Balance sheet

  Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund
Equity share capital 286.00 286.00 286.00 138.00 135.29
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 17,523.00 13,204.00 10,876.00 6,759.00 5,106.44
Loan funds
Secured loans - - - - -
Unsecured loans - - - - -
Total 17,809.00 13,490.00 11,162.00 6,897.00 5,241.73
Uses of funds
Fixed assets
Gross block 5,986.00 4,508.00 3,889.00 2,837.00 2,182.72
Less : revaluation reserve - - - - -
Less : accumulated depreciation 2,187.00 1,837.00 1,739.00 1,275.00 1,005.82
Net block 3,799.00 2,671.00 2,150.00 1,562.00 1,176.90
Capital work-in-progress 615.00 1,260.00 957.00 571.00 317.52
Investments 1,005.00 964.00 839.00 876.00 1,328.70
Net current assets
Current assets, loans & advances 15,732.00 12,326.00 9,040.00 6,105.00 3,764.65
Less : current liabilities & provisions 3,342.00 3,731.00 1,824.00 2,217.00 1,346.04
Total net current assets 12,390.00 8,595.00 7,216.00 3,888.00 2,418.61
Miscellaneous expenses not written - - - - -
Total 17,809.00 13,490.00 11,162.00 6,897.00 5,241.73
Notes:
Book value of unquoted investments 1,005.00 964.00 839.00 876.00 1,328.70
Market value of quoted investments - - - - -
Contingent liabilities 347.00 603.00 670.00 523.00 289.87
Number of equity sharesoutstanding (Lacs) 5728.30 5719.96 5712.10 2755.55 2705.71

Ratios
   Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Per share ratios
Adjusted EPS (Rs) 108.08 78.06 65.42 90.65 68.38
Adjusted cash EPS (Rs) 120.19 87.61 73.63 105.50 78.30
Reported EPS (Rs) 101.58 78.15 66.23 87.86 70.38
Reported cash EPS (Rs) 113.70 87.69 74.44 102.70 80.30
Dividend per share 23.50 33.25 11.50 45.00 11.50
Operating profit per share (Rs) 120.59 86.78 73.98 108.51 85.97
Book value (excl rev res) per share (Rs) 27.51 25.96 29.13 26.56 28.91
Book value (incl rev res) per share (Rs.) 27.51 25.96 29.13 26.56 28.91
Net operating income per share (Rs) 353.75 273.57 230.20 327.63 253.53
Free reserves per share (Rs) 305.80 230.74 190.30 245.07 188.51
Profitability ratios
Operating margin (%) 34.09 31.72 32.13 33.11 33.91
Gross profit margin (%) 30.66 28.23 28.57 28.58 30.00
Net profit margin (%) 27.52 27.37 28.05 26.17 27.28
Adjusted cash margin (%) 32.57 30.69 31.19 31.43 30.35
Adjusted return on net worth (%) 34.76 33.09 33.47 36.21 35.29
Reported return on net worth (%) 32.67 33.13 33.89 35.10 36.33
Return on long term funds (%) 39.80 37.77 36.64 40.62 41.52
Leverage ratios
Long term debt / Equity - - - - -
Total debt/equity - - - - -
Owners fund as % of total source 100.00 100.00 100.00 100.00 100.00
Fixed assets turnover ratio 3.39 3.47 3.38 3.18 3.20
Liquidity ratios
Current ratio 4.71 3.30 4.96 2.75 2.80
Current ratio (inc. st loans) 4.71 3.30 4.96 2.75 2.80
Quick ratio 4.67 3.28 4.91 2.73 2.77
Inventory turnover ratio - - - - -
Payout ratios
Dividend payout ratio (net profit) 27.03 49.77 19.85 58.32 18.48
Dividend payout ratio (cash profit) 24.15 44.35 17.66 49.89 16.20
Earning retention ratio 74.60 50.17 79.91 43.48 80.98
Cash earnings retention ratio 77.16 55.60 82.15 51.43 83.39
Coverage ratios
Adjusted cash flow time total debt - - - - -
Financial charges coverage ratio 3,891.00 5,642.00 4,559.00 3,211.00 2,243.01
Fin. charges cov.ratio (post tax) 3,257.50 5,017.00 4,253.00 2,831.00 1,994.21
Component ratios
Material cost component (% earnings) 0.09 0.11 0.16 0.17 0.19
   Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Selling cost Component 0.40 0.56 0.47 0.60 1.20
Exports as percent of total sales 97.88 92.59 92.44 95.86 88.99
Import comp. in raw mat. consumed - - - - -
Long term assets / total Assets 0.25 0.28 0.30 0.33 0.42
Bonus component in equity capital (%) 93.58 93.58 93.58 93.65 95.53

