Financial Analysis of Dr Reddys Laboratories Ltd

1. gtÇtç eÉç XåvÄâá|äx
COMPANY FINALYTICS
Dr Reddys Laboratories Ltd
Exclusive Financial Analysis of Indian Companies
Prepared and Edited By‐
Tanay Roy, CFA
Peu Karak, MBA
Disclaimer
The information, opinions, estimates and forecasts contained in this document have been arrived at or obtained from public sources believed
to be reliable and in good faith which has not been independently verified and no warranty, express or implied, is made as to their accuracy,
completeness or correctness.
For more information about this sample and our other services, please write to tanay.roy2008@gmail.com
Monday, September 19, 2011

2. Description Page
Summary 3
Latest Result 3
Valuation Matrix 3
ROE Analysis 3
Income Statement 4
Balance Sheet 5
Cashflow Statement 6
Quarterly Result 6
Growth Analysis 7
Comparative Analysis 8
Income Statement 8
Balance Sheet 8
Index Analysis 9
Income Statement 9
Balance Sheet 9
Ratio Analysis 10
Annual 10
Quarterly 11
TTM Analysis 11
Technical Analysis 12
CONTENT
About Tanay & Peu
Our passion lies in the field of financial research & Investment management and we intend to apply
our knowledge gained over a period of years through intense study and keen observation of the
nuances of financial markets and instruments to real life scenarios. We possess expert knowledge of
financial products and markets as evidenced by top notch qualifications earned by us , all in the first
attempt and keep ourselves abreast with the latest happenings and innovations taking place in
financial landscape.
1. Expertise in Portfolio Management, Product optimization, Product performance Analysis, Financial
Reporting/ Planning, Cash Flow Analysis, Ratio Analysis, Budgeting, Forecasting, Mergers &
Acquisition and knowledge of GAAP/ IFRS
2. Possess Strong Financial Modeling skills including DCF, LBO and other techniques. Possess ability to
research all asset classes in a broad range of industries and geographies.
3. Strong equity research, finance, accounting and advisory and assurance experience
4. Expertise in Technical analysis, fundamental analysis, developing trading systems.
5. Conduct in‐depth financial analysis of company financials.
6. Write analytical or trend based reports on companies, sectors or markets.
7. Expert level application in Bloomberg, Thomson Banker, Factset, Datastream, StockVal, Merger
markets, Reuters Knowledge, Haver Analytics, Factiva, PackHedge,
8. Building Excel/VBA based customized tools to perform detailed analysis.
Contact Us: tanay.roy2008@gmail.com
Page 2

3. Summary
At a Glance
Latest Results Industry Pharmaceuticals
Yearly Quarterly TTM Business Group Reddy Group
March ' 11 Growth June ' 11 Growth June ' 11 Growth Face Value 5
Latest Results
Number of Equity shares 1692.53
EBDITA 1335.00 5.13 667.30 26.01 1691.66 24.31
Reported Net
Profit 893.00 5.56 454.05 173.74 1102.89 23.46 Price 1522.3
Adjusted PAT 891.90 16.12 454.05 173.74 NA NA
Market Cap(Rs. In Cr) 25561.24
Valuation Matrix Share Holding
Annual TTM Ratio General
Public Promote
Particulars March ' 11 March ' 11
8% r
26%
Reported P/E 28.84 28.88
Other
Price/Sales Per Share 4.97 4.86
27%
Price/ Book Value 4.28 NA
Dividend Yield FII MF
0.01 NA
