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

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

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

MAR'15
( Cr.)

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

on, which source of funding should it choose?

9,027.74
4513.87

its expansion even if it pays out the final dividend of 3371 crs as mentioned in the scheduled.

n is doing well

iate to lower the interest rate?

mes which indicates that the Company is operating with a very low level of debt and is well placed to meet its obligations.

ncial years.

in the scheduled.

placed to meet its obligations. In this scenario with a very good track record it should negotiate to lower the interest rates

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

Fund Flow
Parameter

Sources
Working Capital from Operations
Equity Share Capital
Reserves and Surplus
Secured Loans
Unsecured loans
Total Sources of Funds
Q:3
Overall growth rate of dividend
Average growth rate last 10 years
cost of equity using dividend growth rate using where MP = 1585.10
EPS
ROE
Retention Ratio
Growth Rate
cost of equity using internal growth rate
Debt
Equity

% of debt in portfolio
% of equity in portfolio
cost of debt (source of information is lupin annual report and http://www.sanasecurities.com/lupin-equ
Expected cost of equity at risk free rate of 8% and rate of return 15%
Average cost of equity
Rate of capital employed
Cost of capital
Rate of capital is > than cost of capital signifying that Lupin is doing well
Return on equity is > cost of capital signifying lupin is doing well
Lupin has also been maintaining a very good debt to equity ratio

MAR'15
( Cr.)

2,491.85
89.9
8,881.83
0
19.14
11,482.72
12.277008547
0.2277008547
0.2277589441
53.47
26.56%
85.97%
22.830568193273300%
0.2257695946
1,979.97
9,027.74
11,007.71
0.1798711994
0.8201288006
0.0227470518
0.1374
0.1815847973
0.2178791047
0.1892516863

Net Profit
Depreciation
Working capital from operations

2,324.22
167.63

2,491.85
Year
Dividend
1+g

2005
1.3
0

2006
2007
1.3
1
1 0.769231

Profitability and Growth Ratios

2015

2014

2008
2
2

2009
2.5
1.25

Gross Profit Margin

36.44%
37.23%
Net Profit Margin
24.58%
EPS
53.47
51.93
EPS Growth
2.87%
Net Profit Growth
3.05%
Operating Profit Growth
6.36%
Dividend per share
7.518693
Return on equity
26.56%
Return on Asset
21.78%
Dividend payout ratio (net profit)
14.06%
Retention ratio
85.94%
Growth Rate
22.82%
Cost of Debt
6.50%
tax adjusted cost of Debt
cost of equity (risk free rate of return + Beta * (Market rate of return - risk free rate of return)

ate of return)

2010
2.7
1.08

2011
2012
3
3.2
1.1111111111 1.066667

2013
4
1.25

2014
6
1.5

2015
7.5
1.25

Balance Sheet - Source Moneycontrol.com

MAR'15
Parameter

( Cr.)

EQUITYANDLIABILITIES
Share Capital

89.9

Share Warrants & Outstandings

Total Reserves

8,881.83

Shareholder's Funds

9,027.74

Long-TermBorrowings

Secured Loans

Unsecured Loans

Deferred Tax Assets / Liabilities

19.14

189.22

Other Long Term Liabilities

0.28

Long Term Trade Payables

8.22

Long Term Provisions

103.12

TotalNon-CurrentLiabilities

319.98

CurrentLiabilities
Trade Payables

1,042.04

Other Current Liabilities

101.48

Short Term Borrowings

20.95

Short Term Provisions

495.52

TotalCurrentLiabilities
TotalLiabilities

1,659.99
11,007.71

ASSETS
Non-CurrentAssets

Gross Block

3,310.45

Less: Accumulated Depreciation

1,274.85

Less: Impairment of Assets

Net Block
Lease Adjustment A/c

0
2,035.60
0

Capital Work in Progress

Intangible assets under development
Pre-operative Expenses pending
Assets in transit
NonCurrentInvestments
Long Term Loans & Advances
Other Non Current Assets
TotalNon-CurrentAssets

465.86
0
24.1
0
1,790.26
239.45
0.32
4,555.59

CurrentAssetsLoans&Advances
Currents Investments

1,653.97

Inventories

1,739.51

Sundry Debtors

2,515.21

Cash and Bank

59.3

Other Current Assets

209.68

Short Term Loans and Advances

274.45

TotalCurrentAssets

6,452.12

Net Current Assets (Including Current Investments)

4,792.13

Total Current Assets Excluding Current Investments

4,798.15

Miscellaneous Expenses not written off

TotalAssets
Contingent Liabilities
Total Debt

0
11,007.71
362.4
45.21

Book Value (in )

199.59

Adjusted Book Value (in )

199.59

Working Capital
Net Worth
Additional Capital

4,792.13
9,027.74
4513.87

Moneycontrol.com

Profit and Loss- Source Mone

MAR'14

YoY

( Cr.)

