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Financial Statement Analysis

Introduction to Financial Statement Analysis


Financial statement analysis is an exceptionally powerful tool for a variety of users of financial
statements, each ratio having different objectives in terms of indicating the financial circumstances
of the entity.
It is not any single ratio that can give the entire story of the financial performance, rather a
collective study of all the ratios help to understand the complete scenario.

It is always advisable to analyse each ratio in the context of the Industry parameters to judge the
over all company performance. Within the company each ratio can be compared with the past
couple years trend (for e.g., past five years) to judge the over all performance of the company.
There are two key methods for analyzing financial statements. (1) use of horizontal analysis (2)
vertical analysis.
Horizontal analysis is the comparison of financial information over a series of reporting periods,
over a couple of years we say how the company is performing.
Vertical analysis is the proportional analysis of a financial statement, where each line item on a
financial statement is listed as a percentage of another item. Typically, this means that every line
item on an income statement (for e.g., operating expenses, other expenses, other income etc.) is
stated as a percentage of gross sales, while every line item (for e.g., current asset, tangible fixed
asset, liquid asset etc.) on a balance sheet is stated as a percentage of total assets.

Financial Statement Analysis

Liquidity position
Profitability
Solvency
Financial Stability
Quality of the Management

LIQUIDITY RATIOS
Current assets
Current ratio =
Current liabilities
Shortterm
Cash +
+ Receivables
investments
Quick ratio =
Current liabilities

Ability to satisfy current


liabilities using current assets
Ability to satisfy current
liabilities using the most liquid of
current assets.

RATIOS INDICATING MANAGEMENT OF CURRENT ASSETS

Net Sales
Receivables turnover =
Average receivables

How many times accounts


receivable are created and
collected during the period

Cost of goods sold


Inventory turnover =
Average inventory

How many times inventory is


created and sold during the
period

CURRENT ASSETS
Current Investments
Inventories
Trade Receivables
Cash And Cash Equivalents
Short Term Loans And Advances
OtherCurrentAssets

Total

Mar-16
2,297.52
2,528.36
1,064.52
2,758.82
673.29
62.46
9,384.97
Mar-16
5,497.89
853.79
2,785.47
9,137.15

Mar-15
2,623.82
2,602.68
2,537.56
782.94
657.27
59.28
9,263.55
Mar-15
5,288.90
908.05
2,585.87
8,782.82

Current Ratio

1.03

1.05

Total
CURRENT LIABILITIES
Trade Payables
Other Current Liabilities
Short Term Provisions

Current Ratio
HUL
Industry
2008
0.63
0.97
2009
0.9
1.11
2010
0.8
1.03
2011
1.05
1.07
2012
1.21
1.18
2013
0.99
1.16
2014
1.03
1.14
2015
1.05
1.11
2016
1.03
1
Source: www.moneycontrol.com/
Source: www.capitaline.com/SiteFrame.aspx?id=1

CURRENT ASSETS
Current Investments
Trade Receivables
Cash And Cash Equivalents
Short Term Loans And Advances
OtherCurrentAssets

Total

Mar-16
2,297.52
1,064.52
2,758.82
673.29
62.46
6,856.61
Mar-16
5,497.89
853.79
2,785.47
9,137.15

Mar-15
2,623.82
2,537.56
782.94
657.27
59.28
6,660.87
Mar-15
5,288.90
908.05
2,585.87
8,782.82

Current Ratio

0.75

0.76

Total
CURRENT LIABILITIES
Trade Payables
Other Current Liabilities
Short Term Provisions

2008
2009
2010
2011
2012
2013
2014
2015
2016

FMCG
0.97
1.11
1.03
1.07
1.18
1.16
1.14
1.11
1

Steel
1.68
1.5
1.24
1.53
1.68
1.54
1.44
1.36
1.32

Current Ratio
Software Airlines Oil Exploration Constuction
1.48
1.25
1.11
2.5
1.58
1.3
0.77
2.22
1.7
1.23
0.58
2.05
2.06
1.33
0.72
2.39
2.4
1.49
0.98
2.85
2.54
1.57
0.9
3.02
2.48
1.6
0.93
3.14
2.44
1.58
1.02
3.11
2.53
1.61
1.07
2.92

