HEALTHCARE COMPANY 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

2010

2011

2012

2013

29.77
475.77
505.54
228.93
0.00

29.77
512.65
542.42
52.09
0.00

29.80
522.20
552.00
266.30
39.50

31.40
429.80
461.20
442.90
90.50

75.87
18.98
19.38
114.23
848.70

66.92
6.20
23.62
96.74
691.25

75.90
9.20
25.30
110.40
968.20

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

77.87
144.18
34.66
24.69
281.40
33.52
247.88
176.64
0.00

82.30
183.90
30.70
45.20
342.10
48.10
294.00
188.00
0.20

222.00
296.30
47.10
29.00
594.40
113.40
481.00
90.00
4.80

27.78
32.81
10.11
70.70

27.94
39.90
15.90
83.74

30.90
47.40
27.40
105.70

65.30
71.90
38.40
175.60

59.13
62.31
121.44
378.66
54.71
850.70

51.61
74.98
126.59
41.87
16.53
693.25

66.90
218.50
285.40
5.70
89.20
968.20

136.80
82.60
219.40
9.00
224.10
1,203.90

2014
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

CADILA HEALTHCARE LIMITED

Profit & loss account for the year ending on 31 March
Mar 2010
Mar 2011
Mar 2012

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

Mar 2013

477.75

508.79

588.80

1,028.20

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

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

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

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

15.57
22.12

19.95
45.62

20.90
46.20

24.80
51.80

March
Mar 2014
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

2010
2011
2012
130.00
127.95
130.05
6.33
9.64
11.27
84.91
90.51
92.70
2.32
3.00
3.49

2013
123.50
12.87
77.18
3.69

2014
454.20
22.75
85.90
6.00