%Change

Parameter
Gross Sales

89.68

0.25%

Less :Inter divisional transfers

51.9344542953

Less: Sales Returns

6,863.13

29.41%

Less: Excise

6,979.04

29.36%

Net Sales

0.00%

EXPENDITURE:

0.00%

Increase/Decrease in Stock

24.24

-21.04%

Raw Materials Consumed

-5.1
247.93

-23.68%

Power & Fuel Cost

100.00%

Employee Cost

9.51

-13.56%

Other Manufacturing Expenses

76.92

34.06%

General and Administration

Expenses

358.6

-10.77%

Selling and Distribution Expenses

Miscellaneous Expenses

983.85

5.91%

Expenses Capitalised

126.51

-19.78%

Total Expenditure

115.16

-81.81%

PBIDT(ExclOI)

235.8

110.14%

Other Income

1,461.32

13.60%

OperatingProfit

8,798.96

25.10%

Interest
PBDT

0.00%

Depreciation

3,089.22

7.16%

Profit Before Taxation &

Exceptional Items

909.76

40.13%

Exceptional Income / Expenses

0.00%

ProfitBeforeTax

2,179.46

-6.60%

Provision for Tax

0.00%

PAT

248.83

87.22%

Extraordinary Items

0.00%

Adj to Profit After Tax

18.22

32.27%

Profit Balance B/F

0.00%

Appropriations

989.05

81.01%

Equity Dividend (%)

319.7

-25.10%

100.00%

3,755.26

21.31%

174.61

847.24%

1,372.24

26.76%

2,859.92

-12.05%

146.28

-59.46%

248.13

-15.50%

242.52

13.17%

5,043.70

27.92%

3,582.38

33.77%

4,869.09

-1.46%

0.00%

8,798.96

25.10%

351.78

3.02%

144.47

-68.71%

155.06

28.72%

155.06

28.72%

3,582.38

-80.25

Earnings Per Share (in )

Book Value (in )

Loss- Source Moneycontrol.com

MAR'15
( Cr.)

MAR'14

Cashflow- Source Moneycontrol.com

Change%

MAR'15
Parameter

( Cr.)

( Cr.)

9,845.98

9,019.86

9.16%

Net Profit Before Taxes

0.00%

Adjustments for Expenses &

Provisions

307.47

0.00%

Adjustments for Liabilities &

Assets

130.24

93.51

80.48

16.19%

Cash Flow from operating

activities

2,851.52

9,752.47

8,939.38

9.10%

Cash Flow from investing

activities

-1,177.99

Cash Flow from financing

activities

-221.12

-157.08

-59.82

-162.59%

2,904.18

2,701.91

7.49%

336.39

309.36

8.74%

1,052.55

844.32

24.66%

1,022.48

878.64

16.37%

522.69

599.39

-12.80%

592.46

626.54

-5.44%

105.55

126.71

-16.70%

0.00%

6,379.22

6,027.05

5.84%

3,373.25

2,912.33

15.83%

180.63

415.38

-56.51%

3,553.88

3,327.71

4.9

20.99

3,548.98

3,306.72

336.79

167.63

3,212.19

3,139.09

2.33%

0.00%

3,212.19

3,139.09

2.33%

814.84

814.87

0.00%

2,397.35

2,324.22

3.15%

6.80%
-76.66%
7.33%
100.91%

Effect of exchange fluctuation

on translation reserve
Net increase/(decrease) in cash
and cash equivalents
Opening Cash & Cash
Equivalents
Cash & Cash Equivalent on
Amalgamation / Take over /
Merger
Cash & Cash Equivalent of
Subsidiaries under liquidations
Translation adjustment on
reserves / op cash balalces frgn
subsidiaries
Effect of Foreign Exchange
Fluctuations
Closing Cash & Cash
Equivalent

3,212.19

1,452.41

255.31
0
0
0
0
1,707.72

0.00%

0.00%

4,664.66

2,853.92

63.45%

7,062.01

5,178.14

36.38%

375

300

25.00%

53.33

51.83

2.89%

199.59

155.06

28.72%

urce Moneycontrol.com
MAR'14

Change%

DividendHistory-LupinWebsite
Announcemen
tDate

DividendType

2.33%

13/05/2015

14/07/2015

Final

5224.50%

7/5/2014

21/07/2014

Final

-984.79

113.23%

3/2/2014

13/02/2014

Interim

1,528.13

86.60%

8/5/2013

29/07/2013

Final

-446.51

-163.82%

10/5/2012

13/07/2012

Final

-844.47

73.82%

12/5/2011

18/07/2011

Final

0.00%

5/5/2010

19/07/2010

Final

237.15

512.44%

13/05/2009

20/07/2009

Final

18.16

1305.89%

14/05/2008

11/7/2008

Final

0.00%

9/5/2007

10/7/2007

Final

0.00%

17/05/2006

7/7/2006

Final

0.00%

20/05/2005

15/07/2005

Final

0.00%

( Cr.)

3,139.09
-6

255.31

568.88%

History-LupinWebsite
Dividend(%)

Remarks

375%

7.5

150%

150%

200%

160%

3.2

150%

135%

2.7

125%

2.5

100%

50%

65%

1.3

65%

1.3