Comaparative Analysis of Cement Industry

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Comaparative Analysis of Cement Industry

  1. 1. A COMPREHENSIVE PROJECT ON “A Comparative Study on the Financial Performance of Cement Industry” Submitted to Anand Institute of Management IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ASMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Krishna Gor Assistant Prof. Submitted byJaynand Patalia Rupesh VasavaEnrollment No.:107020592058 Enrollment No.:107020592056 MBA SEMESTER III/IV Anand Institute of Management MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad December, 2011
  2. 2. CERTIFICATE
  3. 3. TABLE OF CONTENTSPREFACEACKNOWLEDGEMENTDECLARATIONEXECUTIVE SUMMARYSR. NO. PARTICULAR PAGE NO. PART – I INDUSTRY STUDY1. OVERVIEW OF CEMENT INDUSTRY 12. PRODUCT PROFILE `53. DEMAND DETERMINATION 94. PLAYERS IN THE INDUSTRY 125. DISTRIBUTION CHANNELS 146. KEY ISSUES AND CURRENT TRENDS 157. LITERATURE REVIEW 188. OBJECTIVES OF THE STUDY 199. PESTEL ANALYSIS OF THE INDUSTRY 2110. PORTERS FIVE FORCE MODEL 23 PART – II COMPANY STUDY11. OVERVIEW OF THE COMPANIES 2412. PRODUCT PROFILE 3313. FINANCIAL ANALYSIS 3414. SWOT ANALYSIS OF AMBUJA CEMENT 4415. SWOT ANALYSIS OF BINANI CEMENT 4516. COMPARATIVE ANALYSIS OF THE COMPANIES 4717. FINDINGS AND CONCLUSIONS 61ANNEXTURESBBILIOGRAPHY
  4. 4. PREFACE“Experience is the best teacher.” This saying plays a guiding line in our lives andalso in project reports that are an integral part of the MBA programmed in Gujarattechnological University.Today’s age is an age of management. Management is the backbone of anyorganization or any activity done. The real success of management lies in applyingthe professional management techniques an all managerial activities.Hence, to attain this objective and to have the outlook of performance of the cementindustry and to analyze the emerging trends of the same in Indian Economy we haveundertaken the Comprehensive Project on “A Comparative Analysis of theFinancial Performance of the Cement Industry”.
  5. 5. ACKNOWLEDGEMENTNothing concrete can be achieved without an optimal combination ofinspiration and perspiration. No work can be accomplished without taking theguidance of the import. It is only the critiques for the ingenious intellectualthat helps transform a product into a quality product.A project is a major milestone during the study period of a student. As such thisproject was a challenge to us and was an opportunity to prove our caliber. It wouldnot have been possible to see through the undertaken project without the guidanceof Prof. KRISHNA GOR. It was purely on the basis of her experience andknowledge that we were able to clear all the theoretical and technical hurdles duringthe development phases of this project work.I even show my gratitude towards Dr. N.N. Patel, Director, AIM, ANAND and myfaculty guide Prof Krishna Gor without whose support my project would not bepossible to complete.I have been able to prepare my report successfully and I acknowledge a specialthanks to all those people without whose support it was impossible for me to makethe project report.
  6. 6. DECLARATIONWe, JAYNAND PATALIA AND RUPESH VASAVA, hereby declare that theReport for Comprehensive Project entitled“A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF CEMENTINDUSTRY WITH SPECIAL REFRENCE”Is a result of our own work and our indebtedness to other work publicationsReferences, if any, have been duly acknowledged.Place:Date: JAYNAND PATALIA RUPESH VASAVA
  7. 7. EXECUTIVE SUMMARYThe title of the comprehensive project is “A Comparative Analysis of FinancialPerformance of Cement Industry”. Comparative analysis study helps indetermining the various financial studies of the companies. Comparative studyshows the relation between the companies as well as relation between the variousindustries of the economy.Thus, we selected this title for the comparative study of companies in cementindustry. We have selected the following two companies for the study of thecomparative analysis of financial performance of the cement industry in India. 1) AMBUJA CEMENT LTD. 2) BINANI CEMENT LTD.The companies have been chosen based on market share, production capacity andnet profits for the previous years. Both the companies are the leading producer in thecement industry in India.The cement industry is the leading industry in India which is having a very highgrowth rate. Cement Industry of India is the world’s second largest producer ofcement products after China. Thus, Indian cement industries in India have a veryhigh growth rate and it contributes very high percentage to the GDP of IndianEconomy.
