Leverage analysis at Essar Oil Ltd.

Objective:
The objective of this study is to conduct leverage analysis for the firm and
analyse the results to assess the riskiness of the firm compared to other firms in
the oil refinery and marketing industry.
Methodology of Data Collection:
The study is totally based on the secondary data collected from CMIE Prowess
Data Base. The data collected from this source have been used and complied
with due care as per requirement of the study.
Period of Study:
The present study covers a period of four years from 2011-2014.
YEAR
Sales (in
millions)
% Change in
Sales
EBIT (in
millions)
% Change in
EBIT
EPS

2010-11
Rs.
5,34,114.40

Rs. 6,015.50

Rs. -1.9

% Change in
EPS

2011-12
Rs.
6,32,516.60

2012-13
Rs.
9,72,436.80

2013-14
Rs.
10,72,548.60

18.42%

53.74%

10.29%

Rs. -3,253.20

Rs. 14,031.10

Rs. 24,397.40

-154.08%

-531.30%

73.88%

Rs. -9.4

Rs. -8.6

Rs. 0.9

394.74%

-8.51%

-110.47%

YEAR
2011-12

2012-13

2013-14

DOL

8.363

9.8864

7.1764

DFL

2.562

0.016

1.495

DCL

21.426

0.158

10.730

Interpretation from DOL:

Interpretation from DFL: