1. Analysis of Quarterly Results
Quarter IV : 2013-14
June 16, 2014
Prepared By: Parag Pitliya
Internal Audit Department
2. Contents at a Glance
2Internal Audit Department
Sr. No. Scheme of Presentation Slide No.
1 Overview 3
2 Types of analysis 4
3 Introduction of IPCA 5
4 Comparative Analysis 6-8
5 Ratios Analysis 9-14
6 Peer Review 15
7 Stock Market 16
8 Summary 17
3. Overview
Financial Statements
3Internal Audit Department
Statement of financial position( Balance Sheet)
Income Statement(Statement of Profit & Loss)
Cash flow statement
Statement of Changes in Equity
4. Types of Analysis
Types of Analysis
4Internal Audit Department
Comparative Analysis Ratio Analysis
• Current year’s IV Quarter to
last year’s IV Quarter
comparison
• IV Quarter to P.V. Year
comparison
• Current year to Last year
comparison
• Activity Ratio
• Profitability Ratio
• Return Ratio
• Liquidity Ratio
• Financial Ratio
• Shareholder Ratio
6. Comparative Analysis
6
Internal Audit Department
Rs. In CroreComparison of Quarter IV from last year Quarter IV
Particulars
2012-13
Quarter-IV
(Audited)
2013-14
Quarter-IV
(Audited)
Change
(In amount)
Change
(in %) Remarks
Total Income from operations 671.71 749.61 77.90 11.60% Favorable
change
Total operating Expenses 551.01 593.25 42.24 7.61% Favorable
change
Foreign exchange translation gain 7.77 18.19 10.42 134.10% Favorable
change
Profit from ordinary activities before
tax
125.51 174.5 48.99 39.03% Favorable
change
Net Profit for the period after tax 75.43 137.03 61.60 81.60% Favorable
change
Earning Per Share 5.98 10.86 4.88 81.60% Favorable
change
Major Heads of
St.of Profit &
Loss
7. Comparative Analysis
7Internal Audit Department
Comparison of Quarter IV from P.Y 2013-14 Rs. In Crore
Particulars
2013-14
(Audited)
2013-14
Quarter-IV
(Audited)
Standard
Share
(In %)
Actual
Share
(In %)
Remarks
Total Income from operations 3234.82 749.61 25% 23.17% Reasonable
Total operating Expenses 2530.48 593.25 25% 23.44% Reasonable
Foreign exchange translation
gain
72.10 18.19 25% 25.22% Reasonable
Profit from ordinary activities
before tax
629.09 174.5 25% 27.73% Reasonable
Net Profit for the period after
tax
477.37 137.03 25% 28.70% Reasonable
Major Heads of
St.of Profit &
Loss
8. Comparative Analysis
8Internal Audit Department
Comparison of P.Y. 2014 from P.Y. 2013 Rs. In Crore
Particulars
2012-13
(Audited)
2013-14
(Audited)
Change
(In amount)
Change
(in %) Remarks
Shareholders’
fund
1569.85 1981.61 411.76 26.22% Favorable change due to
increase in R/S by Rs 411.76cr
Non Current
Liability
509.21 454.10 (55.11) (10.88%) Company paid 75cr Long Term
Borrowing in 2013-14
Current Liability 629.69 781.39 151.70 24.09% Reasonable change
Non Current
Assets
1323.95 1633.55 309.60 33.38% Company purchased Fixed
assets amounting 365cr
Current Assets 1384.80 1583.55 198.75 14.35% Reasonable change
Major Heads of
Balance Sheet
9. Internal Audit Department 9
S.
No
Name Formula -------Ratio-------
2013 2014
Remarks
1 Inventory
Turnover Ratio
Cost of goods sold/
Inventory
1.48 1.44 Change is unfavorable
for Company, It should
be Increase
2 Total Assets
Turnover Ratio
Sales/ Total Assets 1.01 0.98 Change is unfavorable
for Company, It should
be Increase
3 Fixed Assets
Turnover Ratio
Sales/ Fixed Assets 2.27 2.16 Change is unfavorable
for Company, It should
be increase
Activity Ratios
Ratios Analysis
10. Internal Audit Department 10
S.
No
Name Formula -------------Ratio---------
2013 2014
Remarks
1 Gross Profit
Margin
Gross Income/
Sales
0.60 0.65 Favorable :-
G.P. Ratio
Increased by
8.33% in P.Y.
