Ratio Report

8/2/2019 Ratio Report

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BALANCE SHEET

Balance

Sheet

-------------------

in Rs. Cr. -----

--------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '0712 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share

Capital 8,245.46 8,245.50 8,245.50 8,245.50 8,245.50

Equity Share

Capital 8,245.46 8,245.50 8,245.50 8,245.50 8,245.50

Reserves 60,138.66 55,478.60 50,749.40 46,021.90 40,351.30

Networth 68,384.12 63,724.10 58,994.90 54,267.40 48,596.80

Secured

Loans 9,910.68 9,079.90 8,969.60 7,314.70 7,479.60Unsecured

Loans 33,277.56 28,717.10 25,598.20 19,875.90 17,661.50

Total Debt 43,188.24 37,797.00 34,567.80 27,190.60 25,141.10

Total

Liabilities 1,11,572.36 1,01,521.10 93,562.70 81,458.00 73,737.90

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 72,583.94 66,663.80 62,353.00 53,368.00 50,604.20

Less: Accum.Depreciation 33,519.19 32,088.80 29,415.30 27,274.30 25,079.20

Net Block 39,064.75 34,575.00 32,937.70 26,093.70 25,525.00

Capital Work

in Progress 38,441.84 32,290.60 26,404.90 22,478.30 16,962.30

Investments 12,344.84 14,807.10 13,983.50 15,267.20 16,094.30

Inventories 3,639.12 3,347.70 3,243.40 2,675.70 2,510.20

Sundry

Debtors 7,924.31 6,651.40 3,584.20 2,982.70 1,252.30

Cash and

Bank Balance 326.34 634 271.8 473 750.1Total Current

Assets 11,889.77 10,633.10 7,099.40 6,131.40 4,512.60

Loans and

Advances 7,648.10 6,357.10 7,826.10 9,936.20 8,781.70

Fixed

Deposits 15,858.92 13,825.50 15,999.80 14,460.20 12,564.50

Total CA,

Loans &

Advances 35,396.79 30,815.70 30,925.30 30,527.80 25,858.80

Current

Liabilities 10,945.55 7,896.80 7,439.20 5,548.40 5,422.20Provisions 2,730.31 3,070.50 3,249.50 7,360.60 5,280.30


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Total CL &

Provisions 13,675.86 10,967.30 10,688.70 12,909.00 10,702.50

Net Current

Assets 21,720.93 19,848.40 20,236.60 17,618.80 15,156.30

Total Assets 1,11,572.36 1,01,521.10 93,562.70 81,458.00 73,737.90

ContingentLiabilities 33,227.29 40,044.00 66,083.20 29,361.80 25,218.80

Book Value

(Rs) 82.94 77.28 71.55 65.81 58.94

PROFIT & LOSS ACCOUNT

Profit & Loss

account

-------------------

in Rs. Cr. -----

--------------Mar '11 Mar '10 Mar '09 Mar '08 Mar '07


Income

Sales

Turnover 55,216.69 46,623.60 42,196.80 37,302.40 32,817.30

Excise Duty 278.01 245.9 221.6 211.4 185.6

Net Sales 54,938.68 46,377.70 41,975.20 37,091.00 32,631.70

Other Income 2,525.48 2,872.80 3,012.80 3,119.70 2,875.60

Total Income 57,464.16 49,250.50 44,988.00 40,210.70 35,507.30

Expenditure

Raw Materials 31.33 31.1 31 26.8 23.7

Power & Fuel

Cost 35,796.37 29,689.10 27,292.30 22,160.70 19,947.60

Employee

Cost 3,395.27 2,946.80 2,897.60 2,229.30 1,362.60

Other

Manufacturing

Expenses 1,273.14 1,096.60 940 920 842.9

Selling and

AdminExpenses 2,264.01 578.5 473.2 389.8 410.8

Miscellaneous

Expenses 525.63 436.4 394.9 368.2 292.4

Preoperative

Exp

Capitalised -1,052.98 -866.9 -637.4 -544.7 -418.4

Total

Expenses 42,232.77 33,911.60 31,391.60 25,550.10 22,461.60



Operating 12,705.91 12,466.10 10,583.60 11,540.90 10,170.10


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Profit

PBDIT 15,231.39 15,338.90 13,596.40 14,660.60 13,045.70

Interest 2,027.21 1,861.90 1,737.00 1,982.20 2,055.70

PBDT 13,204.18 13,477.00 11,859.40 12,678.40 10,990.00

Depreciation 2,485.69 2,650.10 2,364.50 2,138.50 2,075.40Other Written

Off 4.5 4.3 3.6 3.1 9.9

Profit Before

Tax 10,713.99 10,822.60 9,491.30 10,536.80 8,904.70

Extra-ordinary

items 1,330.06 616.1 1,305.20 -114 134.2

PBT (Post

Extra-ord

Items) 12,044.05 11,438.70 10,796.50 10,422.80 9,038.90

Tax 2,630.54 2,682.70 2,554.70 2,994.20 2,163.70

Reported NetProfit 9,102.59 8,728.20 8,201.30 7,414.80 6,864.70

Total Value

Addition 42,201.44 33,880.50 31,360.60 25,523.30 22,437.90

Equity

Dividend 3,133.26 3,133.20 2,968.30 2,885.90 2,638.50

Corporate

Dividend Tax 514.77 527.6 501.7 490.5 389.6

Per share data (annualised)

Shares in issue

(lakhs) 82,454.64 82,454.64 82,454.64 82,454.64 82,454.64Earning Per

Share (Rs) 11.04 10.59 9.95 8.99 8.33

Equity

Dividend (%) 38 38 36 35 32

Book Value

(Rs) 82.94 77.28 71.55 65.81 58.94

RATIO ANALYSIS

LIQUIDITY RATIOS


Total CA,

Loans &

Advances 35,396.79 30,815.70 30,925.30 30,527.80 25,858.80

Total CL &

Provisions 13,675.86 10,967.30 10,688.70 12,909.00 10,702.50

Current ratio 2.588268 2.80978 2.89327 2.364846 2.416146


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Generally, the quick ratio should be lower than the current ratio, because the inventory figure

drops from the calculation. A higher ratio correlates to a higher level of liquidity. This

usually corresponds to better financial health. The quick ratio also indicates whether a

business could pay off its debts quickly, if necessary. The desired quick ratio is at least 1:1. A

lower ratio flags questions about whether the firm can continue to meet its outstanding

obligations. The ratio seems to be decreasing since the past two years raising questions aboutmeeting its obligations


Quick ratio 2.32217 2.504536 2.589829 2.157572 2.181602

3. Cash Ratio:Cash is the most liquid asset; a financial analyst may examine cash ratio and its

equivalent to current liabilities. Trade investment or marketable securities are equivalent

of cash; therefore; they may be included in the computation of cash ratio.


Cash ratio 0.023862 0.057808 0.025429 0.036641 0.070086

0

0.5

1

1.5

2

2.5

3

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

Quick ratio

Quick ratio

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

Cash ratio

Cash ratio


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LEVERAGE RATIOS


Total Debt 43,188.24 37,797.00 34,567.80 27,190.60 25,141.10

Networth 68,384.12 63,724.10 58,994.90 54,267.40 48,596.80

Debt equity

Ratio 0.631554 0.593135 0.585946 0.501049 0.517341

Debt ratio 0.387087 0.372307 0.369461 0.333799 0.340952

Interest 2,027.21 1,861.90 1,737.00 1,982.20 2,055.70

PBDIT 15,231.39 15,338.90 13,596.40 14,660.60 13,045.70

PBDT 13,204.18 13,477.00 11,859.40 12,678.40 10,990.00

Depreciation 2,485.69 2,650.10 2,364.50 2,138.50 2,075.40

PBIT 12,745.70 12,688.80 11,231.90 12,522.10 10,970.30

Interest

coverage 6.287311 6.814974 6.466264 6.317274 5.336528

1. Debt Equity:This ratio measures the percentage of debt tied up in the owners equity. Generally, this

calculation uses only long-term debt.