Source: www.capitaline.com/SiteFrame.aspx?id=1

Net Sales
Receivables turnover =
Average receivables
Mar-16
INCOME
Revenue From Operations [Gross]
Less: Excise/Sevice Tax/Other Levies
Revenue From Operations [Net]
CURRENT ASSETS
Current Investments
Inventories
Trade Receivables
Cash And Cash Equivalents
Short Term Loans And Advances
OtherCurrentAssets
Average Receivable
Receivable Turnover (Times)

Mar-15

34,417.48 32,721.44
-2,430.31 -1,915.82
31,987.17 30,805.62
Mar-16
2,297.52
2,528.36
1,064.52
2,758.82
673.29
62.46
923.73
34.63

Mar-15
2,623.82
2,602.68
782.94
2537.56
657.27
59.28
782.94
39.35

Mar '15
Mar '14
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
Dec '07
Dec '06
Dec '05

Receivable Receivable
Turnover
Turnover
(Industry) (HUL)
26.91
40.92
25.61
35.83
26.34
36.08
24.85
28.58
22.05
25.56
25.66
30.12
40.58
35.28
8
33.26
27
27.04
24.93
23.64

45

40
35
30
25
20
15
10
5

0
Mar
'15

Mar
'14

Mar
'13

Mar
'12

Mar
'11

Mar
'10

Mar
'09

Dec
'07

Receivable Turnover (Industry)


Receivable Turnover (HUL)

Dec
'06

Dec
'05

Mar-16

Mar-15

Inventory turnover =

EXPENSES
Cost Of Materials Consumed
11,274.73 11,867.31
Purchase Of Stock-In Trade
3,951.15 3,697.96 Inventory turnover =
Changes In Inventories Of FG,WIP And Stock-In Trade
87.11
58.28
Cost of Goods Sold 15,312.99 15,623.55
CURRENT ASSETS
Current Investments
Inventories
Trade Receivables
Cash And Cash Equivalents
Short Term Loans And Advances
OtherCurrentAssets
Average Inventory
Inventory Turnover (Times)

Mar-16
Mar-15
2,297.52 2,623.82
2,528.36 2,602.68
2,758.82
782.94
1,064.52 2,537.56
673.29
657.27
62.46
59.28
2565.52 2602.68
5.97
6.00

Cost of goods sold


Average inventory

Average inventory

In both the formula


meaning is same and we
have to take the Cost of
Goods Sold = Opening
Inventory + Purchase
Closing Inventory

Note: Irrespective of what kind of inventory has been used i.e., company may use raw material, consumables,
supplies, packing materials we are expected to take all of them together. In the HUL Case they have two different
types of inventory but we are considering them all. This is because while taking the figure of inventory from B/S we
are not differentiating among different inventory category.

Accounts Payable Turnover Ratio=


Cost of Goods Sold/Average Accounts Payable
The measure shows how many times per period the company pays its average payable
amount.
Mar-16

Mar-15

EXPENSES
Cost Of Materials Consumed
11,274.73 11,867.31
Purchase Of Stock-In Trade
3,951.15 3,697.96
Changes In Inventories Of FG,WIP And Stock-In Trade
87.11
58.28
Cost of Goods Sold 15,312.99 15,623.55
CURRENT LIABILITIES
Trade Payables
Other Current Liabilities
Short Term Provisions
Average Payable
Payable Turnover (Times)

Mar-16
Mar-15
5,497.89 5,288.90
853.79
908.05
2,785.47 2,585.87
5393.40 5288.90
2.84
2.95

Operating and Cash Conversion Cycles: Formulas


Number of days of inventory =

Average Inventory
Average dyas

365
Inventory turnover

cost of goods sold

Average time/days it
takes to create and
sell inventory

verage Receivables
365
Number of days of receivables =
=
Average days
Receivables turnover
revenues

Average time/days it
takes to collect on
accounts receivable

Accounts payable
365
Number of days of payables =
=
Average
Accounts payables turnover
of Cost of Goods Sold

Average time/days it
takes to pay its
suppliers

14

Net operating cycle


Number of days Number of days Number of days
or
=
+

of
inventory
of payables
of receivables
Cash conversion cycle
The lower the number the better, a low number compared to peers within an
industry indicates strong cash flow creation from internal operations.

