Ratio Analysis…

Analysis of Financial Statements HOTEL Industry

Submitted To:-

Prof. Maheshwari Rajan

By_

Vinita Jain C-40

Amita Pathak C-47
Mayank Dand C-60
In
Partial Fulfillment of the Course Requirements of the
M.M.S 2nd Sem.

Vidya Prasarak Mandal’s

Dr.V.N.Bedekar Institute of Management
Studies, Thane

1
Ratio Analysis…

INTRODUCTION:-

Service
Service is defined as any act or performance one party can
offer to another that is essentially intangible and does not
result in the ownership of anything.
It’s production may or may not be tied to a physical product
it is a non-perishable thing.
However, Manufacturers, distributors, retailers, etc., are
providing value added services, or simply excellent customer
service, to differentiate themselves.

Hospitality Industry in India

All major hotel chains have properties across India.
Hospitality sector has shown a promising upswing of 21%
over 2005-06 in revenue terms.
The first half of 2008 had registered a 19.6% increase in
revenue per available room.
But due to the terror attack on 26/11/08 occupancy ratio &
room rates are suffering.
Hospitality revenues are projected to grow over Rs.82,600
crore by 2010.

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Ratio Analysis…

An additional 80,000+ rooms are slated to come online across

categories countrywide.
More than 40 international brands are trying to make inroads.

HOTEL TAJ
The Taj, a symbol of Indian hospitality.
Founded by Tata Group, Mr. Jamshedji N. Tata, in 1903.
The Indian Hotels Company Limited (IHCL). One of
Asia's largest and finest hotel company. More than 60 hotels.,
45 locations across India.,15 International hotels

LEELA PALACE
Founded in 1957 by Capt. C.P. Krishnan Nair, with the amt
of Rs.450 crore. Leela Group is engaged in the business of
ready-made garments and luxury hotels and resorts.
Incorporated in 1981 to set up and operate 5-star hotels,
Hotel Leela .
The Leela Palaces, Hotels and Resorts is an expanding chain
of some of the finest five star luxury resorts and business
hotels in India. It is also one of the best-run corporates in
India.

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Ratio Analysis…

Ratio.......
Ratio is a tool which helps to convert group of figures. Into
the numbers which helps to analyse the performance of any
firm also in assessing the financial position & profitability of
an enterprise. Utility lies in comparison of the ratios.
But these ratios is not a full proof solution, it’s just a tool so
further interpretation is necessary for which is a job of we
managers.

Ratio comparison Can be of 5 types:-

1) Same enterprise over several years.
2) Between two enterprises in the same industry.
3) One industry against the industry as a whole.
4) An enterprise against a pre-determined standards.
5) For inter-segment comparison within the same
organisation.

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Ratio Analysis…

“Comparison Over past five years performance”

Ratios of HOTEL LEELA

Particulars  Mar ' Mar ' Mar ' Mar ' Mar '
09 08 07 06 05
Profitability ratios
Operating margin (%) 35.73 46.13 49.92 49.82 46.81
Gross profit margin (%) 23.58 37.32 41.06 39.90 35.19
Net profit margin (%) 25.28 25.65 31.43 21.14 16.49
Fixed assets turnover ratio 0.11 0.19 0.21 0.19 0.18
Return on Total asset (%) 20.64 20.91 18.45 12.56 8.72
Return on capital employed 7.34 9.66 11.07 9.12 8.53
(%)

Leverage ratios
Long term debt / Equity
Total debt/equity
Owners fund as % of total
source
3.42 2.79 1.34 1.89 1.62
3.49 2.84 1.39 1.93 1.63
22.28 26.06 41.82 34.11 38.00

Liquidity ratios
Current ratio 0.93 1.96 1.35 2.99 3.34
Current ratio (inc. st loans) 0.80 1.70 1.10 2.40 3.03
Quick ratio 0.82 1.82 1.02 2.79 3.02
Inventory turnover ratio 59.78 76.78 74.47 68.75 65.15

