Income Statement of Pidilite Industries Ltd Horizontal Analysis

PARTICULARS CY-PY

INCOMERevenue from Operations (gross) 46,814.47 41,258.68 5,555.79 13.466%Less: Excise Duty 2,833.73 2,476.28 357.45 14.435%Revenue from Operations (net) 43,980.74 38,782.40 5,198.34 13.404%Other Income 427.69 429.42 -1.73 -0.403%

Total Income 44,408.43 39211.82 5,196.61 13.253%EXPENSE

Cost of Materials Consumed 22,688.13 20,022.84 2,665.29 13.311%

Purchased of Stock-in-Trade(Traded Goods) 1,661.09 1,800.49 -139.40 -7.742%

-67.80 -422.63 354.83 83.958%

Employee Benefits Expense 4,093.86 3,582.58 511.28 14.271%Finance Cost 95.05 96.90 -1.85 -1.909%Depreciaion and Amortisation Expense 1,077.20 686.25 390.95 56.969%Other Expense 7,999.47 7,070.42 929.05 13.140%

Total Expense 37,547.00 32836.85 4,710.15 14.344%Profit before Exception Items and Tax 6,861.43 6,374.97 486.46 7.631%(Add/Less): Exceptional Items (net) 176.05 64.96 111.09 171.013%Profit Before Tax 6,685.38 6310.01 375.37 5.949%Tax Expense -

Current Tax 1,561.00 1,599.29 -38.29 -2.394%Deferred Tax 105.79 24.64 81.15 329.343%

Net Tax Expense 1,666.79 1623.93 42.86 2.639%Net Profit for the year 5,018.59 6,310.01 -1,291.42 -20.466%

Amount in ₹ millions 31-03-2015

Amount 31-03-2014

Amount CY-PY/PY %

Change

Change in Inventories of finished goods, Work-in-progress and Stock in Trade

An examination of the Income Statement shows that the Net sales were 13.404% higher than the prior year. However, the Total income has been increased by 44,408.43 millions in 2015 by 39211.82 ₹ ₹millions in 2014 thus it is increased by 13.253% in 2015. However the total expenses also went up by 14.344% . When a company's expenses grow faster than its sales revenue, its profitability will decline. Thus the profit after tax (Net profit for the year) went down by 20.466% in the year 2015.

Balance Sheet of Pidilite Industries LtdHorizontal Analysis

Amount in ₹ millions

PARTICULARS CY-PY

EQUITY AND LIABILITIESShareholders Funds

Share Capital 512.66 512.64 0.02 0.004%Reserve and Surplus 22,981.81 19,882.51 3,099.30 15.588%

23,494.47 20,395.15 3,099.32 15.196%Non-Current Liabilities -

Deferred Tax Liabilities 544.89 508.27 36.62 7.205%Long-Term Provisions 186.78 196.65 -9.87 -5.019%

731.67 704.92 26.75 3.795%Current Liabilities -

Short-Term Borrowings 57.80 76.84 -19.04 -24.779%Trade Payables 2,940.39 3,011.38 -70.99 -2.357%Other Current Liabilites 3,409.80 2,859.59 550.21 19.241%Short-Term Provision 2,036.45 1,844.23 192.22 10.423%

8,444.44 7,792.04 652.40 8.373%TOTAL 32,670.58 28,892.11 3,778.47 13.078%

- ASSETSNon-Current Assets -

Fixed Assets - Tangible Assets 5,496.04 5,351.31 144.73 2.705%Intangible Assets 2,782.27 761.67 2,020.60 265.285%Capital Work-In-Progress 4,603.05 4,310.89 292.16 6.777%

Non-Current Investments 4,213.24 3,396.62 816.62 24.042%Long-Term Loans and Advances 1,015.35 641.05 374.30 58.389%Other Non-Current Assets 67.80 59.29 8.51 14.353%

18,177.75 14,520.83 3,656.92 25.184%Current Assets -

Current Investments 2,691.65 2,341.34 350.31 14.962%Inventories 5,347.18 5,082.01 265.17 5.218%Trade Receivables 5,145.83 4,536.00 609.83 13.444%Cash and Cash Equivalents 580.95 1,451.81 -870.86 -59.984%Short-Term Loans and Advances 675.35 851.50 -176.15 -20.687%Other Current Assets 51.87 108.62 -56.75 -52.246%

14,492.83 14,371.28 121.55 0.846%TOTAL 32,670.58 28,892.11 3,778.47 13.078%

31-03-2015 Amount

31-03-2014 Amount

CY-PY/PY % Change

The examination of the balace sheet shows overall growth. Total asset 2015 was 32,670.58 as ₹compared to 28,892.11 crore in 2014 and was thus 3,778.47 millions (13.078%) higher than the ₹ ₹previous year. All assets except Cash and Cash Equivalents , Short-term Loans and Advances and Other Current Assets increased from the prior year, with Fixed Assets having the largest increase by far from

18,177.75 millions in 2015 to 14,520.82 millions in 2014 thus 3,656.92 millions (25.184%) higher ₹ ₹ ₹than the previous year. Since Total liabilities, Non-Current Liabilites and Current Liabilites increased by 3.795% and 8.373% though the the Long term Provisions, Short-Term Borrowing and Trade Payable decreased by 5.019%, 24.779% and 2.375% indicating that the companys asset growth was generated by increase in other current liabilites and short-term provison from the prior year. Total Share holders equity was up 15.196% from the prior year.

