A STUDY ON PROFITABILITY WRT ULTRATECH CEMENTSgjstx-e.cn/gallery/67-july220.pdfULTRATECH CEMENTS...

A STUDY ON PROFITABILITY WRT ULTRATECH CEMENTS

G. JAYANTH KUMAR

RRS college of Engineering and Technology, Hyderabad

[email protected]

ABSTRACT

The exploration work entitled "A STUDY ON PROFITABILITY WITH REFERENCE TO

ULTRATECH CEMENTS LIMITED" discloses to the more profound comprehension of the procedure

of Financial Statement Analysis and how choices are taken to reinforce the money related position.

For this investigation five years 'Relative Income Statement and Balance Sheet have been taken for

figuring proportion examination. Fundamental goal in embraced this task is to enhance scholarly

information with supreme pragmatic presentation to everyday elements of the area.

Money related examination which is the theme of this venture alludes to an evaluation of the suitability,

steadiness and benefit of a business. This significant investigation is performed ordinarily by account

experts to plan money related or yearly reports. These money related reports are made with utilizing the

data taken from budget summaries of the organization and it depends on the huge apparatus of Ratio

Analysis. These reports are generally introduced to top administration as one of their premise in settling

on significant business choices. Throughout the mid year preparing period at Ultratech Cement Limited,

I had close association with readiness of fiscal summaries and furthermore, their investigation which

was made by experts in the bookkeeping group of the organization. This experience was an accentuation

on the significance of these Ratios which could be the underlying foundations of choices made by the

board that can represent the deciding moment the organization. Then, I was affected to distribute the

point of this undertaking to think about the insights regarding these proportions and their potential

impacts on the choices made by individuals inside the organization as well as the untouchables, for

example, financial specialists.

Key words: Profitability, Profits analysis

INTRODUCTION Benefit is capacity of an organization to utilize its assets to produce incomes in abundance of its costs.

At the end of the day, this is an organization's capacity of creating benefits from its activities.

Productivity is one of four structure obstructs for breaking down fiscal reports and friends execution

overall. The other three are productivity, dissolvability, and market possibilities. Speculators, banks, and

administrators utilize these key ideas to dissect how well an organization is.

Productivity is characterized as the capability of an organization to surpass its general income from its

complete costs which brings about benefit age. A business must accomplish productivity to continue its

activities.

High Technology Letters

Volume 26, Issue 7, 2020

ISSN NO : 1006-6748

http://www.gjstx-e.cn/686

Recipe of Profitability

Productivity varies from benefit. Benefit has a money unit to gauge while productivity is commonly

estimated as a proportion of benefit to income.

Benefit = Profit/Revenue

There are different proportions that can be utilized to decide benefit. A portion of these proportions are

Return of Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS), Dividend per Share (DPS)

and so on. Benefit can be of two sorts for example bookkeeping benefit and monetary benefit.

The Difference among Profitability and Profit

In spite of the fact that the two terms are utilized conversely, benefit and productivity are not the

equivalent. Both are bookkeeping measurements in dissecting the money related accomplishment of an

organization, yet there are particular contrasts between the two. To enough decide if an organization is

monetarily stable or balanced for development, financial specialists should initially comprehend what

separates an organization's benefit from its productivity.

Meaning of Profit

Benefit is a flat out number pay or income well beyond the expenses or costs an organization brings

about. It is determined as all out income less all out costs and shows up on an organization's salary

explanation. Regardless of the size or extent of the business or the business it works, an organization's

goal is consistently to make a benefit.

MEANING OF PROFITABILITY Productivity is firmly identified with benefit – however, with one key contrast. While benefit is a flat out

sum, productivity is a relative one. It decide the extent of an organization's benefit in connection to the

size of the business. Benefit is an estimation of effectiveness – and eventually its prosperity or

disappointment. A further meaning of gainfulness is a business' capacity to deliver an arrival on a

venture dependent on its assets in examination with an elective speculation. Albeit an organization can

understand a benefit, this doesn't really imply that the organization is gainful.