Mar-16

Mar-15

INCOME
Revenue From Operations [Gross]
34,417.48 32,721.44
Less: Excise/Sevice Tax/Other Levies
-2,430.31 -1,915.82
Revenue From Operations [Net]
31,987.17 30,805.62
Average Days Revenue (Net Revenue/365)
87.64
84.40
Mar-16
Mar-15
EXPENSES
Cost Of Materials Consumed
11,274.73 11,867.31
Purchase Of Stock-In Trade
3,951.15 3,697.96
Changes In Inventories Of FG,WIP And Stock-In Trade
87.11
58.28
Cost of Goods Sold 15,312.99 15,623.55
Average Days Cost of Goods Sold (Cost of Goods Sold/365)
41.95
42.80
CURRENT LIABILITIES
Mar-16
Mar-15
Trade Payables
5,497.89 5,288.90
Average Payable
5393.40 5288.90
CURRENT ASSETS
Mar-16
Mar-15
Inventories
2,528.36 2,602.68
Trade Receivables
1,064.52
782.94
Average Inventory
2565.52 2602.68

Average Trade Receivables


Number of days of inventory (in Days)
Number of days of receivables (in Days)
Number of days of payables (in Days)

923.73
61.15
10.54
128.56

782.94
60.80
9.28
123.56

Average Inventory

Average Receivables
Average days of revenues
Accounts payable
Average
of Cost of Goods Sold

Mar-16 Mar-15
Inventory Turnover (Times)
5.97
6.00
Receivable Turnover (Times)
34.63 39.35
Payable Turnover (Times)
2.84
2.95
Number of days of inventory (in Days)
61.15 60.80
Number of days of receivables (in Days)
10.54
9.28
Number of days of payables (in Days)
128.56 123.56
"Cash conversion cycle"
-56.86 -53.48

365/Inventory turnover
365/Receivables turnover
365/Accounts payables turnover

Net operating cycle


Number of days Number of days Number of days
or
=
+

of
inventory
of payables
of
receivables
Cash conversion cycle

This means that HUL doesn't pay its suppliers for the goods that it
buys until after it receives payment for selling those goods.

Working Capital Ratios


Net Working Capital (NWC) : NWC = Current Assets Current Liabilities
Working Capital Turnover Ratio
Net sales
(Beginning working capital + Ending working capital) / 2

A high working capital turnover ratio can potentially give you a competitive edge in your
industry. It indicates you use up your working capital more times per year, which suggests that
money is flowing in and out of your small business smoothly. This gives you more spending
flexibility and can help avoid financial trouble.
Days Working Capital = Average Working Capital * 365/ Annual Sales Revenue
It indicates how many days it will take for a company to convert its working capital into
revenue. The faster a company does this, the better. In other words, a high number is
indicative of an inefficient company and vice versa.

INCOME
Mar-16
Mar-15
Revenue From Operations [Gross]
34,417.48 32,721.44
Less: Excise/Sevice Tax/Other Levies -2,430.31 -1,915.82
Revenue From Operations [Net]
31,987.17 30,805.62
CURRENT ASSETS
Mar-16
Mar-15
Current Investments
2,297.52 2,623.82
Inventories
2,528.36 2,602.68
Trade Receivables
1,064.52
782.94
Cash And Cash Equivalents
2,758.82 2,537.56
Short Term Loans And Advances
673.29
657.27
OtherCurrentAssets
62.46
59.28
Total Current Assets
9,384.97 9,263.55
CURRENT LIABILITIES
Mar-16
Mar-15
Trade Payables
5,497.89 5,288.90
Other Current Liabilities
853.79
908.05
Short Term Provisions
2,785.47 2,585.87
Total Current Liabilities
9,137.15 8,782.82