25% 7%
Earning Yield 0.03 0.03
BFI
Market Cap(Rs. In Cr) 25561.24 8%
ROE Analysis
ROE
Particulars March ' 07 March ' 08 March ' 09 March ' 10 March ' 11 30%
25%
Reported PAT / PBT 0.84 0.87 0.73 0.84 0.85 20%
Adjusted PAT / PBT 0.86 0.80 0.78 0.76 0.85 15%
10%
PBT / PBIT 0.96 0.97 0.97 0.98 0.99 5%
PBIT / Sales 0.38 0.17 0.20 0.23 0.20 0%
Sales / Total Assets 0.63 0.50 0.54 0.53 0.56 March ' March ' March ' March ' March '
07 08 09 10 11
Total Assets / Net Worth 1.36 1.38 1.40 1.41 1.54
Reported ROE 26% 10% 11% 14% 15% Reported ROE Adjusted ROE
Adjusted ROE 27% 9% 11% 13% 15%
ROE Factors
1.80 30%
1.60
25%
1.40
1.20 20%
1.00
15%
0.80
0.60 10%
0.40
5%
0.20
0.00 0%
March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
Reported ROE Reported PAT / PBT PBT / PBIT
PBIT / Sales Sales / Total Assets Total Assets / Net Worth
Page 3

4. Income Statement
Particulars (Rs. In Cr) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
Net Sales 3783.26 3343.89 3999.50 4395.60 5188.50
Operating Expenses
Material Consumed 1121.59 1253.46 1469.90 1482.10 1670.50
Manufacturing Expenses 213.46 207.46 195.90 221.40 274.10
Personnel Expenses 299.04 366.28 412.50 516.40 702.70 Operating Income
Selling Expenses 323.40 375.37 448.70 443.80 477.00
6000.00
Adminstrative Expenses 498.42 558.60 714.50 643.40 844.70
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 5000.00
Total Operating Expenses 2455.91 2761.17 3241.50 3307.10 3969.00
4000.00
Operating Profit 1327.35 582.72 758.00 1088.50 1219.50
Other Income 272.74 156.64 249.70 181.30 115.50 3000.00
EBDITA 1600.09 739.36 1007.70 1269.80 1335.00
2000.00
Depreciation 133.50 161.99 193.60 222.40 247.90
Other Write offs 18.16 20.71 19.70 19.30 26.80
1000.00
EBIT 1448.43 556.66 794.40 1028.10 1060.30
Interest 51.96 14.69 27.40 16.00 9.90 0.00
EBT 1396.47 541.97 767.00 1012.10 1050.40 March March March March March
' 07 ' 08 ' 09 ' 10 ' 11
Income Tax 188.99 108.88 168.60 238.70 158.50
Adjusted PAT 1207.48 433.09 598.40 773.40 891.90 Net Sales Operating Profit EBDITA
Non Recurring Items (38.79) 40.65 (37.50) 72.70 1.50
Other Non Cash adjustments (0.02) (0.06) (0.10) (0.10) (0.40)
Reported Net Profit 1168.67 473.68 560.80 846.00 893.00
Equity Dividend 62.97 63.06 105.30 190.00 190.40
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Dividend Tax 10.70 10.72 17.80 31.60 115.20
Retained Earnings 1095.00 399.90 437.70 624.40 587.40
Profit Levels Total Income Break‐up
1800.00
Total Operating Expenses Depreciation
1600.00 Other Write offs Interest
1400.00 Income Tax Adjusted PAT
1200.00
1000.00
800.00 17%
600.00
3%
400.00 0%
5%
200.00
0.00
March ' 07 March ' 08 March ' 09 March ' 10 March ' 11 75%
Operating Profit EBDITA EBIT
EBT Adjusted PAT
Page 4

5. Balance Sheet
Particulars (Rs. In Cr) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
SOURCES OF FUNDS
Owner's Fund
Equity Share Capital 83.96 84.09 84.20 84.40 84.60
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves & Surplus 4289.40 4727.72 5174.90 5830.20 5935.60
Total Owners fund 4373.36 4811.81 5259.10 5914.60 6020.20
Loan Funds
Secured Loans 1.92 3.40 2.60 0.80 0.70
Unsecured Loans 327.98 458.91 637.70 562.40 1444.10
Total Loan fund 329.90 462.31 640.30 563.20 1444.80
Capital Structure