NEED OF THE STUDY

Facilitates between firm examination: It gives information to between firm correlation. Proportions

feature the elements related with fruitful and ineffective firm. They likewise uncover solid firms and

feeble firms, exaggerated and underestimated firms.

Helps in arranging: It helps in arranging and determining. Proportions can help the executives, in its

essential elements of estimating. Arranging, co-appointment, control and correspondences.

Makes between firm correlation potential: Ratios examination likewise makes conceivable correlation

of the exhibition of various divisions of the firm. The proportions are useful in choosing about their



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proficiency or generally previously and likely execution later on.

Help in venture choices: It helps in speculation choices on account of speculators and loaning choices

on account of investors and so on.

OBJECTIVES OF THE STUDY There have been different targets for this examination, the first is a nitty gritty investigation of the

monetary record and the salary articulation of Ultratech Cement Limited.

The subsequent target, anyway the most significant one or in other word the standard point of this task is

the comprehension and appraisal of money related proportions dependent on the announcements of the

organization. The following point of the undertaking is to perceive the situation of the organization

through those proportions and information accessible. This acknowledgment is a main factor in changes

of every single organization and the base and foundation of heaps of the board choices.

RESEARCH METHODOLOGY

Research structure: This investigation depends on the information about ULTRATECH CEMENT

LIMITED for an itemized investigation of its fiscal summaries, archives and framework proportions

lastly to perceive and decide the situation of the organization.

Kinds of information which arranged this report:

First sort is the essential information which was gathered by and by to be utilized and concentrated to

get ready and arrive at the targets previously referenced.

The optional information which was at that point arranged so these information was just used to

arrive at the points and destinations of this task.

The wellsprings of gathering the essential information was through meetings, perception and poll,

anyway the auxiliary budget summaries effectively accessible to the representatives of the organization

and some of which was distributed.

Poll:

This technique for information assortment is very prevalent. In this strategy a survey – which comprises

a lot of inquiries in an unmistakable structure-is send to the individual worried about a solicitation to

address the inquiries and return the survey. The respondents need to address the inquiries all alone.

To satisfy various pieces of my undertaking, I arranged a set number of polls. These surveys were

messaged.

A) Personal Interview:

Individual Interview strategy requires an individual known as the questioner posing inquiries for the

most part in a vis-à-vis contact to the next individual or people.

At times, I got the opportunity to pose my inquiries by and by from the Head of Accounts office and

Head of data I required.



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Various inquiries and data I could gather during these two strategies are:

The start and history of the Ultratech Cement Limited.

Numbers of staff working for various divisions.

The strategic vision of the organization.

Areas of tasks

Other organization related data.

B) Printed and Digital Sources:

The auxiliary information I gathered was through the investigation of the fiscal reports in type of printed

records or computerized documents held in the organization for further references. I had picked these

records on account of the unwavering quality and reasonableness of this data which I was additionally

secure with the precision of them.

These records comprise of:

Annual report of the organization

Financial asset reports

Income explanations

Financial reports

Different reports arranged by Finance Department

LITERATURE REVIEW An audit of past examinations and hypothesis identifying with the issue of research helps not just

meaning of ideas, issue center, goals and theories, yet additionally the selection of instruments of

investigation with thoughtfulness regarding their suspicion and impediment. The few past examinations

identified with bond industry and techniques for assessing its exhibition and a portion of the audits are:

Petia talked about assessed its budgetary and influence. By the by, most markers were progress in 2012.

Jayant Sathaye the examination uncovered that, the Indian concrete industry has developed quickly in

the course of a few examinations have been completed on different part of gainfulness of corporate

division in India. Some of them which are remarkable ones are assessed to distinguish the exploration

holes.