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Ratio Analysis…

Ratios of TAJ Hotel

Particulars Mar ' Mar ' Mar ' Mar ' Mar '
09 08 07 06 05
Profitability ratios
Operating margin (%) 42.93 48.04 47.91 45.94 39.46
Gross profit margin (%) 37.18 43.58 43.29 40.17 33.52
Net profit margin (%) 22.11 27.25 26.39 24.43 19.07
Return on total assets (%) 19.58 30.47 35.10 31.29 19.27
Return on capital 22.43 38.27 40.44 31.94 19.30
employed (%)
Fixed assets turnover ratio 0.51 0.95 0.94 0.74 0.71

Leverage ratios
Long term debt / Equity 0.47 0.25 0.39 0.56 0.63
Total debt/equity 0.51 0.31 0.39 0.56 0.64
Owners fund as % of total 66.10 75.77 71.70 63.85 60.84
source
Liquidity ratios
Current ratio 0.48 0.66 0.82 1.10 0.99
Current ratio (inc. st 0.38 0.54 0.81 1.10 0.94
loans)
Quick ratio 0.41 0.60 0.78 1.06 0.95
Inventory turnover ratio 96.36 71.84 86.57 80.84 144.68

6
Ratio Analysis…

ANALYSIS:--

‘PROFITABILITY RATIOS

--) Operating Margin (%):-

Operating Margin is the result of all the operating expenses

incurred such as selling & administration, advertising expenses.

Higher the expenses lesser is the operating profit margin., if

other income increases Operating profit also increases.

Operating Margin (%)

Yrs Mar'05 Mar'06 Mar'07 Mar'08 Mar'09
LEELA 46.81 49.82 49.92 46.13 35.73
TAJ 39.46 45.94 47.91 48.04 42.93

In case of Leela operating expenses are increasing

continuously such as the administration expenses as more
and also more employees were appointed so the employment
expenses were increased too.
For Taj the expenses are controlled over a period of
time and the margin is maintained continuously.

--) Gross Profit Margin (%):-

Indicates the total margin available to cover other

expenses beyond cost of goods sold and still yield a profit.
Gross Profit Margin (%)
Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9
LEEL
A 35.19 39.9 41.06 37.32 23.58
TAJ 33.52 40.17 43.29 43.58 37.18

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Ratio Analysis…

GP margin of Leela as well as of Taj was increased and

was at maximum during year 2007 but later it declined the
reason here was inflation affected their profit margins.

--) Net Profit Margin (%):-

Shows how much after – tax profits are generated by

each dollar of sales.

Net Profit Margin (%)

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

LEEL
A 16.49 21.14 31.43 25.65 25.28
TAJ 19.07 24.43 26.39 27.25 22.11
NP earned by
both the Hotels were average over a period of time they were
capable enough to keep their sales growing, instability was only
in year 2007 it was good compared to earlier years but again its
average all are the latent effects to GP.

--) Fixed Asset Turnover Ratio:-

It measures the utilisation of the company’s fixed assets

(i.e., plant & equipment); measures how many sales are
generated by each dollar of fixed assets.
Fixed Asset Turnover Ratio
Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9

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Ratio Analysis…
LEEL
A 0.18 0.19 0.21 0.19 0.11
TAJ 0.71 0.74 0.94 0.95 0.51

--) Return on Total Asset (%):-

It measures the profitability of the total funds of a firm. It

measures the relationship between net profits & total assets. It helps
to find out how efficiently the total assets have been used by the
management. It excludes fictitious assets.

Return on Total Asset (%)

Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9
LEEL
A 8.72 12.56 18.45 20.91 20.64
TAJ 19.27 31.29 35.1 30.47 19.58

In case of Leela Assets are underutilised upto an extent

also as the Foundation of both the hotels has a huge difference
so the value of assets had a huge difference.

--) Return on Capital Employed (ROCE):-

It measures the relationship between net profir & capital
employed. It reveals how efficiently the long term funds of
owners & creditors are being used.

