Interpretation: Current ratio for the company has increased over the last two

years. The current ratio increased to 1.23 times in 2010 compared to 0.43 times
in 2008. But, at the same time, Quick ratio for the company has been decreasing
over the last two years. The quick ratio decreased to 0.79 times in 2010
compared to 1.19 times in 2008.
Interpretation: Debt - Equity ratio for the company has decreased consistently
over the last two years. The debt-equity ratio decreased to 1.1 times in 2010
compared to 2.08 times in 2008. Long term debt equity ratio remained flat at 1.1
times in the last years.
Interpretation: Operating profit margin ratio for the company has decreased
consistently over the last three years. The operating profit margin ratio decreased
to 16.61 times in 2010 compared to 22.7 times in 2008. EBIT margin and Gross
Profit margin also decreased from 21 times in 2008 to 10.7 times in 2010. Cash
profit margin decreased to 9.61 times in 2010 compared to 14 times in 2008.
Interpretation: Return on Capital Employed (ROCE) ratio for the company has
increased from the last year. ROCE increased to 13.52 times in 2010 compared
to 9.23 times in 2009. Return on Net Worth increased to 9.23 times in 2010
compared to 8.56 times in 2009. Return on Long Term funds increased to 13.52
times in 2010 compared to 10.2 times in 2009.
Interpretation: The Company has declared a dividend of Rs. 2.5 for
continuously for the last four years. The operating profit per share of the
company has consistently increased over the last 4 years from 33.84 in 2008 to
53.11 in 2010.
Interpretation: The Interest coverage ratio of the company has been decreasing
over the last four years. The ratio decreased from 25.7 times in 2007 to 2.03 in
2010. Total debt to Owners Equity has been decreasing in the last three years
from 2.08 times to 1.1 times in 2010. Financial Charges Coverage has been
declining consistently over the last four years to reach 3 times in 2010 compared
to 27.4 times in 2007.
Interpretation: Inventory turnover ratio of the company decreased to 10.7 times
in 2010 compared to 93.3 times in 2008. Debtors’ turnover ratio of the company
has decreased to 14.5 times in 2010 compared to 37.2 times in 2008. Fixed
Assets turnover ratio has decreased to 1.07 times in 2010 compared to 3.29
times in 2006. Total Assets turnover ratio reached to 1.1 times in 2010 compared
to 2.98 times in 2006.
Interpretation: The dividend payout ratio of the company decreased to 22.2 in
2010 compared to 27.1 in the previous year. The company has maintained a
consistent earnings retention ratio of around 75% in the last few years. The cash
earnings retention has also been maintained at 85- 90%.
Interpretation: EPS of the company has decreased in the last two years
compared to 2007 and 2008. The company reported an EPS of 12.75 as against
an EPS of 21.8 in 2007. Book Value of the company’s shares has been on a
consistent rise in the last five years. Book Value of the company reached at
Rs.138 compared to Rs.22.3 in 2006.