32 - Akshita - Sun Pharmaceuticals Industries.

8/8/2019 32 - Akshita - Sun Pharmaceuticals Industries.

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RATIO ANALYSIS

FOR

SUN PHARMACEUTICALS LIMITED


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SUN PHARMACEUTICAL LIMITED

Balace Sheet (Figurs in Crores)Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths

Sources Of Funds

Total Share Capital 94.16 94.27 98.07 103.56 103.56

Equity Share Capital 92.76 92.87 96.7 103.56 103.56

0.01 0 0 0 0

1.4 1.4 1.37 0 0

Reserves

0 0 0 0 0

Networth

Secured Loans 13.92 18.23 20.39 22.88 23.6

Unsecured Loans 79.64 0

Total Debt 102.52 23.6

Total Liabilities

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths

Application Of Funds

Gross Block 612.05 744.26 838.7 935.03

172.9 208.07 249.41 304.99 362.64

Net Block 439.15 536.19 589.29 630.04 699.26

47.94 30.8 33.43 75.95

Investments 985.24 779.62

mths

mths

mths

are pp ca onMoney

Capital

1,011.28

1,370.67

2,351.42

4,104.06

5,047.86

Reserves

, .5

, .4

, .9

, .2

, .2

3 9 6

, .5 , .2 , .5, .

0, .

6, .

4, .

4, .

2

mths

mths

mths

, .0

.Depreciation

Capital Work inProgress

1,057.49

1,843.57

2,694.59


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Inventories 186.62 263.41 333.38 389.63 486.74

Sundry Debtors 234.97 256.47 310 680.03

4.01 11.26 35.69 23.29 20.17

Total Current Assets 425.6 531.14 679.07

Loans and Advances 445.55 509.25 345.82 394.13 311.42Fixed Deposits 886.02

Deffered Credit 0 0 0 0 0

Current Liabilities 224.95 273.3 345.23 845.73 696.34

Provisions 84.45 122.5 7.7 262.79 342.1

309.4 395.8 352.93

Net Current Assets

0 0 0 0 0

Total Assets

39.77 39.76 107.62 72.08 85.36

Book Value (Rs) 59.51 78.8 126.58 203.15 248.72

1,055.44

Cash and BankBalance

6 4

6 9 3 0

Total CA, Loans &Advances

1,757.17

2,259.95

2,191.88

2,911.62

2,743.66

Total CL &Provisions

1,108.52

1,038.44

7 5 5 0 2

Expenses, .

0, .

6, .

4, .

4, .

2

Liabilities


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Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths

IncomeSales Turnover 1056.01 1353.01 1722.13 2427.35

Excise Duty 48.73 61.37 59.57 58.84

Net Sales 1007.28 1291.64 1662.56 2368.51

Other Income 232.87 525.55 750.26 914.83

Stock Adjustments -0.45 57.23 41.41 17.38

Total Income 1239.7 1874.42 2454.23 3300.72

Expenditure

Raw Materials 563.75 899.67 1214.48 1564.61

Power & Fuel Cost 14.48 25.55 31.14 37.36

Employee Cost 82.78 82.01 98.87 120.2Other Manufacturing Expe 24.97 23.11 25.08 35.21

Selling and Admin Expens 163.72 287.47 370.2 415.35

Miscellaneous Expenses 37.1 15.97 18.85 14.62

Preoperative Exp Capitalis 0 0 0 0

Total Expenses 886.8 1333.78 1758.62 2187.35

Mar '05 Mar '06 Mar '07 Mar '08

12 mths 12 mths 12 mths 12 mths

Operating Profit 120.03 15.09 -54.65 198.54

PBDIT 352.9 540.64 695.61 1113.37

Interest 0 11.23 8.8 5.06

PBDT 352.9 529.41 686.81 1108.31

Depreciation 32.83 40.73 46.27 56.11

Other Written Off 2.45 0 0 0

Profit Before Tax 317.62 488.68 640.54 1052.2

Extra-ordinary items 12.45 0 -0.05 0

PBT (Post Extra-ord Items) 330.07 488.68 640.49 1052.2

Tax 17.77 27.39 11.61 38.16Reported Net Profit 305.71 461.29 628.93 1014.04

Total Value Addition 323.05 434.11 544.14 622.74

Preference Dividend 0.08 0.08 0.08 0.05

Equity Dividend 69.57 102.3 130.01 217.47

Corporate Dividend Tax 9.91 14.36 18.25 37.2

Per share data (annualised)

Shares in issue (lakhs) 1855.11 1857.32 1934.02 2071.16

Earning Per Share (Rs) 16.48 24.83 32.52 48.96

PROFIT AND LOSS STATEMENTS (FIG IN CROR


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Equity Dividend (%) 75 110 135 210