  8. 8. LIST OF TABLESSr. No. PARTICULARS TABLE NO. PAGE NO.1. GROWTH OF CEMENT 1 4 DEMAND2. DEMAND DETERMINATION 2 103. MAJOR PLAYERS IN NORTH 3 124. MAJOR PLAYERS IN SOUTH 4 13 RATIOS ANALYSIS5. OPERATING PROFIT MARGIN 5 346. GROSS PROFIT MARGIN 6 357. NET PROFIT MARGIN 7 358. CURRENT RATIO 8 369. QUICK RATIO 9 3610. DEBT EQUITY RATIO 10 3711. INVENTORY TURNOVER RATIO 11 3812. DEBTORS TURNOVER RATIO 12 3813. ASSET TURNOVER RATIO 13 39 DUPONT ANALYSIS14. AMBUJA CEMENT 14 4015. BINANI CEMENT 15 42 COMPARATIVE ANALYSIS16. RETURN ON NET ASSET 16 4717. RETURN ON EQUITY 17 4818. RETURN ON PROFIT MARGIN 18 4919. FINANCIAL LEVERAGE (I/S) 19 5020. FINANICIAL LEVERAGE (B/S) 20 5121. RATIO ANALYSIS 21 52,53,54,55,56, 57,58,59,60
  9. 9. LIST OF GRAPHSSr. No. PARTICULARS GRAPH NO. PAGE NO.1. PROCESS WISE 1 82. DEMAND DETERMINATION 2 103. CAPCITY DISTRIBUTION 3 114. MAJOR PLAYERS IN NORTH 4 125. MAJOR PLAYERS IN SOUTH 5 13 COMPARATIVE ANALYSIS6. RETURN ON NET ASSETS 6 477. RETURN ON EQUITY 7 488. RETURN ON PROFIT MARGIN 8 499. FINANCIAL LEVERAGE (I/S) 9 5010. FINANCIAL LEVERAGE (B/S) 10 5111. GROSS PROFIT MARGIN 11 5212. OPERATING PROFIT MARGIN 12 5313 NET PROFIT MARGIN 13 5414. CURRENT RATIO 14 5515. QUICK RATIO 15 5616. DEBT EQUITY RATIO 16 5717. INVENTORY TURNOVER RATIO 17 5818. DEBTORS TURNOVER RATIO 18 5919. ASSETS TURNOVER RATIO 19 60 LIST OF DIAGRAMS
  10. 10. Sr. No. PARTICULARS DIAGRAM NO. PAGE NO.1. CEMENT MANUFACTURING 1 7 PROCESS2. PORTER’S FIVE FORCE MODEL 2 233. DUPONT ANALYSIS(AMBUJA 3 41 CEMENT)4. DUPONT ANALYSIS(BINANI 4 43 CEMENT)
  11. 11. PART-1 INDUSTRY STUDY
  12. 12. PART-2 COMPANY STUDY ANNEXTURES
  13. 13. BALANCE SHEET AND PROFIT AND LOSSBalance Sheet of Ambuja ------------------- in Rs. Cr. -------------------Cements Dec 11 Dec 10 Dec 09 Dec 08 Dec 07 12 mths 12 mths 12 mths 12 mths 12 mthsSources Of FundsTotal Share Capital 306.87 305.97 304.74 304.52 304.48Equity Share Capital 306.87 305.97 304.74 304.52 304.48Share Application Money 32.12 1.34 0.24 0.34 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 7,730.45 7,022.79 6,165.92 5,368.01 4,356.77Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 8,069.44 7,330.10 6,470.90 5,672.87 4,661.25Secured Loans 0.00 0.00 100.00 100.00 100.00Unsecured Loans 49.36 65.03 65.70 188.67 230.42Total Debt 49.36 65.03 165.70 288.67 330.42Total Liabilities 8,118.80 7,395.13 6,636.60 5,961.54 4,991.67 Dec 11 Dec 10 Dec 09 Dec 08 Dec 07 12 mths 12 mths 12 mths 12 mths 12 mthsApplication Of FundsGross Block 9,702.29 8,778.82 6,224.13 5,706.94 5,231.05Less: Accum. Depreciation 3,515.83 3,151.07 2,784.09 2,514.19 2,271.19Net Block 6,186.46 5,627.75 3,440.04 3,192.75 2,959.86Capital Work in Progress 577.28 930.70 2,714.43 1,947.22 696.79Investments 864.31 625.95 727.01 332.39 1,288.94Inventories 924.97 901.86 683.24 939.75 581.60Sundry Debtors 240.85 128.18 152.20 224.60 145.68Cash and Bank Balance 175.43 198.40 116.64 123.73 114.94Total Current