CASE ANALYSIS 1

PBDIT = net sales-COGS-general expenses

PBIT = PBDIT-depreciation

OPTG Profit=PBIT-Interest

PBT=Non OPTG profit + OPTG profit

PAT = PBT – Tax

Operating profit ratio = OPTG Profit/Net sales

For HINDALCO

Operating Profit Ratio=812828/6716346

=12.1%

For INDAL

Operating Profit Ratio=600919/5679031

=10.5%

For NALCO

Operating Profit Ratio=116157/7572253

=1.5%

The OPTG profit Ratio of HINDALCO is the best that is why it is the best company as far as financial
performance is concerned. According to me this company will promises growth and make profit as
well.