Total 4703.26 5274.12 5899.40 6477.80 7465.00
7000.00
USES OF FUNDS
Fixed Assets 6000.00
Gross Block 1291.19 1750.21 2157.30 2425.70 3025.00
Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0.00
5000.00
Less : Accumulated
Depreciation 609.15 762.80 946.50 1110.10 1334.00
Net Block 682.04 987.41 1210.80 1315.60 1691.00 4000.00
Capital Work‐in‐progress 280.61 245.71 411.20 745.40 570.40
Investments 966.99 2080.71 1865.10 2652.70 2462.00 3000.00
Net Current Assets
Current Assets, Loans & 2000.00
Advances 4028.55 3348.01 3870.40 3647.30 4563.70
Less : Current Liabilities & 1000.00
Provisions 1254.93 1387.74 1458.10 1883.20 1822.10
Total Net Current Assets 2773.62 1960.27 2412.30 1764.10 2741.60
0.00
Miscellaneous expenses not
written 0.00 0.00 0.00 0.00 0.00 March ' March ' March ' March ' March '
Total 07 08 09 10 11
4703.26 5274.10 5899.40 6477.80 7465.00
Note :
Total Owners fund Total Loan fund
Book Value of Unquoted
Investments 966.68 2080.41 1864.80 2652.40 2614.80
Market Value of Quoted
Investments 1.20 1.92 53.00 360.10 3.30
Contingent liabilities 1896.92 1892.55 1934.80 2016.10 1526.00
Number of Equity shares
outstanding (in Lacs) 1679.12 1681.73 1684.69 1688.45 1692.53
Sources of Capital Application of capital
Total Loan
fund
19%
Net Block
Total Net
23%
Current Assets
37% Capital
Work‐
in‐
Total Owners progress
fund 7%
Investments
81% 33%
Page 5

6. Cash Flow Statement
Particulars (Rs. In Cr) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
Profit Before Tax 1365.85 584.10 729.50 1084.80 1051.90
Net CashFlow‐Operating
Net Cash Flow
Activity 893.79 555.87 481.30 1253.20 246.30
Net Cash Used In Investing
Activity (397.32) (1515.93) (743.60) (1111.10) (613.00) 316.59
NetCash Used in Fin. Activity 105.60
316.59 46.15 105.60 (152.20) 61.00 893.79 46.15 61.00
1253.20
Net Inc/Dec In Cash And 555.87 481.30 246.30
Equivlnt 805.77 (913.91) (156.70) (10.10) (305.70)
(397.32)
Cash And Equivalnt Begin of (1111.10)
650.94 1451.25 541.10 378.10 371.90 (743.60) (613.00)
Year (1515.93)
Cash And Equivalnt End Of (152.20)
Year 1456.71 537.34 384.40 368.00 66.20
Net CashFlow‐Operating Activity
Net Cash Used In Investing Activity
NetCash Used in Fin. Activity
Quarterly Result
September '
Particulars (Rs. In Cr) June ' 10 10 December ' 10 March ' 11 June ' 11
Sales 1,271.26 1,296.88 1,389.76 1,346.66 1,696.96
Less: Excise 0.00 0.00 0.00 0.00 0.00
Net Sales 1,271.26 1,296.88 1,389.76 1,346.66 1,696.96
Profit Levels
Other Income 20.92 52.35 37.21 29.11 55.54
Total Income 1,292.18 1,349.23 1,426.97 1,375.77 1,752.50
Stock Adjustment (33.73) 4.68 (50.52) 0.58 (31.46)
Raw Material 438.26 419.72 487.72 465.46 478.04
Power And Fuel 0.00 0.00 0.00 0.00 0.00
Employee Expenses 153.89 189.10 169.16 188.97 203.63
Admin And Selling Expenses 130.19 108.85 126.38 111.71 139.28
Research And Devlopment Expe 94.43 0.00 0.00 161.53 119.11
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00
Other Expeses 172.62 300.63 313.89 129.75 176.60
Total Expenses 955.66 1,022.98 1,046.63 1,058.00 1,085.20
EBDITA 336.52 326.25 380.34 317.77 667.30
Provisions Made 0.00 0.00 0.00 55.74 0.00
Depreciation 57.20 61.35 63.89 65.50 68.93
EBIT 279.32 264.90 316.45 196.53 598.37
Interest 0.46 0.13 0.54 4.25 15.24
