1.

Which sourceof funding has the company been using to raise funds in 201
The following were the sources of funds raised in the year 2015-2015:
Parameter

Sources
Working Capital from Operations
Equity Share Capital
Reserves and Surplus
Secured Loans
Unsecured loans
Total Sources of Funds

MAR'15
( Cr.)

2,491.85
89.9
8,881.83
0
19.14
11,482.72

2.If the company wants to raiseadditional 50 % of the net worth for expansi
For the year 2014-2015
Net Worth
9,027.74
Additional Capital
4513.87

The reserves and Surplus is @ 8,881.83. it can use retained earnings to fund i
3.Is the company growing? What is the growth rate of thecompany?
Please see the worksheet WACC Calculation for the calculation
The growth rate per dividend growth rate theory is 22%.

Rate of capital is > than cost of capital signifying that Lupin

Return on equity is > cost of capital signifying lupin is doin
Lupin has also been maintaining a very good debt to equity
All calculations in worksheet WACC Calculation

1.If a lender is willing to provide loan at 12.5% should the companyaccept itor negot

Lupins average long term debt to equity ratio over the last 5 financial years has been 0.08 tim

1.Is the company paying dividend regularly in the past ten years?

Yes. The Company has maintained an average dividend yield of 0.89 % over the last 5 finan

to raise funds in 2014-15?

et worth for expansion, which source of funding should it choose?

ed earnings to fund its expansion even if it pays out the final dividend of 3371 crs as mentioned in the

ecompany?

signifying that Lupin is doing well

gnifying lupin is doing well
good debt to equity ratio

nyaccept itor negotiate to lower the interest rate?

years has been 0.08 times which indicates that the Company is operating with a very low level of debt and is well placed

9 % over the last 5 financial years.

rs as mentioned in the scheduled.

of debt and is well placed to meet its obligations. In this scenario with a very good track record it should negotiate to lowe

d it should negotiate to lower the interest rates, since it can meet its obligation using other sources of funds as well

es of funds as well

Core Values
EBITDA
EBIT (operating profit)
Net Operating profit (T=28%)
EBT
Tax
EAT (Net Profit or Income)
Add Depreciation
Working Capital from Operations
Liquidity Ratios
Current Ratio
Quick Ratio
Cash Ratio
Interval Measure
Net Working Capital Ratio
Leverage Ratio
Capital Employed or NCA or NWC
Debt Ratio
Debt Equity Ratio
Coverage Ratios
Interest Coverage
Profitability Ratio
Net Profit Margin
Net Operating Margin
Profit Margin
ROI (ROTA)
ROI (RONA)
ROI (EBITDA/TA)
ROE
Earnings per Share
Dividend per share
Dividend payout ratio
Retained Ratio
Growth in equity (as per retention policy)
Dividend Yield
Earning Yield
Price to Earning Ratio

Mar-15

Mar-14

3,553.88
3,217.09
2,316.30
3,212.19
814.84
2,397.35
336.79
2,734.14

3,327.71
3,160.08
2,275.26
3,139.09
814.87
2,324.22
167.63
2,491.85

3.89
2.84

3.45
2.51

0.65

0.59

7,296.74
0.02
0.02

5,913.73
0.05
0.04

656.54897959 150.5517
0.33
0.24
0.33
0.21
0.32
0.32
0.26
53.35
7.50
0.14
0.86
0.22
0.01
0.04
26.24

0.35
0.26
0.36
0.26
0.38
0.38
0.32
51.85
6.00
0.12
0.88
0.28
0.01
0.06
17.46

Mar-13

Mar-12

1,907.23
1,757.09
1,265.10
1,723.81
463.38
1,260.43
150.14
1,410.57

1,165.35
1,033.39
744.04
1,004.71
200.34
804.37
131.96
936.33

2.01
1.30

1.49
0.93

0.38

0.06

3,612.42
0.19
0.16

2,197.52
0.42
0.34

52.79718 36.03173
0.24
0.18
0.25
0.18
0.31
0.27
0.22
28.17
4.00
0.14
0.86
0.19
0.01
0.05
21.98

0.19
0.14
0.19
0.12
0.24
0.19
0.16
18.01
3.20
0.18
0.82
0.13
0.01
0.03
28.82

Capex (from annual report)

Cash Flow
Net Cash flow
IRR

Mar-15

Mar-14

Mar-13

758
2,453.99
2,653.09
2961.09
2.12

483.1
2,655.99
2,442.89

487.1
1,236.71
1,415.24

Year
Dividend

r
k

2005
1.3

2006
1.3

Internal Rate of Return

firm's cost of capital
EPS
DPS

Present Fund
Long term borrowings
Shareholders fund

Totals Funds = Present +

additional fund to be raised
(100%)
fund to be raised in case of 100%
equity or [50% equity and 50%
debt] or 100% debt

