ACC Part 1

2006 2007 2008 2009 2010

SGR=ROE*(1-DPO)/(1-ROE*(1-DPO)) 40.57 31.84 19.05 22.9 7.3
Sales Growth Rate(%) 38 20 4 10 -4
D/E 0.25 0.07 0.1 0.09 0.08

Comments:
SGR>Sales growth rate for all the 5 years.

Notes:

Part1
2005 2006 2007 2008 2009
ROE(%) 34 39 35 25 27
DPO(%) 31 26 31 36 31
SGR=ROE*(1-DPO) 23 29 24 16
Net sales 4197 5803 6991 7283 8027
Sales Growth Rate(%) 38 20 4 10

D/E 0.5 0.25 0.07 0.1 0.09

PAT 639 1232 1439 1213 1607

NPM=PAT/Net Sales 0.15 0.21 0.21 0.17 0.2
ATO=Net Sales/TA 0.94 1.33 1.46 1.27 1.16
Multiplier(FL)=TA/TE 1.76 1.39 1.15 1.17 1.15
ROE=NPM*ATO*FL 25 39 35 25 27

Total Assets 4463 4379 4790 5745 6932

Total Equity 2535 3143 4153 4928 6016

ROE*(1-DPO) 23.46 28.86 24.15 16.00 18.63

1-ROE*(1-DPO) 76.54 71.14 75.85 84.00 81.37
SGR=ROE*(1-DPO)/
(1-ROE*(1-DPO)) 30.65 40.57 31.84 19.05 22.9
2010
17
60
19 7717 8027 7283 6991 5803
7717
-4

0.08

1120
0.15
1.05
1.17
18

7355
6282

6.80
93.20

7.3
 Financial Ratios 2010 2009 2008 2007 2006
Liquidity Ratios
Current Ratio 0.71 0.73 1.00 0.99 1.15
Quick Ratio 0.47 0.48 0.71 0.66 0.85
Receivable Turnover Ratio 33.04 40.555556 22.8125 24.3333 28.077
Average Payable Period 149 128 123 108
Inventory Turnover Ratio 5.14 5.14 4.93 4.6203

Debt Ratios
Debt-to-Equity Ratio 0.08 0.09 0.10 0.07 0.25
Cash Flow to total liabilities Ratio 0.8 0.95 0.53 0.54 0.32

Coverage Ratios
Cash-Flow Coverage of Interest 34 29 43 27 19

Profitability Ratios Gross Profit Margin 44% 53% 47% 50% 51%
Operating Margin 23% 33% 26% 29% 30%
Net Profit Margin 15% 20% 17% 21% 21%

Return On Capital Employed (ROCE) 25% 49% 40% 42% 41%

ROE 17% 27% 25% 35% 39%
Asset Turnover Ratio 1.1 1.2 1.3 1.5 1.3

Market Value Ratios

Price/Earnings Ratio 12.78 10.23 7.39 13.74 16.44
Dividend Yield 4% 3% 4% 2% 1%
M/B Ratio 2.17 2.40 1.90 4.52 8.93
GPM 44 53 47 50 51
Dividend 30 23 20 20 15
Share Price 750 766.66667 500 1000 1500
BV 345 320 263 221 168
2.173913 2.3958333 1.90114 4.52489 8.9286
0.21 0.21 0.17 0.2 0.15
9 16 15 13
40.555556 22.8125 24.3333 28.077
71 71 74 79
5.1408451 5.14085 4.93243 4.6203

Net cash from operations 1951 2397 1708 2023 1422

Interest expense 57 84 40 74 75
Total LTB(Borrowings) 524 567 482.03 306 771
Current Liabilities+Provisions 3867 3152 2,766 2221 1672
Total Liabilities 2443 2527 3248 3719 4391
EBIDT 2643 1899 1993 1717
Net sales 7717 8027 7283 6991 5803
Gross Profit 3427 4225 3404 3489 2988

