PROFITABILITY

2008 2010
Operating Profit Margin (%) -316.22 -1.91

Operating Profit Ratio = Operating Profit / Sales * 100

Operating margin is a measurement of what proportion of a company's revenue is left over after paying
for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required
for a company to be able to pay for its fixed costs, such as interest on debt. 

Operating margin gives analysts an idea of how much a company makes (before interest and taxes) on
each dollar of sales. When looking at operating margin to determine the quality of a company, it is best to
look at the change in operating margin over time and to compare the company's yearly or
quarterly figures to those of its competitors. If a company's margin is increasing, it is earning more per
dollar of sales. The higher the margin, the better.

For example, if a company has an operating margin of 12%, this means that it makes $0.12 (before
interest and taxes) for every dollar of sales. Often, nonrecurring cash flows, such as cash paid out in a
lawsuit settlement, are excluded from the operating margin calculation because they don't represent a
company's true operating performance. 

2008 2010
Return On Capital Employed (%) -7.14 -0.84

Return on Capital Employed = Operating Profit / Capital Employed * 100

GROSS PROFIT MARGIN:

Revenue - Cost of Goods Sold

Revenue

PARTICULARS 2010 2008

 GROSS PROFIT RATIO 1.28 -104.13

Gross profit margin is not an exact estimate of the company’s pricing strategy but
it does give a good definition of financial health. Without an adequate gross
margin, a company will be unable to pay its operating and other expenses and build
the future.

NET PROFIT MARGIN:

PARTICULARS 2010 2008

NET PROFIT RATIO 1.28 -104.13

Net profit

Revenue
he profit margin tells you how much profit a company makes for every $1 it generates in revenue or sales. Profit margins vary by
industry, but all else being equal, the higher a company's profit margin compared to its competitors, the better.

ASSET TURNOVER:

PARTICULARS 2010 2008

ASSET TURNOVER 0.16 -

Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher
the number the better. It also indicates pricing strategy: companies with low profit margins tend to have
high asset turnover, while those with high profit margins have low asset turnover.
Return on Net Worth

2008 2010
Net worth 78.96 7.15

Return on Net worth = PAT/ Net Worth

INCOME STATEMENT COMPARISON:

PARTICULARS 31 MARCH 201 31 DEC 2008

PROFIT/LOSS /AC Rs mn Rs mn
Net sales 204.30 5.47
Increase decrease inventories -5.96 -0.86
Personal expenses 5.37 8.11
Manufacturing expenses 0.34 0.30
Gross profit 3.20 -7.51
Admisnitration selling and 7.10 9.87
distribution expenses
EBITA -3.90 -17.38
Depreciation depletion and 5.87 8.96
amortization
EBIT -9.77 -26.34
INTRESET EXPENSE 0.59 3.90
OTHER INCOME 4.69 0.00
PRETAX INCOME -5.67 -30.24
PROVSION FOR TAX 0.55 21.11
EXTRA ORDINARY & PRIOR 35.25 313.54
PERIOD ITEMS NET
NET PROFIT 676.80 536.20
ADJUSTED NET PROFIT 641.56 222.66