As a rule of thumb, a high debt-to-equity ratio means a firm is more capital-intensive, with all

the risks that entails. If this number is high, the company may want to look for ways to cut

the debt load. Highly leveraged companies are usually more vulnerable to business

downturns than those with lower debt-to-equity ratios. The companys debt equity ratios is

increasing with years.


Debt equity

Ratio 0.631554 0.593135 0.585946 0.501049 0.517341


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2. Debt Ratio:Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Debt ratio 0.387087 0.372307 0.369461 0.333799 0.340952

3. Interest Coverage:A high coverage ratio may suggest a company is "too safe" and is neglecting opportunities to

magnify earnings through leverage. An interest coverage ratio below 1.0 indicates that a

company is not able to meet its interest obligations. Because a high coverage ratio maysuggest a company is "too safe" and is neglecting opportunities to magnify earnings through

leverage. An interest coverage ratio below 1.0 indicates that a company is not able to meet its

interest obligations. Because a company's failure to meet interest payments usually results in

default, the interest coverage ratio is of particular interest to lenders and bondholders and acts

as a margin of safety. However, because the interest coverage ratio is based on current

earnings and current expenses, it primarily focuses a company's short-term ability to meet

interest obligations.The interest coverage ratio is also referred to as the times interest earned

ratio.The interest coverage ratioindicates the extent of which earnings are available to meet

interest payments. A lower interest coverage ratio means less earnings are available to meet

interest payments and that the business is more vulnerable to increases in interest rates. The

interest coverage ratio is a measure of the number of times a company could make the interest

0

0.1

0.20.3

0.4

0.5

0.6

0.7

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

Debt equity Ratio

Debt equity Ratio

0.3

0.31

0.32

0.33

0.34

0.35

0.36

0.37

0.38

0.39

0.4

1 2 3 4 5

Debt ratio

Debt ratio


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payments on its debt with its earnings before interest and taxes, also known as EBIT. The

lower the interest coverage ratio, higher the company's debt burden and greater the possibility

of bankruptcy or default. As a general rule of thumb, investors should not own a stock that

has an interest coverage ratio under 1.5. An interest coverage ratio below 1.0 indicates the

business is having difficulties generating the cash necessary to pay its interest obligations.The interest cover ratio tells us the safety margin that the business has in terms of being able

to meet its interest obligations. That is, a high interest cover ratio means that the business is

easily able to meet its interest obligations from profits. Similarly, a low value for the interest

cover ratio means that the business is potentially in danger of not being able to meet its

interest obligations. The lower the ratio, the more the company is burdened by debt expense.

When a company's interest coverage ratio is 1.5 or lower, its ability to meet interest expenses

may be questionable. An interest coverage ratio below 1 indicates the company is not

generating sufficient revenues to satisfy interest expenses.


Interest

coverage 6.287311 6.814974 6.466264 6.317274 5.336528

ACTIVITY RATIOS


Net Sales 54,938.68 46,377.70 41,975.20 37,091.00 32,631.70

Sundry Debtors 7,924.31 6,651.40 3,584.20 2,982.70 1,252.30

Debtors turnover 6.932929176 6.97262231 11.71118 12.43538 26.05741

0

1

2

3

4

5

6

7

8

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

Interest coverage

Interest coverage


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Total Assets 1,11,572.36 1,01,521.10 93,562.70 81,458.00 73,737.90

Total asset

turnover 0.492404033 0.45682819 0.448632 0.455339 0.442536

Net Block 39,064.75 34,575.00 32,937.70 26,093.70 25,525.00

Capital Work in

Progress 38,441.84 32,290.60 26,404.90 22,478.30 16,962.30

Investments 12,344.84 14,807.10 13,983.50 15,267.20 16,094.30

Net fixed assets 89,851.43 81,672.70 73,326.10 63,839.20 58,581.60

Fixed assets

turnover 0.611439128 0.56784825 0.572446 0.581007 0.55703

1. Debtors turnover:Debtors turnover is found out by dividing credit sales by average debtors. Debtors turnover

indicates the number of times debtors turnover each year. Generally, the higher the value ofdebtors turnover, the more efficient is the management of credit. The value is seen to be

decreasing indicating the managements inefficiency. Ratio of net credit sales to average

trade debtors is called debtors turnover ratio. It is also known as receivables turnover ratio.