Assets 1,341.25 1,228.44 952.08 1,288.08 842.22Loans and Advances 674.03 422.61 292.65 351.82 237.04Fixed Deposits 1,895.80 1,549.77 764.04 728.11 535.85Total CA, Loans & Advances 3,911.08 3,200.82 2,008.77 2,368.01 1,615.11Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 2,314.49 1,893.98 1,582.32 1,412.55 1,081.70Provisions 1,106.11 1,096.57 674.04 470.56 493.55Total CL & Provisions 3,420.60 2,990.55 2,256.36 1,883.11 1,575.25Net Current Assets 490.48 210.27 -247.59 484.90 39.86Miscellaneous Expenses 0.27 0.46 2.71 4.28 6.22Total Assets 8,118.80 7,395.13 6,636.60 5,961.54 4,991.67Contingent Liabilities 749.28 754.38 647.12 1,224.42 1,193.08Book Value (Rs) 52.38 47.90 42.47 37.26 30.62
  14. 14. Balance Sheet of Ambuja ------------------- in Rs. Cr. -------------------Cements Dec 06 Jun 05 Jun 04 Jun 03 Jun 02 18 mths 12 mths 12 mths 12 mths 12 mthsSources Of FundsTotal Share Capital 303.37 270.38 179.40 155.30 155.17Equity Share Capital 303.37 270.38 179.40 155.30 155.17Share Application Money 1.14 0.03 0.07 0.09 18.16Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 3,187.21 1,908.01 1,842.29 1,461.25 1,449.32Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 3,491.72 2,178.42 2,021.76 1,616.64 1,622.65Secured Loans 317.77 549.33 649.78 845.00 1,191.15Unsecured Loans 547.61 578.12 619.90 906.28 592.00Total Debt 865.38 1,127.45 1,269.68 1,751.28 1,783.15Total Liabilities 4,357.10 3,305.87 3,291.44 3,367.92 3,405.80 Dec 06 Jun 05 Jun 04 Jun 03 Jun 02 18 mths 12 mths 12 mths 12 mths 12 mthsApplication Of FundsGross Block 4,542.50 3,709.17 3,658.07 2,957.93 2,855.43Less: Accum. Depreciation 2,053.32 1,463.93 1,284.14 1,012.04 847.81Net Block 2,489.18 2,245.24 2,373.93 1,945.89 2,007.62Capital Work in Progress 634.93 118.10 124.29 66.06 44.64Investments 1,133.12 1,125.06 1,010.97 1,101.71 1,132.05Inventories 408.82 317.00 254.28 224.20 208.37Sundry Debtors 89.95 45.84 42.71 45.94 39.01Cash and Bank Balance 172.36 86.27 68.52 30.61 50.47Total Current Assets 671.13 449.11 365.51 300.75 297.85Loans and Advances 313.03 145.10 171.84 522.86 364.38Fixed Deposits 205.74 0.26 0.31 0.27 0.26Total CA, Loans & Advances 1,189.90 594.47 537.66 823.88 662.49Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 929.06 676.70 692.96 499.85 410.98Provisions 168.68 106.77 71.34 74.31 34.30Total CL & Provisions 1,097.74 783.47 764.30 574.16 445.28Net Current Assets 92.16 -189.00 -226.64 249.72 217.21Miscellaneous Expenses 7.71 6.47 8.89 4.54 4.28Total Assets 4,357.10 3,305.87 3,291.44 3,367.92 3,405.80Contingent Liabilities 506.71 332.70 194.57 190.41 270.47Book Value (Rs) 23.01 16.11 112.69 104.08 103.39