Total Expenditure
1654 1597 1639 1327

160 1494
4065
 Comments

Measures return against the book value of assets in the business. As these are depreciated
the ROCE will increase even though cash flow has remained the same.
 2009 2008 2007 2006 2005
SIGNIFICANT RATIOS
Operating EBIDTA / Net sales 33% 26% 29% 30% 19%
Return on Capital Employed 49% 40% 42% 41% 19%
Return on Net Worth 27% 25% 35% 39% 34%
Current Ratio 0.73 1 0.99 1.15 1.06
Debts Equity Ratio 0.09 0.1 0.07 0.25 0.5
Price Earning Ratio 10.23 7.39 13.74 16.44 17.74
Dividend Yield Ratio 3% 4% 2% 1% 2%
Net Worth per Share (Rs.) 320 263 221 168 115
Net Sales per Share (Rs.) 428 388 373 310 175
Basic Earnings per Share (Rs.) 85.6 64.63 76.75 66.02 30.02
Financial Ratios 2010 Industry Average

Liquidity Ratios Current Ratio 0.71 1.6

Quick Ratio 0.47 1.1

Efficiency Ratios Receivable Turnover Ratio 33.04 8.5

Average Payable Period
Inventory Turnover Ratio 6.1
Asset Turnover Ratio 1.1 0.6

Debt Ratios Debt-to-Equity Ratio 0.08 0.34 Low fin risk

Cash Flow to total liabilities Ratio 0.8

Coverage Ratios Cash-Flow Coverage of Interest 34 3

Times Interest Earned

Profitability Ratios Gross Profit Margin

Net Profit Margin 15% -2.60%
Operating Margin 23% -0.20%
Return On Capital Employed (ROCE) 25% 4.90%
ROE 17% 1.3

Market Value Ratios

Price/Earnings Ratio 12.78 16
Dividend Yield 4% 2.21%
M/B Ratio 2.17 0.91
 Financial Ratios 2010 2009 2008

Current Ratio 0.71 0.73 1

Liquidity Ratios Quick Ratio 0.47 0.48 0.71

Receivable Turnover Ratio 33.04 40.56 22.81

Average Payable Period 134 149 128
Inventory Turnover Ratio 26.31 25.22 27.51
Efficiency Ratios Asset Turnover Ratio 1.05 1.16 1.27

14 13
Debt-to-Equity Ratio 0.08 0.09 0.1
Debt Ratios Cash Flow to total liabilities Ratio 0.8 0.95 0.53

Coverage Ratios Cash-Flow Coverage of Interest 34 29 43

Gross Profit Margin 0.44 0.53 0.47

Operating Margin 0.23 0.33 0.26
Net Profit Margin 0.15 0.2 0.17
Return On Capital Employed (ROCE) 0.25 0.49 0.4
Profitability Ratios ROE 0.17 0.27 0.25

Price/Earnings Ratio 12.78 10.23 7.39

Dividend Yield 0.04 0.03 0.04
Market Value Ratios M/B Ratio 2.17 2.40 1.90

Substantial increase in slag & fly ash prices pushed up raw material cost
Other expenditure have increased due to increase in royalty, packing material, repairs
and excise duty (net) etc
Higher diesel prices & increase in railway freight
resulted in freight cost going up
Hardening of coal prices, increase in purchased power tariff
Employee Cost increased
Cement Volume in Q2 & H1 is down by 3%. Reasons
Wagon / Truck shortages, Fly ash availability, water shortages & power restrictions
2007 2006

0.99 1.15
0.66 0.85

24.33 28.08
123 108
24.85 9.33
1.46 1.33

15 39
0.07 0.25
0.54 0.32

27 19

0.5 0.51
0.29 0.3
0.21 0.21
0.42 0.41
0.35 0.39

13.74 16.44
0.02 0.01
4.52 8.93
Comments

Measures return against the book value of assets in the business. As these are depreciated
the ROCE will increase even though cash flow has remained the same.