This ratio is expressed in times. Accounts receivables are the term which includes trade

debtors and bills receivables. It is a component of current assets and as such has direct

influence on working capital position (liquidity) of the business. Perhaps, no business can

afford to make cash sales only thus extending credit to the customers is a necessary evil. Butcare must be taken to collect book debts quickly and within the period of credit allowed.

Otherwise chances of debts becoming bad and unrealizable will increase. Normally higher

the debtors turnover ratio better it is. Higher turnover signifies speedy and effective

collection. Lower turnover indicates sluggish and inefficient collection leading to the doubts

that receivables might contain significant doubtful debts. Receivables collection period is

expressed in number of days.


Debtors turnover 6.932929176 6.97262231 11.71118 12.43538 26.05741


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2. Fixed Assets Turnover:It is given by sales divided by net assets. It shows the firms ability in generating sales

from the financial resources committed to fixed assets.


Fixed assets

turnover 0.611439128 0.56784825 0.572446 0.581007 0.55703

3. Total Assets Turnover:This ratio measures how well a company generates sales from assets. Its similar to the fixed

assets turnover but includes all assetscurrent, fixed, other long-term. A high ratio here

shows that sales, the numerator, are substantially higher than the denominator. It means the

company is managing their assets well.

The total assets turnover result is industry-dependent. This ratio is increasing with time

clearly indicating that the assets are being managed by the company well. This ratio is useful

to determine the amount of sales that are generated from each dollar of assets. As noted

above, companies with low profit margins tend to have high asset turnover, those with high

profit margins have low asset turnover. Companies with low profit margins tend to have high

0

5

10

15

20

25

30

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

Debtors turnover

Debtors turnover

0.52

0.54

0.56

0.58

0.6

0.62

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

Fixed asste turnover

Fixed asste

turnover


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asset turnover, those with high profit margins have low asset turnover - it indicates pricing

strategy. This ratio is more useful for growth companies to check if in fact they are growing

revenue in proportion to sales. The total asset turnover ratio measures the ability of a

company to use its assets to generate sales. The total asset turnover ratio considers all assets

including fixed assets, like plant and equipment, as well as inventory and accounts receivableThe lower the total asset turnover ratio, as compared to historical data for the firm and

industry data, the more sluggish the firm's sales. This may indicate a problem with one or

more of the asset categories composing total assets - inventory, receivables, or fixed assets.

The small business owner should analyze the various asset classes to determine where the

problem lies. There could be a problem with inventory. The firm could be holding obsolete

inventory and not selling inventory fast enough. With regard to accounts receivable, the

firm's collection period could be too long and credit accounts may be on the books too long.

Fixed assets, such as plant and equipment, could be sitting idle instead of being used to their

full capacity. All of these issues could lower the total asset turnover ratio. The higher the ratio

of sales to total assets, the better. This implies that a company is generating "x" number of

sales for every dollar of assets on hand. One general rule of thumb is that the higher a

company's asset turnover, the lower the profit margins, since the company is able to sell more

products at a cheaper rate. It is a financial ratio that indicates the effectiveness with which a

firm's management uses its assets to generate sales. A relatively high ratio tends to reflect