Banerjee expressed in an examination work that corporate benefit is affected by its liquidity in three

distinct habits. Up to a specific level increment in liquidity prompts an expansion in gainfulness, past

that benefit stays consistent with the expansion in liquidity upto a specific point and from that point

increment in liquidity prompts decrease in productivity.

Banerjee in his examination on money the executives saw that liquidity of a firm was to a great extent

influenced by the structure of its working capital. The examination adjusted to the hypothetical

contention that the higher the extent of current resources for complete resources the higher is the



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liquidity. The value cost edge in Indian assembling ventures was made by Jain who saw that cost

variables were considered as the most critical determinant of gainfulness.

Mallick and Sur analyzed the effect of working capital administration on productivity in Indian of some

factual devices and procedures. The examination uncovered that, out of the nine proportions identifying

with working capital administration five proportions enrolled positive affiliation and the staying four

proportions demonstrated negative connection with the benefit pointer.

Sur and Rakhit) in their examination resources the executives and productivity considering 25 chose

ventures in Indian corporate area. The investigation uncovered that receivable turnover proportion was

emphatically connected with productivity in 14 organizations, stock turnover proportion was decidedly

connected with gainfulness in 10 organizations and working long haul resource turnover proportion was

emphatically connected with benefit in 19 out of 25 chose organizations. Accepting all the chose

organizations in general, a positive relationship between receivable turnover proportion and gainfulness

and between working long haul resource turnover proportion and productivity was found. Anyway a

negative connection between stock turnover proportion and gainfulness was taken note.

Chakraborty working capital and productivity of 25 chose organizations in the Indian pharmaceutical

industry during the period 1996-97 to 2017-08. The investigation uncovered that the liquidity the

executives, stock administration and credit the executives made positive commitment gainfulness.

Basu analyzed between indebted individuals the board and benefit taking eleven chose organizations in

Indian concrete Industry for the period 2000-2019. decidedly connected with return on capital utilized in

7 organizations, stock turnover proportion was emphatically connected with return on capital utilized in

9 organizations and account holder turnover proportion was decidedly connected with return on capital

utilized in 9 organizations.

Sathya directed an investigation on examination of composite productivity list of 30cement

organizations in India. While making this examination the specialist utilized auxiliary information and

dissected these information by utilizing different factual instruments and systems. The investigation rank

the chose organizations in wording composite productivity, proportion shrewd scores were collected and

the firm verifying the most elevated complete score caught the most noteworthy position and the firm

verifying the least absolute score involved the last position.

Banerjee led an exploration on benefit India. She quantifies the productivity of concrete organizations

through gross benefits as level of gross worth included. She utilized the time arrangement information of

concrete costs for the examination.

Sumathi investigate productivity situation of the concrete business and look at the budgetary

presentation of Ultratech and Orissa Cement. They investigate the connection between firm

effectiveness and working activity of a bond organization. They found that transient dissolvability of

Ultratech and Orissa Cement is not agreeable and it matter of worry for the two firms. The organization

should move in the direction of improve the dissolvability of organization.



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DATA ANALYSIS: FINANCIAL OVERVIEW OF ULTRATECH CEMENT LIMITED

BALANCE SHEET



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RATIO OF ULTRATECH CEMENT LIMITED - LIQUIDITY RATIOS:

The two liquidity proportions, the present proportion and the basic analysis proportion, are the most

significant proportions in nearly the entire of proportion examination and they are additionally the least

complex to utilize. Liquidity proportions give data about an association's capacity to meet its momentary

budgetary commitments. They are quite compelling to those stretching out transient credit to the firm.

Two every now and again utilized liquidity proportions are present and speedy proportion.

While liquidity proportions are generally useful for transient lenders/providers and investors, they are

additionally imperative to money related supervisors who must meet commitments to providers of credit

and different government offices. An organization's capacity to transform transient resources into money

to cover obligations is absolutely critical when banks are looking for installment. Liquidation

investigators and home loan originators as often as possible utilize the liquidity proportions to decide if

an organization will have the option to proceed as a going concern. A total liquidity proportion

examination can help reveal shortcomings in the money related situation of the business. For the most

part, the higher the estimation of the ratio,the bigger the edge of wellbeing that the organization has to

cover transient obligations.