Net Working Capital


Average Net Working Capital
Working Capital Turnover Ratio

Days Working Capital

247.82
364.275

480.73
480.73

87.81

64.08

4.16

5.70

Over all Performance Measure


Price/Earnings Ratio (PE Ratio)

Market Price Per Share


Net Income Per Share

Return on Asset Ratio

Earning Before Interest and Tax (EBIT)


Average Total Asset

Return on Invested Capital

Earning Before Interest and Tax (EBIT)


Long Term Debt + Average Shareholder Equity

Return on Equity

Net Income
Average Shareholder Equity

Price/Earnings Ratio

Profit For the Year (PAT)


Authorised Shares
Outstanding Issued Shares
Share Price (NSE)
Market Capitalisation
Earnings Per Share (Profit/Share
Outstanding) EPS

Market Price Per Share


Net Income Per Share
Mar-16
Mar-15
40823700000
43152600000
2250000000
2250000000
2163936971
2163464851
08 September 2016 08 September 2015
947.45
802.45
2050222083173.95 1736072369684.95
18.87

19.95

50.22

40.23

Price/Earnings Ratio (PE Ratio)


Note: Earnings Yield = 1/ (PE Ratio) = Divide the earnings by the price (E/P). The earnings yield tells
an investor how much return (on a per-share basis) the stock's shareholders earned over the past
12 months, based on the current share price.

Market Related Measures


Earnings Per Share (EPS) = Net Profit/ No. of outstanding shares
Price Earning Ratio (PE Ratio) = Market Price Per Share/ Earnings per share
Forward PE Ratio = Current
Market Price/ Forecasted Earnings

Trailing PE Ratio = Current Market


Price/ Last Four Quarter Earnings

Diluted earnings per share, or Diluted EPS, is a firm's net income divided by the
sum of it's average shares and other convertible instruments.
Cash earnings per share (Cash EPS) is a measure of financial performance that
looks at the cash flow generated by a company on a per share basis.

Return on Asset Ratio

Earning Before Interest and Tax (EBIT)


Average Total Asset

Profit Before Tax (PBT)


Interest Expenses
EBIT (PBT + Interest Expenses)
Total Assets (from Balance Sheet)
Average Total Assets
Return on Total Asset(%)

Mar-16
5870.59
0.18
5870.77
14167.03
13900.545
42.23

Mar-15
6187.42
16.82
6204.24
13634.06
13634.06
45.51

Total Fixed Asset


Tangible Fixed Asset
Average Total Fixed Asset
Average Tangible Fixed Asset
Return on Total Fixed Asset (%)
Return on Tangible Fixed Asset (%)

3300.70
2902.73
3118.62
2669.115
188.25
219.95

2936.54
2435.50
2936.54
2435.50
211.28
254.74

Return on Invested Capital

Earning Before Interest and Tax (EBIT)


Long Term Debt + Average Shareholder Equity

Profit Before Tax (PBT)


Interest Expenses
EBIT (PBT + Interest Expenses)

Mar-16
5870.59
0.18
5870.77

Mar-15
6187.42
16.82
6204.24

Equity Share Capital


Reserves and Surplus
Total Shareholders Funds
Average Sharehlder Fund
Long Term Debt
Return on Invested Capital (%)

216.39
3,470.90
3,687.29
3706.035
0
158.41

216.35
3,508.43
3,724.78
3,724.78
0
166.57

Return on Equity

EQUITIES AND LIABILITIES


Equity Share Capital
Reserves and Surplus
Total Shareholders Funds

Average Sharehlder Fund


Profit For the Year (PAT)
Retrun on Equity (ROE) %

Net Income
Average Shareholder Equity
Mar-16

Mar-15

216.39
3,470.90
3,687.29

216.35
3,508.43
3,724.78

3706.035

3,724.78

4082.37
110.15

4315.26
115.85

Note: For all practical purpose whenever data is available it is advised to take average shareholder
equity.