  15. 15. Profit & Loss account of ------------------- in Rs. Cr. -------------------Ambuja Cements Dec 11 Dec 10 Dec 09 Dec 08 Dec 07 12 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 9,601.42 8,286.20 7,763.93 7,089.89 6,469.68Excise Duty 1,128.28 914.68 680.72 907.80 798.29Net Sales 8,473.14 7,371.52 7,083.21 6,182.09 5,671.39Other Income 234.38 214.58 180.41 468.18 965.04Stock Adjustments -57.00 54.28 -49.44 62.62 58.79Total Income 8,650.52 7,640.38 7,214.18 6,712.89 6,695.22ExpenditureRaw Materials 1,652.18 1,475.20 1,642.09 1,251.08 953.32Power & Fuel Cost 2,006.34 1,697.34 1,422.75 1,325.69 1,004.20Employee Cost 425.46 344.91 274.29 266.94 209.46Other Manufacturing Expenses 254.06 227.03 161.66 145.61 124.50Selling and Admin Expenses 1,865.09 1,633.14 1,426.15 1,276.80 1,254.41Miscellaneous Expenses 256.20 199.42 202.19 215.64 140.63Preoperative Exp Capitalised -6.74 -11.36 -19.33 -21.19 -9.47Total Expenses 6,452.59 5,565.68 5,109.80 4,460.57 3,677.05 Dec 11 Dec 10 Dec 09 Dec 08 Dec 07 12 mths 12 mths 12 mths 12 mths 12 mthsOperating Profit 1,963.55 1,860.12 1,923.97 1,784.14 2,053.13PBDIT 2,197.93 2,074.70 2,104.38 2,252.32 3,018.17Interest 52.63 48.69 22.43 32.06 75.85PBDT 2,145.30 2,026.01 2,081.95 2,220.26 2,942.32Depreciation 445.15 387.19 296.99 259.76 236.34Other Written Off 0.19 0.61 1.57 1.72 0.47Profit Before Tax 1,699.96 1,638.21 1,783.39 1,958.78 2,705.51Extra-ordinary items 92.08 64.22 26.52 11.28 -194.92PBT (Post Extra-ord Items) 1,792.04 1,702.43 1,809.91 1,970.06 2,510.59Tax 541.46 435.55 585.14 567.79 741.49Reported Net Profit 1,228.86 1,263.61 1,218.37 1,402.27 1,769.10Total Value Addition 4,800.41 4,090.48 3,467.71 3,209.49 2,723.73Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 490.69 397.22 365.59 334.97 532.65Corporate Dividend Tax 79.60 65.27 62.13 56.92 90.52Per share data (annualised)Shares in issue (lakhs) 15,343.69 15,298.59 15,237.11 15,225.99 15,223.75Earning Per Share (Rs) 8.01 8.26 8.00 9.21 11.62Equity Dividend (%) 160.00 130.00 120.00 110.00 175.00Book Value (Rs) 52.38 47.90 42.47 37.26 30.62
  16. 16. Profit & Loss account of ------------------- in Rs. Cr. -------------------Ambuja Cements Dec 06 Jun 05 Jun 04 Jun 03 Jun 02 18 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 7,022.59 3,025.84 2,305.18 2,025.10 1,582.63Excise Duty 796.31 428.79 343.05 290.58 198.85Net Sales 6,226.28 2,597.05 1,962.13 1,734.52 1,383.78Other Income 111.07 70.51 71.84 68.48 32.74Stock Adjustments -10.92 6.97 11.27 4.39 -12.79Total Income 6,326.43 2,674.53 2,045.24 1,807.39 1,403.73ExpenditureRaw Materials 1,007.07 435.52 337.45 307.97 228.98Power & Fuel Cost 1,239.87 678.40 463.63 430.60 323.99Employee Cost 235.98 106.44 88.68 68.86 49.87Other Manufacturing Expenses 185.59 92.97 71.68 60.92 42.87Selling and Admin Expenses 1,273.55 502.01 408.14 335.16 218.53Miscellaneous Expenses 122.96 61.77 55.95 56.60 52.90Preoperative Exp Capitalised -10.82 -3.43 0.00 0.00 0.00Total Expenses 4,054.20 1,873.68 1,425.53 1,260.11 917.14 Dec 06 Jun 05 Jun 04 Jun 03 Jun 02 18 mths 12 mths 12 mths 12 mths 12 mthsOperating Profit 2,161.16 730.34 547.87 478.80 453.85PBDIT 2,272.23 800.85 619.71 547.28 486.59Interest 113.23 91.77 114.22 126.62 117.67PBDT 2,159.00 709.08 