Comments:

The proportion is primarily used to give a thought of the organization's capacity to take care of its

momentary liabilities (obligation and payables) with its transient resources (money, stock, receivables).

The higher the present proportion, the more competent the organization is of paying its commitments. A

proportion in every year proposes that the organization would have the option to take care of its

commitments on the off chance that they came due by then, yet the organization has indicated consistent

diminishing pattern in its monetary wellbeing in consequent years, Since low current proportion doesn't

really imply that the firm will fail, however, it is unquestionably is definitely not a decent sign.



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Momentary banks lean toward a high present proportion since it lessen their hazard.

Fast or Acid-Test Ratio

The pith of this proportion is a test that demonstrates whether a firm has enough transient advantages for

spread its prompt liabilities without selling stock. So it is the support accessible to liabilities that must be

paid very quickly. There are two terms of fluid resource and fluid liabilities in this recipe, Liquid

resource is all present resources with the exception of the inventories and prepaid costs, in light of the

fact that prepaid costs can't be changed over to money. The fluid liabilities incorporate every present

obligation with the exception of bank overdraft and money credit since they are not required to be paid

off right away.

2015 2016 2017 2018 2019

Liquid Asset 553.94 392.95 526.59 694.13 669.64

Liquid Liabilities 439.30 556.05 755.18 1278.56 1242.72

Quick Ratio 1.26 0.70 0.70 0.54 0.54

Comments:

The analysis proportion is definitely more mighty than the present proportion, principally in light of the

fact that the present proportion incorporates stock resources which probably will not have the option to

go to money right away. Organizations with proportions of under 1 can't pay their present liabilities and

ought to be taken a gander at with extraordinary alert. Besides, if the analysis proportion is a lot of lower

than the present proportion, it implies current resources are profoundly reliant on stock.

TURN OVER RATIOS

Bookkeeping proportions that measure a company's capacity to change over various records inside their

asset reports into money or deals. Organizations will normally attempt to transform their generation into

money or deals as quick as conceivable in light of the fact that this will for the most part lead to higher

incomes.

Such proportions are as often as possible utilized when performing central investigation on various

organizations.

FIXED ASSETS TURN OVER RATIO:

It shows how the organization utilizes its fixed advantages for accomplish deals. The equation is as per

the following:



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Comments:

A High fixed resource turnover proportion demonstrates the capacity of the firm to procure most

extreme deals with the base putting resources into fixed resources. So it shows that the organization is

utilizing its benefits all the more proficiently. As it is appeared in over the Company is utilizing its

benefits uniquely fixed resources all the more effectively every year despite the fact that it had a light

decline in effectiveness in 2018 and 2019 contrasted with 2017.

CURRENT ASSETS TURN OVER RATIO:

It is practically similar to the fixed resource turnover proportion, it figures the capacity of association to

procure deals with use of current resources. So it shows with what proportion current resources are

turned over as deals.

2015 2016 2017 2018 2019

NET SALES 2681.06 3299.45 4910.83 5508.78 6,383.08

CURRENT ASSETS

837.65

772.52

960.17

1303.89

1361.61

CURRENT ASSETS

TURN OVER RATIO:

3.20

4.27

5.11

4.22

4.69

Comments:

In this equation current resources are monetary record accounts that speak to the estimation of all

benefits that are sensibly expected to be changed over into money inside one year in the ordinary course

of business. A higher current resources turnover proportion is progressively attractive since it shows the

better budgetary situation of organization and better utilization of these present resources. It very well

may be seen from above figure that the organization has indicated high proportion in 2015, 2016, 2017,

and 2019, it doesn't mind the slight decline in 2018. It implies the organization is utilizing its present



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resources all the more effectively. The examination between two proportions over a similar timeframe,

additionally shows that organization has utilized its present resources superior to its fixed resources

WORKING CAPITAL TURN OVER RATIO:

As its name proposes it is the connection among turnover and working capital. It is an estimation

contrasting the consumption of working capital with the age of offers over a given period. This gives

some valuable data with respect to how viably an organization is utilizing its working cash-flow to

create deals. An organization utilizes working money to support tasks and buy stock. These tasks and

stock are then changed over into deals income for the organization. The working capital turnover

proportion is utilized to dissect the connection between the cash used to subsidize activities and the

business created from these tasks.

