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In million rupees

Standalone Profit and Loss Statement Aurbindo Pharma Divis Lab


03/17 03/16 03/17 03/16
Net revenue from operations 97812.1 93227.6 40657.76 37498.49
Other income 1359.5 1883.6 759.765 959.158
Total Revenue 99171.6 95111.2 41417.53 38457.65
Expenses
Cost of material consumed 46041.9 44258.0 15631.87 14724.33
Purchase of stock-in-trade 112.1 63.1 0 0
Change in inventories of FG, WIP& stock-in-trade 313.2 -1415.9 -216.086 220.331
Excise Duty 0.0 0.0 419.207 285.181
Employee benefit expenses 9273.0 8070.5 4591.558 3529.496
Finance costs 451.6 2293.1 22.562 30.069
Depreciation and amortisation 2861.7 2630.0 1232.623 1181.02
Other expenses 18332.4 17734.0 5422.334 4425.057
Research and Development expenses 0.0 0.0 431.175 309.235
Total expenses 77385.9 73632.8 27535.24 24704.72
Profit before exceptional items and tax 21785.7 19594.8 13882.28 13752.93
Add: Exceptional items 0.0 0.0 0 0
PBT 21785.7 19594.8 13882.28 13752.93
Current tax 4620.6 5182.3 2852.255 2842.309
MAT credit availed of -642.8 0.0 0 0
Deferred tax (Net) 740.3 29.1 497.334 -197.813
Net profit for the year 17067.6 14383.4 10532.69 11108.44
Other comprehensive Income(OCI):
Iterms that will not be reclassified to profit or loss in subsequent periods:
Re-measurement losses n employee defined benefit plans -85.8 -22.0 -18.457 -37.271
Deferred tax 29.7 7.6 4.455 7.147
Total other comprehensive income for the year(net of tax) -56.1 -14.4 -14.002 -30.124
Total comprehensive income for the year(net of tax) 17011.5 14369.0 10518.69 11078.31
Dividend(%)
Dividend 0.0 0.0 0 0
Tax on Dividend 0.0 0.0 0 0
Per share data (in Rs.)
Earnings per share :
Basic 29.16 27.85 39.68 41.84
Diluted 29.16 27.84 39.68 41.84
Book Value per share 143.99 117.19 203.8 164.1
Market price per share 675.2 761.0 703.3 1039.375
Standalone Balance Sheet Aurbindo Pharma Divis Lab
Equity & Liabilities 03/17 03/16 03/17 03/16
Share capital 585.90 585.20 530.937 530.937
Reserves & Surplus 83775.9 68073.3 53558.2 43039.5
Total Shareholders' fund 84361.80 68658.50 54089.14 43570.44
Non-current Liabilities
Long term borrowings 1189.00 3347.60 0 4.67
Deferred tax liabilities (Net) 0.00 0.00 1300.265 802.93
Other long term liabilities 0.00 0.00 0 0
Long term provisions 208.70 212.60 153.045 115.651
1397.70 3560.20 1453.31 923.251
Current liabilities
Short term borrowings 27512.70 34171.50 357.385 414.21
Trade payables
Total outstanding dues of MSMEs 0.00 0.00 0 0
Total outstanding dues of other than MSMEs 12677.00 12786.70 3815.594 2304.242
12677.00 12786.70 3815.594 2304.242
Other current liabilities 300.40 270.50 392.989 464.903
Other financial liabilities 3364.60 5638.70 1979.631 1929.739
Short term provisions 615.00 499.30 12.793 21.734
Current Tax liabilities 0.00 70.20 0 26.397
Total Current liabilities 44469.70 53436.90 6558.392 5161.225
Total Liabilities 130229.20 125655.60 62100.84 49654.92
Assets
Fixed Assets
Tangible assets 32116.2 25681.3 15557 14357.1
Intangible assets 286.7 0 32.539 29.27
Capital work in progress 8783.10 7421.40 4435.694 2639.136
Non current investments 16819.3 11833.3 83.684 101.903
Defferred tax assets (net) 0.8 68.6 0 0
Non current tax assets 579.6 447.5 0 0
Long term loans and advances 463.6 296 185.615 265.95
Other long term financial assets 807.4 520.9 384.552 319.954
Other non-current assets 1383.8 1641.6 1030.55 1360.562
Total non current assets 61240.5 47910.6 21709.66 19073.88
Current Assets
Current investments 0.2 0.2 16307.22 8028.516
Inventories 24336.2 24316 12557.64 11628.92
Trade receivables 37736.3 43809.7 10004.2 9661.228
Cash and Bank Balances 336.4 3308.1 85.533 38.928
Bank balances other than (78) above 0 0 579.156 554.844
Shortterm loans and advances 102.5 94.8 55.264 67.096
Other financial assets 165.8 59 173.952 132.877
Other current assets 6311.3 6157.2 628.214 468.63
Total current assets 68988.7 77745 40391.18 30581
Total 130229.2 125655.6 62100.84 49654.92
Financial Ratios Aurbindo Pharma Divis Lab
A. Short-term Liquidity Ratios 03/17 03/16 03/17 03/16
1. Current Ratio =CA/CL 1.55 1.45 6.16 5.93
2. Quick Ratio =(CA-Inventory)/CL 1.00 1.00 4.24 3.67