Return on Capital Employed (ROCE)

Yrs Mar' Mar' Mar' Mar' Mar'

9
Ratio Analysis…
05 06 07 08 09
LEE 11.0
LA 8.53 9.12 7 9.66 7.34
31.9 40.4 38.2 22.4
TAJ 19.3 4 4 7 3

Taj is using the Shareholders funds more efficiently as that

of Leela.

‘LEVERAGE RATIOS

Leverage ratios/Capital Structure deals with the Firm’s

Long term solvency & it also indicates the ability of the firm to
fulfil its longterm liabilities such as conserving shareholders
wealth, paying off Interest on loan time to time, repayment of
Principal amount on maturity – lumpsum, instalments at due
dates.

--) Long Term Debt/Equity Ratio:-

It indicates the relative proportion of debt & equity in
financing the assets of the firm. It is calculated as follows:-
Debt equity ratio= long-term debt/Shareholders funds.
Long Term Debt/Equity Ratio
Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9
LEEL
A 1.62 1.89 1.34 1.89 1.62
TAJ 0.63 0.56 0.39 0.25 0.47

Though the ideal ratio is 2:1 but the ratio depends upon
the nature of an industry. So in hospitality sector as compared

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Ratio Analysis…
to Leela ,Taj has a less Long term debts., which may reveal two
things Leela is more credit worthy and Taj has lesser debt ,so
also it saves the interest and risk from outside.

--)Total Debt/Equity Ratio:-

This ratio indicates the outside liabilities are related to total

capitalisation of the firm, it measures the funds provided by
creditors versus the funds provided by owners.

Total Debt/Equity Ratio

Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9
LEEL
A 1.63 1.93 1.39 2.84 3.49
TAJ 0.64 0.56 0.39 0.31 0.51

Similarly, as the long term debt ratio Leela has high

debtors compared to hotel Taj, which shows lesser contribution
in Taj as in form of debts. Whereas Leela is likely to be bound
with the debts. Leela is showing an increment continuously.

--) Owners Fund as % of Total Source:-

This term shows that what percentage of Total Funds is

included/invested into the business.
Owners Fund as % of Total Source
Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9

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Ratio Analysis…
LEEL
A 38 34.11 41.82 26.06 22.28
TAJ 60.84 63.85 71.7 75.77 66.1

So Taj has highly included the funds in its business

compared to Leela but in case of Leela the Life cycle case can
be seen high at a starting stage – highest in Growth stage –
and declining at maturity after the growth at saturation level
which is not in case of Taj as it has achieved the stability due to
existence in this field past 107 years.

‘LIQUIDITY RATIOS

It analyses the short-term financial ability to meet its

commitments. How much capable the liquid assets of a firm are
to pay off its quick liabilities. It is also known as SOLVENCY
RATIO.

--) Current Ratio:-

A short – term indicator of the company’s ability to pay its short-

term liabilities from short-term assets; how much of current assets are
available to cover each dollar of current liabilities.

CR = Current Assets/Current Liabilities.

Current Ratio
Yrs Mar'0 Mar'0 Mar'0 Mar'0 Mar'0

12
Ratio Analysis…
5 6 7 8 9
LEEL
A 3.34 2.99 1.35 1.96 0.93
TAJ 0.99 1.1 0.82 0.66 0.48

--) Current Ratio (inc. Short term loans):-

Current Ratio (inc. st loans)

Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9
LEEL
A 3.03 2.4 1.1 1.7 0.8
TAJ 0.94 1.1 0.81 0.54 0.38

Ideal Current Ratio is 2:1

}}}} If the Taj and Leela improves the position of its

current & Inventory it would be able to improve its
short term financial position.

--) Quick Ratio:-

Measures the company’s ability to pay off its short- term

obligations from current assets, excluding inventories. Acid
Test Ratio = CA-(Stock+Prepaid exp.)/CL-(Bank o/d + Income
received in advance) Ideal Quick Ratio is 1:1.

13
Ratio Analysis…

Quick Ratio
Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9
LEEL
A 3.02 2.79 1.02 1.82 0.82
TAJ 0.95 1.06 0.78 0.6 0.41

Comparing all the above three ratios its indicates that the
solvency capability of Leela is better over Taj. But this term is
hard to swallow in case of Taj as it is not due to its lower
solvency capacity but because of Higher Financial
Management.