The equation related is:

General sense, the higher the working capital turnover, the better since it implies that the organization

is producing a ton of offers contrasted with the cash it uses to finance the deals..

Capital Employed Turnover Ratio

The capital utilized turnover proportion reveals to us the condition of the connection between the

investors' interest in the business and the deals that the administration of the business has had the option

to produce from it.

2015 2016 2017 2018 2019

NET SALES 2681.06 3299.45 4910.83 5508.78 6,383.08

WORKING CAPITAL

398.35

216.47

204.99

25.33

118.89

WORKING CAPITAL

TURN OVER RATIO

6.73

15.24

23.96

217.48

53.69



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2015

2016

2017

2018

2019

Net Sales 2681.06 3299.45 4910.83 5508.78 6,383.08

Capital Employed

2598.84 2490.01 3342.41 4436.72 5742.05

Capital Employed

Turnover Ratio

1.032

1.33

1.47

1.24

1.11

Comments:

Capital utilized can be communicated in various terms, all for the most part allude to the venture

required for a business to work. By "utilizing capital" you are making a speculation. In this way, capital

utilized demonstrated the long haul reserves provided by loan bosses and proprietors of the

organizations. So it tends to be processed as:

Capital Employed = share capital + Long term liabilities + hold and surpluses

This proportion shows the productivity of the firm with which the capital utilized is being used. A high

proportion is an indication of ability of firm to gain most extreme deals with least measure of capital

utilized and this firm is always improving its proportion from 2015 to 2017 aside from 2018 and 2019 it

is because of current financial stoppage winning in the nation just as on the planet

DISSOLVABILITY OR GEARING RATIOS:

Debt Equity proportion:

This proportion mirrors the general cases of lenders and investors against the advantages of the firm,

obligation value proportions foundation connection between acquired assets and proprietor money to

gauge the long haul budgetary dissolvability of the firm. The proportion demonstrates the general

extents of obligation and value in financing the advantages of the firm.

It is determined as

debt

debt equity ratio=--------------------------------

shareholder‘s fund

The obligations side comprise of all long haul liabilities of the firm. The investors' store is the offer

capital in addition to hold and surpluses.

The lower the obligation value proportion the higher the level of insurance delighted in by the banks.

The obligation value proportion characterized by the controller of capital issue, obligation is

characterized as long haul obligation in addition to inclination capital which is redeemable before 12



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years and investors' store is characterized as settled up value capital in addition to inclination capital

which is redeemable following 12 years in addition to holds and surpluses.

The general standard for this proportion is 2:1. on instance of capital concentrated enterprises as

standards of 4:1 is utilized for compost and concrete industry and a standards of 6:1 is utilized for

delivery units.

Comments:

In this proportion investors' store is the offer capital in addition to save and surpluses. If there should

arise an occurrence of high obligation value it would be evident that the speculation of loan bosses is

more than proprietors. Also, on the off chance that it is so high, at that point it acquires the firm a

dangerous position. Or on the other hand on the off chance that it is too low it may demonstrate that the

association has not used its ability of obtaining which must be used and that is on the grounds that the

getting from outcasts is a decent wellspring of store for business with lower returns in contrast with

value. The Ultratech Cement Limited. is attempting to bring down its obligation value proportion by

bringing down its liabilities and expanding its value. So it needs to improve its situation since, a

moderately lower proportion is positive.

