This is the presentation of ratio analysis of ici pakistan ltd.based on two recent year analysis which contains 4 types of analysis like profitability, activity, liquidity, solvency and investor analysis.

1. 1

2. Usman Ali
Abdullah Mushtaq
Hafiz Awais
Raheel Mustafa
Ayetullah Cheema
Adnan Waqar wyne
Abdullah Asif
Mehran Akram
Ibrahim Usama
Hassan Raza
BB16119
BB16151
BB16161
BB16156
BB16159
BB16150
BB16163
BB16115
BB16133
BB16130
GROUP MEMBERS

3. ICI
PAKISTAN Ltd.

4. INTRODUCTION
• ICI (Imperial chemical industries) Pakistan Limited a leading
Pakistan-based manufacturing and trading company which
is based in Karachi Pakistan
• It consists of four diverse Businesses.
• The Company also has a management stake in the infant
milk formula business under the name of NutriCo Private
Limited.
• ICI Pakistan Limited is part of Yunus Brothers Group (YBG),
one of the fastest-growing and most progressive Pakistani
conglomerates with a wide portfolio of businesses
including, but not limited to: cement, textiles, power
generation and commodity trading.
4

5. 1 9 4 4
1 9 6 4
1 9 8 4
1 9 8 7
2 0 0 8
The Beginning
• ICI established its first
manufacturing site for the
production of soda ash at khewra in
Pakistan.
2 0 1 1
2 0 1 2

6. 1 9 4 4
1 9 6 4
1 9 8 2
1 9 8 7
2 0 0 8
24 years later
• ICI Pakistan limited manufactures
limited commissions its specially
chemicals plant in karachi.
2 0 1 1
2 0 1 2

7. 1 9 4 4
1 9 6 4
1 9 8 2
1 9 8 7
2 0 0 8
14 years later
• ICI Pakistan limited manufactures
limited setup a polyester plant at
Sheikhupura.
2 0 1 1
2 0 1 2

8. 1 9 4 4
1 9 6 4
1 9 8 2
1 9 8 7
2 0 0 8
5 years later
• The company changes its name to
ICI Pakistan Ltd.
2 0 1 1
2 0 1 2

9. 1 9 4 4
1 9 6 4
1 9 8 2
1 9 8 7
2 0 0 8
21 years later
• AKZO NOBEL becomes the ultimate
holding company of ICI Pakistan
limited.
2 0 1 1
2 0 1 2

10. 1 9 4 4
1 9 6 4
1 9 8 2
1 9 8 7
2 0 0 8
3 years later
• AKZO NOBEL demerges the paints
business into a separate legal
entity.
2 0 1 1
2 0 1 2

11. 1 9 4 4
1 9 6 4
1 9 8 2
1 9 8 7
2 0 0 8
1 years later
• Lucky holdings limited acquires the
majority shareholding from Akzo
Nobel and becomes the ultimate
holding company of ICI Pakistan
limited
2 0 1 1
2 0 1 2

12. PORTFOLI
O
ICI
BUSINESSES
Chemica
ls
SodaAsh
Life
Science
Polyest
er
Awards
Analysis

13. about
SodaAsh
Life
Science
Polyest
er
Awards
follow
• Textiles
• Paints
• Appliances
• Construction
• Automobile
• Footwear
• Edible Oil
• Oil/Petroleum
• Food and Beverage
• Personal Care
• Metal Cleaning
• Agro Chemicals
• Pharmaceuticals
• Cement
• Chemical Processing/Resins
• Plastics/Rubber/Tanneries
• Crops
• Coatings/Inks
• Detergents/Laundry Soaps
• Surgical
• Fertilizers
• Furniture and Mattresses
• Sporting Goods
• Dairy
• Hotels, Restaurants and Cafes
• Sugar
• Glass and Ceramics
• Agriculture
CHEMICALS AND AGRI BUSINESS

14. Chemic
history
Life
Sciences
Polyest
er
Awards
Analysi
s
• Textiles
• Footwear
• Oil/Petroleum
• Food and Beverage
• Personal Care
• Pharmaceuticals
• Chemical Processing/Resins
• Plastics/Rubber/Tanneries
• Detergents/Laundry Soaps
• Paper/Ceramics/Glass
• Livestock and Poultry
SODA ASH PRODUCTS

