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by: ChandraShekhEr DootNidhi Kesarwani

Shanu AgRAwal

Tanmay KULSHRESTHA

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One of the major and fully vertically integrated composite mills playerin India.

It has large production in denim, shirting and knitted garments

It is now adding value by manufacturing denim apparel

Sales: US$ 300 million

Founded: 1931

Headquarters: Ahmedabad

Brands Flying Machine

Newport

Ruf & Tuf

Excalibur

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Large, diversified integrated business model, which is spread across thevalue chain from yarn to retail

Specialized in Diversified woollen textiles

Sales: US$ 254.4 million

Founded: 1925

Headquarters: Mumbai

Brands Raymond Premium Apparel

Apparel

Manzoni Park Avenue

ColorPlus

Parx

NottingHill

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OVERVIEWAnalyze Liquidity Ratios

Analyze Activity or Turnover RatiosAnalyze Financial Ratios

Analyze Profitability Ratios

Conclusion

References

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FINANCIAL RATIOS Liquidity Ratios

Current Ratio Quick ratio

Activity or Turnover Ratios Asset Turnover Ratio Inventory Turnover ratio

Leverage Ratios Debt Equity Ratio Interest Coverage Ratio

Profitability Ratios Gross Profit Margin% Net Profit Margin % Return on Assets Earnings Per Share

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LIQUIDITY RATIOS

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CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES

0

0.5

1

1.5

2

2.5

3

3.5

4

mar,08 mar,09 mar,10 mar,11 mar,12

RAYMOND

ARVIND

ARVIND 3.72 2.62 3.26 2.77 1.84

RAYMOND 2.2 2.06 2.21 2.08 1.36

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Current ratio

Arvind limited March 2012(in crores) March 2011(in crores)

Current asset 1644.79 1705.67

current liabilities 1835.1 1649.91

Raymond limited March 2012(in crores) March 2011(in crores)

Current asset 1312.77 1178.7504

Current liabilities 1001.0072 758.0126

For both companies current ratio is decreasing as compared to march 2011But in Arvind limited it decreases due to decrease in current asset and inRaymond limited it decreases due to decrease in current liabilities.

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QUICK RATIO = QUICK ASSETS/CURRENT LIABILITIES

0

0.5

1

1.5

2

2.5

mar,08 mar,09 mar,10 mar,11 mar,12

RAYMOND

ARVIND

ARVIND 2.27 1.66 2.31 1.7 1.11

RAYMOND 1.4 1.26 1.42 1.15 0.78

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Quick ratio

Arvind limited March 2012 March 2011

Quick asset 701.62 718.88

Quick liabilities 1835.1 1649.91

Raymond limited March 2012 March 2011

Quick asset 1871.8726 1496.4666

Quick liabilities 1001.0072 758.0126

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ACTIVITY OR TURNOVER

RATIOS

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ASSET TURNOVER RATIO = NET SALES/AVERAGE TOTAL ASSETS

0

0.2

0.4

0.6

0.8

1

1.2

mar,08 mar,09 mar,10 mar,11 mar,12

RAYMOND

ARVIND

ARVIND 0.85 0.86 0.78 0.85 0.97

RAYMOND 1.01 0.83 0.8 0.88 0.85

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Asset turnover ratioArvind limited March 2012 March 2011

Net sales 3494.12 2683.26

Total asset 4624.97 4259.20

Raymond limited March 2012 March 2011

Net sales 1871.87 1496.46

Total asset 2950.87 2809.65

For both companies this ratio is increasing because of increase in net sales.

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INVENTORY TURNOVER RATIO = NET SALES/AVERAGE INVENTORY

0

1

2

3

4

5

6

mar,08 mar,09 mar,10 mar,11 mar,12

RAYMOND

ARVIND

ARVIND 4.13 4.03 5.84 3.99 4.82

RAYMOND 4.35 4.39 5.12 3.79 4.42

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Inventory turnover ratioArvind limited March 2012 March 2011

Net sales 3494.12 2683.26

Average inventory 713.79 640.315

Raymond limited March 2012 March 2011

Net sales 1871.87 1496.46

Average inventory 430.38 348.79

For both companies this ratio is increasing because of increase in net sales.