Exclusive proportion:

It is essentially the proportion between the owner's assets and complete resources. It demonstrates the

connection between proprietors store and all out resources. What's more, demonstrates the degree to

which the proprietor s' support are soaked in resources or various types of it.

NOTE: Owner‘s funds is equal to Shareholders Funds

2015 2016 2017 2018 2019

Owner‘s fund 1067.13 1038.27 1763.78 2696.99 3602.1

Total Asset 3619.52 3623.11 4657.85 6258.40 7709.38

Proprietary Ratio 3.39 3.49 2.64 2.32 2.14

Comments:

This ratio indicates the proportion of proprietor‘s funds used for financing the total assets. As a very

rough measure, it is suggested that 2/3rd to 3/4th of the total assets should be financed through

borrowings. A high ratio will indicate high financial strength but a very high ratio will indicate that the

firm is not using external funds adequately.



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PROFITABILITY RATIO

As the name itself suggests, this ratio is calculated to determine profitability of the firm. The basic

objective of almost every business is to earn profit which is essential for survival of the business.

A class of financial metrics that are used to assess a business's ability to generate earnings as compared

to its expenses and other relevant costs incurred during a specific period of time. For most of these

ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is

indicative that the company is doing well.

GROSS PROFIT RATIO:

The gross profit margin ratio tells us the profit a business makes on its cost of sales. It is a very simple

idea and it tells us how much gross profit our business is earning. Gross profit is the profit we earn

before we take off any administration costs, selling costs and so on. So we should have a much higher

gross profit margin than net profit margin.

High ratios are favorable in this, since it indicates the business is earning a good return on the sale of its

merchandise.

This proportion shows the extent of owner's finances utilized for financing the all out resources. As a

harsh measure, it is recommended that 2/third to 3/fourth of the absolute resources ought to be financed

through borrowings. A high proportion will show high money related quality however, an exceptionally

high proportion will demonstrate that the firm is not utilizing outer assets enough.

2015 2016 2017 2018 2019

NET SALES 2681.06 3299.45 4910.83 5508.78 6,383.08

GROSS PROFIT

265.02 501.62 1392.44 1507.01 1684.46

GROSS PROFIT

RATIO

9.88 15.20 28.35 27.36 26.40



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BENEFIT RATIO

As the name itself recommends, this proportion is determined to decide gainfulness of the firm. The

fundamental target of pretty much every business is to acquire benefit which is basic for endurance of

the business. A business needs benefits for its reality as well as for its development and broadening. The

financial specialists need a satisfactory profit for their ventures, laborers need higher wages, lenders

need higher security for intrigue and credit and the rundown could proceed.

It is a class of budgetary measurements that are utilized to survey a business' capacity to produce profit

when contrasted with its costs and other significant expenses acquired during a particular timeframe. For

the vast majority of these proportions, having a higher worth comparative with a contender's proportion

or a similar proportion from a past period is characteristic that the organization is progressing admirably.

NET PROFIT RATIO:

The gross overall revenue proportion discloses to us the benefit a business makes on its expense of

offers. It is a basic thought and it discloses to us how much gross benefit our business is procuring. Net

benefit is the benefit we win before we remove any organization costs, selling costs, etc. So we ought to

have an a lot higher gross net revenue than net revenue.

High proportions are great in this, since it demonstrates the business is procuring a decent profit for the

clearance of its product.

2015 2016 2017 2018 2019

NET SALES

2681.06 3299.45 4910.83 5508.78 6,383.08

NET PROFIT

2.85 229.76 782.28 1007.61 977.02

NET PROFIT RATIO 0.11 6.96 15.93 18.29 15.30

Comments:

It is delineated from the above outline that organization has been attempting to improve its productivity

step by step with the exception of 2019 as a result of natural precariousness which remembers the

monetary emergency for the nation and entire world.



