Ratios Unit Formula December December December December December

31, 2015 31, 2014 31, 2013 31, 2012 31, 2011
Profitability
Ratios
Gross profit Gross
ratio % profit/net sale 38.9% 38.3% 37.5% 36.5% 33.0%

Net profit Net

% income/net 16.9% 14.3% 14.7% 13.7% 12.7%
to sales sales

Operating % change in
Times EBIT / % 0.24 0.22 0.21 0.20 0.18
leverage change in sales
ratio
Return on Net
% income/shareh 27.7% 25.9% 28.9% 31.2% 31.7%
equity older equity

Return on Net
% income/averag 21.8% 20.5% 22.6% 22.4% 22.2%
assets e total assets

Liquidity
Ratios

Current Current
Times assets/current 3.73 3.86 3.57 2.71 2.42
ratio liability

Quick / Acid (Cash +

Times Accounts 2.81 2.76 2.27 1.66 1.26
test ratio Receivable +
Short-term
Investments) /
Current
Liabilities.
Cash to Cash + cash
Times equivalent / 2.51 2.39 1.76 1.15 0.71
Current total Current
Liabilities Liabilities.
Cash flow Operating Cash
Times Flows / Sales 0.19 0.17 0.14 0.16 0.14
from Revenue
operations
to Sales
Activity /
Turnover
Ratios
No. of days (Ending
Days inventories/CG 80.82 83.95 89.38 90.99 96.67
in inventory S)*365

No. of days (account

Days receivable/net 8.27 9.54 11.80 11.74 9.52
in credit
receivables sale)*365
No. of days (average
Days accounts 58.27 49.34 48.80 47.33 45.76
in payables payable / cost
of goods sold)
* 365 days
Inventory (CGS/Average
Times inventory) 4.52 4.35 4.08 4.01 3.78
Turnover

Debtors Net credit sale

Times / average 44.12 38.28 30.94 31.10 38.36
Turnover account
receivable
Creditors Total purchase
Times / average 6.28 7.40 7.48 7.71 7.98
Turnover account
payable

Operating Days' Sales of

Days Inventory + 36.96 44.17 52.40 55.40 60.43
Cycle Days Sales
Outstanding

Total assets Net sale /

Times average total 1.40 1.58 1.68 1.82 1.96
turnover assets
ratio
Fixed assets Net sale / fixed
Times assets- 5.70 5.96 5.82 6.01 6.09
turnover accumulative
ratio dep.
Investment
/ Market
Ratios
Price Market value
Times price per 17.33 24.70 15.82 10.75 5.94
earnings share/ earning
ratio per share

Dividend Cash dividend

% per share/ 4.7 1.1 1.8 3.1 6.0
yield ratio market value
per share
Dividend Total dividend/
Times net income 0.82 0.27 0.27 0.33 0.36
payout
ratio
Cash dividend/ no of
Rs. shares 30 7.80 7 7 6
dividend
per share
No. of
No 97,900,300 97,900,300 97,900,300 97,900,300 97,900,300
shares at
end of year

Market
Rs million 62,167 69,576 38,524 22,468 9,769
Capitalizati
on
Market
Rs 635 710.68 393.50 229.50 99.79
value per
share at the
end of the
year
Market
Rs 744.42 913.50 456 234 103
value per
share (High)
 Market
Rs 473.19 355.00 197.25 90.00 79.25
value per
share (Low)
Capital
Structure
Ratios
Interest EBIT/ Interest
Times expense 851.86 905.60 1,248.03 1,355.06 739.44
cover ratio

Interpretation
Profitability Ratios
The increase in profit after tax by 27% compared to prior year is mainly attributable to volume
growth, new product launches, effective cost controls and reduced taxation charge in current year.
Gross Profit ratio improved to 39% from 38% last year despite inflationary pressures owing to
improved product mix. Net Profit to sales ratio improved to 17% from 14% last year mainly on
account of improved gross margins, effective cost controls and reduced prior year taxation charge
in current year.
Liquidity Ratios
The increase in cashflows from operating activities is mainly derived from improved profitability
and better working capital management which accordingly resulted in increase in cash and cash
equivalents by Rs 1,939 million as compared to last year. Increase in cash & cash equivalents has
resulted in increase in liquidity ratios such as quick / acid test ratio (2015: 2.81, 2014: 2.76) and
cash to current liabilities (2015: 2.51, 2014: 2.39).
Activity / Turnover Ratios
Operating cycle has declined overall from 44.17 days in 2014 to 30.96 days in 2015 due to better
inventory management which has resulted in reduced number of days in inventory.
Total assets turnover ratio declined from 1.58 in 2014 to 1.40 in 2015 due to increase in cash &
cash equivalents as explained above.
Fixed assets turnover ratio declined from 5.96 in 2014 to 5.70 in 2015 due to increase in capital
expenditure from Rs. 661 million in 2014 to Rs. 1,174 million in 2015.
Investment / Market Ratios
Earnings per share increased from Rs 28.77 in 2014 to Rs 36.64 in 2015 as a result of the increase
in profit after tax by 27% compared to prior year as mentioned above.
P/E ratio declined from 24.70 in 2014 to 17.33 in 2015, mainly due to decline in market price per
share from Rs 710.68 in 2014 to Rs 635.00 in 2015.
Dividend yield ratio increased from 1.1% in 2014 to 4.7% in 2015 and Dividend pay-out ratio
increased from 0.27 (times) in 2014 to 0.82 (times) in 2015, on account of increased dividend
payout in the current year from Rs 7.8 to Rs 30.00 per share.
Break-up value per share has increased from Rs 111.05 in 2014 to Rs 132.27 in 2015 due to
increase in total equity this year by Rs 2,078 million as compared to prior year.
Market capitalization has declined from Rs 69,576 million in 2014 to Rs 62,167 million in 2015
due to decline in market price per share from Rs 710.68 in 2014 to Rs 635.00 in 2015.
Capital Structure Ratios
There is no short-term or long-term debt as at balance sheet date, therefore capital structure ratios
like financial leverage ratio, weighted average cost of debt and debt to equity ratio are not relevant.