Finalll Ranbaxy_final Ppt

Ranbaxy Laboratories

Accounts presentation on Ranbaxy Laboratories-By: Aarshiya Nirula

Akanksha PadhaMonami PatelNatasha Mitra

MissionRanbaxy's mission is ‘Enriching lives globally, with quality and affordable pharmaceuticals.’.

1961 Company Incorporated India's largest pharmaceutical company Presence in 23 of the top 25 pharmaceutical

markets of the world The combined entity now ranks among the

top 20 pharmaceutical companies, globally

COMPANY OVERVIEW

Terapia (Romania) Be-Tabs (South Africa) Allen (Italy) Mundogen (Spain) Zenotech (India) Cardinal Drugs (India) Ochoa Labs (India) Biovel (India)

Key Acquisitions and Alliances Since 2006

1961-Incorporated as a Private Limited Company

1969 - Ist blockbuster brand Calmpose launched in India

1973 – Attains Public Limited company status (listed in Feb 1974)

2006 - Acquires leading Romanian pharma company Terapia and Be-Tabs pharmaceuticals,5th largest generics company in South Africa

2007 - Business World ranks Ranbaxy as the Most respected company in the pharma industry

Milestones

2008 - Ranbaxy partners with Daiichi Sankyo (DS) establishing a unique and powerful hybrid business model

2009 – Synergistic step with Daiichi Sankyo to launch Olmesartan

2010 – Ranbaxy delivers quarterly sales of over US $ 500 Million for the first time

2010-2011 - The Golden Jubilee Year – 50 Years of an inspiring, pioneering and historic journey!

Milestones

Investment valuation Ratios

March 06 March 07 March 08 March 09 March 10

Face value 5.00 5.00 5.00 5.00 5.00

Dividend Per Share 8.50 8.50 -- -- 2.00

Ratio analysis

Liquidity And Solvency Ratios

March 06 March 07 March 08 March 09 March 10

Current Ratio 0.96 0.83 1.16 1.18 1.40

Quick Ratio 1.03 0.97 0.86 0.89 1.60Debt Equity Ratio 1.35 1.38 1.05 0.85 0.83

Long Term Debt Equity Ratio

0.93 0.90 0.80 0.68 0.57

Liquidity Ratio

Management Efficiency Ratios

March 06 March 07 March 08 March 09 March 10

Inventory Turnover Ratio

4.39 4.42 4.07 4.05 3.95

Debtors Turnover Ratio

4.58 4.53 4.88 3.74 3.99

Total Assets Turnover Ratio

0.78 0.73 0.64 0.66 0.61

Turnover Ratio

Profitability Ratio

March 06 March 07 March 08 March 09 March 10

Operating Profit Margin(%)

15.17 9.31 5.39 13.62 22.35

Gross Profit Margin(%) 14.39 7.51 2.07 10.52 18.31

Net Profit Margin(%) 9.07 14.33 -22.02 11.72 19.74

PROFITABILITY RATIOS

COVERAGE RATIO

March 06 March 07 March 08 March 09 March 10

Interest Cover

9.51 3.19 1.29 15.24 22.22

Total Debt to Owners Fund

1.35 1.38 1.05 0.85 0.83

Financial Charges Coverage Ratio 11.33 4.46 2.35 18.99 26.44

COVERAGE RATIO

Earnings Per Share & Book Value

Earnings Per Share & Book Value

March 06 March 07 March 08 March 09 March 10

Earnings Per Share

10.21 16.56 -24.85 13.61 27.28

Book Value63.03 68.01 84.24 94.16 121.74

TREND ANALYSIS[Dec ‘06 – Dec ‘10]

Liquidity Ratio Trend

Dec '06 Dec '07 Dec '08 Dec '09 Dec '10 -

1,000

2,000

3,000

4,000

1,113 1,007

1,939 1,641

3,546

Working Capital (in Rs millions)

Dec '06 Dec '07 Dec '08 Dec '09 Dec '100.00

0.40

0.80

1.20

1.60

0.960.83

1.161.18

1.40

Current Ratio

Dec '06 Dec '07 Dec '08 Dec '09 Dec '100.00

0.40

0.80

1.20

1.60

1.03 0.97 0.860.89

1.60

Quick Ratio

Solvency Ratio Trend

Dec '06 Dec '07 Dec '08 Dec '09 Dec '100

0.4

0.8

1.2

1.6

1.35 1.38

1.05 0.8500000000000010.8300000

00000001

Debt Equity Ratio

Dec '06 Dec '07 Dec '08 Dec '09 Dec '100

5

10

15

20

25

9.51

3.19 1.29

15.24

22.22

Interest Coverage Ratio

Turnover Ratio Trend

Dec '06 Dec '07 Dec '08 Dec '09 Dec '100

1

2

3

4

5

4.39 4.42 4.07 4.053.95

Inventory Turnover Ratio

Dec '06 Dec '07 Dec '08 Dec '09 Dec '100

1

2

3

4

5

4.58 4.534.88

3.74 3.99

Debtors Turnover Ratio

Dec '06 Dec '07 Dec '08 Dec '09 Dec '100

1

2

3

4

5

2.12 2.082.14 2 2.13

Creditors Turnover Ratio

Profitability Ratio Trend

Dec '06 Dec '07 Dec '08 Dec '09 Dec '100

5

10

15

20

25

14%

8%

2%

11%

18%

Gross Profit Margin(%)

Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

-25

-15

-5

5

15

25

9%14%

-22%

12%20%

Net Profit Margin(%)

Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

-15

-10

-5

0

5

10

15

9%

14%

-13%

8%13%

Return on Assets(%)

Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

-30

-20

-10

0

10

20

16%

24%

-28%

14%22%

Return on Equity(%)

Comparative Analysis

49,475

3,105

1,384

5,747

26,368

6,318

967

5,9195,304

893

6,478

22,596

5,672

1,149

9,393

26,287

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

Market Cap. Sales Turnover Net Profit Total Assets

Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs

CompanyMarch 2010

Market Cap.

(Rs. cr.)

SalesTurnover

Net Profit

Total Assets

Sun Pharma 49,474.93 3,104.70 1,383.80 5,747.47

Cipla26,367.94 6,317.98 967.12 5,919.16

Dr Reddys Labs

26,286.92 5,304.41 893.31 6,477.80

Ranbaxy Labs 22,595.60 5,672.10 1,148.73 9,393.11

252

1,381

1,271

1,089

0

200

400

600

800

1000

1200

1400

1600

Operating profit

Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs

Sun Pharma

Cipla Dr. Reddy

lab

Ranbaxy labs

252 1381 1089 1271

Operating Profit(in rs. Crores) March 2010

Operating profit is the measure of company’s earning profit from ongoing operations, equal to earning before deduction of interest payments and income taxes.

43

13

27

50

0

10

20

30

40

50

60

70

80

90

100

Earning per share

Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs

Sun Pharma

Cipla Dr. Reddy Labs

Ranbaxy labs

43 13 50 27

Earning per share March 2010

Earning per share is the company's profit divided by the number of common outstanding shares. It serves as an indicator of a company's profitability.

2.14 2.17

1.40

1.66

0

0.5

1

1.5

2

2.5

Current Ratio

Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs

Ranbaxy Sun Pharma

Cipla Dr. Reddy

1.40 2.14 2.17 1.66

Current Ratio March 2010

Current ratio measures a company's ability to pay short-term obligations. Current Ratio = Current Assets/Current Liabilities

1.521.57 1.60

1.91

0

0.5

1

1.5

2

2.5

Quick Ratio

Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs

Ranbaxy Sun Pharma

Cipla Dr. Reddy

1.60 1.52 1.57 1.91

Quick Ratio

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better the position of the company.Quick ratio = Liquid Assets/Current Liabilities

3.653.74

3.95

5.36

0

1

2

3

4

5

6

Inventory turnover ratio

Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs

Ranbaxy Sun Pharma

Cipla Dr. Reddy

3.95 3.65 3.74 5.36

Inventory Turnover Ratio

Inventory turn over ratio indicates the number of time the stock has been turned over during the period and evaluates the efficiency with which a firm is able to manage its inventory. [Inventory Turnover Ratio = Cost of goods sold / Average inventory at cost]

2.99

3.31

3.99

3.67

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Debtors Turnover Ratio

Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs

Ranbaxy Sun Pharma

Cipla Dr. Reddy

3.99 2.99 3.31 3.67

Debtors Turnover Ratio

Debtors turnover ratio indicates the number of times average debtors (receivable) are turned over during a year.Debtors Turnover Ratio = Net Credit Sales / Average Trade Debtors

121.74

276.08

355.69

73.55

0

50

100

150

200

250

300

350

400

Return on Assets

Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs

Ranbaxy Sun Pharma

Cipla Dr. Reddy

121.74 276.08 73.55 355.69

Return On Assets ( ROA)

ROA is the indicator of how profitable a company is relative to its total assets.ROA = Net Income/Total Assets

April 2010,Daiichi Sankyo opted not to convert the warrants into equity shares. Hence, the said warrants stand lapsed and the amount of Rs. 73.70 per warrant aggregating to Rs.1,756.59 millions paid by DS has been forfeited and taken to the Capital Reserve Account.

On 1 July 2010, assets pertaining to its New Drug Discovery Research Centre (including fixed assets, intangibles, in-process developments) transferred to DS for an aggregate consideration of Rs. 1,449.85 millions. ◦ Rs. 210 millionother operating income for non-compete

fee ◦ Rs. 131.81millionother income included in profit on sale

of assets

Notes To accounts

Leases cancellable + non-cancellable operating

leases

◦ lease term - 3 to 17 years, subject to renewal at mutual consent

◦ lease rent expense recognised during the year amounts to Rs. 531.83 (previous year Rs. 482.99).

Notes To accounts

  As at 31 December

  2010 2009

Claims against the Company not acknowledged as debts, under dispute:

DPCO * 1,952.90 1,703.30

Letter of comfort on behalf of subsidiaries, to the extent of limits

2,450.84 4,656.88

Octroi tax matters ** 171.00 171.00

Other matters *** 187.30 190.71

Commitments, Contingent Liabilities and Provisions

Thank you