Some More Concepts


Price Earnings Growth Ratio (PEG ratio) = PE Ratio/Annual EPS Growth Rate
PE Ratio = Market Price Per Share/ Earnings per share
P/E ratio shows how much you are paying in relation to earnings, the PEG ratio
expresses how much you are paying in relation to the growth.
PEG < 1 as meaning that you are getting more growth than you are paying for.
PEG > 1 as getting less growth than what you are paying for.
PEG ratio =1 implies that the stock is fairly valued given the expected growth
rate.
There can be a negative PEG ratio.
If the PEG ratio is negative because of a negative P/E ratio it is a red warning of
poor performance.
If PEG ratio is negative due to companys growth is negative. But, companies
lose growth every once in a while, especially temporarily.

PEG Ratio: A Comparison


HUL
PE Ratio
Earnings Yield (1/PE Ratio)
Basic EPS (Rs.)
Growth Rate in EPS
PEG Ratio
Agro Tech Foods
PE Ratio
Earnings Yield
Basic EPS (Rs.)
Growth Rate in EPS
PEG Ratio

Sahare Price Comparision


HUL
Agro Tech Foods

PEG Ratio
Mar-16
50.22
0.020
18.87
-5.41
-9.28
Mar-16
50
0.02
9.59
-37.32
-1.34

Mar-16
869.5
469.8

Mar-15
40.23
0.025
19.95

Mar-15
50
0.02
15.3

Mar-15 Return (%)


837
3.88
638.35
-26.40

Investment Utilisation for Managerial Performance


Asset Turnover

Net Sales Revenue


Average Total Asset

Equity Turnover

Net Sales Revenue


Shareholder Equity

Invested Capital Turnover

Net Sales Revenue


Long Term Debt + Shareholder Equity

Capital Intensity

Net Sales Revenue


Tangible Fixed Assets
Advertising Expenditures
Net Sales
R&D Expenditure
Net Sales

Advertisement Intensity
R&D Intensity

Mar-16
Income Statement Information
Revenue From Operations [Gross]
Less: Excise/Sevice Tax/Other Levies
Revenue From Operations [Net]
Balance Sheet Information
Equity Share Capital
Reserves and Surplus
Total Shareholders Funds
Average Sharehlder Fund
Long Term Debt
Total Assets
Tangible Fixed Asset
Average Total Assets
Average Tangible Fixed Asset
Asset Turnover (Times)
Equity Turnover (Times)
Invested Capital Turnover (Times)
Capital Intensity (Times)

Mar-15

34,417.48 32,721.44
-2,430.31 -1,915.82
31,987.17 30,805.62
216.39
216.35
3,470.90 3,508.43
3,687.29 3,724.78
3706.035 3,724.78
0
0
14167.03 13634.06
2902.73 2435.50
13900.55 13634.06
2669.115 2435.50
2.30
2.26
8.63
8.27
8.63
8.27
11.98
12.65

Net Sales Revenue/ Average Total Asset


Net Sales Revenue /Shareholder Equity
Net Sales Revenue/Invested Capital
Net Sales Revenue/Tangible Fixed Assets

Fixed Asset Turnover Ratio of Different Industry


Year Software Construction
Automobiles
Farma FMCG Entertainment CEMENT Steel
2008
4.9
4.4 3.04 2.31 1.96
1.75
1.27 1.28
2009
4.55 3.23 2.54 2.23
7.4
1.68
1.2 1.22
2010
3.53
3.2 2.72 2.13 4.87
1.63
1.22 1.12
2011
3.76 3.23 3.05 2.53 4.71
1.55
1.02 1.11
2012
4.02 2.76 3.11 1.52 5.49
1.46
1.12 1.11
2013
4.19 3.06 3.06 1.37 5.42
1.27
1.09 0.95
2014
4.64
2.4 2.78 1.42 5.24
1.27
1.03 0.92
2015
3.85
1.8 2.38 0.76 4.78
0.97
0.99 0.78
2016
4.29 0.49 1.68 0.62 4.65
0.54
0.76 0.43

DuPont Analysis Components


DuPont analysis breaks ROE into three components to determine which of these
components is most responsible for changes in ROE.
ROE = Profit Margin x Asset Turnover Ratio x Equity Multiplier (or leverage Ratio).

