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Economic Value Added (EVA) Statement

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Particulars 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Average Capital Employed 2,877 3,499 3,705 3,989 4,866 5,286 5,444 6,071
Average Debt/Average Capital (%) 1.1 0.6 0.2 2.2 3.4 1.8 0.4 -
Average Equity/Average Capital (%) 98.9 99.4 99.8 97.8 96.7 98.3 99.6 100.00
Cost of Debt (% Post Tax) 0.9 1.6 1.9 1.4 1.2 1.2 5.5 -
Cost of Equity
Beta 0.59 0.59 0.63 0.64 0.66 0.73 0.76 0.87
Cost of risk - free debt (%) 7.94 6.99 7.50 7.99 8.53 7.96 8.80 7.74
Market Premium (%) 10 10 10 10 10 10 10 10
Cost of Equity (%) 13.83 12.85 12.85 14.39 15.16 15.22 16.36 16.48
Economic Value Added (Eva)
Profit After Tax 968 1,282 2,232 1,928 2,378 2,118 2,109 2,386
Add: Interest*(1-tax rate) 1.32 1.67 1.39 10.55 14.39 7.86 7.80 7.32
NOPAT = PAT + Interest*(1-t) 969 1283 2,233 1,938 2,393 2,126 2,117 2,393
Cost of Capital 394 448 510 563 715 792 889 1,000
EVA 575 835 1,723 1,376 1,677 1,334 1,228 1,393
Return on Capital Employed (%) 33.7 36.7 60.3 48.6 49.2 40.2 38.9 39.42
Weighted Average Cost of Capital (%) 13.7 12.8 13.8 14.1 14.7 15 16.3 16.5
EVA/Capital Employed (%) 20 23.9 46.5 34.5 34.5 25.2 22.6 22.9
Enterprise Value
Market Capitalisation 13,869 21,390 38,827 31,739 41,041 30,792 45,425 52,714
Add: Debt 132 78 66 1,491 995 281 - -
Less: Financial Assets 2,698 3,588 5,833 5,200 4,041 3,805 4,206 3,313
Enterprise Value (EV) 11,303 17,880 33,060 28,030 37,995 27,268 41,219 49,400
EV/Year End Capital Employed (Times) 3.6 4.6 9.4 6.3 7.2 5.2 7.4 7.6