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WORKING NET PROFIT RATIO:

This proportion sets up the connection between the net deals and the working net benefit. The idea of

working net benefit is unique in relation to the idea of net benefit working net benefit is the benefit

emerging bankrupt activities as it was. This is determined as pursues:

Working net benefit = Net Profit + Non working costs – non working pay.

On the other hand, this benefit can likewise be determined by deducting just working costs from the

gross benefit. This proportion is determined with assistance of the accompanying equation.

OVERALL PROFITABILITY OR ROR RATIOS:

The ROI is maybe the most significant proportion of all. It is the level of profit for reserves put

resources into the business by its proprietors. To put it plainly, this proportion tells the proprietor

whether all the exertion put into the business has been advantageous. On the off chance that the ROI is

not exactly the pace of profit for another option, the proprietor might be more astute to sell the

organization, put the cash in hazard free speculation, for example, a bank investment account, , and stay

away from the day by day battles of independent company the board. These Liquidity, Leverage,

Profitability, and Management Ratios enable the entrepreneur to distinguish inclines in a business and to

contrast its encouraging and the presentation of others through information distributed by different

sources. The proprietor may in this way decide the business' relative qualities and shortcomings.

PROFIT FOR ASSETS:

This proportion really gauges the gainfulness of the interests in the firm. Furthermore,, the related

equation is:

2015 2016 2017 2018 2019

NET SALES 2681.06 3299.45 4910.83 5508.78 6,383.08

OPERATING NET

PROFIT

272.81

554.26

1,417.81

1,720.06

1,760.29

OPERATING NET

PROFIT RATIO

10.18 16.80 28.87 31.22 27.57



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WORKING NET PROFIT RATIO:

This proportion builds up the connection between the net deals and the working net benefit. The idea of

working net benefit is not quite the same as the idea of net benefit working net benefit is the benefit

emerging bankrupt tasks as it was. This is determined as pursues:

Working net benefit = Net Profit + Non working costs – non working pay.

On the other hand, this benefit can likewise be determined by deducting just working costs from the

gross benefit. This proportion is determined with assistance of the accompanying recipe.

2015 2016 2017 2018 2019

NPAT 2.85 229.76 782.28 1007.61 977.02

TOTAL ASSET 3619.52 3623.11 4657.85 6258.40 7709.38

RETURN ON ASSET

RATIO

0.07 6.34 16.79 16.10 12.67

Comments:

Since this proportion shows the productivity of interest in the firm so higher the proportion, the better is

the arrival to the proprietors of the organization.

PROFIT FOR CAPITAL EMPLOYED:

This Ratio is viewed as significant. It demonstrates the level of net benefits before intrigue and

assessment to add up to capital utilized. It mirrors the general proficiency with which capital is utilized.

The proportion of a specific business ought to be contrasted and different business firms in a similar

industry to discover the careful situation of the business.

It is calculated as



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Note: Capital Employed = Equity Capital + Preference Capital + Reserves and Surplus + Long Term

Debt-Fictitious Assets

2015 2016 2017 2018 2019

N.P.B.I.T 51.03 338.23 1191.56 1482.83 1437.29 C.E. 2598.51 2490.10 3342.41 4437.49 5743.73

ROCE RATIO 1.96 13.58 35.65 33.42 25.02

Comments:

A proportion of the arrival that an organization is acknowledging from its capital utilized. The

proportion can likewise be viewed as speaking to the productivity with which capital is being used to

create income. It is normally utilized as a measure for looking at the presentation among organizations

and for surveying whether a business creates enough comes back to pay for its expense of capital.

Obviously the higher the proportion, the better will be the gainfulness of the organization.

PROFIT FOR EQUITY:

This proportion otherwise called profit for investors' assets or profit for owners' assets or profit for total

assets, demonstrates the level of net benefit accessible for value investors to value investors' assets and

not on all out capital utilized.