505.49 420.66 368.92Depreciation 326.12 195.41 168.61 171.64 137.82Other Written Off 1.07 0.94 0.70 1.00 0.76Profit Before Tax 1,831.81 512.73 336.18 248.02 230.34Extra-ordinary items 10.17 6.08 47.59 5.81 -6.32PBT (Post Extra-ord Items) 1,841.98 518.81 383.77 253.83 224.02Tax 338.73 50.52 46.98 31.74 45.12Reported Net Profit 1,503.25 468.29 336.79 221.73 186.15Total Value Addition 3,047.13 1,438.16 1,088.08 952.14 688.15Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 461.24 189.16 142.07 108.71 93.11Corporate Dividend Tax 64.69 26.54 18.34 13.93 0.00Per share data (annualised)Shares in issue (lakhs) 15,168.29 13,518.83 1,794.00 1,553.18 1,551.90Earning Per Share (Rs) 9.91 3.46 18.77 14.28 11.99Equity Dividend (%) 165.00 90.00 80.00 70.00 60.00Book Value (Rs) 23.01 16.11 112.69 104.08 103.39
  17. 17. Balance Sheet of Binani ------------------- in Rs. Cr. -------------------Cement Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 12 mths 12 mths 12 mths 12 mths 12 mthsSources Of FundsTotal Share Capital 188.60 203.10 203.10 203.10 203.10Equity Share Capital 188.60 203.10 203.10 203.10 203.10Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 390.42 472.05 273.30 214.54 98.12Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Net worth 579.02 675.15 476.40 417.64 301.22Secured Loans 1,025.44 922.96 740.20 732.33 658.77Unsecured Loans 210.14 60.14 38.14 38.14 32.23Total Debt 1,235.58 983.10 778.34 770.47 691.00Total Liabilities 1,814.60 1,658.25 1,254.74 1,188.11 992.22 Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 12 mths 12 mths 12 mths 12 mths 12 mthsApplication Of FundsGross Block 1,897.03 1,800.51 1,588.68 1,445.39 839.99Less: Accum. Depreciation 641.25 552.82 471.19 397.11 347.03Net Block 1,255.78 1,247.69 1,117.49 1,048.28 492.96Capital Work in Progress 122.21 100.01 202.30 171.47 517.37Investments 546.12 374.57 211.30 46.77 0.00Inventories 161.84 169.98 212.54 217.44 57.25Sundry Debtors 0.00 0.00 0.00 0.01 0.24Cash and Bank Balance 137.28 165.49 70.94 43.28 27.53Total Current Assets 299.12 335.47 283.48 260.73 85.02Loans and Advances 291.46 262.09 184.79 188.72 179.43Fixed Deposits 93.19 143.95 16.27 52.65 20.17Total CA, Loans & Advances 683.77 741.51 484.54 502.10 284.62Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 736.62 673.96 691.10 498.21 241.37Provisions 56.67 131.56 69.80 82.32 61.35Total CL & Provisions 793.29 805.52 760.90 580.53 302.72Net Current Assets -109.52 -64.01 -276.36 -78.43 -18.10Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00Total Assets 1,814.59 1,658.26 1,254.73 1,188.09 992.23Contingent Liabilities 462.92 420.75 127.10 392.38 156.98Book Value (Rs) 30.70 33.24 23.46 20.56 14.83