EBT 278.86 264.77 315.91 192.28 583.13
Taxation 34.38 44.57 53.14 26.41 129.08
Net Profit / Loss 244.48 220.20 262.77 165.87 454.05
Extra Ordinary Item 0.00 0.00 0.00 0.00 0.00 EBDITA EBIT
Prior Year Adjustments 0.00 0.00 0.00 0.00 0.00
EBT Net Profit / Loss
Page 6

7. Growth Analysis
Average
Particulars (%) March ' 08 March ' 09 March ' 10 March ' 11 Growth 5 year CAGR
Net Sales (11.61) 19.61 9.90 18.04 12.95 6.52
Operating Expenses 0.00 0.00
Material Consumed 11.76 17.27 0.83 12.71 9.96 8.29
Manufacturing Expenses (2.81) (5.57) 13.02 23.80 12.03 5.13
Personnel Expenses 22.49 12.62 25.19 36.08 26.76 18.63
Selling Expenses 16.07 19.54 (1.09) 7.48 8.18 8.08
Adminstrative Expenses 12.07 27.91 (9.95) 31.29 16.32 11.13
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expenses 12.43 17.40 2.02 20.01 13.33 10.08
Operating Profit (56.10) 30.08 43.60 12.03 18.30 (1.68)
Other Income (42.57) 59.41 (27.39) (36.29) (15.11) (15.79)
EBDITA (53.79) 36.29 26.01 5.13 11.73 (3.56)
Depreciation 21.34 19.51 14.88 11.47 15.09 13.18
Other Write offs 14.04 (4.88) (2.03) 38.86 15.36 8.09
EBIT (61.57) 42.71 29.42 3.13 12.46 (6.05)
Interest (71.73) 86.52 (41.61) (38.13) (17.60) (28.22)
EBT (61.19) 41.52 31.96 3.78 13.29 (5.54)
Income Tax (42.39) 54.85 41.58 (33.60) 5.77 (3.46)
Adjusted PAT (64.13) 38.17 29.24 15.32 16.12 (5.88)
Non Recurring Items 204.80 (192.25) 293.87 (97.94) 31.02 (152.18)
Other Non Cash adjustments (200.00) (66.67) 0.00 (300.00) (153.33) 82.06
Reported Net Profit (59.47) 18.39 50.86 5.56 15.21 (5.24)
Equity Dividend 0.14 66.98 80.44 0.21 37.63 24.77
Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00
Dividend Tax 0.19 66.04 77.53 264.56 142.31 60.85
Retained Earnings (63.48) 9.45 42.65 (5.93) 5.97 (11.71)
Growth Factors 5 Year CAGR
60.00 15.00
40.00
10.00
20.00
5.00
0.00
March ' 08 March ' 09 March ' 10 March ' 11
0.00
(20.00)
(40.00) (5.00)
(60.00)
(10.00)
(80.00)
Net Sales Total Operating Expenses (15.00)
EBDITA EBT
Adjusted PAT (20.00)
Page 7

8. Comparative Analysis
Income Statement
Particulars (Rs. In Cr) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
Net Sales 100.00 100.00 100.00 100.00 100.00
Material Consumed 29.65 37.49 36.75 33.72 32.20
Manufacturing Expenses 5.64 6.20 4.90 5.04 5.28 Comparative Net Sales
Personnel Expenses 7.90 10.95 10.31 11.75 13.54
Selling Expenses 8.55 11.23 11.22 10.10 9.19
Adminstrative Expenses 13.17 16.71 17.86 14.64 16.28
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00
Total Operating Expenses 64.92 82.57 81.05 75.24 76.50
Operating Profit 35.08 17.43 18.95 24.76 23.50
Other Income 7.21 4.68 6.24 4.12 2.23
EBDITA 42.29 22.11 25.20 28.89 25.73
Depreciation 3.53 4.84 4.84 5.06 4.78
Other Write offs 0.48 0.62 0.49 0.44 0.52
EBIT 38.29 16.65 19.86 23.39 20.44
Interest 1.37 0.44 0.69 0.36 0.19
March ' March ' March ' March ' March '
EBT 36.91 16.21 19.18 23.03 20.24 07 08 09 10 11
Income Tax 5.00 3.26 4.22 5.43 3.05
Total Operating Expenses
Adjusted PAT 31.92 12.95 14.96 17.59 17.19 Other Income
Depreciation
Non Recurring Items (1.03) 1.22 (0.94) 1.65 0.03 Other Write offs
Interest
Other Non Cash adjustments 0.00 0.00 0.00 0.00 (0.01)
Reported Net Profit 30.89 14.17 14.02 19.25 17.21
Balance Sheet
Particulars (Rs. In Cr) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
