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7/31/2019 Financial Analysis - Monsanto India
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SantoshJK
7/31/2019 Financial Analysis - Monsanto India
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1
BalanceSheet
(incrore)
Particulars Asof Asof31stMar’2012 31stMar’2011
EQUITYANDLIABILITIES
(1)Shareholder’sFunds
(a)ShareCapital 17.26 8.63
(b)ReservesandSurplus 367.13 365.69
384.39 374.32
(2)NonCurrentLiabilities
(a)Otherlongtermliabilities 5.49 5.04
(b)Longtermprovisions 5.99 5.47
11.48 10.51
(3)CurrentLiabilities
(a)Tradepayables 74.98 53.49
(b)Othercurrentliabilities 28.75 24.54
(c)Shorttermprovisions 27.41 20.92
131.14 98.95
TOTAL 527.01 483.78
ASSETS
(1)NonCurrentAssets (a)Fixedassets
(i)Tangibleassets 80.38 86.49
(ii)Intangiableassets 0.48 1.15
(iii)Capitalwork-in-progress 11.13 5.08
91.99 92.72
(b)Deferredtaxassets(net) 2.72 2.96
(c)Longtermloansandadvances 8.15 8.03
102.86 103.71
(2)CurrentAssets
(a)Currentinvestments 195.78 151.36
(b)Inventories 129.68 130.32
(c)Tradereceivables 50.27 40.85
(d)Cashandcashequivalents 18.99 17.17
(e)Short-termloansandadvances 17.61 29.45
(f)Othercurrentassets 11.82 10.92
424.15 380.07
TOTAL 527.01 483.78
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2
ProfitLossStatement
(incrore)
Particulars
Asof
Asof
31stMar’
2012
31stMar’
2011
I RevenuefromOperations(Gross) 385.99 374.71
Less:ExciseDuty 12.22 11.3
RevenuefromOperations(Net) 373.77 363.41
II OtherIncome 15.15 8.35
III TotalRevenue(I+II) 388.92 371.76
IV Expense
(a)Costofmaterialsconsumedandotherinputs 155.38 98.89 (b)PurchaseofStock-in-Trade-Agriculturalchemicals 0.34
(c)Changesininventoriesoffinishedgoods,
work-in-progressandStock-in-Trade” 7.24 50.01
(d)Employeebenefitsexpense 45.61 43.26
(e)Financecosts 1.28 0.28
(f)Depreciationandamortizationexpense 9 10.81
(g)Otherexpenses 110.19 106.05
TOTALEXPENSES 329.04 309.3
V Profitbeforeexceptionalitemsandtax(III-IV) 59.88 62.46
VI ExceptionalItems
(a)DiminutioninvalueofFixedAssetsheldforSale -12.17
(b)ProfitonSaleofFixedAssetsheldforSale 0.26
VII Profitbeforetax(V+VI) 60.14 50.29
VIII Taxexpense:
(a)Currenttax 7.14 6.11
(b)Taxprovisioninrespectofearlieryears 2.57 1.82
(c)Deferredtaxexpense/(credit) 0.24 -0.47
IX Profitfortheyearfromcontinuingoperations(VII-VIII) 50.19 42.83
X EarningsperequityshareoffacevalueofRs10/-each (1)Basic(inRs) 29.07 24.81
(2)Diluted(inRs) 29.07 24.81
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3
FinancialStatementAnalysis
Earningspershare
Earningspershare Rs.29.07
for2011,
Earningspershare Rs.24.81
TheEarningspersharehasincreasedsignificantlyoverthepreviousyear,showsthe
companyisingoodhealthfinancially.
Priceearningmultiple
Earningspershare Rs.29.07
Marketpricepershare Rs.657.65
= !"#$%& !"#$% !"# !!!"#!"#$%$&' !"# !"#$%
Priceearningmultiple =657.65/29.07 =Rs.22.62
ReturnonInvestment(ROI)
NetIncome Rs.50.19Cr
Interest Rs.1.28Cr
TotalShareholderfund Rs.384.39Cr
Longtermliability Rs.11.48Cr
Tax 30%
= !"# !"#$%& ! !!!"#
!"#$% !!!"#!!"#$% !"#$ ! !"#$ !"#$ !"#$"%"&'
ReturnonInvestment(ROI) =(50.19+1.28*(1-0.3))/(384.39+11.48)
=0.13
for2011,
ReturnonInvestment(ROI) =0.11
ReturnonInvestmentshasincreasedoverthepreviousyear,meaningthebusiness
hasbecomemoreprofitable.
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4
ReturnonEquity(ROE)
NetIncome Rs.50.19Cr
TotalShareholderfund Rs.384.39Cr
=
ℎℎ
ReturnonEquity(ROE) =50.19/384.39 =0.13
for2011,
ReturnonEquity(ROE)=0.11
ReturnonEquityhasincreasedoverthepreviousyear,meaningthebusinesshas
becomemoreprofitabletotheshareholders.
GrossMargin
GrossProfit Rs.165.2Cr
NetSales Rs.373.77Cr
= !"#$$ !"#$%&!"# !"#$%
GrossMargin =165.2/373.77 =0.44
for2011,
GrossMargin =0.47
GrossMarginisrelativelylowerthanthepreviousyear;thepercentchangeincostof
consumptionismorethantheSalesRevenue.