2008
2

2.12
0.17
53.35
7.50
P

Additional capital to be raised

Returns
Tax rate
Cost of Debt

2007
1

3544.689

100%
50%
28%
12.22%
9046.88
19.14
9027.74

18093.76

9046.88
2015
EBIT
3,217.09
Interest
4.9
EBT
3,212.19
TAX
814.84
EAT
2,397.35
No. of Shar
44.94
EPS
53.34557
Equity&Sha 9,027.74
ROE
26.1%

2009
2.5

2010
2.7

100% Equity
6434.18
4.9
6429.28
899.4
5529.87
44.94904688
123.025229317
18074.62
30.6%

2011
3

2012
3.2

100% Debt
6434.18
2216.4097
4217.77
1800.2
2417.57
44.94
53.7955473
9,027.74
26.8%

2013
4

2014
6

50% Equity+ 50% Debt

6434.18
557.777425792
5876.40
1645.3927207783
4231.01
44.94452344
94.1384962971
13551.18
31.2%

2015
7.5

Option 1:

Option 2:

Financial Data
EPS
DPS
Book Value
Market Value
ROE
Payout
Earnings Yield
Dividend Yield
Growth in dividend
Dividend growth Model
Cost of Equity
Internal Growth Rate
Capital Asset Pricing Model
Expected risk free rate of return(assumed
Market Premium (assumed)
Beta (MoneyControl)
Cost of Equity
Corporate tax rate (annual report)
Cost of Debt
After weighted cost of debt
Source of Capital
Cost
Market Value
Book Value
Weighted Average Cost of Capital

Mar-15

Mar-14

Mar-13

Mar-12

53.35
7.50

51.85
6.00

28.17
4.00

18.01
3.20

200.84

155.65

108.3

83.61

1400
0.26
0.14
0.04
0.01
0.25

905
0.32
0.12
0.06
0.01
0.50

619
0.22
0.14
0.05
0.01
0.25

519
0.16
0.18
0.03
0.01
0.07

0.26
0.22

0.51
0.28

0.26
0.19

0.07
0.13

0.09
0.15
1.28
0.17
0.28
0.12
0.09

0.09
0.15
1.01
0.15
0.28
0.15
0.11

0.09
0.15
0.33
0.11
0.28
0.06
0.04

0.09
0.15
0.33
0.11
0.28
0.03
0.02

0.17
0.996
0.995

Debt
0.09
0.004
0.005

Equity

0.166

StandaloneProfit&Lossaccount
Mar-15

Mar-14

12 mths

12 mths

9,705.05

8,857.66

93.51

80.48

9,611.54

8,777.18

140.93

162.2

9,752.47

8,939.38

180.63

415.38

9,933.10

9,354.76

2,239.32

2,132.00

942.5

829.19

-170.8

-76.21

1,052.55

844.32

4.9

20.99

336.79

167.63

2,315.65

2,297.75

INCOME
RevenueFromOperations[Gross]

Less: Excise/Sevice Tax/Other Levies

RevenueFromOperations[Net]

Other Operating Revenues

TotalOperatingRevenues
Other Income
TotalRevenue
EXPENSES
Cost Of Materials Consumed

Purchase Of Stock-In Trade

Changes In Inventories Of FG,WIP And StockIn Trade

Employee Benefit Expenses

Finance Costs

Depreciation And Amortisation Expenses

Other Expenses

TotalExpenses

6,720.91

6,215.67

15-Mar

14-Mar

12 mths

12 mths

Profit/LossBeforeExceptional,
ExtraOrdinaryItemsAndTax

3,212.19

3,139.09

Profit/LossBeforeTax

3,212.19

3,139.09

849.6

811.7

-30.67

4.76

TaxExpenses-ContinuedOperations
Current Tax
Less: MAT Credit Entitlement
Deferred Tax
Tax For Earlier Years

-4.09

-1.59

TotalTaxExpenses

814.84

814.87

Profit/LossAfterTaxAndBefore
ExtraOrdinaryItems

2,397.35

2,324.22

Profit/LossFromContinuingOperations

2,397.35

2,324.22

Profit/LossForThePeriod

2,397.35

2,324.22

15-Mar

14-Mar

12 mths

12 mths

Basic EPS (Rs.)

53

52

Diluted EPS (Rs.)

53

52

796.15

717.33

1,165.53

1,155.39

0.18

0.99

329.88

261.28

337.17

269.01

68.64

24.78

375

300

44.94

44.83

OTHERADDITIONALINFORMATION
EARNINGSPERSHARE

VALUEOFIMPORTEDANDINDIGENIOUS
RAWMATERIALS
Imported Raw Materials
Indigenous Raw Materials
STORES,SPARESANDLOOSETOOLS
Imported Stores And Spares
Indigenous Stores And Spares
DIVIDENDANDDIVIDENDPERCENTAGE
Equity Share Dividend
Tax On Dividend
Equity Dividend Rate (%)
# of share outstanding
Dividend

