FINANCIAL ANALYSIS

REPORT ON
AMBUJA CEMENT LTD.

SUBMITTED TO:
AK AGGARWAL

SUBMITTED BY:
PUNEET SEHRAWAT
PGDM, A3
ROLL NO: 109355
 AGGREGATE OF CEMENT INDUSTRIES
We have take four companies as aggregate which are:

 Ambuja Cements Limited

 ACC Limited
 Madras Cements Limited
 UltraTech Cement Limited

(all Figures in Rs mn) FY2008

Net Sales 199739.08
Operating Income (OI) 202248.22
Expenses 136286.13
OPBDIT 65962.10
OPBDT 63629.31
OPBT 55028.42
PBT 26112.02
PAT 46235.82
Gross Block 183245.51
Net Block 106473.43
CWIP 42056.06
Investment 7228.30
Current Assets 46712.49
Equity Capital 6287.03
Reserves 117925.73
Debt 41756.61
OCL 38613.95
ROCE 27.86%
RONW 37.22%
D/E 0.34
Interest Coverage 24.59
Tax Payout 30.33%
Dividend Payout 22.02%
YOY OI Growth -38.72%
YOY PAT Growth -29.64%

AMBUJA CEMENT LTD.

PROFIT & LOSS A/C

*MN = MILLIONS Dec 2008 Dec 2007 Dec 2006

Rs mn Rs mn Rs mn
   Net Sales 62346.50 56313.60 62745.20
   Material Cost 10388.20 7916.90 8037.70
   Increase Decrease Inventories -788.80 -607.70 91.10
   Personnel Expenses 2660.70 2027.40 2348.70
   Manufacturing Expenses 17617.40 13658.00 17007.80
Gross Profit 32469.00 33319.00 35259.90
   Admin Selling & Distribution Expenses 14854.90 12913.60 13942.30
EBITDA 17614.10 20405.40 21317.60
   Depreciation Depletion and Amortization 2597.60 2363.40 3261.20
EBIT 15016.50 18042.00 18056.40
   Interest Expense 320.60 758.50 1132.30
   Other Income 1753.90 1935.30 959.00
Pretax Income 16449.80 19218.80 17883.10
   Provision for Tax 5675.70 9432.50 3383.50
   Extra Ordinary and Prior Period Items Net 3083.30 7858.90 475.20
Net Profit 13857.40 17647.30 15687.90
Adjusted Net Profit 10774.10 9788.40 15212.70
Dividend – Preference 0.00 0.00 0.00
Dividend - Equity 3349.70 5326.50 4612.40

BALANCE SHEET
 31-Dec-08 31-Dec-07 31-Dec-06
Equity Capital 3045.20 3044.80 3033.70
Preference Capital 0.00 0.00 0.00
Share Capital 3045.20 3044.80 3033.70
Reserves and Surplus 53680.10 43563.90 31872.10
Loan Funds 2886.70 3304.20 8653.80
Current Liabilities 10032.40 6755.40 5329.10
Provisions 4540.30 4889.70 1629.10
Current Liabilities and Provisions 14572.70 11645.10 6958.20
Total Liabilities and Stockholders
77995.60 65345.60 54367.80
Equity
Tangible Assets Net 31506.10 29485.20 24769.50
Intangible Assets Net 393.30 82.20 88.10
Net Block 31927.50 29598.60 24891.80
Capital Work In Progress Net 19472.20 6967.90 6349.30
Fixed Assets 51399.70 36566.50 31241.10
Investments 3323.90 12889.40 11331.20
Inventories 9397.50 5816.00 4088.20
Accounts Receivable 2246.00 1456.80 899.50
Cash and Cash Equivalents 8518.40 6425.80 3781.00
Other Current Assets 233.90 121.20 50.40
Current Assets 20395.80 13819.80 8819.10
Loans & Advances 2998.70 2053.50 2957.00
Miscellaneous Expenditure Other
42.80 62.20 77.10
Assets
Total Assets 78160.90 65391.40 54425.50

RATIO ANALYSIS
 RATIOS INDUSTRY 2008 2009

1. Current ratio 1.21 1.40 1.20

2. Quick ratio 1.20 1.10 1.20

3. Net profit margin (%) 13.07 22.20 31.30

4. Gross profit margin (%) 33.02 52.10 59.20

5. Return on assets 2.29 23.60 33.60

6. Collection period 85 days 11.60 8.30

7. Inventory turnover ratio - 1.36 1.81

8. Debt-equity ratio 0.34 0.1 0.1

9. Increase in sales - 10.71

10. Increase in EPS - 9.20 11.6

Financial analysis
1. The liquidity of the company