CADILA HEALTHCARE LIMITED: Financial Statement Analysis
The next three worksheets give the company's balance sheet (BS), profit and loss statement (P&L) and per share data for five years. You need to comment on the company's financial performance. Specifically, comment on the company's efficiency in utilising assets, liquidity position, capital structure and profitability. Also, comment on the company's performance in the stock market. The company earned ROE of 6.5% in 2000 which increased to 26.5% in 2004. How has ROE been influenced by assets utilisation, profit margin, and leverage factor (tax and financial)? Hint: You may calculate the following ratios Sales/Capital Employed (CE) or Net Assets (NA) PBIT/Sales PBIT/CE PBT/PBIT PAT/PBT PAT/PBIT CE/NW Leverage factor (PAT/PBIT *CE/NW) ROE EBITDA/NA (CE) M/B P/E Dividend yield (DPS/share price) Earnings yield (EPS/Share price)
CADILA HEALTHCARE LIMITED Balance Sheet as on 31 March (Rs crore) LIABILITIES Net worth Paid-up equity capital Reserves & surplus Borrowings Deferred tax liabilities Current liabilities & provisions Sundry creditors Other current liabilities Provisions Total liabilities ASSETS Gross fixed assets Land & building Plant & machinery Other fixed assets Capital WIP Less: cummulative depreciation Net fixed assets Investments Deferred tax assets Inventories Raw materials and stores Finished goods Semi-finished goods Receivables Sundry debtors Others Cash & bank balance Intangible / DRE not written off Total assets 2000 29.77 475.77 505.54 228.93 0.00 75.87 18.98 19.38 114.23 848.70 2001 29.77 512.65 542.42 52.09 0.00 66.92 6.20 23.62 96.74 691.25 2002 29.80 522.20 552.00 266.30 39.50 75.90 9.20 25.30 110.40 968.20 2003 31.40 429.80 461.20 442.90 90.50 155.80 16.50 37.00 209.30 1,203.90
65.94 117.87 27.34 24.93 236.08 20.98 215.10 10.09 0.00 27.78 32.81 10.11 70.70 59.13 62.31 121.44 378.66 54.71 850.70
77.87 144.18 34.66 24.69 281.40 33.52 247.88 176.64 0.00 27.94 39.90 15.90 83.74 51.61 74.98 126.59 41.87 16.53 693.25
82.30 183.90 30.70 45.20 342.10 48.10 294.00 188.00 0.20 30.90 47.40 27.40 105.70 66.90 218.50 285.40 5.70 89.20 968.20
222.00 296.30 47.10 29.00 594.40 113.40 481.00 90.00 4.80 65.30 71.90 38.40 175.60 136.80 82.60 219.40 9.00 224.10 1,203.90
2004 31.40 508.10 539.50 405.70 107.20 164.60 17.30 57.10 239.00 1,291.40
206.50 338.60 50.00 41.60 636.70 136.10 500.60 144.10 9.80 56.10 70.30 33.90 160.30 165.90 70.10 236.00 37.20 203.40 1,291.40
Rs. Crore Income Sales Expenditure Raw materials, stores, etc. Wages & salaries Energy (power & fuel) Indirect taxes (excise, etc.) Advertising & marketing expenses Distribution expenses Others Total Change in stocks Total expenditure Operating income Other net income (including non-recurring) PBDIT (EBITDA) Financial charges (incl. lease rent) PBDT Depreciation PBT Tax provision PAT Appropriation of profits Dividends Retained earnings
CADILA HEALTHCARE LIMITED Profit & loss account for the year ending on 31 March Mar 2000 Mar 2001 Mar 2002 477.75 248.09 39.63 6.19 29.89 36.49 7.17 42.00 409.46 -0.92 410.38 67.37 6.16 73.53 20.73 52.80 9.86 42.94 5.25 37.69 15.57 22.12 508.79 234.13 50.24 8.65 56.29 37.26 7.95 51.07 445.59 12.88 432.71 76.08 22.96 99.04 13.64 85.40 14.33 71.07 5.50 65.57 19.95 45.62 588.80 276.50 55.30 11.10 60.80 54.60 8.30 52.10 518.70 19.00 499.70 89.10 21.30 110.40 16.50 93.90 18.80 75.10 8.00 67.10 20.90 46.20
Mar 2003 1,028.20 450.60 100.40 19.60 94.60 85.80 12.00 112.00 875.00 9.10 865.90 162.30 24.00 186.30 43.70 142.60 38.20 104.40 27.80 76.60 24.80 51.80
Mar 2004 1,172.30 483.80 124.90 18.10 81.40 100.40 13.30 178.90 1,000.80 -7.20 1,008.00 164.30 82.40 246.70 28.50 218.20 53.10 165.10 22.20 142.90 42.50 100.40
(Rs) Share Price EPS BV per Share DPS
CADILA HEALTHCARE LIMITED 2000 2001 2002 130.00 127.95 130.05 6.33 9.64 11.27 84.91 90.51 92.70 2.32 3.00 3.49
2003 123.50 12.87 77.18 3.69
2004 454.20 22.75 85.90 6.00
