HDFC Limited

Company Profile
Largest mortgage company
Based in Mumbai Founded in 1977 by Hasmukhbhai Parekh

318 outlets including 77 offices of HDFC sales pvt

limited Offices in london, singapore and dubai Includes home loans through HDFC Sales, HDFC Bank Ltd. and other third party direct selling agents

Current Status
Revenue : $ 2.6 billion (2011)
Net Income : $ 0.707 billion (2011) Has assisted more than 4.02 million to own a home of

their own

Financial Statement and Balance Sheet

Financial (statement) Analysis: is the art of

transforming data from financial statements into information that is useful for informed decision making. Balance Sheet is the summary of firms financial position which states that total asset = total liabilities + owners equity. Income Statement is the is a firms revenues and expenses over a specified period , ending with net profit or loss for the period.

Financial Ratios
An index that relates two accounting numbers and is

obtained by dividing one number by the other.

Balance Sheet Ratios

Liquidity Ratios

Debt Ratios

Coverage Ratios

Turnover Ratios

Expense Ratio

Profitability Ratio

Leverage ratios
Debt to equity ratio = long term loan

shareholders funds

=74837.74 = 3.93 19017.58

Leverage ratios
Total debt to equity = (current liabilities + loans)

shareholders fund =(77378.55 + 71123.81) = 7.67 19017.58

Leverage ratios
Total Debt to total assets

= (current liabilities + loans) total assets =(77378.55 + 71123.81) = 0.87 167519.94

Leverage ratios
Capital Gearing Ratio

= shareholders funds + current liabilities (other than short term loans) . (preference capital + debentures + loans) =(19017.58+71123.81-21146.24) (4987.75+74837.74+21146.24+43143.52) = 0.48

Leverage ratios
Proprietors funds to current assets

= Shareholders funds total assets = 19017.58 = 0.11 167519.94

Leverage ratios
Long term debts to capitalization ratio

=.

long term debts . (equity funds + total debts excluding current liabilities) 74837.74 (19017.58+74837.74+21146.24) 0.65

Leverage ratios
PE ratio = market price per share / earnings per shares

(Market Price per share as on 31st March, 12 = Rs 695.30) = 695.30 27.97 = 24.85

Coverage Ratio
Interest coverage ratio

EBIT interest expense

= 18605.75 11156.78 = 1.66

Coverage Ratio
Dividend coverage ratio

PAT Preference dividend

Not Applicable

Coverage Ratio
Debt service coverage ratio

PAT + interest + depreciation + other non cash expenditures . installments (interest + principal + lease rentals ) = 0.17

= 4122.62+11093.36+20.54 75378.55+11093.36

Analysis of Expense Ratio

Operating expense has increased by 18%
Sales has increased by 36.57% Operating ratio = (Cost of good sold + Operating

expenses)/Sales *100 So the operating ratio is 2.9% in FY12 as compared to 3.4% in FY11

Assumptions
All figures in crores
Net sales = income from operations EBIT = EBT + interest

Cost of goods sold = 0

Market price taken as of 31st July 12 Prepaid expenses taken from annual report