ROE = (Net Income/Revenues) x (Revenues/Total Assets)


x (Total Assets/ Shareholders' Equity)
The DuPont Analysis is important determines what is driving a company's
ROE; Profit margin shows the operating efficiency, asset turnover shows the
asset use efficiency, and leverage factor shows how much leverage is being
used.
The method goes beyond profit margin to understand how efficiently a
company's assets generate sales or cash and how well a company uses debt to
produce incremental returns.

ROE = (Net Income/Revenues) x (Revenues/Total Assets) x (Total Assets/


Shareholders' Equity)
Required Information from Balance
Mar-16
Mar-15
sheet and Income Statement
Revenue From Operations [Gross]
34,417.48 32,721.44
Less: Excise/Sevice Tax/Other Levies
-2,430.31 -1,915.82
Revenue From Operations [Net] 31,987.17 30,805.62
Total Shareholders Funds
3,687.29 3,724.78

Average Sharehlder Fund

(A)
(B)
(c )

3706.035 3,724.78

Total Assets (from Balance Sheet)


14,167.03 13,634.06
Profit For the Year (PAT)
4082.37 4315.26
Profit Margin (Net Profit/ Net Sales)
0.1276252 0.14008
Asset Turnover ( Net Sales / Total Asset)
2.25786 2.25946
Equity Multiplier (Total Asset / Equity Capital)
3.8226919 3.660367
Retrun on Equity (A X B X C)
1.10
1.16
Retrun on Equity (%)
110.15
115.85

Mar-16
EQUITIES AND LIABILITIES
Equity Share Capital
Reserves and Surplus
Total Shareholders Funds

Average Sharehlder Fund


Profit For the Year (PAT)
Retrun on Equity (ROE) %

Mar-15

216.39
216.35
3,470.90 3,508.43
3,687.29 3,724.78

3706.035 3,724.78
4082.37
110.15

4315.26
115.85

Profit Margin Ratio Can


be Further Divided in to
three Sub Parts i.e., Tax
Burden, Interest burden
and EBIT Margin

Financial Condition Ratios


Debt to Equity Ratio

Long Term Debt


Shareholder Equity

Debt Capitalisation Ratio

Long Term Debt


Long Term Debt + Shareholder Equity

Note: Measures the debt component of a company's capital


structure, or capitalization (i.e., the sum of debt and Equity)

Interest Coverage Ratio


Note: Measures a company's ability to make interest
payments on its debt in a timely manner.

Cash Flow to Debt Ratio


Note: Measures the ability of a business to support its debt
obligations from its operating cash flows.

Earning Before Interest and Tax (EBIT)


Interest Expenses
Cash Flow from Operation
Long Term Debt + Short Term Debt

Profit Before Tax (PBT)


Interest Expenses
EBIT (PBT + Interest Expenses)
Equity Share Capital
Reserves and Surplus
Total Shareholders Funds
Average Sharehlder Fund
Long Term Debt
Debt to Equity Ratio
Debt Capitalisation Ratio
Interest Coverage Ratio (Times)

Mar-16
5870.59
0.18
5870.77
216.39
3,470.90
3,687.29
3706.035
0
0
0
32615.39

Mar-15
6187.42
16.82
6204.24
216.35
3,508.43
3,724.78
3,724.78
0
0
0
368.86088

Note: HUL is a debt free company the amount of interest (i.e., finance cost) is only because of some over draft. It is not purely an
interest expenses. Hence you may ignore in this case to include it for calculation. It has been given here is just for developing
your understanding. Practically speaking as it is a debt free company we can comfortably say it has no interest coverage
requirement. For this calculation we are assuming that Finance cost is similar to Interest expenses.

