Description
It also provides a comparison of the profitability ratios of other companies in the IT industry.
Profitability Ratios
Important Figures
2005 Sales (Revenue) Profits: 6859.66 2004 4760.89
Gross Profit
Operating Profit Net Profit Total Assets Net Assets Net Worth
3204.73
2325.11 1904.38 6587.77 5241.73 5241.73
2265.58
1352.75 1243.47 4997.05 3253.43 3253.43
(all figures are in Rs. crore)
Profitability Ratios
(A) On the basis of Sales
Profit / sales
(B) On the basis of investment
Profit / Assets(Equity)
(A) On the basis of Sales i) Gross Profit Margin = Gross Profit / Sales = 3204.73 / 6859.66 (2004-05) = 0.467 Gross Profit Margin = Gross Profit / Sales = 2265.58 / 4760.89 (2003-04) = 0.476
(A) On the basis of Sales
ii) Operating Profit Margin = Operating Profit / Sales = 2325.11/6859.66 (2004-05) = 0.338
Operating Profit Margin = Operating Profit / Sales = 1583.65/4760.89 (2003-04) = 0.3326
Figures from ASIANCERC 2004-05 33.91% 2003-04 33.27%
(A) On the basis of Sales iii) Net Profit Margin = Net Profit / Sales = 1904.38/6859.66 (2004-05) = 0.277
Net Profit Margin = Net Profit / Sales = 1243.47/4760.89 (2003-04) = 0.261
Figures from ASIANCERC 2004-05 26.94% 2003-04 25.53%
(B) On the basis of Investment i) Return on Total Assets (ROTA) = PBIT/Total Assets = 2325.11/6587.77 (2004-05) = 0.353 Return on Total Assets (ROTA) = PBIT/Total Assets = 1583.65/4997.09 (2003-04) = 0.317
(B) On the basis of Investment ii) Return on Net Assets (RONA) = PBIT/ Net Assets = 2325.11/5241.73 (2004-05) = 0.4436 Return on Net Assets (RONA) = PBIT/ Net Assets = 1583.65/3253.43 (2003-04) = 0.487
(B) On the basis of Investment iii) Return on Equity (ROE) = PAT/ Net Worth = 1904.38/5241.73 (2004-05) = 0.363 Return on Equity (ROE) = PAT/ Net Worth = 1243.47/3253.43 (2003-04) = 0.382
Figures from ASIANCERC 2004-05 36.33% 2003-04 38.22%
Industry Comparison
Infosys
Operating Margin (%) Net Profit Margin (%) Reported Return On Net Worth (%) 36.33 Mar ' 05 33.91 Mar ' 04 33.27 25.53 38.22 Mar ' 03 35.13 25.85 33.48 Mar ' 02 39.88 30.41 38.83 Mar ' 01 40.27 32.41 45.25 Mar ' 00 39.46 31.37 34.31
Satyam
Operating Margin (%) Net Profit Margin (%) Reported Return On Net Worth (%)
Mar ' 05
25.69 21.03 23.32
Mar ' 04
27.29 21.08 21.53
Mar ' 03
30.56 14.94 14.4
Mar ' 02
33.51 28.03 25.39
Mar ' 01
36.48 39.75 59.82
Mar ' 00
36.36 20.1 38.52
Wipro
Operating Margin (%)
Mar ' 05 25.64
Mar ' 04 22.24
Mar ' 03 24.82
Mar ' 02 28.2
Mar ' 01 25.96
Mar ' 00 18.28
Net Profit Margin (%)
Reported Return On Net Worth (%)
20.45
30.55
17.51
26.08
20.19
24.41
24.5
34.19
21.46
35.42
10.74
38.35
Thank You !!
doc_582695870.ppt
It also provides a comparison of the profitability ratios of other companies in the IT industry.
Profitability Ratios
Important Figures
2005 Sales (Revenue) Profits: 6859.66 2004 4760.89
Gross Profit
Operating Profit Net Profit Total Assets Net Assets Net Worth
3204.73
2325.11 1904.38 6587.77 5241.73 5241.73
2265.58
1352.75 1243.47 4997.05 3253.43 3253.43
(all figures are in Rs. crore)
Profitability Ratios
(A) On the basis of Sales
Profit / sales
(B) On the basis of investment
Profit / Assets(Equity)
(A) On the basis of Sales i) Gross Profit Margin = Gross Profit / Sales = 3204.73 / 6859.66 (2004-05) = 0.467 Gross Profit Margin = Gross Profit / Sales = 2265.58 / 4760.89 (2003-04) = 0.476
(A) On the basis of Sales
ii) Operating Profit Margin = Operating Profit / Sales = 2325.11/6859.66 (2004-05) = 0.338
Operating Profit Margin = Operating Profit / Sales = 1583.65/4760.89 (2003-04) = 0.3326
Figures from ASIANCERC 2004-05 33.91% 2003-04 33.27%
(A) On the basis of Sales iii) Net Profit Margin = Net Profit / Sales = 1904.38/6859.66 (2004-05) = 0.277
Net Profit Margin = Net Profit / Sales = 1243.47/4760.89 (2003-04) = 0.261
Figures from ASIANCERC 2004-05 26.94% 2003-04 25.53%
(B) On the basis of Investment i) Return on Total Assets (ROTA) = PBIT/Total Assets = 2325.11/6587.77 (2004-05) = 0.353 Return on Total Assets (ROTA) = PBIT/Total Assets = 1583.65/4997.09 (2003-04) = 0.317
(B) On the basis of Investment ii) Return on Net Assets (RONA) = PBIT/ Net Assets = 2325.11/5241.73 (2004-05) = 0.4436 Return on Net Assets (RONA) = PBIT/ Net Assets = 1583.65/3253.43 (2003-04) = 0.487
(B) On the basis of Investment iii) Return on Equity (ROE) = PAT/ Net Worth = 1904.38/5241.73 (2004-05) = 0.363 Return on Equity (ROE) = PAT/ Net Worth = 1243.47/3253.43 (2003-04) = 0.382
Figures from ASIANCERC 2004-05 36.33% 2003-04 38.22%
Industry Comparison
Infosys
Operating Margin (%) Net Profit Margin (%) Reported Return On Net Worth (%) 36.33 Mar ' 05 33.91 Mar ' 04 33.27 25.53 38.22 Mar ' 03 35.13 25.85 33.48 Mar ' 02 39.88 30.41 38.83 Mar ' 01 40.27 32.41 45.25 Mar ' 00 39.46 31.37 34.31
Satyam
Operating Margin (%) Net Profit Margin (%) Reported Return On Net Worth (%)
Mar ' 05
25.69 21.03 23.32
Mar ' 04
27.29 21.08 21.53
Mar ' 03
30.56 14.94 14.4
Mar ' 02
33.51 28.03 25.39
Mar ' 01
36.48 39.75 59.82
Mar ' 00
36.36 20.1 38.52
Wipro
Operating Margin (%)
Mar ' 05 25.64
Mar ' 04 22.24
Mar ' 03 24.82
Mar ' 02 28.2
Mar ' 01 25.96
Mar ' 00 18.28
Net Profit Margin (%)
Reported Return On Net Worth (%)
20.45
30.55
17.51
26.08
20.19
24.41
24.5
34.19
21.46
35.42
10.74
38.35
Thank You !!
doc_582695870.ppt