SOURCES OF FUNDS
Equity Share Capital 1.79 1.59 1.43 1.30 1.13
Share Application Money 0.00 0.00 0.00 0.00 0.00 Comparative Analysis‐Source of
Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Fund
Reserves & Surplus 91.20 89.64 87.72 90.00 79.51
Total Owners fund 92.99 91.23 89.15 91.31 80.65 79.51
Secured Loans 0.04 0.06 0.04 0.01 0.01
Unsecured Loans 6.97 8.70 10.81 8.68 19.34
Total Loan fund 7.01 8.77 10.85 8.69 19.35
Total 100.00 100.00 100.00 100.00 100.00
19.34
USES OF FUNDS
1.13 0.00 0.00 0.01
Fixed Assets
Gross Block 27.45 33.18 36.57 37.45 40.52
Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0.00
Less : Accumulated
Depreciation 12.95 14.46 16.04 17.14 17.87
Net Block 14.50 18.72 20.52 20.31 22.65
Capital Work‐in‐progress 5.97 4.66 6.97 11.51 7.64
Investments 20.56 39.45 31.62 40.95 32.98
Net Current Assets
Current Assets, Loans & 85.65 63.48 65.61 56.30 61.13
Less : Current Liabilities &
Provisions 26.68 26.31 24.72 29.07 24.41
Total Net Current Assets 58.97 37.17 40.89 27.23 36.73
Miscellaneous expenses not
written 0.00 0.00 0.00 0.00 0.00
Total 100.00 100.00 100.00 100.00 100.00
Page 8

9. Index Analysis
Income Statement
Particulars March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
Net Sales 100.00 88.39 105.72 116.19 137.14
Operating Expenses
Material Consumed 100.00 111.76 131.06 132.14 148.94
Profit Index
Manufacturing Expenses 100.00 97.19 91.77 103.72 128.41
Personnel Expenses 100.00 122.49 137.94 172.69 234.99
Selling Expenses 100.00 116.07 138.74 137.23 147.50
Adminstrative Expenses 100.00 112.07 143.35 129.09 169.48
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00
Total Operating Expenses 100.00 112.43 131.99 134.66 161.61
Operating Profit 100.00 43.90 57.11 82.01 91.87
Other Income 100.00 57.43 91.55 66.47 42.35 March ' March ' March ' March ' March '
EBDITA 100.00 46.21 62.98 79.36 83.43 07 08 09 10 11
Depreciation 100.00 121.34 145.02 166.59 185.69
Other Write offs 100.00 114.04 108.48 106.28 147.58
EBIT 100.00 38.43 54.85 70.98 73.20 EBIT
EBT
Interest 100.00 28.27 52.73 30.79 19.05 Adjusted PAT
EBT 100.00 38.81 54.92 72.48 75.22 Reported Net Profit
Net Sales
Income Tax 100.00 57.61 89.21 126.30 83.87
Adjusted PAT 100.00 35.87 49.56 64.05 73.86
Non Recurring Items 100.00 (104.80) 96.67 (187.42) (3.87)
Other Non Cash adjustments 100.00 300.00 500.00 500.00 2000.00
Reported Net Profit 100.00 40.53 47.99 72.39 76.41
Balance Sheet
Particulars March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
SOURCES OF FUNDS
Equity Share Capital 100.00 100.15 100.29 100.52 100.76
Share Application Money 0.00 0.00 0.00 0.00 0.00 Liability Index
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves & Surplus 100.00 110.22 120.64 135.92 138.38
Total Owners fund 100.00 110.03 120.25 135.24 137.66
Loan Funds
Secured Loans 100.00 177.08 135.42 41.67 36.46
Unsecured Loans 100.00 139.92 194.43 171.47 440.30
Total Loan fund 100.00 140.14 194.09 170.72 437.95
Total 100.00 112.14 125.43 137.73 158.72
USES OF FUNDS March ' March ' March ' March ' March '
Fixed Assets 07 08 09 10 11
Gross Block 100.00 135.55 167.08 187.87 234.28
Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0.00 Total Owners fund Total Loan fund