Income Statement of Pidilite Industries Ltd Vertical Analysis

Amount in ₹ millions

PARTICULARS

INCOMERevenue from Operations (gross) 46,814.47 106.443% 41,258.68 106.385%Less: Excise Duty 2,833.73 6.443% 2,476.28 6.385%Revenue from Operations (net) 43,980.74 100.000% 38,782.40 100.000%Other Income 427.69 0.972% 429.42 1.107%

Total Income 44,408.43 100.972% 39,211.82 101.107%EXPENSE

Cost of Materials Consumed 22,688.13 51.587% 20,022.84 51.629%Purchased of Stock-in-Trade(Traded Goods) 1,661.09 3.777% 1,800.49 4.643%

-67.80 -0.154% -422.63 -1.090%

Employee Benefits Expense 4,093.86 9.308% 3,582.58 9.238%Finance Cost 95.05 0.216% 96.90 0.250%Depreciaion and Amortisation Expense 1,077.20 2.449% 686.25 1.769%Other Expense 7,999.47 18.189% 7,070.42 18.231%

Total Expense 37,547.00 85.371% 32,836.85 84.669%Profit before Exception Items and Tax 6,861.43 15.601% 6,374.97 16.438%(Add/Less): Exceptional Items (net) 176.05 0.400% 64.96 0.167%Profit Before Tax 6,685.38 15.201% 6,310.01 16.270%Tax Expense

Current Tax 1,561.00 3.549% 1,599.29 4.124%Deferred Tax 105.79 0.241% 24.64 0.064%

Net Tax Expense 1,666.79 3.790% 1,623.93 4.187%Net Profit for the year 5,018.59 11.411% 6,310.01 16.270%

31-03-2015 Amount

CY/NET SALES

31-03-2014 Amount

PY/NET SALES

Change in Inventories of finished goods, Work-in-progress and Stock in Trade

An examination of the income statement shows that Cost of material consumed was 51.587%, Employee Benefits Expense cost 9.308%, other expenses cost 18.189% of the net sales. Taken together, these three major expense categories consumed 79.084% of the company's sales revenue.The result was that the net proft were 11.411% of the Net sales. This means that the company earned around 11.41 paise of proft for every rupee of sales. Note that this percentage is much lower than 16.270% achieved in the prior year. As seen in the Vertical analysis, Pidilite Industries is Profitable, but its profits are declining.

Balance Sheet of Pidilite Industries LtdVertical Analyis

Amount in ₹ millions

PARTICULARS

EQUITY AND LIABILITIESShareholders Funds

Share Capital 512.66 1.569% 512.64 1.774%Reserve and Surplus 22,981.81 70.344% 19,882.51 68.816%

23,494.47 71.913% 20,395.15 70.591%Non-Current Liabilities

Deferred Tax Liabilities 544.89 1.668% 508.27 1.759%Long-Term Provisions 186.78 0.572% 196.65 0.681%

731.67 2.240% 704.92 2.440%Current Liabilities 0.000%

Short-Term Borrowings 57.80 0.177% 76.84 0.266%Trade Payables 2,940.39 9.000% 3,011.38 10.423%Other Current Liabilites 3,409.80 10.437% 2,859.59 9.897%Short-Term Provision 2,036.45 6.233% 1,844.23 6.383%

8,444.44 25.847% 7,792.04 26.969%TOTAL 32,670.58 100.000% 28,892.11 100.000%

ASSETSNon-Current Assets

Fixed AssetsTangible Assets 5,496.04 16.823% 5,351.31 18.522%Intangible Assets 2,782.27 8.516% 761.67 2.636%Capital Work-In-Progress 4,603.05 14.089% 4,310.89 14.921%

Non-Current Investments 4,213.24 12.896% 3,396.62 11.756%Long-Term Loans and Advances 1,015.35 3.108% 641.05 2.219%Other Non-Current Assets 67.80 0.208% 59.29 0.205%

18,177.75 55.640% 14,520.83 50.259%Current Assets

Current Investments 2,691.65 8.239% 2,341.34 8.104%Inventories 5,347.18 16.367% 5,082.01 17.590%Trade Receivables 5,145.83 15.751% 4,536.00 15.700%Cash and Cash Equivalents 580.95 1.778% 1,451.81 5.025%Short-Term Loans and Advances 675.35 2.067% 851.50 2.947%Other Current Assets 51.87 0.159% 108.62 0.376%

14,492.83 44.360% 14,371.28 49.741%TOTAL 32,670.58 100.000% 28,892.11 100.000%

31-03-2015 Amount

CY/Total Assets %

31-03-2014 Amount

PY/Total Assets %

An examination of the balance sheet shows that the bulk of Pidilite Industries Ltd assets are held in Fixed Assets, Non current Investments, Inventories and trade recivables. Note, that all four have registered growth compared to previous year. Note also that the percentage in cash and cash equivalents decreased significantly from 5.025% to 1.778% in 2015 of the assets. This shows that as Pidilite Industries Ltd grew assets durng the year, it chose to keep more in form of Fixed Assets, Non-Current Investments, which are not very liquid whereas Inventories and Trade recivables which are more liquid than Fixed Assets and Non-Current Assets Regarding Liabilities and equity, the largest liabilitiy are Current Liabilities, while the largest equity accounts in Reserve and Surplus. it os most common for such type of manufacturer. The analysis also reveals Pidilite Industries Ltd capital structure. the company has generated 28.087% of liabilites from the total assets and 71.913% of total share holders equity in the most recent year this is relatively low risk capital structure.