--) Inventory Turnover Ratio:-

IT reveals the Inventory status which includes Raw Material, WIP

& Finished Goods. It shows the Inflow & outflow of the stock and
processing and selling speed. Measures the number of times that
average inventory of finished goods was turned over or sold during a
period of time, usually a year.

ITR = COGS/Avg. Stock OR = Sales/Clsng Stock

High Inventory turnover ratio means Less stock in hand – higher

the sales but problem of stock out cost can be faced whereas, Low
Inventory turnover ratio means lesser the Sales – high is the stock in
hand which may also increase the carrying out cost.

Inventory Turnover Ratio

Mar'0 Mar'0 Mar'0 Mar'0 Mar'0
Yrs 5 6 7 8 9
LEEL 65.15 68.75 74.47 76.78 59.78

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Ratio Analysis…
A
144.6
TAJ 8 80.84 86.57 71.84 96.36

Ratio of Leela is not too low, it has achieved average in

terms of Stock holding period – sales . Sales would improve
and the ratio may go high in future prospect of Growth.
In case of Taj where high ITR is observed reveals that its
sales are high, Investment is not blocked in the form of
inventory, also the stock holding period is less which shows
that the stock is converted into cash faster also that the debtors
are loyal to pay off quickly i.e. There are least worries regarding
the term Debtors.

‘Cash Flow Statement’

Cash Flow Statement shows the relationship between

the liquidity & Profitability capacity of a firm.

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Ratio Analysis…
Application of Cash that is the used for various purposes
known as Cash Outflow.
Sources of Cash that means cash generated or bought
through various activities known as Cash Inflow .
It is bifurcated into three activities as :- Operating Activity,
Investing Activity & Financing Activity.
NET Operating activities should always be Positive, it shows
the smooth functioning of a firm.
Investing activies includes the purchases of fixed assets or
investments also the receipt of cash in the form of interest or
dividend, NET Investing Activies if negative shows that the
purchases were high.
Financing activities includes the issue of shares/debentures ,
redemption of debentures , payment of interest/dividend , cash
can be raised by issuing of shares also if net balance is
negative it shows that the debt is more to be paid off.
Ideal Cash Flow needs the NET Operating & NET Financing to
be positive and NET Investing activity should be Negative.

Cash flow Statement of LEELA PALACE:-

Particulars  Mar ‘ Mar ‘ 08 Mar ' Mar ' Mar '

09 07 06 05
Profit before tax 193.45 223.3 189.7 111.5 49.22
4
Net cash flow-operating 267.93 117.7 216.78 147.0 109.1

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Ratio Analysis…
activity 8
Net cash used in investing -596.98 -910.44 -124.49 -365.9 55.3
activity
Net cash used in fin. 63.85 1,077.56 -244.28 329.4 55.3
Activity 1
Net inc/dec in cash and -265.19 284.81 -151.99 110.5 46.85
equivalent 9
Cash and equivalent begin 295.58 10.77 162.69 52.06 5.21
of year
Cash and equivalent end of 30.39 295.58 10.7 162.6 52.06
year 5

Cash flow Statement of

Hotel TAJ:-

Particulars  Mar ' Mar ' 08 Mar ' Mar ' Mar '
09 07 06 05
Profit before tax 81.69 108.29 100.79 69.95 35.72
Net cashflow-operating 85.2 79.23 71.67 57.08 14.54
activity
Net cash used in investing -125.75 -73.18 -34.85 -46.94 62.69
activity
Netcash used in fin. 31.37 -19.99 -25.8 2.7 46.91
Activity
Net inc/dec in cash and -9.18 -13.94 11.02 12.84 -1.25
equivlnt
Cash and equivalnt begin of 11.32 25.26 14.24 1.15 2.4
year
Cash and equivalnt end of 2.13 11.32 25.26 14 1.15
year