  18. 18. Balance Sheet of Binani ------------------- in Rs. Cr. -------------------Cement Mar 06 Mar 05 Mar 04 Mar 03 Mar 02 12 mths 12 mths 12 mths 12 mths 12 mthsSources Of FundsTotal Share Capital 203.10 217.07 217.07 217.07 422.91Equity Share Capital 203.10 217.07 217.07 217.07 422.91Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 50.04 17.74 3.79 0.33 -138.74Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 253.14 234.81 220.86 217.40 284.17Secured Loans 534.36 487.86 413.56 407.79 367.90Unsecured Loans 0.00 9.90 1.65 0.00 0.00Total Debt 534.36 497.76 415.21 407.79 367.90Total Liabilities 787.50 732.57 636.07 625.19 652.07 Mar 06 Mar 05 Mar 04 Mar 03 Mar 02 12 mths 12 mths 12 mths 12 mths 12 mthsApplication Of FundsGross Block 803.95 791.95 767.89 745.56 732.24Less: Accum. Depreciation 308.07 266.99 228.68 189.70 150.49Net Block 495.88 524.96 539.21 555.86 581.75Capital Work in Progress 100.02 5.16 5.06 2.58 1.57Investments 0.00 23.09 23.25 23.25 23.16Inventories 33.55 33.60 39.59 40.03 39.86Sundry Debtors 0.23 0.43 0.78 0.79 2.01Cash and Bank Balance 15.66 8.81 8.82 14.64 16.49Total Current Assets 49.44 42.84 49.19 55.46 58.36Loans and Advances 153.54 222.25 86.18 57.17 70.88Fixed Deposits 87.10 0.00 0.00 0.00 0.00Total CA, Loans & Advances 290.08 265.09 135.37 112.63 129.24Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 78.64 83.48 66.82 69.12 83.65Provisions 19.83 2.24 0.00 0.00 0.00Total CL & Provisions 98.47 85.72 66.82 69.12 83.65Net Current Assets 191.61 179.37 68.55 43.51 45.59Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00Total Assets 787.51 732.58 636.07 625.20 652.07Contingent Liabilities 427.12 3.20 0.00 0.00 0.00Book Value (Rs) 12.46 10.82 10.17 10.02 6.72
  19. 19. Profit & Loss account of ------------------- in Rs. Cr. -------------------Binani Cement Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 12 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 1,983.67 2,069.10 1,716.78 1,149.98 783.59Excise Duty 255.17 211.22 220.24 186.94 105.15Net Sales 1,728.50 1,857.88 1,496.54 963.04 678.44Other Income 13.73 12.93 -14.39 6.17 -1.31Stock Adjustments -13.70 -48.87 23.25 56.24 6.53Total Income 1,728.53 1,821.94 1,505.40 1,025.45 683.66ExpenditureRaw Materials 265.37 252.35 200.14 129.89 91.74Power & Fuel Cost 512.96 429.85 535.99 235.56 142.03Employee Cost 41.27 34.35 29.39 25.50 18.78Other Manufacturing Expenses 76.05 67.57 52.79 32.39 21.29Selling and Admin Expenses 496.85 403.40 354.47 236.39 165.10Miscellaneous Expenses 50.83 36.43 22.91 13.21 7.99Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 1,443.33 1,223.95 1,195.69 672.94 446.93 Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 12 mths 12 mths 12 mths 12 mths 12 mthsOperating Profit 271.47 585.06 324.10 346.34 238.04PBDIT 285.20 597.99 309.71 352.51 236.73Interest 103.44 78.51 71.52 46.47 32.62PBDT 181.76 519.48 238.19 306.04 204.11Depreciation 99.50 91.66 80.31 55.67 43.46Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 82.26 427.82 157.88 250.37 160.65Extra-ordinary items 11.73 -12.84 0.00 0.00 0.00PBT (Post Extra-ord Items) 93.99 414.98 157.88 250.37 160.65Tax 3.22 126.86 45.89 69.02 60.96Reported Net Profit 90.51 281.92 