Less : Accumulated 100.00 125.22 155.38 182.24 218.99
Net Block 100.00 144.77 177.53 192.89 247.93
Capital Work‐in‐progress 100.00 87.56 146.54 265.64 203.27
Investments 100.00 215.17 192.88 274.33 254.60
Net Current Assets
Current Assets, Loans &
Advances 100.00 83.11 96.07 90.54 113.28
Less : Current Liabilities &
Provisions 100.00 110.58 116.19 150.06 145.20
Total Net Current Assets 100.00 70.68 86.97 63.60 98.85
Miscellaneous expenses not
written 0.00 0.00 0.00 0.00 0.00
Total 100.00 112.14 125.43 137.73 158.72
Page 9

10. Ratio Analysis
Particulars(Yearly) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
PER SHARE RATIOS
Adjusted E P S (Rs.) 71.91 25.75 35.52 45.81 52.70
Adjusted Cash EPS (Rs.) 80.94 36.62 48.18 60.12 68.93
Reported EPS (Rs.) 70.09 28.26 33.29 50.11 52.78
Reported Cash EPS (Rs.) 79.12 39.12 45.96 64.43 69.02
Dividend Per Share 3.75 3.75 6.25 11.25 11.25 Per Share Ratio
Operating Profit Per Share
(Rs.) 79.05 34.65 44.99 64.47 72.05
Book Value (Excl Rev Res) Per
Share (Rs.) 260.45 286.12 312.30 350.39 355.80
Book Value (Incl Rev Res) Per
Share (Rs.) 260.45 286.12 312.30 350.39 355.80
Net Operating Income Per
Share (Rs.) 225.31 198.84 237.40 260.33 306.55
Free Reserves Per Share (Rs.) 254.35 278.46 304.97 341.13 346.32 March ' March ' March ' March ' March '
07 08 09 10 11
PROFITABILITY RATIOS
Operating Margin (%) 35.08 17.42 18.95 24.76 23.50
Gross Profit Margin (%) 31.55 12.58 14.11 19.70 18.72 Net Operating Income Per Share (Rs.)
Net Profit Margin (%) 29.01 13.57 13.20 18.48 16.84 Adjusted E P S (Rs.)
Adjusted Cash Margin (%) 33.50 17.59 19.10 22.17 21.99 Adjusted Cash EPS (Rs.)
Adjusted Return On Net
Dividend Per Share
Worth (%) 27.60 9.00 11.37 13.07 14.81
Book Value (Incl Rev Res) Per Share (Rs.)
Reported Return On Net
Worth (%) 26.90 9.87 10.66 14.30 14.84
Return On long Term Funds
(%) 33.05 11.54 15.08 17.36 16.22
LEVERAGE RATIOS Profit Margin
Long Term Debt / Equity 0.00 0.00 0.00 0.00 0.08
Total Debt/Equity 0.07 0.09 0.12 0.09 0.23
Owners fund as % of total
Source 92.98 91.23 89.14 91.30 80.64
Fixed Assets Turnover Ratio 3.06 1.97 1.91 1.86 1.75
LIQUIDITY RATIOS
Current Ratio 3.21 2.41 2.65 1.94 2.50
Current Ratio (Inc. ST Loans) 2.56 1.82 1.85 1.49 1.66
Quick Ratio 2.81 1.94 2.13 1.45 1.91
Inventory Turnover Ratio 8.72 5.90 6.09 5.39 5.36
March ' March ' March ' March ' March '
PAYOUT RATIOS 07 08 09 10 11
Dividend payout Ratio (Net
Profit) 6.25 15.52 21.94 26.19 34.20 Net Profit Margin (%)
Dividend payout Ratio (Cash Operating Margin (%)
Profit) 5.54 11.21 15.90 20.37 26.16
Adjusted Return On Net Worth (%)
Earning Retention Ratio 93.90 82.97 79.43 71.35 65.74
Cash Earnings Retention Ratio 94.58 88.02 84.84 78.17 73.81 Return On long Term Funds (%)
COVERAGE RATIOS
Adjusted Cash Flow Time
Total Debt 0.24 0.75 0.78 0.55 1.24
Financial Charges Coverage Liquidity Ratio
Ratio 30.80 50.33 36.78 79.36 134.85
Fin. Charges Cov.Ratio (Post
Tax) 26.57 45.79 29.26 68.99 118.99
COMPONENT RATIOS
Material Cost Component(%
earnings) 30.26 40.29 38.35 36.38 33.71
Selling Cost Component 8.54 11.22 11.21 10.09 9.19
Exports as percent of Total
March ' March ' March ' March ' March '
Sales 81.74 70.77 78.09 71.92 72.23 07 08 09 10 11
Import Comp. in Raw Mat.