15. Chemica
Soda
Ash
timeline
Polyest
er
Awards
Analysi
s
• Pharmaceuticals
• Nutraceuticals
• Animal Health
LIFE SCIENCES BUSINESS

16. Chemical
SodaAsh
Life
Science
teams
Awards
Analysi
s
POLYESTER PRODUCTS
• Textiles

17. Chemic
Soda
Ash
Life
Sciences
Polyest
er
services
Analysi
s

18. about
history
timeline
teams
services
follow
• We have conducted a two consecutive years (2017 to
2018) ratio analysis of Imperial Chemical Industries limited.
• Trend Analysis involves comparison of a firm over a period
of time, that is, present ratios are compared with past
ratios for the same firm. It indicates the direction of
change in the performance, improvement, deterioration or
constancy over the years.
TREND ANALYSIS OF COMPANY

19. RATIOS ANALYSIS
• Ratio analysis is a widely used tool
of financial analysis.
• It is defined as the systematic use
of ratio to interpret the financial
statements so that the strengths
and weaknesses of a firm as well
as its historical performance and
current financial condition can be
determined.
19

20. BALANCE SHEET
In PKR’ 000
2018 (Rs) 2017 (Rs)
TOTAL CURRENT ASSETS 17266192 13159697
LONG TERM INVESTMENTS, LONG TERM LOANS,LONG TERM DEPOSITS 4381310 3363368
TOTAL NON CURRENT ASSETS 21500627 19632796
TOTAL ASSETS 43148129 36155861
TOTAL EQUITY 18081434 16927484
TOTAL CURRENT LIABILITIES 14818665 12984767
TOTAL NON CURRENT LIABILITIES 10248010 6243246
TOTAL LIABILITIES 43148129 36155861
20

21. INCOME STATEMENT
In PKR’ 000
2018 (Rs) 2017 (Rs)
NET SALES 49107580 41363695
CGS 40607969 33598220
GROSS PROFIT 8499611 7765475
OPERATING EXPENSES 1207062 1114785
EBIT 4397841 4043576
OTHER CHARGES 303732 143828
INTEREST 641692 12935
EXCHANGE LOSS 428994 36155861
INCOME 3023360 3501669
OTHER INCOME 626979 892701
INCOME BEFORE TAXATION 3650402 4394370
TAXATION 590698 1098279
NET INCOME 3059704 3296091
EPS 33.13 35.69
21

22. FINANCIAL HIGHLIGHTS
In PKR’000
22
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2014 2015 2016 2017 2018
Gross Profit
$38,233
$37,515
$41,364
$49,108
Company Sales
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
20YY 2014 2015 2016 2017 2018
Net Profit OverTime

23. LIQUIDTY RATIO

24. Current Ratio
2017
1.01
2018
1.17
Interpretation.
• The Current ratio is 1.17, increased as compared to 2017 1.01 which shows
that company has enough current assets to meet its urgency/ obligations.
• The slight increase in the current ratio is due to lower trade creditors in line
with a change in Company’s payment policy from usance to sight LC, to
minimize exchange losses
24

25. Quick Ratio
2017
0.50
2018
0.52
Interpretation.
The quick ratio is also showing increasing trend from 0.50 to 0.52 which explains that company is able to
use its near cash or quick assets to immediately extinguish or retire its current liabilities.
25

26. Cash Ratio
2017
0.01
2018
0.01
Interpretation .
The cash ratio of ICI Company in 2018 is 0.01 which is equal to year 2017 which was 0.01 then.
It shows that liquidity of company is slightly poor which is not a good sign
26

27. InventoryTurnover Ratio
2017
5.02 times
2018
4.22 times
Interpretation.
Inventory turnover ratio is 5.02 Times in the year 2017. But, it is decreased to 4.22 in the Year 2018.
This decreasing trend in turnover indicate that the company has poor sales or too much inventory.
27