2013-14
2 Operating
Profit Margin
Operating Income/
Sales
0.19 0.21 Favorable
change in P.Y.
2013-14
Profitability Ratios
Ratios Analysis
11. Internal Audit Department 11
S.
No
Name Formula -------------Ratio----------
2013 2014
Remarks
1 Operating
Return on
Assets
Operating Income/
Total Assets
0.19 0.21 Favorable
change in P.Y.
2013-14
2 Return On
Assets
Net Income/ Total
Assets
0.12 0.14 Favorable
change in P.Y.
2013-14
Return Ratios
Ratios Analysis
12. 12Internal Audit Department
Ratios Analysis
Liquidity Ratios
S.
No
Name Formula ------------Ratio---------
2013 2014
Remarks
1 Current Ratio Current Assets/
Current Liability
2.20 2.02 It is more than
Idle Current
ratio i.e. 1.33
2 Quick Ratio Quick Assets/
Current Liability
1.03 0.95 In 2014 It is
lower than Idle
quick ratio i.e.
1.10
3 Net Working
Capital to
sales Ratio
Working Capital/
Sales
0.27 0.25 Working Capital
increase by 6%,
Sales Increase
by 16%
13. Internal Audit Department 13
S.
No
Name Formula -------Ratio----------
2013 2014
Remarks
1 Long Term
debt to Assets
Ratio
Long Term Debt/
Total Assets
0.13 0.09 Company paid 20%
Long Term borrowing
in 2013-14
2 Equity
Multiplier
Total Assets/
Shareholders’
Equity
1.72 1.62 Reasonable change
Financial Ratios
Ratios Analysis
14. Internal Audit Department 14
S.
No
Name Formula -------Ratio------
2013 2014
Remarks
1 Earning per
Share
Net Income Available
to Shareholder/
No. of Equity Share
26.27 37.83 EPS Increase By 45% in
2013-14
2 Dividend per
Share
Dividend Paid to
Share holder/
No. of Equity Share
4 5 Increase in dividend per
share by 20%
3 Dividend
Payout Ratio
Dividend/
Earning
0.15 0.13 Decrease due to less
declaration of dividend in
compare to Earnings
4 Price Earning
Ratio
Market Price Per
Share/
Earning Per Share
19.60 20.83 Investor is ready to
invest in company Rs.
20.83 in a expectation to
earn Rs.1 from Company
Shareholder Ratios
Ratios Analysis
15. Peer Review
15
Internal Audit Department
S. No. Company Name
Share Price as
on 13/6/13
Assets Sales Profit
1 Aurobindo Pharma 710 5618 5425 496
2 Cadila Health 989 4517 3676 499
3 Cipla 414 9833 8202 1507
4 Dr Reddy Labs 2438 9221 8434 1266
5 Glaxosmith Kline 2528 1951 2546 502
6 Ipca Labs 837 2708 2778 331
7 Lupin 987 5169 7123 1260
8 Sun Pharma 636 7765 2432 517
9 Torrent Pharma 683 2061 2766 546
10 Wockhardt 614 1284 2471 623
Comparison of IPCA from its Competitors
Rank to IPCA
16. Stock Market
16
Internal Audit Department
Share Price in 2013-14
Remarks:- Increase in price of share from Rs 530(as on 01/04/13) to Rs.
820 (as on 31/3/14) i.e. 55% in a one year
17. Internal Audit Department 17
Summary
Highlighted Points
S.
No
Base Observation
1 Foreign Exchange
Translation Gain
It is increase by 135% in IV Quarter in comparison to last
Year IV Quarter
2 Net Profit and Earning per
share
Both are Increase by 81% in IV Quarter in comparison to
last Year IV Quarter
3 Reserve and surplus R/S Increase by 26% In comparison to P.Y. 2012-13
4 Net Profit In 2013-14, 28% of total Profit earn in Last Quarter
5 Share Capital There is no increase in Share capital in year of 2013-14
6 Investor complaint It is decrease by 40% in comparison to last year,
There is no investor complaint pending at the end of year
7 Bonus Share Basic and diluted EPS same hence there is no bonus share
issued by company in year of 2013-14
8 Other Income Other Income increase by 15% In comparison to last year