intensive use of assets


Total asset

turnover 0.492404033 0.45682819 0.448632 0.455339 0.442536

0.4

0.42

0.44

0.46

0.48

0.5

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

Total asset turnover

Total asset

turnover


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PROFITABILITY RATIOS


PAT 9,102.59 8,728.20 8,201.30 7,414.80 6,864.70

Net Sales 54,938.68 46,377.70 41,975.20 37,091.00 32,631.70

Net profit margin 0.16568636 0.18819821 0.195384 0.199908 0.210369

Net profit margin% 16.5686362 18.8198207 19.53844 19.99083 21.03691

Networth 68,384.12 63,724.10 58,994.90 54,267.40 48,596.80

ROE 0.1331097 0.13696859 0.139017 0.136635 0.141258

Shares in issue (lakhs) 82,454.64 82,454.64 82,454.64 82,454.64 82,454.64EPS 0.11039512 0.10585456 0.099464 0.089926 0.083254

Earning per share(EPS) 11.0395121 10.5854564 9.946438 8.992581 8.325426

Equity Dividend 3,133.26 3,133.20 2,968.30 2,885.90 2,638.50

Dividend per share 0.0379998 0.03799907 0.035999 0.035 0.031999


Payout ratio 0.34421632 0.35897436 0.36193 0.389208 0.384358

Payout ratio% 34.4216316 35.8974359 36.19304 38.92081 38.43577

Rention Ratio 0.65578368 0.64102564 0.63807 0.610792 0.615642Rention Ratio% 65.5783684 64.1025641 63.80696 61.07919 61.56423

Total Debt 43,188.24 37,797.00 34,567.80 27,190.60 25,141.10

Networth 68,384.12 63,724.10 58,994.90 54,267.40 48,596.80

Capital employed 1,11,572.36 1,01,521.10 93,562.70 81,458.00 73,737.90

Return on capital

employed 0.08158463 0.08597425 0.087656 0.091026 0.093096

Return on capital

employed% 8.15846326 8.59742457 8.765566 9.102605 9.309595

P/E Ratio 16.1365826 19.0780625 20.55468 19.60737 21.62152

Book Value (Rs) 82.94 77.28 71.55 65.81 58.94

Market value 178.14 201.95 204.4458 176.3208 180.0083

MV/BV ratio 2.1478177 2.61322464 2.857384 2.679241 3.054095

1. Net Profit Margin:Net profit margin is one of the key performance indicators. The higher the net profit

margin, the more effectively the company is converting revenue into profit. The NPM


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measures the profits available to shareholders after deducting interest and taxes. Comparing

profit with sales volume is useful. We can determine whether were making enough of a

profit. The higher the profit margin, the more pricing flexibility a firm may have in its

operations or the greater cost control initiated by management. The net profit margin is seen

to be decreasing for the company with the current year standing at 16.56%.It indicates that

the managements efficiency in manufacturing, administering and selling the products isdecreasing. Profit margin measures how much of each dollar earned by the company is

translated into profits. A low profit margin indicates a low margin of safety: higher risk that a

decline in sales will erase profits and result in a net loss.Net profit margin is an indicator of

how efficient a company is and how well it controls its costs. The higher the margin is, the

more effective the company is in converting revenue into actual profit. The higher the

net profit margin is, the more effective the company is at converting revenue

into actual profit. . A higher net profit margin means that a company is more efficient at

converting sales into actual profit. Net margin measures how successful a company has been

at the business of making a profit on each dollar sales. It is one of the most essential financial

ratios. Net margin includes all the factors that influence profitability whether under

management control or not. The higher the ratio, the more effective a company is at costcontrol.


Net profit margin% 16.5686362 18.8198207 19.53844 19.99083 21.03691

2. Return on equity:This ratio measures the return earned by a company on its equity. The higher the rate, the

more the company has increased the wealth of its shareholders.

0

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25

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Mar

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Net profit margin%

Net profit

margin%


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The ROE is seen to be almost consistent over the last 4 years.Return on equity, defined also

as return on net worth (RONW), reveals how much profit a company earned in comparison to

the money a shareholder has invested. Return on equity, explained as a measure of how well

a company uses investment dollars to generate profits, is more important to a shareholder

than return on investment (ROI). It tells investors how effectively their capital is beingreinvested. A company with high return on equity is more successful to generate cash

internally. Investors are always looking for companies with high and growing returns on

equity. However, not all high ROE companies make good investments. The better benchmark

is to compare a companys return on equity with its industry average. The higher the ratio, the

better a company is.