28. InventoryTurnover in Days
2017
69 days
2018
73 days
Interpretation .
The increasing trend of inventory turnover days shows that company inventory has lower turnover
which has now been increased to 73 days in 2018 from 69 days in 2007 which is inefficiency of
management.
28

29. Accounts receivableTurnover in
Days
2017
18 Days
2018
19 Days
Interpretation.
The receivable days has been increased in 2018 to 19 days from 18 in 2017 which shows the
inefficiency of management.
29

30. SOLVENCY RATIO

31. Debt Ratio
2017
0.52
2018
0.55
Interpretation.
The debt ratio of ICI company induces in 2018 to 0.55 from 2007 0.52 which shows that company is higher
leveraged by debt and is now on high risk side.
31

32. Debt to Equity Ratio
2017
32.81 %
2018
50.88 %
Interpretation.
The increasing trend of equity ratio from 32.81% to 50.88% shows that company is more financed by
Debt in 2018 and is on higher risk side.
32

33. PROFITABILITY RATIO

34. Gross Profit margin
2017
18.77 %
2018
17.31 %
Interpretation.
The gross profit margin has been decreased in 2018 to 17.31 % from 18.77% of 2017 which is also evident from
Higher production costs, decrease in the value of Rs. And increase in the value of Dollar in 2018.
Despite the increase in sales, the gross profit margin shows has declined due to rise in the current recession
of economy.
34

35. Net profit margin
2017
5.81 %
2018
4.95 %
Interpretation.
During the year 2017 the net profit margin is 5.81% it suddenly decreased to 4.95% in the year
2018 because of increased in finance costs and high government taxes in 2018.
35

36. Return on assets
2017
9.12 %
2018
7.09 %
Interpretation.
The total return on assets has drastically decreased from 9.12 to 7.09% from 2017 to 2018 due to the less
increase in income and heavy production cost 2018.
36

37. Total AssetTurnover
2017
1.14 times
2018
1.16 times
Interpretation.
There is an increasing trend in asset turnover in 2018 is 1.16 times from 1.14 times in 2017 due to the
efficient use of assets to generate sales in 2018 which is a good sign for the company.
37

38. Return on Equity
2017
19.47 %
2018
16.92 %
Interpretation.
This ratio shows a decrease in return on equity from 19.47% to 16.92% due to less increase in income
and high debt financing.
38

39. INVESTOR ANALYSIS

40. Price Earning Ratio
2017
30.67 Times
2018
24.19 Times
Interpretation.
• This ratio shows decreasing trend in 2018 is 24.39 from 30.67 in 2017.
• As you can see, the ratio is 24.19 times. This means that investors are willing to pay 24.19 times for
every dollar of earnings.
• Decreased due to the political instability.
40

41. Dividend yield
2017
2 %
2018
1.93 %
Interpretation.
This ratio shows a decrease in 2018 from 2% to 1.93% due to decrease in
dividend per share.
41

42. Dividend Payout
2017
50.44 %
2018
49.81 %
Interpretation.
This ratio shows a decline in the dividend payout ratio in the 2018.due to the decrease in payment of
dividend in 2018.
And this decline in dividend because of heavy costs of finance that company collect for the expansion
of plant in 2018.
42

43. Earning Per share
2017
35.69 Rs.
2018
33.13 Rs.
Interpretation.
This ratio decreases from 35.69 to 33.13 in 2018 due to decrease in net income
43

44. Conclusion
44
• The current and quick ratios slightly increase than previous years
but cash ratio is very poor due to the shortage of cash.
• The efficiency ratios are not so good as expectations.
• Due to high leaveraged by debt financing the result of solvency is
Is reasonable.
• Company’s profitability is lower than previous years because of
• Expansion of its capacity, finance costs and high tax rates and
production cost.

45. RECOMENDATIONS
.
• The inadequate liquidity position of the company is paying
the way to so many troubles and disadvantages.
• Need for the increasing of internal sources of funds.
• Need to reduce the dependence upon the external sources
of funds.
• They should decrease their production cost by avoiding
import of raw material from other countries.
• They should increase their management efficiency by
mutual cooperation with employees.
45

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