Book Value (Rs) 59.51 78.8 126.58 203.15


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Mar '09

12 mths

2833.65

59

2774.65

1276.22

23.78

4074.65

1961.89

50.44

148.3143.93

494.98

18.06

0

2717.61

Mar '09

12 mths

80.82

1357.04

2.77

1354.27

58.86

0

1295.41

11.7

1307.11

30.121265.29

755.72

0

284.79

48.4

2071.16

61.09

ES)


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275

248.72


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RATIO ANALYSIS

Short term liquidityCurrent ratioMar '05 Mar '06 Mar '07 Mar '08

Current assets 425.6 531.14 679.07 1,468.36

/ Current liabilities224.95 273.3 345.23 845.73

= Current ratio

1.89 1.94 1.97 1.74

Quick ratio (Acid Test) Mar'05 Mar'06 Mar'07 Mar'08

(Cash 4 11 36 23.29

+ Marketable secrities - - - -

+ Accounts receivable) 235 256 310 1,055

/ Current liabilities 224.95 273.3 345.23 845.73

= Quick ratio 1.06 0.98 1.00 1.28

Mar'05 Mar'06 Mar'07 Mar'08

Annual net credit sales 1,007.28 1,291.64 1,662.56 2,368.51

234.97 256.47 310 1,055.44

4.29 5.04 5.36 2.24


365 days 365 365 365 365

4.29 5.04 5.36 2.24

85.14 72.47 68.06 162.65

Inventory turnover Mar'05 Mar'06 Mar'07 Mar'08

Measures the ability to paycurrent liabilities out of current

Measures the ability to paycurrent liabilities out of themost liquid of current assets.

3.Accounts receivableturnover

Measures the ability to collectfrom customers.

/ Average net accountreceivables

= Accounts receivable

4.Average collection period(Days Sales Outstanding)

Measures the average numberof day that it takes to collectaccounts receivable.

/ Accounts receivable

= Average collection period(Days Sales Outstanding)


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Net sales 1,007.28 1,291.64 1,662.56 2,368.51

/ Average inventory 186.62 263.41 333.38 389.63

= Inventory turnover 5.4 4.9 4.99 6.08

Days sales in inventory Mar'05 Mar'06 Mar'07 Mar'08

365 days 365 365 365 365

/ Inventory turnover 5.4 4.9 4.99 6.08

Days sale in inventory 67.62 74.44 73.19 60.04

Debt ratio Mar'05 Mar'06 Mar'07 Mar'08

Total liabilities 309.40 2,259.95 679.07 1,468.36

/ Total assets 2,920.10 3,210.76 3,517.64 4,310.14

= Debt ratio 0.11 0.70 0.19 0.34


320.07 499.91 649.34 1,057.26

/ Interest expense 0 11.23 8.8 5.06

44.52 73.79 208.94

Total asstes to equity Mar'05 Mar'06 Mar'07 Mar'08

Total assets 2,920.10 3,210.76 3,517.64 4,310.14

/ Total stockholders equity 94.16 94.27 98.07 103.56

= Total assets to equity 31.01 34.06 35.87 41.62



/ Total assets 2,920.10 3,210.76 3,517.64 4,310.14

0.11 0.70 0.19 0.34

Measures the saleability ofinventory. Indicates thenumber of time inventory issold or "turned" per year.

Measures inventory levelsbased on days sales.

L O N G T E R M

S O L V E N C Y R A T I O S

Indicates the percentage ofassets financed with debt orliabilities

Times interest earned -income (interest coverage)

Measures the ability to payinterest out of profits.

Net income before interestexpense and taxes

= Times interest earned -income (interest coverage)

Total liabilities to total

= Total liabilities to total


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Total liabilities to equity Mar'05 Mar'06 Mar'07 Mar'08


/ Total stockholders equity 94.16 94.27 98.07 103.56

= Total liabilities to equity 3.29 23.97 6.92 14.18

DEBT-EQUITY RATIO Mar'05 Mar'06 Mar'07 Mar'08

Outsiders Fund 2,039.60 2,019.12 1,413.38 948.25

Total shareholders fund 1,105.44 1,464.94 2,449.49 4,207.62

D/E ratio 1.85 1.38 0.58 0.23

Propreitory Equity ratio Mar'05 Mar'06 Mar'07 Mar'08

Shareholder fund 2,812.01 3,098.26 3,399.18 4,183.70

/Total Assets 309.40 2,259.95 679.07 1,468.36

Propreitory Equity ratio 9.09 1.37 5.01 2.85

PROFITABILITY RATIOS

Return on assets Mar'05 Mar'06 Mar'07 Mar'08

Net income 305.71 461.29 628.93 1,014.04

/ Average total assets 309.40 2,259.95 679.07 1,468.36

= Return on assets 0.99 0.2 0.93 0.69

Return on equity Mar'05 Mar'06 Mar'07 Mar'08

Net income 305.71 461.29 628.93 1,014.04

/ Average stockholders equity 94.16 94.27 98.07 103.56

= Return on equity 3.25 4.89 6.41 9.79

Gross margin Mar'05 Mar'06 Mar'07 Mar'08

Gross profit 321.30 261.30 292.99 611.13

/ Sales 1,007.28 1,291.64 1,662.56 2,368.51

= Gross margin % 0.32 0.2 0.18 0.26

Operating margin Mar'05 Mar'06 Mar'07 Mar'08Operating profit 120.03 15.09 -54.65 198.54