NetMargin
NetIncome Rs.50.19Cr NetSales Rs.373.77Cr
= !"# !"#$%&
!"# !"#$%
Netmargin =50.19/373.77 =0.13
for2011,
Netmargin =0.12
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5
NetmarginhasimprovedeventhoughthereisadropintheGrossmarginforthe
period,that’sbecauseofsomeassetreleasedinthepreviousperiod,bringingdown
thenetprofitsinthepreviousperiod.
Debt/EquityRatio
Longtermliability Rs.11.48Cr
TotalShareholderfund Rs.384.39Cr
/ = !"#$ !"#$ !"#$"!"%&!"#$% !!!"#!!"#$% !"#$
Debt/EquityRatio =11.48/384.39 =0.03
for2011,
Debt/EquityRatio =0.03
Lowdebt/equityshowsthecompany’spreferencetoraisefundsthroughequity
ratherthandebt.
InterestCoverageRatio
ProfitbeforeTax,Interest Rs.58.60Cr
Interest Rs.1.28Cr
= !"#$%& !"#$%" !"#,!"#$%$&#
!"#$%$&#
InterestCoverageRatio =62.18/1.28 =45.78
for2011,
InterestCoverageRatio=222.07
InterestCoverageratioisimpacteddueto450%increaseinInterestpayments.
FinancialLeverageRatio
TotalAssets Rs.527.01Cr
TotalShareholderfund Rs.384.39Cr
= !"#$% !""#$"!"#$% !"#$%"&'(%$ !"#$
FinancialLeverageRatio =527.01/384.39 =1.37
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for2011,
FinancialLeverageRatio =1.29
LeveragehasincreasedbycreationofnewAsset’sintheformofinvestments.
Debttototalcapitalization
TotalShareholderfund Rs.384.39Cr
Longtermliability Rs.11.48Cr
=
(Total Shareholder fund+ Long term liability)
Debttototalcapitalization =11.48/(384.39+11.48) =0.03for2011,
Debttototalcapitalization =0.03
Thecompanyhassufficientcoverforthedebtitowes.
InventoryTurnoverRatio
CostofGoodsSold Rs.208.57CrAverageInventory Rs.12.19Cr
= Average Inventory
InventoryTurnoverRatio =208.57/12.19 =17.11
for2011,
InventoryTurnoverRatio =17.98
RateofInventoryreplenishmenthasincreased.
AssetsTurnoverRatio
NetSales Rs.373.77Cr
TotalAssets Rs.527.01Cr
=
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AssetsTurnoverRatio =373.77/527.01 =0.71
for2011,
AssetsTurnoverRatio =0.75
Ratiohasdroppedbecausethe%ofchangeofsaleshasbeensmallerthan%change
ofassets.
NoofDaystoCollect
TradeReceivables Rs.50.27Cr
NetSales Rs.373.77Cr
= /365
NoofDaystoCollect =50.27*365/373.77 =49.09Days
For2011,
NoofDaystoCollect =41.03Days
Company’sinefficiencytocollectthemoneyhasworsenedforthisperiod.
NoofDaystoPay
TradePayables Rs.74.98Cr
CostofGoodsSold Rs.208.57Cr
= /365
NoofDaystoPay =74.98*365/208.57 =131.22Days
For2011,
NoofDaystoPay =101.60Days
Company’sinefficiencytopaythemoneyhasworsenedforthisperiod.
NoofDaysInventoryStaysinentity
AverageInventory Rs.12.19Cr
CostofGoodsSold Rs.208.57Cr
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= Cost of Goods Sold/365
NoofDaysInventoryStaysinentity=12.19*365/208.57 =21.33Days
for2011
NoofDaysInventoryStaysinentity =20.31Days
Inventoryutilizationhasworsened.
CurrentRatio
CurrentAssets Rs.424.15Cr
CurrentLiabilitues Rs.131.14Cr
= Current Liabilitues
CurrentRatio =424.15/131.14 =3.23
for2011,
CurrentRatio =3.84
CurrentLiabilitiesforthecurrentyearhasincreased,whichisevidentinthedropin
currentratio.Butthecompanyisstillinverygoodshapefinancially,tocoverforthe
currentliabilities.
QuickRatio
MonetoryAssets Rs.294.47Cr
CurrentLiabilitues Rs.131.14Cr
=
QuickRatio =294.47/131.14 =2.25
for2011,
QuickRatio =2.52
CurrentLiabilitiesforthecurrentyearhasincreased,whichisevidentinthedropin
Quickratio.Butthecompanyisstillinverygoodshapefinancially,tocoverforthe
currentliabilities.
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Overallanalysis
Thecompany’sfinancialhealthisingoodshape.ThereturnonInvestment,
ReturnonEquityhasincreased.Equitypershareisgrowingsteadily.Market
valueoftheshareisover22timesitsEquitypershare.
Debtproportionofthecompanyisless,sotheabilitytorepayissignificantly
high.Mostoftheinvestmentscomefromshareholdersequityandreserves.
TimeperiodbetweenCollectionandPaymentissignificantenoughtomanage
theflowofcashbutthecompanyseemstoincreasethenumberofdaysonboth
fronts.
Inventorystayinentityandinventoryreplenishmentisaslessas17and21
days.Thegoodsaremovingfasterandregularly.