Ranbaxy Laboratories

Click to edit presentation onstyle Accounts Master subtitle Ranbaxy Laboratories -By:tahjib patel RAVI SHAH DHIREN RUDANI SATISH MAKWANA BAVIN SHAH
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COMPANY OVERVIEW
Mission Ranbaxy's mission is Enriching lives globally, with quality and affordable pharmaceuticals.. 1961 Company Incorporated India's largest pharmaceutical company Presence in 23 of the top 25 pharmaceutical markets of the world The combined entity now ranks among the top 20 pharmaceutical companies, globally

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Key Acquisitions and Alliances Since 2006

Terapia

(Romania) Be-Tabs (South Africa) Allen (Italy) Mundogen (Spain) Zenotech (India) Cardinal Drugs (India) Ochoa Labs (India) Biovel (India)

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Milestones
1961-Incorporated

Company 1969 - Ist blockbuster brand Calmpose launched in India 1973 Attains Public Limited company status (listed in Feb 1974) 2006 - Acquires leading Romanian pharma company Terapia and Be-Tabs pharmaceuticals,5th largest generics company in South Africa 2007 - Business World ranks Ranbaxy as the Most respected company in the pharma industry 5/5/12

as a Private Limited

Milestones
2008

- Ranbaxy partners with Daiichi Sankyo (DS) establishing a unique and powerful hybrid business model Synergistic step with Daiichi Sankyo to launch Olmesartan Ranbaxy delivers quarterly sales of over US $ 500 Million for the first time - The Golden Jubilee Year 50
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2009

2010

2010-2011

Years

Ratio analysis
Investme March March nt 06 07 valuation Ratios Face value Dividend Per Share 5.00 8.50 March 08 March 09 March 10

5.00 8.50

5.00 --

5.00 --

5.00

2.00

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Liquidity Ratio
Liquidity And Solvency Ratios

March 06

March 07

March 08

March 09

March 10 1.40 1.60 0.83

Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity

0.96 1.03 1.35

0.83 0.97 1.38

1.16 0.86 1.05

1.18 0.89 0.85

0.93

0.90

0.80

0.68

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0.57

Turnover Ratio
Managem March 06 ent Efficiency Ratios
Inventory Turnover Ratio Debtors Turnover Ratio Total Assets Turnover Ratio

March 07

March 08

March 09

March 10

4.39

4.42

4.07

4.05

3.95

4.58

4.53

4.88

3.74

3.99

0.78

0.73

0.64

0.66

0.61

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PROFITABILITY RATIOS
Profitability March 06 Ratio Operating Profit Margin(%) Gross Profit Margin(%) Net Profit Margin(%) March 07 March 08 March 09 March 10

15.17

9.31

5.39

13.62

22.35

14.39 9.07

7.51 14.33

2.07 -22.02

10.52 11.72

18.31 19.74

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COVERAGE RATIO
COVERAGE RATIO Interest Cover March 06 March 07 March 08 March 09 March 10

9.51
Total Debt to Owners Fund Financial Charges Coverage Ratio

3.19 1.38 4.46

1.29 1.05 2.35

15.24 0.85 18.99

22.22 0.83 26.44

1.35 11.33

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Earnings Per Share & Book Value

Earnings Per Share & Book Value
March 06 March 07 March 08 March 09 March 10

Earnings Per Share Book Value

10.21

16.56

-24.85

13.61

27.28

63.03

68.01

84.24

94.16 121.74

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TREND ANALYSIS
[Dec 06 Dec 10]

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Liquidity Ratio Trend

Working Capital (in Rs millions)
4000
1.6

Current Ratio

3000 2000 1000 0

1.2 0.8 0.4 0

Quick Ratio
1.6 1.2 0.8 0.4 0

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Solvency Ratio Trend

Debt Equity Ratio
1.6 1.2 0.8 0.4 0

Interest Coverage Ratio

25 20 15 10 5 0

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Turnover Ratio Trend

Inventory Turnover Ratio
5 4 3 2 1 0

Debtors Turnover Ratio

5 4 3 2 1 0

Creditors Turnover Ratio

5 4 3 2 1 0

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Profitability Ratio Trend

Gross Profit Margin(%)
25 20 15 10 5 0 25 15 5 -5 -15 -25

Net Profit Margin(%)

Return on Assets(%)
15 10 5 0 -5 -10 -15 0 -10 -20 -30 20 10

Return on Equity(%)

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Comparative Analysis

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50,000.00

49,475

Company March 2010

Market Cap. Sales (Rs. cr.) Turnover 49,474.93 26,367.94 3,104.70 6,317.98 5,304.41 5,672.10