3. Cash Ratio =Cash & BB/CL 0.0076 0.0619 0.1013 0.1150
4.NWC to TA Ratio =(CA-CL)/TA 0.19 0.19 0.54 0.51
5. Interval ratio =CA/Avg daily cost 325.39 385.38 535.41 451.82
B. Long-term Liquidity Ratios
1. Total Debt Ratio =(TA-TE)/TA 0.35 0.45 0.13 0.12
2.Debt-Equity Ratio =Total Debt/TE = (TA-TE)/TE 0.54 0.83 0.15 0.14
3.Equity Multiplier =TA/TE 1.54 1.83 1.15 1.14
4.Times Interest Earned (TIE) Ratio=PBIT/I 49.24 9.55 616.29 458.38
5.Cash Coverage Ratio =EBITDA/I 55.58 10.69 670.93 497.66
C.Asset Turnover Ratios
1 a). Inventory Turnover Ratio(ITR) =NS/Inventory 4.02 3.83 3.24 3.22
1. b). Days' sales in inventory =365/ITR (.5 marks) 90.81 95.20 112.73 113.19
2. a) Receivables Turnover Ratio (RTR) =NS/Trade Receivables 2.59 2.13 4.06 3.88
2. b). Days' sales in receivables =365/RTR (.5 marks) 140.82 171.52 89.81 94.04
3.a). Payables Turnover Ratio =COGS*/Trade Payables 4.98 4.57 5.79 8.86
3.b) Days' COGS in Payables = 365/PTR 73.29 79.87 63.06 41.20
4. NWC turnover ratio =NS/NWC 3.99 3.84 1.20 1.48
5. CA Turnover Ratio =NS/CA 1.42 1.20 1.01 1.23
6. FA Turnover Ratio =NS/NFA 2.37 2.82 2.03 2.20
7. Total Asset Turnover Ratio (TATR) =NS/TA 0.75 0.74 0.65 0.76
D. Profitability Ratios
1. Gross profit margin (GPM)=Gross profit/NS = (NS-COGS*)/NS 0.35 0.37 0.46 0.46
2. Operating Profit Margin(OPM) =PBIT/NS 0.23 0.23 0.34 0.37
3. Net Profit Margin (NPM) =NP/Total Revenue 0.17 0.15 0.26 0.30
4. Adj NPM = (NP-Exceptional items)/Total Revenue 0.17 0.15 0.26 0.30
5. Return on Equity (ROE) =NP/TE 0.20 0.21 0.19 0.25
ROE Analysis
a).PBIT/Net Rev from Ope (impact of profitable operations) 0.23 0.23 0.34 0.37
b).PBT/PBIT (Impact of finance cost) 0.98 0.90 1.00 1.00
c). Net profit available to shareholders/PBT (Impact of tax) 0.78 0.73 0.76 0.81
d) .TATR (Impact of efficiency in using assets) 0.75 0.74 0.65 0.76
e).TA/SF (Impact of borrowing) 1.54 1.83 1.15 1.14
Return of Equity = Product of the above ratios
E. Valuation Ratios
1.Price- Earnings (P/E) Ratio =Market price per share/Earnings per sh 23.15 27.33 17.72 24.84
2.Price-sales(P/S) ratio =MP per share/Sales per share 4.04 4.78 4.59 7.36
3.Pric-book (P/B) ratio =MP per share/BV per share 4.69 6.49 3.45 6.33
4. Dividend yield (DY)= DPS/beginning price per share 0.00 0.00 0.00 0.00
5. Capital gain (CG)=(end price per share-beginning price per share)/ -0.11 -0.32
6. Total Return to Shareholders=DY+CG -0.11 -0.32
Absolute capital gain -85.8 -336.075
DPS 0 0
Market Return (BSESensex)
Current ratio should be close to 1.33
Quick ratio should tend to 1.
Cash ratio is too low for Aurobindo Pharma.
Consistent rise in working capital with increased assets
Current assets are too high compared to average daily cost for Divis laboratories

Debt decreased while total assets increased i.e. company is growing


Reduced debt equity ratio implies reduced ROE
Total assets generated by equity are reducing
Less Financial Risk
Good cash coverage

Improvement in inventory turnover ratio for both companies

Increased receivable ratio improves liquidity


Improvement in Days receivables for both companies
More days for trade payables without improvement in PAT

Turnover increased for cuurent assets for Aurobindo Pharma but decreased for Divis lanoratories
Return on fixed assets decreased with increase in fixed assets for both companies
Return on total assets decreased for Divis laboratories

Gross profit has remained almost same even after sales have increased for both companies
Increased admin expensed have led to decrease in OPM even after increae in sales for Divis labs
Profit has decreased for Divis even after increase in sales.

Return for shareholders has decreased for Divis labs

Increased administrative expenses for Divis laboratories


More profit available after finance costs is better
Less profit paid in taxes is better
Reduced efficiency in using assets by divis laboratories
Shareholder funds are not invested in growth of Aurobindo Pharma

Reduced performance in market


Even though sales increased for both companies, market price dropped and hence market value of the company
Decreased market price with increased book share which implies less investor confidence

Lost investors confidence


lue of the company