 221.09 609.9 263.56
Inventories 568.08 902.56 1,070.32 1,223.91 1,330.01
Sundry Debtors 458.77 424.34 522.88 375.84 957.97
Cash and Bank Balance 207.57 165.98 88.55 44.55 86.93
Total Current Assets 1,234.42 1,492.88 1,681.75 1,644.30 2,374.91
Loans and Advances 337.62 253.35 516.78 708.26 819.63
Fixed Deposits 589.11 436.9 346.39 406.82 1.15
Total CA, Loans & Advances 2,161.15 2,183.13 2,544.92 2,759.38 3,195.69
Deffered Credit 0 0 0 0 0
Current Liabilities 1,135.92 1,334.19 1,865.97 2,196.49 2,207.29
Provisions 204.48 261.62 104.23 345.23 268.08
Total CL & Provisions 1,340.40 1,595.81 1,970.20 2,541.72 2,475.37
Net Current Assets 820.75 587.32 574.72 217.66 720.32
Miscellaneous Expenses 19.33 7.31 24.42 22.29 9.69
Total Assets 2,048.28 2,104.40 2,534.97 3,036.48 5,435.87

Contingent Liabilities 699.23 946.29 1,129.49 1,783.97 754.37

Book Value (Rs) 9.61 11.37 14.14 15.99 15.85

LIQUIDITY RATIO
current ratio 1.086714 1.118941 0.901274 0.748603 1.075939
quick ratio 0.586608 0.442456 0.327674 0.191392 0.473386
Debt equity ratio 0.75386 0.489876 0.338017 0.412987 0.564779

DEBT COVERAGE RATIO

Interest cover 12.29803 12.80349 20.01603 8.642473 2.351267

MANAGEMENT EFFICIENCY RATIO

Inventory turnover ratio 8.640544 6.869948 7.954565 7.499587 5.044782
Debtor turnover ratio 10.6993 14.6122 16.28276 24.42215 7.003988
Fixed asset turnover ratio 4.202968 4.389887 4.493835 4.271245 1.93144
Asset turnover ratio 2.396411 2.946479 3.358579 3.022849 1.234321

PROFITABILITY RATIO
Gross profit margin(%) 10.08288 9.950262 9.245789 9.80126 8.065148
Net profit margin(%) 5.529365 5.278895 5.183153 5.112967 2.831759
Return on net worth(%) 23.23974 23.17375 23.29223 21.83873 5.469373
EPS (earning per share) 2.28211 2.679465 3.333333 3.52775 1.428208
 ------------------
Profit & Loss account - in Rs. Cr.
------------------
of Ashok Leyland -
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 4,908.52 6,200.54 8,513.93 9,178.82 6,709.61
Excise Duty 639.16 840.6 1,155.05 1,206.30 657.97
Net Sales 4,269.36 5,359.94 7,358.88 7,972.52 6,051.64
Other Income 71.77 76.61 101.02 95.15 71.07
Stock Adjustments 18.2 300.6 48.98 97.48 1.05
Total Income 4,359.33 5,737.15 7,508.88 8,165.15 6,123.76
Expenditure
Raw Materials 3,102.68 4,197.98 5,570.18 5,952.86 4,554.36
Power & Fuel Cost 49.66 41.41 45.44 45.28 38.42
Employee Cost 354.05 403.89 480.7 616.17 566.26
Other Manufacturing Expenses 28.57 33.29 41.7 57.48 50.3
Selling and Admin Expenses 151.42 199.36 259.5 263.55 381.48
Miscellaneous Expenses 178.84 244.66 324.31 330.84 0
Preoperative Exp Capitalised -0.81 -0.41 -0.13 -0.67 -8.2
Total Expenses 3,864.41 5,120.18 6,721.70 7,265.51 5,582.62
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 423.15 540.36 686.16 804.49 470.07

PBDIT 494.92 616.97 787.18 899.64 541.14
Interest 30.4 38.37 31.82 83.63 154.27
PBDT 464.52 578.6 755.36 816.01 386.87
Depreciation 121.36 126.01 150.57 177.36 178.41
Other Written Off 0.3 0.31 0.3 0.49 0
Profit Before Tax 342.86 452.28 604.49 638.16 208.46
Extra-ordinary items 0 0 2.96 0 0.26
PBT (Post Extra-ord Items) 342.86 452.28 607.45 638.16 208.72
Tax 83.6 124.98 163.22 168.84 18.45
Reported Net Profit 271.41 327.32 441.29 469.31 190
Total Value Addition 761.72 922.18 1,151.50 1,312.66 1,028.26
Preference Dividend 0 0 0 0 0
Equity Dividend 118.93 159.79 198.58 199.77 133.03
Corporate Dividend Tax 16.91 22.41 27.85 33.95 22.61
Per share data (annualised)
Shares in issue (lakhs) 11,892.94 12,215.87 13,238.70 13,303.38 13,303.38
Earning Per Share (Rs) 2.28 2.68 3.33 3.53 1.43
Equity Dividend (%) 100 120 150 150 100

Book Value (Rs) 9.61 11.37 14.14 15.99 15.85

 LIQUIDITY RATIO
current ratio
quick ratio
Debt equity ratio
DEBT COVERAGE RATIO
Interest cover
MANAGEMENT EFFICIENCY RATIO
Inventory turnover ratio
Debtor turnover ratio
Fixed asset turnover ratio
Asset turnover ratio
PROFITABILITY RATIO
Gross profit margin(%)
Net profit margin(%)
Return on net worth(%)
EPS (earning per share)
This ratio is around 1, however it increased from 0.7 after '08 and after that increased
This ratio shows the true current assets that is current asset minus inventory.we can s
This ratio is constantly decreasing that financing through debt is decreasing and amou
This ratio has increased to a large extent but recently it has shown decline which is a m
This ratio is decreasing for the period, it will be worse for the company because it will
This ratio has constantly decreased from 10 to 7 recently, it will be worse for the com
It shows the sales on each rupee of fixed assets of a company.however it decreased fr
it shows the sales on each rupee of total assets of a company.it is increasing which is g
it shows the total profitability of a company without taking into account taxes and dep
it shows the net profitability of a company .it is decreased from 5% to 2% recently wh
it is decreasing from 23% to 5%,which is a bad sign.
this ratio is increasing and then decreasing.
fter '08 and after that increased to 1.
asset minus inventory.we can see that lavel of inventory is quiet high for Ashok Leyland because quick ratio is much less then the current
gh debt is decreasing and amount of equity in capital structure is increasing.

t has shown decline which is a matter of concern.

for the company because it will increase the inventory conversion period.
tly, it will be worse for the company because it will increase DSO.
ompany.however it decreased from 4 to 2 which shows that company was not able to achieve sales targets or market condition was not go
mpany.it is increasing which is good for the company in long term.

aking into account taxes and depriciation.it decreased mar'09

ased from 5% to 2% recently which is bad for the company to sustain its operations in long term.
much less then the current ratio

arket condition was not good.