Ratio analysis Summary

Particulars Mar '17 Mar '18 Mar '19

Revenue growth 9.8% 10.4% 12.5%

Profitability ratios
Gross profit margin 29.8% 29.7% 31.0%
EBITDA margin 16.4% 11.8% 13.1%
EBIT margin 14.7% 9.7% 11.2%
Net profit margin 10.2% 6.5% 7.7%

Return on investment
Return on Assets (RoA) 15.6% 10.0% 12.1% >EBIT(1-TAX)/ASSETS
Operating Return on Assets 22.4% 14.2% 17.4% >EBIT/AVG ASSETS
Return on Capital Employed (RoCE) 33.9% 21.8% 25.6% EBIT/AVERAGE CAPITAL
Return on Equity (RoE) 24.9% 15.2% 18.0% NI/Avg. SE

Liquidity ratios
Current ratio 1.5 1.6 1.7
Quick ratio OR Acid Test ratio 0.80 0.76 0.90
Cash ratio 0.08 0.07 0.05
Activity Turnover ratios
Turnover ratios
Receivables turnover 7.3 7.2 7.5 < No such Relevance
Inventory turnover 4.1 3.8 4.1
Payables turnover 3.8 3.5 3.9
Asset turnover 1.5 1.5 1.5
Fixed asset turnover 3.9 3.4 3.7

Working capital days

- Receivables days 49.8 50.6 48.9 lower days may also mean we are too strict with our cu
- Inventory days 89.9 97.1 88.5
- Payables days 95.3 104.5 93.7
Working capital days OR
44.4 43.2 43.8
Cash conversion cycle (CCC)
Solvency ratios
Debt to asset ratio 0.029 0.023 0.018
Debt to capital ratio 0.045 0.035 0.025
Debt to equity ratio 0.047 0.036 0.026
Financial leverage ratio 1.60 1.59 1.52 > AVG ASSETS/ AVG EQUITY
Interest coverage ratios 21,012.00 683.20 19,946.00

Valuation ratios and other ratios

Basic EPS 54.2 38.3 50.4
Price to earnings (P/E) 19.6 29.7 35.9 CMP/EPS
Price to book value (P/B) 4.4 4.3 6.1 CMP/BV
Dividends per share 12.9 12.9 16.9
Dividend payout ratio 24% 34% 34% DIVIDEND/NI , DPS/EPS
Retention rate (%) 76% 66% 66%
Sustainable growth rate 19% 10% 12% < Growth through Internally Generated Funds.

Du Pont Analysis
Net profit margin 10% 7% 8% pat/revenue
Asset turnover 1.52 1.46 1.54 revenue/avg assets
Financial leverage 1.60 1.59 1.52 avg assets/ avg shareholders
RoE 25% 15% 18% NET INCOME / AVG SE
> Capital Intensive- EBIT
>Labour Intensive-EBITDA( to know who is more operationally
efficient )

>NI/Total Assets. > EBIT(1-tax)/Assets

>EBIT/Average Assets
we are too strict with our customer ( No Lienient laws)
Generated Funds.
(Values in crores, except per share data)
Income Statement Mar '16 Mar '17
Revenues 2,601 2,857
COGS 1,790 2,005
Gross profit 810 852
Other operating expenses / (income) 449 384
EBITDA 362 467
Depreciation 56 47
EBIT 305 420
Interest costs 0.090 0.020
PBT 305 420
Taxes 89 128
PAT 216 292

Total number of common shares outstanding (in crores) 5.39 5.39

Total Common Dividend Paid (in crores) 69 69
Total Preference Dividend Paid (in crores) 0 0

EPS 40.06 54.22

Balance Sheet Mar '16 Mar '17

Share capital 54 54
Reserves 1,009 1,232
Total Shareholder's Equity 1,063 1,286

Total Debt (Non current liabilities) 69 60

Current Liabilities
Trade payables (or creditors) 450 597
Other current liabilities 116 119
Total Current Liabilities 566 716

Total Liabilities 1,698 2,062

Gross Block 845 1,142

Less : Accumulated Depreciation 448 367
Net Block 396 774
Capital Work in Progress 161 123
Total fixed assets 558 898

Long term investments (Non current investments) 184 61

Current Assets
Inventories 454 534
Sundry Debtors (Accounts or Trade receivables) 359 420
Cash and Bank 59 60
Loans and Advances 85 90
Total Current Assets 957 1,104

Total Assets 1,698 2,062

Cash Flow Statements Mar '16 Mar '17

Cash at Beginning of the year 39 59
Operating Activities 102 224
Investing Activities (12) (142)
Financing Activities (71) (81)
Net Inc/(Dec) in Cash and Cash Equivalent 19 1
Cash at End of the year 59 60

Other Key Parameters Mar '16 Mar '17

Working capital 391 388
Change in W/c (3)
Net debt 10 0
Capex 297
Total Capital Employed 1,132 1,346

Market price (CMP) 869.50 1,061.50

Book value per share 197.27 238.62

Average data points

- Equity 1,175
- Debt 65
- Total capital employed 1,239
- Assets 1,880
- Debtors (or Trade receivables) 389
- Inventory 494
- Creditors (or Trade payables) 523

Tax Rate 30% 30%

Fixed Assets 728
Mar '18 Mar '19
3,154 3,549
2,218 2,447
937 1,102
564 635
372 467
65 68
307 399
0.450 0.020
307 399
100 127
207 272

5.39 5.39
69 91
0 0

38.33 50.41

Mar '18 Mar '19

54 54
1,369 1,543
1,423 1,597

52 42

673 583
107 122
780 705

2,255 2,343

1,328 1,389
419 484
910 905
48 44
958 949

56 216
 646 542
455 496
55 34
86 107
1,241 1,179

2,255 2,343

Mar '18 Mar '19

60 55
189 307
(112) (239)
(82) (89)
(5) (21)
55 34

Mar '18 Mar '19

461 474
73 13
(3) 7
187 61
1,475 1,638

1,137.50 1,810.00
264.08 296.30

1,355 1,510
56 47
1,411 1,557
2,159 2,299
437 476
590 594
635 628

30% 30%
928 953