Net Profit

Total Assets

40,000.00

Sun Pharma Cipla

1,383.80 967.12 893.31 1,148.73

5,747.47 5,919.16 6,477.80 9,393.11

30,000.00
26,368

26,287

Dr Reddys 26,286.92 Labs Ranbaxy Labs 22,595.60

22,596

20,000.00

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10,000.00
6,318 3,105 1,384 967 893 1,149 5,304 5,672 5,747 5,919 6,478

9,393

0.00 Market Cap.

Sun Pharma

Sales Turnover
Cipla

Net Profit
Dr Reddys Labs

Total Assets
Ranbaxy Labs

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Operating Profit (in rs. Crores) March 2010

1600 1400 1200 1000

Sun Pharma 252

Cipla

Dr. Reddy Ranbaxy lab labs 1089 1271

1381

1,381 1,271

1,089

800

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600 400 252 200

0 Operating profit

Sun Pharma

Cipla

Dr Reddys Labs

Ranbaxy Labs

Operating profit is the measure of companys earning profit from ongoing operations, equal 5/5/12

Earning per share March 2010

100 90 80

Sun Cipla Pharma 43 13

Dr. Ranbax Reddy y labs Labs 50 27

70

60 50 50

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40 30 27 20 13 10

43

0 Earning per share

Sun Pharma

Cipla

Dr Reddys Labs

Ranbaxy Labs

Earning per share is the company's profit divided by the number of common outstanding shares. It serves 5/5/12

Current Ratio March 2010

2.5 2

Ranbaxy

Sun Pharma

Cipla

Dr. Reddy

1.40
2.14 2.17

2.14

2.17

1.66

1.66

1.5

1.40

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0.5

0 Current Ratio

Sun Pharma

Cipla

Dr Reddys Labs

Ranbaxy Labs

Current ratio measuresa company's ability to pay short-term obligations. 5/5/12

Quick Ratio
2.5

Ranbaxy

Sun Pharma

Cipla

Dr. Reddy

1.60

1.52

1.57

1.91

1.91

1.52 1.5

1.57

1.60

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0.5

0 Quick Ratio

Sun Pharma

Cipla

Dr Reddys Labs

Ranbaxy Labs

The quick ratiomeasuresa company'sability to meetits short-term obligations withits most liquid 5/5/12 assets. The higher the quick ratio,thebetter the

Inventory Turnover Ratio

Ranbaxy

Sun Pharma

Cipla

Dr. Reddy

3.95
6

3.65
5.36

3.74

5.36

4 3.65

3.95 3.74

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2 1

0 Inventory turnover ratio

Sun Pharma

Cipla

Dr Reddys Labs

Ranbaxy Labs

Inventory turn over ratio indicates the number of time the stock has been turned over during the 5/5/12 period and evaluates the efficiency with which a

Debtors Turnover Ratio

4.5 4 3.5

Ranbaxy

Sun Pharma

Cipla

Dr. Reddy

3.99

2.99

3.31
3.99

3.67

3.67 3.31 2.99

2.5

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1.5 1 0.5

0 Debtors Turnover Ratio

Sun Pharma

Cipla

Dr Reddys Labs

Ranbaxy Labs

Debtors turnover ratio indicates the number of times average debtors (receivable) are turned 5/5/12

Return On Assets ( ROA)

400 350 300

Ranbaxy Sun Pharma 121.74 276.08

Cipla 73.55
355.69

Dr. Reddy 355.69

276.08

250

200

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121.74 100 73.55 50

150

0 Return on Assets

Sun Pharma

Cipla

Dr Reddys Labs

Ranbaxy Labs

ROA is the indicator of how profitable a company is relative to its total assets. 5/5/12

Notes To accounts

April 2010,Daiichi Sankyo opted not to convert the warrants into equity shares. Hence, the said warrants stand lapsed and the amount of Rs. 73.70 per warrant aggregating to Rs.1,756.59 millions paid by DS has been forfeited and taken to the Capital Reserve Account. 1 July 2010, assets pertaining to its New Drug Discovery Research Centre (including fixed assets, intangibles, inprocess developments) transferred to DS for an aggregate consideration of Rs. 1,449.85 millions. 5/5/12

On

Notes To accounts
Leases cancellable + non-cancellable operating leases

lease term - 3 to 17 years, subject to renewal at mutual consent lease rent expense recognised during the year amounts to Rs. 531.83 (previous year Rs. 482.99).

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Commitments, Contingent Liabilities and Provisions

As at 31 December 2010 2009 Claims against the Company not acknowledged as debts, under dispute: DPCO * Letter of comfort on behalf of subsidiaries, to the extent of limits Octroi tax matters ** Other matters ***

1,952.90 2,450.84 171.00 187.30

1,703.30 4,656.88 171.00 190.71

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Thank you

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