/ Sales 1,007.28 1,291.64 1,662.56 2,368.51

= Operating margin 0.12 0.01 -0.03 0.08

Profit margin Mar'05 Mar'06 Mar'07 Mar'08

Net income 305.71 461.29 628.93 1,014.04

/ Sales 1,007.28 1,291.64 1,662.56 2,368.51

Measures the effectiveness ofassets used to produce profits.

Measures the profitibility ofowners investments.

Measures the % of each $1 ofrevenue that is left over asprofit.


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= Profit margin 0.3 0.36 0.38 0.43

Total asset turnover Mar'05 Mar'06 Mar'07 Mar'08

Sales 1,007.28 1,291.64 1,662.56 2,368.51

/ Average total assets 2,920.10 3,210.76 3,517.64 4,310.14

= Total asset turnover 0.34 0.4 0.47 0.55

Fixed assets turnover Mar'05 Mar'06 Mar'07 Mar'08

Sales 1,007.28 1291.64 1662.56 2368.51

/ Average fixed assets 439.15 536.19 589.29 630.04

= Fixed asset turnover 2.29 2.41 2.82 3.76

Current asset turnover Mar'05 Mar'06 Mar'07 Mar'08

Sales 1007.28 1291.64 1662.56 2368.51

/ Average current assets 425.6 531.14 679.07 1,468.36

= Current asset turnover 2.37 2.43 2.45 1.61


Net income 305.71 461.29 628.93 1,014.04

/ Average total assets 2,920.10 3,210.76 3,517.64 4,310.14

= Return on investment 10.5% 14.4% 17.9% 23.53

or

Net profit margin 0.3 0.36 0.38 0.43

/ Total asset turnover 0.34 0.40 0.47 0.55

= Return on investment 10.5% 14.4% 17.9% 77.91

Net profit after tax 306 461 629 1,014.04

/ Average stockholders equity 94 94 98 103.56

= Return on equity 324.7% 489.3% 641.3% 979.18

or

Average total assets 2,920 3,211 3,518 4,310.14

/ Average equity 94 94 98 103.56

= Equity mutliplier 31.01 34.06 35.87 41.62

x ROI 10.5% 14.4% 17.9% 23.53

= Return on equity 324.7% 489.3% 641.3% 979.18

Measures the efficiency ofassets used to produce sales.

Measures the efficiency offixed assets used to producesales.

DuPont Return on

Modified DuPont - Return on

Equity


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Mar '09

1,186.94

696.34

1.70

Mar'09

20.17

-

680

696.34

1.01

Mar'09

2,774.65

680.03

4.08

Mar'09

365

4.08

89.46

Mar'09


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2,774.65

486.74

5.7

Mar'09

365

5.7

64.03

Mar'09

1,186.94

5,175.02

0.23

Mar'09

1,298.18

2.77

468.66

Mar'09

5,175.02

103.56

49.97

Mar'09

1,186.94

5,175.02

0.23


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Mar'09

1,186.94

103.56

11.46

Mar'09

719.94

5,151.42

0.14

Mar'09

5,047.86

1,186.94

4.25

Mar'09

1,265.29

1,186.94

1.07

Mar'09

1,265.29

103.56

12.22

Mar'09

570.08

2,774.65

0.21

Mar'09 80.82

2,774.65

0.03

Mar'09

1,265.29

2,774.65


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0.46

Mar'09

2,774.65

5,175.02

0.54

Mar'09

2774.65

699.26

3.97

Mar'09

2774.65

1,186.94

2.34

Mar'09

1,265.29

5,175.02

24.45

0.46

0.54

85.05

1,265.29

103.56

1221.8%

5,175.02

104

49.97

2445.0%

1,221.79


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NALYSIS OF FINAN

1.LIQUIDITY RATIOS

CURRENT RATIO

Year Mar05 Mar06 Mar07 Mar08

Current Ratio 1.89 1.94 1.97 1.74

The ratio is regarded as a test of liquidity for a company.'working capital' relationship of current assets available tcurrent obligations.Current Ratio = Total Current Assets/ Total Curren