ROE 0.1331097 0.13696859 0.139017 0.136635 0.141258

ROE% 13.31% 13.69% 13.9% 13.6% 14.12%

3. Dividend-payout ratio:The dividend-payout ratio or simply payout ratio is DPS (or total equity dividends) divided

by the EPS (or profit after tax).Earnings not distributed to shareholders are retained in the

business. The payout ratio is decreasing indicating the earnings of the business are retained

more and the payout to the shareholders is decreasing. This ratio tells us the percentage of

profits distributed as dividends.Dividend payout ratio is calculated to find the extent to

which earnings per share have been used for paying dividend and to know what portion of

earnings has been retained in the business. It is an important ratio because ploughing back of

profits enables a company to grow and pay more dividends in future. The payout ratio and the

retained earnings ratio are the indicators of the amount of earnings that have been ploughed

0.128

0.13

0.132

0.134

0.136

0.138

0.140.142

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

ROE

ROE


15/21

back in the business. The lower the payout ratio, the higher will be the amount of earnings

ploughed back in the business and vice versa. A lower payout ratio or higher retained

earnings ratio means a stronger financial position of the company. The part of the earnings

not paid to investors is left for investment to provide for future earnings growth. Investors

seeking high current income and limited capital growth prefer companies with high Dividend

payout ratio. However investors seeking capital growth may prefer lower payout ratiobecause capital gains are taxed at a lower rate. High growth firms in early life generally have

low or zero payout ratios.


Payout ratio 0.34421632 0.35897436 0.36193 0.389208 0.384358

Payout ratio% 34.4216316 35.8974359 36.19304 38.92081 38.43577

4. Earnings per Share (EPS):The earnings per share measure the return per share to owners of a company.EPS calculations

over the years indicate whether or not the firms earnings power on per-share basis has

changed over that period.The EPS is seen to be increasing over the years indictaing theincrease in the firms earnings.

The significance of EPS is obvious, as the viability of any business depends on theincomeit

can generate. A money losing business will eventually go bankrupt, so the only way for long

term survival is to make money. Earnings per share allows us to compare different

companies power to make money. The higher the earnings per share with all else equal, the

higher each share should be worth.

EPS is often considered the single most important metric to determine a companys

profitability. It is also a major component of another important metric, price per earnings

ratio (P/E).

When we do our analysis, we should look for a positive trend of EPS in order to make surethat the company is finding more ways to make more money. Otherwise, the company is not

32

34

36

38

40

Mar

'11

Mar

'10

Mar

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Mar

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Mar

'07

Payout ratio%

Payout ratio%
http://investing-school.com/definition/net-income/http://investing-school.com/definition/net-income/http://investing-school.com/definition/net-income/http://investing-school.com/definition/net-income/


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growing and thus should be considered only if you are confident that it can at least sustain its

income.


EPS 0.11039512 0.10585456 0.099464 0.089926 0.083254

Earning per

share(EPS)% 11.0395121 10.5854564 9.946438 8.992581 8.325426

5. Retention Ratio:Earnings not distributed to shareholders are retained in the business. As observed above

payout ratio is decreasing which indirectly indicates the retention ratio will increase and

which is quite evident from the figures.Retention Ratio indicates the percentage of a

company's earnings that are not paid out in dividends but credited to retained earnings. It is

the opposite of the dividend payout ratio, so that also called the retention rate.