Consumed 36.74 26.37 38.75 30.36 42.76
Long term assets / Total
Assets 0.31 0.49 0.46 0.56 0.50 Current Ratio Quick Ratio
Bonus Component In Equity
Capital (%) 66.54 66.43 66.34 66.19 66.03
Page 10

11. Ratio Analysis
September '
Particulars(Quarterly) June ' 10 10 December ' 10 March ' 11 June ' 11
PER SHARE RATIOS Quarterly Profit Margin
Operating Income Per
Share(Rs.) 75.01 76.52 82.00 79.46 100.13
Operating Profit Per
Share(Rs.) 19.86 19.25 22.44 18.75 39.37
Adjusted EPS(Rs.) 14.43 12.99 15.50 9.79 26.79
PROFITABILITY RATIOS
OPM(%) 24.82 21.11 24.68 17.29 36.05
GPM(%) 26.00 24.17 26.61 18.73 37.20
NPM(%) 18.91 16.32 18.41 12.05 25.90
OPM(%) GPM(%) NPM(%)
TTM Analysis
Particulars (Rs. In Cr) March ' 11 % of Sales June ' 11 % of Sales Growth(%)
Sales 5304.56 100.00 5730.26 100.00 8.03
Less: Excise 0.00 0.00 0.00 0.00 NA
Net Sales 5304.56 100.00 5730.26 100.00 8.03
30.18 28.93
Other Income 139.59 2.63 174.21 3.04 24.80 TTM Growth (%)
24.31 23.46
Total Income 5444.15 102.63 5904.47 103.04 8.46
Stock Adjustment (78.99) (1.49) (76.72) (1.34) (2.87)
Raw Material 1811.16 34.14 1850.94 32.30 2.20
Power And Fuel 0.00 0.00 0.00 0.00 NA 8.03
Employee Expenses 701.12 13.22 750.86 13.10 7.09 3.17
Admin And Selling Expenses 477.13 8.99 486.22 8.49 1.91
Research And Devlopment Expe 255.96 4.83 280.64 4.90 9.64
Expenses Capitalised 0.00 0.00 0.00 0.00 NA
Other Expeses 916.89 17.28 920.87 16.07 0.43
Total Expenses 4083.27 76.98 4212.81 73.52 3.17
EBDITA 1360.88 25.65 1691.66 29.52 24.31
Provisions Made 55.74 1.05 55.74 0.97 0.00
Depreciation 247.94 4.67 259.67 4.53 4.73
TTM EPS & SPS(%)
EBIT 1057.20 19.93 1376.25 24.02 30.18
Interest 5.38 0.10 20.16 0.35 274.72
EBT 1051.82 19.83 1356.09 23.67 28.93
Taxation 158.50 2.99 253.20 4.42 59.75
Net Profit / Loss 893.32 16.84 1102.89 19.25 23.46
Extra Ordinary Item 0.00 0.00 0.00 0.00 NA
Prior Year Adjustments 0.00 0.00 0.00 0.00 NA
TTM EPS 52.71 65.07 1.38
TTM SPS 312.99 338.11 0.47
March ' 11 June ' 11
Page 11

12. Technical Analysis
Price Chart
1650.00 500000.00
450000.00
1600.00
400000.00
1550.00 350000.00
1500.00 300000.00
250000.00
1450.00 200000.00
1400.00 150000.00
100000.00
1350.00
50000.00
1300.00 0.00
26‐May 4‐Aug
Volume Close EMA(200) EMA(50)
20.00
10.00
0.00
‐10.00
‐20.00
‐30.00
‐40.00
MACD Signal line
80
60
40
20
0
RSI(14)
Technical Indicators
Price 1522.30 AS On: 16/09/2011
EMA(13) 1483.09 ADX 15
EMA(26) 1507.03 DX 27
EMA(50) 1534.24 +DI 28
EMA(200) 1458.07 ‐DI 16
RSI(14) 56.42 %K(Fast) 100
MACD ‐23.94 %K(Slow) 58.61
William(%R) 0.00 %d(Slow) 38.2
Page 12