In case of Leela Palace Net operating Activity of all the

five year balances are positive which is ideal, Investing Activity
is negative means purchases of assets and investments are
done frequently except in the year 2005 , Financing activities
17
Ratio Analysis…
ideal balance should be Positive which is there in this case
except in the March 2007 which was due to payment of interest
and dividend with the hindrance of Inflation.
In case of TAJ Net operating Activity of all the five year
balances are positive which is ideal, Investing Activity is
negative means purchases of assets and investments are done
frequently but the interest received was higher too, Financing
activities ideal balance should be Positive which is there in this
case except in the March 2007 & 2008 which was due to
repayment of shares amount also due to redemption of
debentures and dividend with the hindrance of Inflation.
If Leela compared with Taj the difference in their
incorporation is much more which may indicate that Leela Cost
of asset & Taj Cost would differ much more due to value of
money has obviously changed past 70 years.

DIVIDEND:-
Dividend is the amount paid to the Shareholders. It is the
part of Profits, as in the favour of increasing the wealth of
18
Ratio Analysis…
shareholders, its the profit increased shared with the
Shareholders termed as DIVIDEND. “Dividend has to paid
on Face value”.

LEELA PALACE
Mont Dividen
Year
h d (%)
2009 Jun 20
2008 Jun 25
2007 Jun 8
2007 Mar 15
2006 Jun 5
2006 Apr 15
2005 May 4

Mar Mar
DIVIDEND Mar’05 Mar '06 Mar '08
'07 '09

Investment Valuation Ratios

Face Value 10.00 10.00 2.00 2.00 2.00
Dividend Per
1.00 2.00 0.45 0.50 0.40
Share

AND

HOTEL
19
Ratio Analysis…
TAJ
Mont Divide
Year
h nd (%)
2009 May 100
2008 Apr 160
2007 Apr 150

2006 Apr 100

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

Investment Valuation Ratios

Face Value 10.00 2.00 2.00 2.00 2.00
Dividend Per Share 4.50 2.00 3.00 3.20 2.00
Operating Profit
36.34 13.83 18.57 19.73 16.26
Per Share (Rs)
Net Operating
Profit Per Share 92.08 30.10 38.75 41.07 37.88
(Rs)

So though the frequency of payment of dividend is better of

Leela Palace Compared with Taj to Shareholders, but the final
amount received by the shareholders of Taj is better.
So Taj is increasing the wealth of shareholders than Leela.

COMPARISON BETWN 2 COMPETITORS IN SAME SECTOR:-

20
Ratio Analysis…

RATIO ANALYSIS 2008-09

LEELA
Profitability ratios TAJ
PALACE
Operating margin (%) 35.73 42.93
Gross profit margin
23.58 37.18
(%)
Net profit margin (%) 25.28 22.11
Fixed assets turnover
0.11 19.58
ratio
Return on Total asset
20.64 22.43
(%)
Return on capital
7.34 0.51
employed (%)
Leverage ratios
Long term debt / Equity 3.42 0.47
Total debt/equity 3.49 0.51
Owners fund as % of
22.28 66.1
total source

Liquidity ratios
Current ratio 0.93 0.48
Current ratio (inc.
0.8 0.38
shortterm loans)
Quick ratio 0.82 0.41
Inventory turnover
59.78 96.36
ratio

FINAL ANALYSIS:-

21
Ratio Analysis…

 Taj has a high operating profit margin though it had 10%

increment in their recruitment and the selling & admin.
Expenses were increased upto 13% but inspite of that
operating profit its well maintained.

 GP ratio is also better in case of Taj but NP ratio is in case

of Leela as it has a huge turnover so Tax payment made
is high if compared.

 Assets of Taj are utilised in a better way than that of

Leela.

 ROCE is much better of Leela than Taj which indicates

that the funds of creditors are used very efficiently and it
has a better future prospect in terms of future growth.

 Leverage Ratio is better in case of Taj as it has lesser the

debt which indicates lesser outflow of cash in form of
interest and sharing of profit with outsiders., but Leela’s
higher Leverage indicates the creditworthiness which is
too better to posses.

 Contribution of total funds is higher in Taj than Leela.