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

22

2

2

2

2

2

2

2

2

1 2

2 23 2

4 2

Current Ratio


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QUICK RATIO


Quick Ratio 1.06 0.98 1 1.28

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

1

1

1

1

1

1 12 1 3 1

4 1

Quick Ratio


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2.SOLVENCY RATIOS

DEBT-EQUITY RATIO


D/E Ratio 1.85 1.38 0.58 0.23

DEBT RATIO

0.5 1 1.5 2 2.5 3 3.5 4 4.5

1

1

1

1

1

2

2

21 2

2 1

3 1

4

D/E Ratio


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Debt ratio 0.11 0.7 0.19 0.34

INTEREST COVERAGE RATIOS


0.5 1 1.5 2 2.5 3 3.5 4 4.5

1

1

1

1

2 1

3

4

Debt ratio

Interest coverage is a financial ratio that provides a quick

companys ability to pay the interest charges on its debt.aspect of the ratio indicates how many times the interestavailable earnings, thereby providing a sense of the safehas for paying its interest for any period.

Ratio=PBIT/total interest expenses


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Coverage ratio 0 44.52 73.79 208.94

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

50

100

150

200

250

300

350

400

450500

12 45

3 74

4 209

5 469

Coverage ratio


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IAL RATIOS

3.PROFITABILITY RATIOS

GROSS MARGIN RATIO


0.32 0.2 0.18 0.26

Mar09

1.7

NET MARGIN

Grossmargin

It expresses themeet the company's

Liabilities

1 2 2 3 3

1

2

3

Gross margin

5.5

2

Current Ratio

This ratio is the percentage of sales dsold and all expenses, except incomecompare your company's "return on scompanies in your industry. It is calcuand tax liabilities vary from companymaking comparisons after taxes mucNet Profit Margin Ratio = Net Profit B


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0.3 0.36 0.38 0.43

Mar09

1.01

Return on Assets Ratio


ROA 0.99 0.2 0.93 0.69

NETMARGIN

0.5 1 1.5 2 2.5 3

1

23

NET MARGIN

5.5

1Quick Ratio

ROA


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Mar09

0.14

RETURN ON INVESTMENT


ROI 0.99 0.2 0.93 0.69

0.5 1 1.5 2 2.5 3

1

1

1

1

1 1

2

3

INTERPRETATIONBarring first year, has performed well1.1 ratio indicating around more than

5 5.5

5

D/E Ratio

0.5 1 1.5 2 2.5 3

1

1

1

1

1 1

2

3

ROI


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Mar09

0.23

Inventory Turnover Ratio


I.T.R 5.4 4.9 4.99 6.08

D.S.O 67.62 74.44 73.19 60.04

Mar09

4.EFFICIENCY RATIOS

. . .

5 5.5

5

Debt ratio

0 2 4

2

4

6

8

10

12

picture of a

The 'coverage'could be paid fromy margin a company INTERPRETATION

Company is maintaining on an aveultimately has its effect on its cashhigher days outstanding sales in in


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468.66

ACCOUNTS RECEIVABLE RATIO

Year Mar05 Mar06 Mar07

A.R.T 4.29 5.04 5.36

D.S.O 85.14 72.47 68.06

5.5

Coverage ratio

0.5 1 1.5 2 2.5 3

20

4060

80

100

120

140

160

180

1 852 72

1 4 2 5

Chart Title

Company has low receivable turnway in different years. But no majo

performance of company in realisiin high collection period. It needs thave far effect on its schedules orrequirements.


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Mar09

0.21

4 4 5 5 6

4

5

Gross margin

ollars left after subtracting the Cost of Goodstaxes. It provides a good opportunity toales" with the performance of otherlated before income tax because tax ratesto company for a wide variety of reasons,more difficult.

fore Tax / Net Sales


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Mar09

0.46

Mar09

1.07

3.5 4 4.5 5 5.5

45

NET MARGIN


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Mar09

1.07

3.5 4 4.5 5 5.5

4 1

5 1ROA

over the last years reaching at a around100% growth on the invested fund.

3.5 4 4.5 5 5.5

1

4 1

5 1

ROI


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Mar09

5.7

64.03

. . .

6 8 10 12

age around 5 its conversion ratio whichconversion cycle as it increase a lot due toentory.


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Mar08 Mar09

2.24 4.08

162.65 89.46

3.5 4 4.5 5 5.5

3 68

4 163

5 89

3 5 4 2 5 4

A.R.T

D.S.O

ver ratio giving to increase or decreaser improvement is seen indicating poor

g their receivable which is also reflectedwork on its collection policy albeit it willill find itself unable to finance its


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SUMMARYCompany has increased its return on assessment as well as the profi

receivable accounts turnover ratio. It needs to work on its collectionreceivable early or lest he will face financial crunch. It also needs toassets to current so as to finance its working capital efficiently


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ability but it has very low

olicy so as to realise itsonvert its non-current

32 - Akshita - Sun Pharmaceuticals Industries.

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