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LEVERAGE RATIOS

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DEBT-EQUITY RATIO = EXTERNAL EQUITIES/INTERNAL EQUITIES

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

MAR,08 MAR,09 MAR,10 MAR,11 MAR,12

RAYMONDARVIND

ARVIND 0.87 0.74 0.75 0.82 0.67

RAYMOND 1.23 1.36 1.6 1.25 0.95

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Debt equity ratioArvind limited March 2012 March 2011

External equities 2604.78 2463.69

Internal equities 2020.19 1795.51

Raymond limited March 2012 March 2011

External equities 1846.57 1744.06

Internal equities 1104.30 1065.58

For both companies this ratio decreases because of increase in intenal equities.

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INTEREST COVERAGE RATIO = EBIT/INTEREST CHARGES

ARVIND 0.87 0.74 0.75 0.82 0.67

RAYMOND 1.23 1.36 1.6 1.25 0.95

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

1 2 3 4 5

RAYMOND

ARVIND

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Interest coverage ratio

Arvind limited March 2012 March 2011

EBIT 506.54 286.18Interest charges 270.25 215.44

Raymond limited March 2012 March 2011

EBIT 184.01 173.58Interest charges 131.89 101.88

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PROFITABILITY RATIOS

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GROSS PROFIT MARGIN % = GROSS PROFIT/NET SALES x 100

0

2

4

6

8

10

12

MAR,08 MAR,09 MAR,10 MAR,11 MAR,12

RAYMOND

ARVIND

ARVIND 4.1 5.26 8.44 10.05 10.61

RAYMOND 0.78 2.18 1.28 7.51 7

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Gross profit ratioArvind limited March 2012 March 2011

Gross profit 236.29 134.80

Net sales 3494.12 2683.26

Raymond limited March 2012 March 2011

Gross profit 83.74 98.53

Net sales 1871.87 1496.46

This ratio increases for arvind limited because of increase in gross profit anddecreases for raymond limited because of increase in net sales.

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NET PROFIT MARGIN% = NET PROFIT/NET SALES x 100

-20

-15

-10

-5

0

5

10

15

mar,08 mar,09 mar,10 mar,11 mar,12 RAYMONDARVIND

ARVIND 1.22 -1.99 2.2 5.02 11.96

RAYMON

D

4.71 -18.34 1.87 -6.71 2.9

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Net profit ratioArvind limited March 2012 March 2011

Net profit 434.23 134.80

Net sales 3494.12 2683.26

Raymond limited March 2012 March 2011

Net profit 56.35 -100.19

Net sales 1871.87 1496.46

This ratio increases for arvind limited because of increase in net profit andincrease for raymond limited because of increase in net profit.

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RETURN ON ASSETS = NPAT/TOTAL ASSETS

0

50

100

150

200

250

mar,08 mar,09 mar,10 mar,11 mar,12

RAYMOND

ARVIND

ARVIND 64.23 52.18 60.89 70.61 79.2

RAYMOND 227.8 183.61 191.09 173.6 179.91

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Return on assetArvind limited March 2012 March 2011

Net profit 434.23 134.80

Total asset 4624.97 4259.20

Raymond limited March 2012 March 2011

Net profit 56.35 -100.19

Total asset 2950.87 2809.65

For both companies this ratio is increses because of increse in net profit.

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EPS = PAT/NO. OF EQUITY SHARES

ARVIND 1.14 -2.26 2.21 5.3 17.05

RAYMOND 10.77 -44.05 4.3 -17.09 9.18

-50

-40

-30

-20

-10

0

10

20

30

1 2 3 4 5 ARVIND

RAYMOND

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Earnings per shareArvind limited March 2012 March 2011

Net profit 434.23 134.80

No of shares 258043069 254632541

Raymond limited March 2012 March 2011

Net profit 56.35 -100.19

No of shares 61380853 61380853

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CONCLUSION Can join Arvind as an executive

Can invest in Arvind

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REFERENCES http://www.raymondindia.com/inv_ar.asp

http://www.arvindmills.com/pdf/annaul_finacial_reporting/AnnualReportfor2011-12.pdf

http://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20f

or%202009-10.pdf http://money.rediff.com/companies/arvind-

ltd/16010001/ratio

http://www.raymondindia.com/inv_ar.asphttp://www.arvindmills.com/pdf/annaul_finacial_reporting/AnnualReportfor2011-12.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/AnnualReportfor2011-12.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/Arvind%20Ltd.%20%20Annual%20Report%20for%202009-10.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/AnnualReportfor2011-12.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/AnnualReportfor2011-12.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/AnnualReportfor2011-12.pdfhttp://www.arvindmills.com/pdf/annaul_finacial_reporting/AnnualReportfor2011-12.pdfhttp://www.raymondindia.com/inv_ar.asp

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THANK YOU