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 Ratio Analysis…
 Current Ratio & Quick Ratio seems better in case of Leela
compared with Taj, we can estimate that the solvency
capability is therefore better of Leela, but Taj has a better
Financial Management by which it has achieved this ratio.

 Stock turnover ratio is high of Taj which shows high sales

and less stock holding period also the debtors are solvent
enough to pay off before and at the due dates.

CONCLUSION:-
After analysing both the hotel’s financial statements we
would like to conclude that Taj is better to invest and be a
shareholder if you wish for stable returns and for continuous
increment of your wealth. Also would like to suggest the people
who are ready to accept risk with returns may prefer Leela as
its on Growth stage, may have a huge growth in future.

RATIOS:-
------------------- in Rs. Cr. -------------------
Key Financial Ratios

23
 Ratio Analysis…

of Hotel Leela
Venture

Particulars Mar’05 Mar '06 Mar '07 Mar '08 Mar '09

Investment Valuation Ratios

Face Value 10.00 10.00 2.00 2.00 2.00
Dividend Per Share 1.00 2.00 0.45 0.50 0.40
Operating Profit Per
16.97 22.10 5.14 6.28 4.28
Share (Rs)
Net Operating Profit Per
36.24 44.36 10.29 13.62 11.97
Share (Rs)
Free Reserves Per Share
55.14 60.30 14.13 14.49 13.29
(Rs)
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Operating Profit
46.81 49.82 49.92 46.13 35.73
Margin(%)
Profit Before Interest And
33.29 37.69 38.88 32.82 18.60
Tax Margin(%)
Gross Profit Margin(%) 30.69 43.06 41.06 37.32 23.58
Net Profit Margin(%) 16.49 21.14 31.43 25.65 25.28
Adjusted Net Profit
16.24 21.45 31.43 25.65 25.28
Margin(%)
Return On Capital
8.50 9.00 10.85 9.53 7.23
Employed(%)
Return on Long Term
8.53 9.12 11.07 9.66 7.34
Funds(%)
Liquidity And Solvency Ratios
Current Ratio 3.03 2.40 1.10 1.70 0.80
Quick Ratio 3.02 2.79 1.02 1.82 0.82
Debt Equity Ratio 1.63 1.93 1.39 2.84 3.49
Long Term Debt Equity
1.62 1.89 1.34 2.79 3.42
Ratio

24
 Ratio Analysis…

Debt Coverage Ratios

Interest Cover 2.04 4.53 5.89 7.38 8.53
Total Debt to Owners
1.63 1.93 1.39 2.84 3.49
Fund
Management Efficiency Ratios
Inventory Turnover Ratio 11.01 13.03 74.47 76.78 59.78
Debtors Turnover Ratio 15.22 14.76 12.36 13.59 12.90
Investments Turnover
65.15 68.75 74.47 76.78 59.78
Ratio
Fixed Assets Turnover
0.26 0.27 0.21 0.20 0.12
Ratio
Total Assets Turnover
0.21 0.20 0.23 0.19 0.14
Ratio
Asset Turnover Ratio 0.18 0.20 0.21 0.20 0.12

Average Raw Material

-- -- -- -- --
Holding
Average Finished Goods
-- -- -- -- --
Held
Number of Days In
254.26 302.73 78.70 204.18 -20.88
Working Capital
Profit & Loss Account Ratios
Material Cost
5.07 4.25 4.69 4.17 4.47
Composition
Imported Composition of
-- -- -- -- --
Raw Materials Consumed
Selling Distribution Cost
2.28 2.10 2.43 2.30 3.36
Composition
Expenses as Composition
70.01 69.68 67.58 63.01 61.18
of Total Sales

25
 Ratio Analysis…

Cash Flow Indicator Ratios

Dividend Payout Ratio
13.73 24.09 15.15 14.72 12.19
Net Profit

Dividend Payout Ratio

7.94 16.55 11.96 11.30 8.84
Cash Profit
Earning Retention Ratio 86.05 76.27 74.86 84.91 88.21
Cash Earning Retention
91.99 83.62 82.58 88.48 91.37
Ratio
Adjusted Cash Flow
9.31 9.90 8.66 10.62 11.96
Times

