Accounts presentation on Ranbaxy Laboratories -By: Aarshiya Nirula Akanksha Padha Monami Patel Natasha Mitra

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Mission Ranbaxy's mission is Enriching lives globally, with quality and affordable pharmaceuticals.. 1961 Company Incorporated India's largest pharmaceutical company Presence in 23 of the top 25 pharmaceutical markets of the world The combined entity now ranks among the top 20 pharmaceutical companies, globally

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Terapia (Romania) Be-Tabs (South Africa) Allen (Italy) Mundogen (Spain) Zenotech (India) Cardinal Drugs (India) Ochoa Labs (India) Biovel (India)

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1961-Incorporated as a Private Limited Company 1969 - Ist blockbuster brand Calmpose launched in India 1973 Attains Public Limited company status (listed in Feb 1974) 2006 - Acquires leading Romanian pharma company Terapia and Be-Tabs pharmaceuticals,5th largest generics company in South Africa 2007 - Business World ranks Ranbaxy as the Most respected company in the pharma industry

2008 - Ranbaxy partners with Daiichi Sankyo (DS) establishing a unique and powerful hybrid business model 2009 Synergistic step with Daiichi Sankyo to launch Olmesartan 2010 Ranbaxy delivers quarterly sales of over US $ 500 Million for the first time 2010-2011 - The Golden Jubilee Year 50 Years of an inspiring, pioneering and historic journey!

Investment valuation Ratios Face value Dividend Per Share

March 06

March 07

March 08

March 09

March 10

5.00 8.50

5.00 8.50

5.00 --

5.00 --

5.00

2.00

Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio

March 06

March 07

March 08

March 09

March 10

0.96 1.03 1.35

0.83 0.97 1.38

1.16 0.86 1.05

1.18 0.89 0.85

1.40 1.60 0.83

0.93

0.90

0.80

0.68

0.57

Manageme March 06 nt Efficiency Ratios

Inventory Turnover Ratio Debtors Turnover Ratio Total Assets Turnover Ratio 4.39

March 07

March 08

March 09

March 10

4.42

4.07

4.05

3.95

4.58

4.53

4.88

3.74

3.99

0.78

0.73

0.64

0.66

0.61

Profitability Ratio Operating Profit Margin(%) Gross Profit Margin(%) Net Profit Margin(%)

March 06

March 07

March 08

March 09

March 10

15.17

9.31

5.39

13.62

22.35

14.39 9.07

7.51 14.33

2.07 -22.02

10.52 11.72

18.31 19.74

COVERAGE RATIO Interest Cover

March 06

March 07

March 08

March 09

March 10

9.51
Total Debt to Owners Fund Financial Charges Coverage Ratio

3.19

1.29

15.24

22.22

1.35

1.38

1.05

0.85

0.83

11.33

4.46

2.35

18.99

26.44

Earnings Per Share & Book Value

March 06

March 07

March 08

March 09

March 10

Ear i ar

10.21

16.56

-24.85

13.61

27.28

Book Valu

63.03

68.01

84.24

94.16

121.74

[Dec 06 Dec 10]

Liquidity Ratio Trend

Working Capital (in Rs millions)
4,000 3,000
1.20 1.16 0.96 0.83
3,546

Current Ratio
1.60 1.18 1.40

2,000
1,113 1,007

1,939 1,641

0.80 0.40 0.00

1,000 Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

Dec '06

Dec '07

Dec '08

Dec '09

Dec '10

Quick Ratio
1.60 1.20 0.80 0. 0 0.00

Dec ' Dec ' Dec ' Dec ' Dec '

1.60

1.03

0.97

0.86

0.89

Solvency Ratio Trend

Debt Equity Ratio
1.6 1.2 0.8 0.4 0
 
Dec ' Dec ' Dec ' Dec ' Dec '

1.35

1.38 1.05 0.85 0.83

Interest Coverage Ratio

5 22.22 15.24 0
 

15

10 9.51 5 3.19 0
 
Dec ' Dec ' Dec '

1.29
 
Dec ' Dec '



Turnover Ratio Trend

Inventory Turnover Ratio
5 4 3 2 1 0 Dec '06 Dec '07 Dec '08 Dec '09 Dec '10 4.39 4.42 4.07 4.05 3.95 5 4 3 2 1 0 Dec '06 Dec '07 Dec '08 Dec '09 Dec '10 4.58 4.53

Debtors Turnover Ratio

4.88 3.74 3.99

Creditors Turnover Ratio

5 4 3 2 1 0 Dec '06 Dec '07 Dec '08 Dec '09 Dec '10 2.12 2.08 2.14 2 2.13

Profitability Ratio Trend

Gross Profit Margin(%)
25 20 18% 15 14% 10 5 0
Dec '06 Dec '07

Net Profit Margin(%)

25 20% 15 5 -5 9%
Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

14%

12%

11% 8% 2%
Dec '08 Dec '09 Dec '10

-15 -25 -22%

Return on Assets(%)
15 10 9% 5 0 -5 -10 -15 -1 %
Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

Return on Equity(%)
1 % 20 10 0 -10 -20
Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