doc_290814363.xls
The next three worksheets give the company's balance sheet (BS), profit and loss statement (P&L) and per share data for five years. You need to comment on the company's financial performance. Specifically, comment on the company's efficiency in utilising assets, liquidity position, capital structure and profitability. Also, comment on the company's performance in the stock market. The company earned ROE of 6.5% in 2000 which increased to 26.5% in 2004. How has ROE been influenced by assets utilisation, profit margin, and leverage factor (tax and financial)? Hint: You may calculate the following ratios Sales/Capital Employed (CE) or Net Assets (NA) PBIT/Sales PBIT/CE PBT/PBIT PAT/PBT PAT/PBIT CE/NW Leverage factor (PAT/PBIT *CE/NW) ROE EBITDA/NA (CE) M/B P/E Dividend yield (DPS/share price) Earnings yield (EPS/Share price)
CADILA HEALTHCARE LIMITED Balance Sheet as on 31 March (Rs crore) LIABILITIES Net worth Paid-up equity capital Reserves & surplus Borrowings Deferred tax liabilities Current liabilities & provisions Sundry creditors Other current liabilities Provisions Total liabilities ASSETS Gross fixed assets Land & building Plant & machinery Other fixed assets Capital WIP Less: cummulative depreciation Net fixed assets Investments Deferred tax assets Inventories Raw materials and stores Finished goods Semi-finished goods Receivables Sundry debtors Others Cash & bank balance Intangible / DRE not written off Total assets 2000 29.77 475.77 505.54 228.93 0.00 75.87 18.98 19.38 114.23 848.70 2001 29.77 512.65 542.42 52.09 0.00 66.92 6.20 23.62 96.74 691.25 2002 29.80 522.20 552.00 266.30 39.50 75.90 9.20 25.30 110.40 968.20 2003 31.40 429.80 461.20 442.90 90.50 155.80 16.50 37.00 209.30 1,203.90
65.94 117.87 27.34 24.93 236.08 20.98 215.10 10.09 0.00 27.78 32.81 10.11 70.70 59.13 62.31 121.44 378.66 54.71 850.70
77.87 144.18 34.66 24.69 281.40 33.52 247.88 176.64 0.00 27.94 39.90 15.90 83.74 51.61 74.98 126.59 41.87 16.53 693.25
82.30 183.90 30.70 45.20 342.10 48.10 294.00 188.00 0.20 30.90 47.40 27.40 105.70 66.90 218.50 285.40 5.70 89.20 968.20
222.00 296.30 47.10 29.00 594.40 113.40 481.00 90.00 4.80 65.30 71.90 38.40 175.60 136.80 82.60 219.40 9.00 224.10 1,203.90
2004 31.40 508.10 539.50 405.70 107.20 164.60 17.30 57.10 239.00 1,291.40
206.50 338.60 50.00 41.60 636.70 136.10 500.60 144.10 9.80 56.10 70.30 33.90 160.30 165.90 70.10 236.00 37.20 203.40 1,291.40
Rs. Crore Income Sales Expenditure Raw materials, stores, etc. Wages & salaries Energy (power & fuel) Indirect taxes (excise, etc.) Advertising & marketing expenses Distribution expenses Others Total Change in stocks Total expenditure Operating income Other net income (including non-recurring) PBDIT (EBITDA) Financial charges (incl. lease rent) PBDT Depreciation PBT Tax provision PAT Appropriation of profits Dividends Retained earnings
CADILA HEALTHCARE LIMITED Profit & loss account for the year ending on 31 March Mar 2000 Mar 2001 Mar 2002 477.75 248.09 39.63 6.19 29.89 36.49 7.17 42.00 409.46 -0.92 410.38 67.37 6.16 73.53 20.73 52.80 9.86 42.94 5.25 37.69 15.57 22.12 508.79 234.13 50.24 8.65 56.29 37.26 7.95 51.07 445.59 12.88 432.71 76.08 22.96 99.04 13.64 85.40 14.33 71.07 5.50 65.57 19.95 45.62 588.80 276.50 55.30 11.10 60.80 54.60 8.30 52.10 518.70 19.00 499.70 89.10 21.30 110.40 16.50 93.90 18.80 75.10 8.00 67.10 20.90 46.20
Mar 2003 1,028.20 450.60 100.40 19.60 94.60 85.80 12.00 112.00 875.00 9.10 865.90 162.30 24.00 186.30 43.70 142.60 38.20 104.40 27.80 76.60 24.80 51.80
Mar 2004 1,172.30 483.80 124.90 18.10 81.40 100.40 13.30 178.90 1,000.80 -7.20 1,008.00 164.30 82.40 246.70 28.50 218.20 53.10 165.10 22.20 142.90 42.50 100.40
(Rs) Share Price EPS BV per Share DPS
CADILA HEALTHCARE LIMITED 2000 2001 2002 130.00 127.95 130.05 6.33 9.64 11.27 84.91 90.51 92.70 2.32 3.00 3.49
2003 123.50 12.87 77.18 3.69
2004 454.20 22.75 85.90 6.00
doc_290814363.xls