Retention Ratio = 1 - Dividend Payout Ratio = Retained Earnings / Net Income

The retention ratio formula looks at how much is kept by the company, as opposed to being

paid out to common stock shareholders. Whatever amount the company retains, will be

reinvested for growth in the company. A company's retained earnings could be considered anopportunity cost of paying dividends for stockholders to invest elsewhere. A company that

retains a large portion of its net income will anticipate having high growth or opportunities to

expand its business. High retention ratios are generally seen in growing companies more than

established blue chip companies, but many other factors, such as the type of industry and

stability of the overall economy, are considered as well. A higher retention ratio indicates that

more money is being put into the business rather than being paid out as dividends. A

company with a high retention ratio can grow more quickly because it has more capital to

spend on all aspects of its business.

0

2

4

6

8

10

12


Earning per share(EPS)

Earning per

share(EPS)


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Retention Ratio 0.65578368 0.64102564 0.63807 0.610792 0.615642

Retention Ratio% 65.5783684 64.1025641 63.80696 61.07919 61.56423

6. Dividend per Share:DPS is the earnings distributed to ordinary shareholders divided by the number of shares

outstanding. The dividend is almost remaining constant over the years. The amount of

dividend is same as the previous year. Dividend per share is simply the amount of dividend

paid to the shareholders. This ratio is designed to measure the income received by

shareholders from each share owned. It is normally less than earnings per share because a

certain amount of profit is usually retained by a company for reinvestment purposes.




7. Return on Capital Employed:The return on capital employed is given by dividing PAT by total capital employed which isseen to be decreasing over the years. It is ratio that indicates the efficiency and profitability of

58

59

60

61

62

63

64

65

66

Mar'11

Mar'10

Mar'09

Mar'08

Mar'07

Rention Ratio%

Rention Ratio%

2.8

3

3.2

3.4

3.6

3.8

4

Mar

'11

Mar

'10

Mar

'09

Mar

'08

Mar

'07

Dividend per share

Dividend per

share


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a company's capital investments. ROCE should always be higher than the rate at which the

company borrows; otherwise any increase in borrowing will reduce shareholders' earnings.

The Return on Capital Employed, ROCE, is one of the most important operating ratios that

can be used to assess corporate profitability. The higher the net profit margin, the higher is

the ROCE. A low ROCE indicates inefficiencies, even if the company demonstrates ahigh profit margin. The ROCE is an important tool to help investors find those companies

that demonstrate good value and potential for growth. The measure can help determine which

businesses are earning more in relation to the price paid by investors. It represents

the efficiency with which capital is being utilized to generate revenue.

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07Return on capital

employed 0.08158463 0.08597425 0.087656 0.091026 0.093096

Return on capital

employed% 8.15846326 8.59742457 8.765566 9.102605 9.309595

8. Price- Earnings Ratio:The price-earnings ratio is given by market value per share divided by earnings per share. It

reflects investors expectations about the growth in the firms earnings. The P/E ratio is seen

to be decreasing. High P/E suggests that investors are expecting higher earnings growth in the

future compared to companies with a lower P/E. Companies with high P/E ratios are more

likely to be considered "risky" investments than those with low P/E ratios, since a high P/E

ratio signifies high expectations. A higher P/E ratio means that investors are paying more for

each unit of net income, so the stock is more expensive compared to one with a lower P/E

ratio. A company with a high P/E ratio will eventually have to live up to the high rating by

substantially increasing its earnings, or the stock price will need to drop. This means that the

price of the stock is artificially high, and there is a high possibility of price of the stock

coming down. A higher P/E ratio means that investors are paying more for each unit of net

7.5

8

8.5

9

9.5

Mar

'11

Mar

'10

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'09

Mar

'08

Mar

'07

Return on capital employed%

Return on capital

employed%


19/21

income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio

is seen to be decreasing which is a good indication because of the reasons stated above.