Mar-13

Mar-12

12 mths

12 mths

7,072.39

5,357.91

61.9

42.02

7,010.49

5,315.89

112.02

68.94

7,122.51

5,384.83

23.31

3.49

7,145.82

5,388.32

1,927.21

1,592.17

776.03

599.27

-182.44

-132.53

713.08

581.22

33.28

28.68

150.14

131.96

2,004.71

1,582.84

Year
Dividend

3,212.19

2005
1.3

2006
1.3
0.00

5,422.01

4,383.61

13-Mar

12-Mar

12 mths

12 mths

1,723.81

1,004.71

1,723.81

1,004.71

418.16

201.86

37.35

26.41

35.83

18.81

463.38

200.34

1,260.43

804.37

1,260.43

804.37

1,260.43

804.37

13-Mar

12-Mar

12 mths

12 mths

28

18

28

18

647.44

542.25

1,040.59

853.05

4.4

11.1

216.82

174.9

179.01

142.92

30.43

23.19

200

160

44.75

44.66

2007
1
-0.23

2008
2
1.00

2009
2.5
0.25

2010
2.7
0.08

2011
3
0.11

2012
3.2
0.07

2013
4
0.25

2014
6
0.50

2015
7.5
0.25

StandaloneBalanceSheet
Mar-15

Mar-14

Mar-13

Mar-12

Equity Share Capital

89.9

89.68

89.51

89.33

TotalShareCapital

89.9

89.68

89.51

89.33

Reserves and Surplus

8,937.84

6,889.36

4,757.20

3,645.08

TotalReservesandSurplus

8,937.84

6,889.36

4,757.20

3,645.08

TotalShareholdersFunds

9,027.74

6,979.04

4,846.71

3,734.41

19.14

24.24

29.2

134.92

189.22

247.93

232.92

190.5

8.5

9.51

11.4

37.61

Long Term Provisions

103.12

76.92

68.35

25.61

TotalNon-CurrentLiabilities

319.98

358.6

341.87

388.64

20.95

115.16

526.09

857.73

1,042.04

983.85

869.42

715.42

101.48

126.51

218.93

250.28

EQUITIESANDLIABILITIES
SHAREHOLDER'SFUNDS

NON-CURRENTLIABILITIES
Long Term Borrowings
Deferred Tax Liabilities [Net]
Other Long Term Liabilities

CURRENTLIABILITIES
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions

495.52

235.8

242.71

212.23

1,659.99

1,461.32

1,857.15

2,035.66

11,007.71

8,798.96

7,045.73

6,158.71

2,020.67

2,170.91

2,000.63

1,697.23

14.93

8.55

13.02

10.25

489.96

267.05

240.12

357.33

FixedAssets

2,525.56

2,446.51

2,253.77

2,064.81

Non-Current Investments

1,790.26

989.05

688.04

687.29

239.45

319.7

362.03

380.51

0.32

4,555.59

3,755.26

3,303.84

3,132.61

Current Investments

1,653.97

174.61

Inventories

1,739.51

1,372.24

1,330.83

1,123.56

Trade Receivables

2,515.21

2,859.92

1,874.27

1,490.80

TotalCurrentLiabilities
TotalCapitalAndLiabilities
ASSETS
NON-CURRENTASSETS
Tangible Assets
Intangible Assets
Capital Work-In-Progress

Long Term Loans And Advances

Other Non-Current Assets
TotalNon-CurrentAssets
CURRENTASSETS

Cash And Cash Equivalents

Short Term Loans And Advances
OtherCurrentAssets
TotalCurrentAssets
TotalAssets
OTHERADDITIONALINFORMATION

59.3

146.28

20.12

19.2

292.5

259.44

284.01

271.49

191.63

231.21

232.66

121.05

6,452.12

5,043.70

3,741.89

3,026.10

11,007.71

8,798.96

7,045.73

6,158.71

CONTINGENTLIABILITIES,COMMITMENTS
Contingent Liabilities

366.4

538.52

484.51

557.28

Raw Materials

865.4

720.63

661.56

590.53

Stores, Spares And Loose Tools

65.66

56.07

37.4

30.68

Trade/Other Goods

89.43

89.36

67.3

60.8

Capital Goods

85.24

99.29

72.84

78.82

510.57

639.75

502.05

345.97

42.93

42.93

40.89

32.06

5,848.15

5,717.70

4,315.65

3,032.92

411.18

589.91

159.27

211.48

40.15

40.15

40.15

40.15

Non-Current Investments Quoted Market Value

Non-Current Investments Unquoted Book Value

1,790.26

989.05

688.04

687.29

CIFVALUEOFIMPORTS

EXPENDITUREINFOREIGNEXCHANGE
Expenditure In Foreign Currency
REMITTANCESINFOREIGNCURRENCIESFORDIVIDENDS
Dividend Remittance In Foreign Currency
EARNINGSINFOREIGNEXCHANGE
FOB Value Of Goods
Other Earnings
BONUSDETAILS
Bonus Equity Share Capital
NON-CURRENTINVESTMENTS

CURRENTINVESTMENTS
Current Investments Quoted Market Value

Current Investments Unquoted Book Value

1,654.22

174.61