108.67 175.82 95.61Total Value Addition 1,177.95 971.60 995.56 543.04 355.19Preference Dividend 0.00 0.00 0.00 0.00 40.62Equity Dividend 47.15 71.09 42.65 50.78 0.00Corporate Dividend Tax 7.65 12.08 7.25 8.63 6.90Per share data (annualised)Shares in issue (lakhs) 1,886.01 2,031.01 2,031.01 2,031.01 2,031.01Earnings Per Share (Rs) 4.80 13.88 5.35 8.66 2.71Equity Dividend (%) 25.00 35.00 21.00 25.00 0.00Book Value (Rs) 30.70 33.24 23.46 20.56 14.83
  20. 20. Profit & Loss account of ------------------- in Rs. Cr. -------------------Binani Cement Mar 06 Mar 05 Mar 04 Mar 03 Mar 02 12 mths 12 mths 12 mths 12 mths 12 mthsIncomeSales Turnover 584.65 529.74 462.68 441.08 433.60Excise Duty 94.37 90.94 87.69 74.81 67.34Net Sales 490.28 438.80 374.99 366.27 366.26Other Income 0.85 -4.38 4.12 3.06 2.84Stock Adjustments -3.60 -6.37 0.00 0.00 0.00Total Income 487.53 428.05 379.11 369.33 369.10ExpenditureRaw Materials 72.20 64.39 46.84 45.20 35.43Power & Fuel Cost 137.49 127.89 0.00 0.00 0.00Employee Cost 15.09 13.56 13.19 12.24 10.93Other Manufacturing Expenses 20.97 19.02 119.30 119.49 116.51Selling and Admin Expenses 94.65 86.60 0.00 0.00 0.00Miscellaneous Expenses 8.65 9.78 98.00 94.44 98.91Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 349.05 321.24 277.33 271.37 261.78 Mar 06 Mar 05 Mar 04 Mar 03 Mar 02 12 mths 12 mths 12 mths 12 mths 12 mthsOperating Profit 137.63 111.19 97.66 94.90 104.48PBDIT 138.48 106.81 101.78 97.96 107.32Interest 34.17 52.35 56.02 56.34 61.73PBDT 104.31 54.46 45.76 41.62 45.59Depreciation 42.91 42.00 41.28 40.59 39.48Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 61.40 12.46 4.48 1.03 6.11Extra-ordinary items 0.00 0.00 -0.67 -0.80 -1.03PBT (Post Extra-ord Items) 61.40 12.46 3.81 0.23 5.08Tax 5.12 0.55 0.34 0.00 0.00Reported Net Profit 52.96 6.45 4.13 1.03 6.13Total Value Addition 276.84 256.85 230.49 226.17 226.35Preference Dividend 10.06 0.00 0.00 0.00 0.00Equity Dividend 0.00 0.00 0.00 0.00 0.00Corporate Dividend Tax 1.41 0.00 0.00 0.00 0.00Per share data (annualised)Shares in issue (lakhs) 2,031.01 2,170.68 2,170.70 2,170.70 4,229.10Earning Per Share (Rs) 2.11 0.30 0.19 0.05 0.14Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00Book Value (Rs) 12.46 10.82 10.17 10.02 6.72
  21. 21. BIBLIOGRAPHY Books I. M. Pandey, Financial Management, Vikas Publishing Pvt, Ltd, and (9th Edition). Websites http://dipp.nic.in/English/Performance_Cement_Industry http://www.slideshare.net/shonethattil/indian-cement-industry- report http://newsletters.cii.in/newsletters/mailer/trade_talk/pdf/Cement% 20Industry%20in%20India-%20Trade%20Perspectives http://www.nseindia.com/content/ncfm/EDBM_workbook.pdf www.ambujacement.com http://www.binaniindustries.com/group-companies/binani- industries/profile.asp http://www.scribd.com/doc/19102170/A-case-study-on-Ambuja- Cement Other Materials  Annual report of the company  Balance Sheet

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