Month Close Price(CMP) EPSPERATIO

Jan-07 141.95 8.325426 17.05018 21.62152

Feb-07 139.95 8.325426 16.80995

Mar-07 149.75 8.325426 17.98707

Apr-07 159.2 8.325426 19.12214

May-

07 158.4 8.325426 19.02605

Jun-07 152.35 8.325426 18.29936

Jul-07 165.65 8.325426 19.89688

Aug-07 173.3 8.325426 20.81575Sep-07 193.45 8.325426 23.23605

Oct-07 239.4 8.325426 28.75529

Nov-07 236.65 8.325426 28.42497

Dec-07 250.05 8.325426 30.0345

Jan-08 197.9 8.992581 22.00703 19.60737

Feb-08 201.75 8.992581 22.43516

Mar-08 197 8.992581 21.90695

Apr-08 196.75 8.992581 21.87915

May-08 172.25 8.992581 19.15468

Jun-08 151.65 8.992581 16.8639

Jul-08 170.45 8.992581 18.95451

Aug-08 175.2 8.992581 19.48273

Sep-08 171.75 8.992581 19.09908

Oct-08 140.55 8.992581 15.62955

Nov-08 159.6 8.992581 17.74796

Dec-08 181 8.992581 20.1277

Jan-09 189.5 9.946438 19.05205 20.55468

Feb-09 184.2 9.946438 18.51919Mar-09 180.2 9.946438 18.11704

Apr-09 190.15 9.946438 19.1174

May-

09 215.45 9.946438 21.66102

Jun-09 195.05 9.946438 19.61003

Jul-09 215.6 9.946438 21.6761

Aug-09 212.65 9.946438 21.37951

Sep-09 213.7 9.946438 21.48508

Oct-09 211.4 9.946438 21.25384

Nov-09 209.75 9.946438 21.08795


20/21

Dec-09 235.7 9.946438 23.69692

Jan-10 214.25 10.58546 20.24003 19.07806

Feb-10 203 10.58546 19.17726

Mar-10 207 10.58546 19.55513

Apr-10 206.95 10.58546 19.55041May-

10 202 10.58546 19.08279

Jun-10 199.15 10.58546 18.81355

Jul-10 198.6 10.58546 18.76159

Aug-10 195.75 10.58546 18.49235

Sep-10 216.9 10.58546 20.49038

Oct-10 194.95 10.58546 18.41678

Nov-10 184.25 10.58546 17.40596

Dec-10 200.6 10.58546 18.95053

Jan-11 188.9 11.03951 17.11126 16.13658Feb-11 170.05 11.03951 15.40376

Mar-11 193 11.03951 17.48266

Apr-11 181.95 11.03951 16.48171

May-

11 168.95 11.03951 15.30412

Jun-11 186.85 11.03951 16.92557

Jul-11 176.3 11.03951 15.96991

Aug-11 169.55 11.03951 15.35847

Sep-11 167.25 11.03951 15.15013

Oct-11 178.6 11.03951 16.17825


P/E Ratio 16.1365826 19.0780625 20.55468 19.60737 21.62152

0

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Mar '11Mar '10Mar '09Mar '08Mar '07

P/E Ratio

P/E Ratio


21/21

9. Market Value-to-Book Value (MV/BV):It is the ratio of share price to book value per share. A ratio used to compare a stock's market

value to its book value. It is calculated by dividing the current closing price of the stock bythe latest quarter's book value per share. A lower P/B ratio could mean that the stock is

undervalued. However, it could also mean that something is fundamentally wrong with the

company. This ratio also gives some idea of whether we're paying too much for what would

be left if the company went bankrupt immediately. If the price to book ratio is one that means

the market is fully valuing the company. If the P/B ratio is less than one, it can mean the

market is nervous about the value of the company and is unwilling to pay full price. As will

all metrics, one is never enough. A P/B ratio below one can also mean investors have

incorrectly valued the stock. A higher P/B ratio implies that investors expectmanagement to

create more value from a given set of assets, all else equal (and/or that the market value of the

firm's assets is significantly higher than their accounting value). P/B ratios do not, however,

directly provide any information on the ability of the firm to generate profits or cash forshareholders.

This ratio also gives some idea of whether an investor is paying too much for what would be

left if the company went bankrupt immediately


MV/BV ratio 2.1478177 2.61322464 2.857384 2.679241 3.054095

0

0.5

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MV/BV ratio

MV/BV ratio

Documents

Ratio Report