12. Ratio Analysis Over Last 5 Years 12.24 % VAT & increasing excise duty put pressure on margins RATIOS 7-Mar 6-Mar 5-Mar Mar-98 Mar-97 Debt-Equity Ratio 0.02 0.02 0.03 0.68 0.62 Current Ratio 1.35 1.15 0.97 1.56 1.38 Profit margin 13.60% 13.53% 16.13% 13.23% 12.25% ROE(%) 27.86% 26.55% 25.91% 27.34% 28.41% EPS 7.19 6.08 4.91 4.29 3.69 ROI 27.74% 24.80% 28.97% 26.17% 26.42% asset turnover 2.04 1.83 1.8 1.98 2.17
13. Ratio Analysis b/w ITC & GPI Return on Investment = Profit Margin x Asset Turnover Mar-07 ITC GPI Profit margin 13.60% 5.52% asset turnover 2.04 2.28 ROI 27.74% 12.58% EPS Rs 7.19 Rs 84.73 Liquidity ratio Current ratio 1.35 1.76 debtor turnover 32.32 117.24 Solvency ratio Debt-to equity 0.02 0.03
14. Profit and Loss Statement of 2 Companies for 12 Months Ending 31.03.2007 (in Rs Cr) Year ITC GPI INCOME : Sales Turnover 20,208.77 1596.77 Less : Excise Duty 7,408.08 835.28 Net Sales 12,800.69 761.49 Other Income 377.24 33.6 Total Income 13,487.23 795.09 EXPENDITURE : Raw Materials 5,512.79 308.04 Mfg,selling,administration expenses etc. 3507.63 346.21 Total expenditure 9,020.42 654.25 PROFIT Operating Profit [ 1 - 2 ] 4,466.81 140.84 Less : Interest 17.34 3.23 Gross Profit 4,449.47 137.61 Less : Depreciation 393.78 19.07 Profit Before Tax 4,055.69 118.54 Less : Tax 1,306.54 30.44 Profit After Tax 2,749.15 88.1 Profits brought forward 424.28 230.09 Available for Appropriation 3,173.43 318.19 APPROPRIATION Reserves 1,464.12 15 Proposed Dividend 1,166.29 26 Profits carried down (Surplus) 543.02 277.19 3,173.43 318.19 Earnings per share on Profit After Tax Rs 7.19 Rs 84.73
15. Balance Sheet of Two Companies at 31.03.2007 Cash Flow Statements of Two Companies at 31.03.2007 Year ITC GPI SOURCES OF FUNDS : Total Shareholders Funds (includes share capital, Reserves & surplus 10,437.08 418.15 Loan Funds 200.88 60.73 Total Liabilities 10,637.96 478.88 APPLICATION OF FUNDS : Fixed Assets 5,610.91 126.55 Investments 3,067.77 246.26 Total Current Assets 6,301.14 254.82 Less : Total Current Liabilities 3,869.01 145.20 Net Current Assets 2,432.13 109.62 Net Deferred Tax -472.85 -3.55 Total Assets 10,637.96 478.88 ITC GPI NET CASH FROM OPERATING ACTIVITIES 2247.61 84.04 NET CASH USED IN INVESTING ACTIVITIES -1084 -33.57 NET CASH USED IN FINANCING ACTIVITIES -1054.9 -42.89 Net Inc in Cash and Cash Equivalent 108.73 7.58 Cash and Cash Equivalents at Beginning of the year 977.77 6.68 Cash and Cash Equivalents at End of the year 1086.5 14.28
18. Contd…… The ratio has doubled over 10years.Significant improvement in cash and credit collection policy
19.
Notes de l'éditeur
Asset turover: efficiency with which assets are utilized Sales Avg total assets
ROCE: Operating Profit or PBIT P/E: Mkt price of a share Capital Employed ----------------------Value of all assets employed in business Earnings per share RONW: or ROE: PAT avg shareholder’s equity
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