Comparison of Debt/Equity Ratio of Different Industry


Year Software FMCG
CEMENT Entertainment Farma Automobiles Construction Steel
2008
0.04
0.21
0.53
0.44
0.84
0.39
0.78
0.75
2009
0.1
0.26
0.44
0.56
0.9
0.5
0.92
0.83
2010
0.12
0.16
0.43
0.53
0.73
0.48
1.28
0.96
2011
0.11
0.19
0.49
0.43
0.67
0.41
1.49
1
2012
0.1
0.24
0.51
0.61
0.48
0.47
1.19
1.04
2013
0.1
0.22
0.5
0.77
0.36
0.51
1.08
1.13
2014
0.07
0.2
0.5
0.73
0.36
0.54
1.34
1.26
2015
0.06
0.18
0.52
0.64
0.28
0.51
1.46
1.33
2016
0.06
0.23
0.61
0.47
0.19
0.3
1.15
1.3
Source: www.capitaline.com/SiteFrame.aspx?id=1

HUL Annual Report (2015-16) Page no. 6


HUL Is Debt Free Since 2009-10

Dividend Policy
Dividend Yield

Dividend Per Share


Market Price Per Share

Dividend Pay-out Ratio

Dividends
Net Income

Retention Rate (b)

(1-Dividend Pay-out Ratio)

Implied Growth Rate

Net Income x (1-Dividend Pay-out Ratio)


Shareholders Equity
Or (ROE X b)

Profit For the Year (Rs. in Crore)


Profit For the Year (PAT)
Authorised Shares
Outstanding Issued Shares
Share Price (NSE)
Dividend Paid (Rs. in Crore)
Dividend Paid
Dividend Per Share
Dividend Yield (%)
Dividend Pay-out Ratio (%)
Retention Rate
Retrun on Equity (ROE)
Implied Growth Rate

Mar-16
Mar-15
4082.37
4315.26
40823700000
43152600000
2250000000
2250000000
2163936971
2163464851
08 September 2016 08 September 2015
947.45
802.45
3342.62
2912.3
33426200000
29123000000
15.45
13.46
1.63
1.68
81.88
67.49
0.18
0.24
1.10
1.16
0.20
0.27

Other Valuation Ratios


Book Value Per Share

Shareholders Equity - Preferred Stock


No. of Shares Outstanding

Book To Market Ratio


Note: A high ratio is often interpreted as a value stock (the market is
valuing equity relatively cheaply compared to book value).

Book Value Per Share


Market Price Per Share

Price-to-Sales Ratio
Note: Is the perceived value of a stock by the market compared to the
revenues of the company. Also known as sales multiple or revenue
multiple. The price-to-sales ratio is an indicator of the value placed on each
dollar of a companys sales or revenues. Stocks having a low ratio (
considered as value stock) outperform those with a high price to sales ratio
(considered as Growth Stock).

Price Per Share


Revenue Per Share

Enterprise Value to EBITDA Ratio (EV/EBITDA)

Enterprise value
EBITDA

Note: It is a comparison of enterprise value and earnings before interest,


taxes, depreciation and amortization. Used for estimating the business Enterprise Value = The market capitalization of
valuations. It gives a true picture of a company's valuation and its earning a firm's equity + the market value of the firm's
potential. Also known as the enterprise multiple. In its formula, the book debt (i.e., preferred shares, minority interest, etc)

Book Value Per Share


Book To Market Ratio
Note: A high ratio is often interpreted as a value stock (the
market is valuing equity relatively cheaply compared to book
value).

Shareholders Equity - Preferred Stock


No. of Shares Outstanding
Book Value Per Share
Market Price Per Share

Mar-16
Mar-15
Equity Share Capital
216.39
216.35
Reserves and Surplus
3,470.90
3,508.43
Total Shareholders Funds (Rs. in Crore)
3,687.29
3,724.78
Total Shareholders Funds
36872900000
37247800000
Outstanding Issued Shares
2163936971.00
2163464851.00
Book Value Per Share
17.0397292
17.21673453
08 September 2016 08 September 2015
Share Price (NSE)
947.45
802.45
Book-To Market Ratio
1.80
2.15

Price-to-Sales Ratio
Note: Is the perceived value of a stock by the market
compared to the revenues of the company.

Revenue From Operations [in Crore)]


Revenue From Operations
Outstanding Issued Shares
Sales Per Share
Share Price (NSE)
Sales to Price Ratio

Price Per Share


Revenue Per Share

Mar-16
Mar-15
31987.17
30805.62
319871700000.00 308056200000.00
2163936971.00
2163464851.00
147.82
142.39
08 September 2016 08 September 2015
947.45
802.45
0.16
0.18