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

Earnings Per Share 5.78 9.66 3.41 3.97 3.84

Book Value 66.20 76.92 18.50 18.99 18.59
--------------------------------------------------------------------------------------------

Key Financial Ratios

of Taj GVK Hotels & ------------------- in Rs. Cr. -------------------

Resorts

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

Investment Valuation Ratios

Face Value 10.00 2.00 2.00 2.00 2.00
Dividend Per Share 4.50 2.00 3.00 3.20 2.00

26
 Ratio Analysis…
Operating Profit Per
36.34 13.83 18.57 19.73 16.26
Share (Rs)
Net Operating Profit
92.08 30.10 38.75 41.07 37.88
Per Share (Rs)

51.57 15.61 21.26 28.90 35.43

Free Reserves Per
Share (Rs)
Bonus in Equity
-- -- -- -- --
Capital
Profitability Ratios
Operating Profit
39.46 45.94 47.91 48.04 42.93
Margin(%)
Profit Before Interest
33.43 40.06 43.16 43.44 37.01
And Tax Margin(%)
Gross Profit
38.47 43.99 46.78 43.58 37.18
Margin(%)
Net Profit Margin(%) 19.07 24.43 26.39 27.25 22.11
Adjusted Net Profit
19.20 24.81 26.58 27.25 22.11
Margin(%)
Return On Capital
19.20 31.94 40.39 36.49 21.80
Employed(%)
Return on Long Term
19.30 31.94 40.44 38.27 22.43
Funds(%)
Liquidity And Solvency Ratios
Current Ratio 0.94 1.10 0.82 0.54 0.38
Quick Ratio 0.95 1.06 0.78 0.61 0.42
Debt Equity Ratio 0.64 0.57 0.39 0.32 0.51
Long Term Debt
0.63 0.57 0.39 0.26 0.47
Equity Ratio
Debt Coverage Ratios
Interest Cover 28.19 19.11 33.38 39.60 13.49
27
 Ratio Analysis…
Total Debt to Owners
0.64 0.57 0.39 0.32 0.51
Fund

Management Efficiency Ratios

Inventory Turnover
71.84 74.48 79.39 71.84 96.36
Ratio
Debtors Turnover
27.13 34.48 36.37 45.22 40.49
Ratio
Investments Turnover
144.68 80.84 86.57 71.84 96.36
Ratio
Fixed Assets Turnover
0.74 0.96 1.00 0.96 0.51
Ratio
Total Assets Turnover
0.59 0.79 0.94 0.84 0.58
Ratio
Asset Turnover Ratio 0.72 0.74 0.94 0.96 0.51

Average Raw Material

-- -- -- -- --
Holding
Average Finished
-- -- -- -- --
Goods Held
Number of Days In
-1.01 10.95 -19.35 -36.08 -53.08
Working Capital
Profit & Loss Account Ratios
Material Cost
9.02 8.09 8.21 8.22 8.46
Composition
Imported Composition
of Raw Materials -- -- -- -- --
Consumed
Selling Distribution
3.88 3.65 3.43 3.42 3.61
Cost Composition
Expenses as 40.99 41.68 41.45 35.03 28.09
Composition of Total
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 Ratio Analysis…
Sales

Cash Flow Indicator Ratios

Dividend Payout Ratio
29.13 30.91 34.21 33.33 27.80
Net Profit
Dividend Payout Ratio
21.30 24.81 28.70 28.34 22.09
Cash Profit
Earning Retention
71.06 69.56 66.03 66.41 72.77
Ratio
Cash Earning
78.80 75.50 71.47 71.47 78.27
Retention Ratio
Adjusted Cash Flow
2.54 1.47 0.95 0.91 2.06
Times

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

Earnings Per Share 17.61 7.38 10.26 11.23 8.42

Book Value 95.43 24.18 29.66 37.15 43.22

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Ratio Analysis…

Dt: 23rd feb. 2010

Guided By:-

Maheshwari Maam

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