| Year | Per share book value of Revathi (1) | Nifty 50 with dividend Included (2) | Relative results |
|---|---|---|---|
|
2002 – 03 |
9.0% |
-11.7% |
20.7% |
|
2003 – 04 |
21.6% |
86.3% |
-64.7% |
|
2004 – 05 |
41.3% |
17.3% |
24.0% |
|
2005 – 06 |
19.1% |
70.0% |
-50.9% |
|
2006 – 07 |
11.6% |
13.80% |
-2.2% |
|
2007 – 08 |
16.6% |
25.7% |
-9.1% |
|
2008 – 09 |
-2.5% |
-35.4% |
32.9% |
|
2009 – 10 |
3.6% |
75.3% |
-71.7% |
|
2010 – 11 |
6.0% |
12.4% |
-6.4% |
|
2011 – 12 |
-2.9% |
-8.2% |
5.3% |
|
2012 – 13 |
2.8% |
8.7% |
-5.9% |
|
2013 – 14 |
-10.9% |
19.5% |
-30.4% |
|
2014 – 15 |
-0.1% |
28.2% |
-28.3% |
|
2015 – 16 |
29.1% |
-7.8% |
36.9% |
|
2016 – 17 |
6.4% |
20.2% |
-13.8% |
|
2017 – 18 |
-5.7% |
11.8% |
-17.5% |
|
2018 – 19 |
6.8% |
16.45% |
-9.7% |
|
Average Annual Gain |
8.9% |
16.4% |
-7.5% |
|
Overall Gain |
260.6% |
1213.8% |
-953.2% |
Notes:
- All data is for financial years and includes dividends paid, if any.
- The Nifty-50 numbers are pre-tax and assume that dividends were reinvested, whereas the numbers for Revathi are after tax.
- We think our investors should measure our performance against their general experience in the equity markets. While the Nifty-50 is not perfect (nor is anything else) as a measure of performance, it has the advantage of being widely known and reflects with reasonable accuracy the experience of investors generally with the market.
- The reason we have used the “growth in book value” as against stock price is, that over time, we intend measuring our performance by checking if a rupee retained has created a rupee worth of market value.
- If you expect, as we do, that owning a representative stock index would produce reasonably satisfactory results over a period of time, it follows that, for long-term investors, gaining small advantages over that index must prove rewarding.