It is determined as:

Note: Here Equity Share Holders Fund = Equity Capital + Reserves and Surplus

2015 2016 2017 2018 2019

N.P.A.T –

PREF.DIVIDEND

2.85

229.76

782.28

1007.61

977.02

Equity Share Holders Fund

1067.13

1038.27

1763.78

2696.99

3602.1

ROE RATIO 0.26 22.13 44.35 37.36 27.12



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Comments:

This proportion demonstrates the profitability of the claimed assets utilized in the firm. Notwithstanding,

in making a decision about the gainfulness of a firm, it ought not be ignored that during inflationary

periods, the proportion may show an upward pattern on the grounds that the numerator of the proportion

speaks to current qualities while denominator speaks to authentic qualities.

SPECULATORS RATIOS - PROFIT PER SHARE:

EPS measures the benefit earned per share. The higher EPS will draw in more speculators to gain

partakes in the organization as it shows that the business is increasingly productive enough to deliver the

profits in time. So it is of most extreme significance to financial specialists to choose the possibilities.

It is determined as:

Co As referenced the significant criteria for estimating the presentation of EPS builds, the plausibility of

a higher profit for each offer the profit installment relies upon the arrangement of portions of an

organization may likewise show an upward pattern if the EPS is indicating a that as it may, it ought to be

recalled that EPS of various organizations may shift from organization to organization accompanying

various practices by various organizations to stock in exchange, devaluation, wellspring of raising

money, charge.

2015 2016 2017 2018 2019

EPS 0.22 18.47 62.84 80.94 78.5



ISSN NO : 1006-6748


PROFIT PAYOUT RATIO

EPS portrayed above shows the measure of benefit accessible for value share investors. Profit Payout

Ratio demonstrates the level of benefit conveyed as profits to the investors. It gauges the connection

between the procuring having a place with the value investors and the sum at long last paid to them:

It is determined as:mments:

Comments:

This ratio indicates the policy of management to pay cash dividend. A higher ratio indicates that the

organization is following the liberal dividend policy regarding the dividend while a lower ratio indicates

a conservative approach of the management towards the dividend.

2015 2016 2017 2018 2019

DPS 0.75 1.75 4.00 5.00 5.00

EPS 0.22 18.47 62.84 80.9 78.5

DPR 341 9.47 6.36 6.18 6.37



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SUMMARY OF RATIOS

TABLE OF FINANCIAL RATIOS OF ULTRATECH CEMENT LIMITED. FOR LAST FIVE YEARS



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CONCLUSION

� Ratios make the related data practically identical. A solitary figure without anyone else's input has no

importance, yet when communicated regarding a related figure, it yields critical impedances.

Accordingly, proportions are relative figures mirroring the connection between related factors. Their

utilization as apparatuses of money related investigation includes their examination as single

proportions, similar to supreme figures, are not very useful.

� Ratio examination has a significant essentialness in breaking down the money related execution of an

organization over some stretch of time. Choices influencing item costs, per unit costs, volume or

productivity affect the overall revenue or turnover proportions of an organization.

� Financial proportions are basically worried about the distinguishing proof of huge bookkeeping

information connections, which give the chief bits of knowledge into the money related execution of an

organization.

BIBLIOGRAPHY BOOKS

1. Money related Management Written By M.Y. Khan and P.K. Jain.

2. Money related Management Written By Prasanna Chandra.

3. Money related Management Written By I. M. Pandey.

4. Money related Management Written By S. N. Maheswari.

5. I M Panday's Financial Management (2015),(2nd edition)Vikas Publishers Delhi.

6. Khan and Jain's Financial Management (2013)5th Edition, Tata McGraw Hills India.

7. Prasanna Chandra's Financial Management (2013), Tata McGraw Hills India.

JOURNALS

• International Journal Of Creative Research Thoughts

• International Journal Of Engineering Techniques

• International Journal Of Advanced Management And Engineering Technology

• International Of Technology And Innovative Research

• International Journal Of Engineering And Technology

WEB SITES

� www.adityabirla.com

� www.Ultratech bond limited.com



ISSN NO : 1006-6748


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