8%

14%

24% 16% 14%

22%

-30

-28%

50,000.00

49,475

Company March 2010 Sun Pharma Cipla

Market Cap. (Rs. cr.) 49,474.93 26,367.94

Sales Turnover 3,104.70 6,317.98 5,304.41 5,672.10

Net Profit

Total Assets

40,000.00

1,383.80 967.12 893.31 1,148.73

5,747.47 5,919.16 6,477.80 9,393.11

Dr Reddys Labs 26,286.92

30,000.00
26,368 26,287

Ranbaxy Labs

22,595.60

22,596

20,000.00

10,000.00
6,318 5,304 5,672 5,747 5,919 6,478

9,393

3,105 1,384 967 893 1,149

0.00 Market Cap.

Sun Pharma

Sales Turnover
Cipla

Net Profit
Dr Reddys Labs

Total Assets
Ranbaxy Labs

Ope a ng o ( n s. C o es) M ch 2010

1600

Sun Pharma 252

Cipla

Dr. Reddy lab 1089

Ranbaxy labs 1271

1381

1400

1 381 1 271

1200 1 089 1000

800

600

400 252 200

Ope a ng p o

Operating profit is he easu e o c panys ea ning p o it from ongoing operations equal to earning before deduction of interest payments and income taxes.

'

0)

(' & %

un ha

C pa

D Reddys Labs

Ranba y Labs

"# $ !

#" !

Earning per share March 2010

100

Sun Pharma 43

Cipla

Dr. Reddy Labs 50

Ranbaxy labs 27

90

13

80

70

60 50 50 43 40

30

27

20 13 10

0 Earning per share

Sun Pharma

Cipla

Dr Reddys Labs

Ranbaxy Labs

Earnin per share is the c mpany's profit divided by the number of common outstanding shares. It serves as an indicator of a company's profitability.

urrent atio March 2010

2.5

Ranbaxy

Sun Pharma

Cipla

Dr. Reddy

1.40
2.17

2.14

2.17

1.66

2.14 2

1.66

1.5

1.40

0.5

Current ratio easures a co pany's ability to pay short- er obligations. urrent atio = urrent Assets/ urrent Liabilities

7 6

Sun Phar a

ipla

r eddys Labs

anba y Labs

2 5 4

urrent

atio

Q i

ti
9@
.

Ranbaxy

Sun Pharma

Cipla

Dr. Reddy

1. 0

1.

1.

1. 1

1. 1

1.

1.

1. 1.

0.

0 Q i

ti

i l

T quick ratio r c ' ilit t t it wit it t liq i t .T ig r t q ic r ti , t t c . t / rr t i iliti Q ic r ti = iq i A

rt-t r tt r t

egVf dhVgSVa

CB

egVf edccba ` P IH GF E

A9

VY X

@9

VW VU SR T Q

@ 9 9

lig ti iti f

Inventory Turnover Ratio

6

Ranbaxy

Sun Pharma

Cipla

Dr. Reddy

3. 5

3.65
p
.36

3. 4

5.36

3.

3.

0 Invent

Inventory turn over ratio indicates the number of time the stock has been turned over during the period and evaluates the efficiency with which a firm is able to manage its inventory. [Inventory Turnover Ratio = Cost of goods sold / Average inventory at cost]

yx

Sun

arma

Cipla

uw vu t

rq
t nover ratio

pi

3.

Dr eddys abs

ps
Ranbaxy abs

Debtors Turnover Ratio

45

Ranbaxy

Sun Pharma

Cipla

Dr. Reddy

3 99

2 99

3 31

3 67

4 3 67 35 3 31 2 99 3

25

15

05

0 ebtors Turnover Ratio

Debtors turnover ratio indicates the nu ber of ti es average debtors (receivable) are turned over during a year Debtors Turnover Ratio = Net Credit Sales / Average Trade Debtors

un Phar a

Cipla

Dr Reddys Labs

3 99

Ranba y Labs

Ret rn On ssets ( RO )
400

Ranbaxy 121.74

Sun Pharma Cipla 276.08 73.55

.69

Dr. Reddy 355.69

350

276.

250

200

150

100 73.

Ret r o

et

i l

r Reddys

Ranbaxy abs

ROA is t e indicator of ow rofitable a co assets. RO = Net Inco e/Total ssets

any is relative to its total

lf

fi h

121.

300

fg fed

April 2010,Daiichi Sankyo opted not to convert the warrants into equity shares. Hence, the said warrants stand lapsed and the amount of Rs. 73.70 per warrant aggregating to Rs.1,756.59 millions paid by DS has been forfeited and taken to the Capital Reserve Account. On 1 July 2010, assets pertaining to its New Drug Discovery Research Centre (including fixed assets, intangibles, in-process developments) transferred to DS for an aggregate consideration of Rs. 1,449.85 millions.
Rs. 210 million other operating income for non-compete fee Rs. 131.81million other income included in profit on sale of assets

Leases ` cancellable + non-cancellable operating leases

lease term - 3 to 17 years, subject to renewal at mutual consent lease rent expense recognised during the year amounts to Rs. 531.83 (previous year Rs. 482.99).

As at 31 December 2010 Claims against the Company not acknowledged as debts, under dispute: DPCO * Letter of comfort on behalf of subsidiaries, to the extent of limits Octroi tax matters ** Other matters *** 2009

1,952.90 2,450.84 171.00 187.30

1,703.30 4,656.88 171.00 190.71

Thank you