Annual Report - 2005-06 - GAIL (India)

Your Company has been earning a
consistently high rate of return over the
past seven years as depicted above. The
returns earned by your Company have
been mainly in the high 20% region in the
past 7 years representing your Company’s
financial health.
SHAREHOLDERS’ FUND
This has resulted in building up of over
5 times the reserves and surplus in the
past 10 years. However at the same
time your Company has maintained
consistent growth in the dividend
payout ratio.
16,080
Your Company has not only retained sufficient
amounts for its future projects but has also made a
sincere attempt to remunerate the shareholders.
FIXED ASSETS
Break-up of Fixed Assets (Gross Block)
30
EPS and Book Value per Share
140
14,080
1096
1158 1191
EPS in Rs.
25
20
15
10
5
10 Year CAGR
EPS 16%
Book Value per share 17%
48.91
40.25
30.38
12.07 12.53
7.33
55.76
10.18
64.67 63.06
13.32
14.02
74.93
19.38
87.63
22.11
101.22
23.11
116.77
27.32
120
100
80
60
40
20
Book value in Rs.
in Rs. Crores
12,080
10,080
8,080
6,080
4,080
80
1028
976
900
718
585
13,064
12,489
13,278
436
9,726 10,021
9,137
7,804
294
7,183
4,746
3,633
FY1997 FY1998 FY1998 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006
0
FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006
0
Plant and Machinery
Other Assets
EPS
Book Value per share
The EPS of your Company has risen at a CAGR of 16% and your Company has driven the Book Value per share
at a CAGR of 17% over the last 10 years.
Your Company has invested more in value adding
assets such as Plant and Machinery than other
assets such as land, building, furniture etc. As on
date the proportion of plant and machinery is more
than 90% of the total asset base.
No of Times
0.90
0.80
0.70
0.50
0.40
0.77
0.82
0.69
Share Holders Funds
0.67 0.67
0.68
4634 4490
0.39
0.61
5493
0.41
0.59
6600
0.39
7780
0.61
0.42
9128
0.58
10000
9000
8000
7000
6000
5000
Reserves and Surplus in Rs. Crores
Some of the other ratios with respect to the Fixed
Asset and Depreciation are as follows:
Particulars 2005-2006 2004-2005
Depreciation as % of Gross Block 4% 7%
Accumulated Depreciation as % of Gross Block 48% 45%
Net Fixed Assets Turnover (net of ED) Ratio 1.91 1.58
0.30
3300
3880
0.33
0.32
4000
0.20
0.23
1734
0.18
2568
0.31
0.33
3000
2000
0.10
FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006
Dividend Payout Ratio Retention Ratio Reserves and Surplus
1000
58 Winning Momentum 59