Annual results in brief

  Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sales 20,264.00 15,648.00 13,149.00 9,028.00 6,859.66
Operating profit 6,906.00 4,963.00 4,223.00 2,989.00 2,325.21
Interest - - - - -
Gross profit 7,408.00 5,646.00 4,598.00 3,133.00 2,452.71
EPS (Rs) 101.73 78.15 66.14 87.72 70.38

Annual results in details

  Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Other income 502.00 683.00 375.00 144.00 127.50
Stock adjustment - - - - -
Raw material - - - - -
Power and fuel - - - - -
Employee expenses 9,969.00 7,808.00 6,314.00 4,273.00 3,182.00
Excise - - - - -
Admin and selling expenses 2,213.00 1,809.00 1,646.00 1,152.00 879.62
Research and development expenses - - - - -
Expenses capitalised - - - - -
Other expenses 1,176.00 1,068.00 964.00 614.00 472.93
Provisions made - - 2.00 - -0.10
Depreciation 694.00 546.00 469.00 409.00 268.22
Taxation 895.00 630.00 352.00 303.00 325.30
Net profit / loss 5,819.00 4,470.00 3,783.00 2,421.00 1,904.38
Extra ordinary item - - 6.00 - 45.19
Prior year adjustments - - - - -
Equity capital 286.00 286.00 286.00 138.00 135.29
Equity dividend rate - - - - -
Agg.of non-prom. shares (Lacs) 3687.58 3678.43 3675.70 2218.24 2117.07
Agg.of non promotoHolding (%) 64.37 64.31 64.35 80.50 78.24
   Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
OPM (%) 34.08 31.72 32.12 33.11 33.90
GPM (%) 35.67 34.57 34.00 34.16 35.10
NPM (%) 28.02 27.37 27.97 26.40 27.26

