RANBAXY PROFILE;-

Ranbaxy Laboratories Limited (Ranbaxy) is a research based international

pharmaceutical company serving customers in over 150 countries. For more than
50 years, e have been providing high !uality, a""ordable medicines trusted by
healthcare pro"essionals and patients across geographies.
Ranbaxy is a member o" the #aiichi $an%yo &roup. #aiichi $an%yo is a leading
global pharma innovator, head!uartered in 'o%yo, (apan.
)e have ground operations in *+ countries and ,1 manu"acturing "acilities spread
across - countries. )e cover all the top ,5 pharmaceutical mar%ets o" the orld
and have a robust presence across both developed and emerging mar%ets.
DUPONT ANALYSIS :-
#u.ont analysis (also %non as the dupont identity, #u.ont e!uation, #u.ont /odel or the #u.ont
method) is an expression hich brea%s R01 (Return 0n 1!uity2) into three parts.
'he name comes "rom the #u.ont 3orporation2 that started using this "ormula in the 14,0s.
'he #u .ont identity brea%s don Return on 1!uity (that is, the returns that investors receive "rom the
"irm) into three distinct elements. 'his analysis enables the analyst to understand the source o" superior (or
in"erior) return by comparison ith companies in similar industries (or beteen industries).
'he #u .ont identity is less use"ul "or industries such as investment ban%ing, in hich the underlying
elements are not meaning"ul. 5ariations o" the #u .ont identity have been developed "or industries here
the elements are ea%ly meaning"ul.
#u .ont analysis relies upon the accounting identity2, that is, a statement ("ormula) that is by de"inition.
R01 6 (.ro"it margin)7(8sset turnover)7(1!uity multiplier) 6 (9et
pro"it2:$ales2)7($ales2:8ssets2)7(8ssets2:1!uity2)6 (9et .ro"it:1!uity)
.ro"itability (measured by pro"it margin2)
0perating e""iciency (measured by asset turnover2)
Financial leverage2 (measured by e!uity multiplier2)
DUPONT ANALYSIS OF RANBAXY LIMITED
9et income o"
ranbaxy is ,01,;,1<4.*, crore,,011;(,+4<1.-- ).sales is ,01,;
<11,*.*+crore,,011; -0+<+.-,, assets ,01,; <+1+5.*+ crore , ,011; ,,,<.,1,and
e!uity ,01,; ,11*.5= crore ,,011; ,110.00 crore.
High turnovr in!u"tri"
3ertain types o" retail operations, particularly stores, may have very lo pro"it
margins on sales, and relatively moderate leverage. >n contrast, though, groceries
may have very high turnover, selling a signi"icant multiple o" their assets per year.
'he R01 o" such "irms may be particularly dependent on per"ormance o" this
metric, and hence asset turnover may be studied extremely care"ully "or signs o"
under;, or, over;per"ormance. 9et income :sales is ,01,; ,1<4.*,:<11,*.*+ is
0.0+5
,011;,+,4<1.--:-0+<+.-, is ,.-4
High #$rgin in!u"tri"
0ther industries, such as "ashion, may derive a substantial portion o" their
competitive advantage "rom selling at a higher margin, rather than higher sales.
For high;end "ashion brands, increasing sales ithout sacri"icing margin may be
critical. 'he #u .ont identity allos analysts to determine hich o" the elements
is dominant in any change o" R01. $ales:assets is ,01,; <11,*.*,:<+1+5.*+ is
0.4<-
,011;<11,*.*+:,,,<.,1 is ,=.*<
High %vr$g in!u"tri"
$ome sectors, such as the "inancial sector, rely on high leverage to generate
acceptable R01. 0ther industries ould see high levels o" leverage as
unacceptably ris%y. #u .ont analysis enables third parties that rely primarily on
the "inancial statements to compare leverage among similar companies.
8ssets:e!uity is ,01,; <+1+5.*+:,11*.5= is ,4.-5
,011;,,,<.,1:,110.00 is 1.055
$o leverage ratio is highest hich contribute more to return on e!uity "or year
,01, and 9et margin ratio is highest "or year ,011.