Dividend
Year Month Dividend (%)
2009 Sep 200
2009 Apr 270
2008 Sep 200
2008 Apr 545
2007 Sep 120
2007 Apr 130
2006 Sep 100
2006 Apr 770
2005 Sep 130
2005 Apr 130
2004 Oct 100
2004 Apr 2,300
2003 Sep 290
2003 Apr 290
2002 Sep 250
2002 Apr 250
2001 Oct 150
2001 Apr 150
2000 Oct 50
2000 Apr 60
1999 Oct 30
1999 Apr 50
1998 Oct 25
1998 Apr 45
1997 Oct 15
1997 Apr 40
Capital structure
From To Class Of Authorized Issued Paid Up Paid Up Paid Up
Year Year Share Capital Capital Shares (Nos) Face Value Capital
Equity
2008 2009 300.00 286.42 572830043 5 286.42
Share
Equity
2007 2008 300.00 286.00 571995758 5 286.00
Share
Equity
2006 2007 300.00 285.60 571209862 5 285.60
Share
Equity
2005 2006 150.00 137.78 275554980 5 137.78
Share
Equity
2004 2005 150.00 135.29 270570549 5 135.29
Share
Equity
2003 2004 50.00 33.32 66641056 5 33.32
Share
Equity
2002 2003 50.00 33.12 66243078 5 33.12
Share
Equity
2001 2002 50.00 33.09 66186130 5 33.09
Share
Equity
2000 2001 50.00 33.08 66158117 5 33.08
Share
Equity
1999 2000 50.00 33.08 66150700 5 33.08
Share
Equity
1998 1999 50.00 33.07 33069400 10 33.07
Share
Equity
1997 1998 30.00 16.02 16017200 10 16.02
Share
Equity
1996 1997 10.00 7.26 7259600 10 7.26
Share
Equity
1995 1996 10.00 7.26 7258600 10 7.26
Share
Equity
1994 1995 10.00 7.26 7258600 10 7.26
Share
Equity
1993 1994 4.00 3.35 3352100 10 3.35
Share
Equity
1992 1993 4.00 1.98 1976100 10 1.98
Share
Profit loss account
  Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income
Operating income 20,264.00 15,648.00 13,149.00 9,028.00 6,859.66
Expenses
Material consumed 20.00 18.00 22.00 16.00 13.55
Manufacturing expenses  1,822.00 1,549.00 1,378.00 854.00 603.67
Personnel expenses 9,975.00 7,771.00 6,316.00 4,274.00 3,183.25
Selling expenses 83.00 89.00 63.00 55.00 82.34
Adminstrative expenses 1,456.00 1,257.00 1,144.00 839.00 650.65
Expenses capitalised - - - - -
Cost of sales 13,356.00 10,684.00 8,923.00 6,038.00 4,533.46
Operating profit 6,908.00 4,964.00 4,226.00 2,990.00 2,326.20
Other recurring income 874.00 678.00 333.00 221.00 118.68
Adjusted PBDIT 7,782.00 5,642.00 4,559.00 3,211.00 2,444.88
Financial expenses 2.00 1.00 1.00 1.00 1.09
Depreciation  694.00 546.00 469.00 409.00 268.22
Other write offs - - - - -
Adjusted PBT 7,086.00 5,095.00 4,089.00 2,801.00 2,175.57
Tax charges  895.00 630.00 352.00 303.00 325.30
Adjusted PAT 6,191.00 4,465.00 3,737.00 2,498.00 1,850.27
Non recurring items -372.00 5.00 46.00 -77.00 54.11
Other non cash adjustments -1.00 - -5.00 - -4.59
Reported net profit 5,818.00 4,470.00 3,778.00 2,421.00 1,899.79
Earnigs before appropriation 12,460.00 9,314.00 5,973.00 3,849.00 1,970.30
Equity dividend 1,345.00 1,902.00 649.00 1,238.00 309.80
Preference dividend - - - - -
Dividend tax 228.00 323.00 102.00 174.00 42.17
Retained earnings 10,887.00 7,089.00 5,222.00 2,437.00 1,618.33

Cash flow
 
Profit before tax
Net cashflow-operating activity
Net cash used in investing activity
Netcash used in fin. activity
Net inc/dec in cash and equivlnt
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
6,714.00 5,100.00 4,129.00 2,724.00 2,184.49
5,152.00 3,816.00 3,256.00 2,237.00 1,359.70
-195.00 -978.00 -1,065.00 -392.00 -939.88
-2,430.00 -777.00 -316.00 244.00 -580.10
2,600.00 2,079.00 1,871.00 2,096.00 -156.32
   Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Cash and equivalnt begin of year 7,689.00 5,610.00 3,779.00 1,683.00 1,839.40
Cash and equivalnt end of year 10,289.00 7,689.00 5,650.00 3,779.00 1,683.08

Cost of equity
Cost of equity = Risk free rate of return + Premium expected for risk

[edit] Expected return

The expected return (or required rate of return for investors) can be calculated with the "dividend

capitalization model", which is

That equation is also seen as: Expected Return = dividend yield + growth rate of dividends.

[edit] Capital asset pricing model

Main article: Capital asset pricing model

The capital asset pricing model (CAPM) is used in finance to determine a theoretically
appropriate price of an asset such as a security. The expected return on equity according to the
capital asset pricing model. The market risk is normally characterized by the β parameter. Thus,
the investors would expect (or demand) to receive:

Where:
Es
The expected return for a security
Rf
The expected risk-free return in that market (government bond yield)
βs
The sensitivity to market risk for the security
RM
The historical return of the stock market/ equity market
(RM-Rf)
The risk premium of market assets over risk free assets.

In writing:

 The expected return (%) = risk-free return (%) + sensitivity to market risk * (historical
return (%) - risk-free return (%))

 Put another way the expected rate of return (%) = the yield on the treasury note closest to
the term of your project + the beta of your project or security * (the market risk premium)

 the market risk premium has historically been between 3-5%