SRI Research V1

7/31/2019 SRI Research V1

http://slidepdf.com/reader/full/sri-research-v1 1/54

Financial Analysis on

2 Wheeler Automobile Indusof India

Submitted By:

Shivangi Agarwal - 14

Khoont Keyur S. – 15

Neelam Singh – 16

Neha Parmar – 24

Kunal Shah – 43

Under the guidance of:

Dr. S. Vijayalakshmi

Section - C

Semester – II, MBA 2011-13

______________________________________

IBS Hyderabad

A constituent of the ICFAI Foundation for Higher Edu

Dontanpalli, Shankerpalli Road,

Hyderabad –

501203, A.P., India



Sheet # INDEX

1 Profit & Loss Statement

2 Balance Sheet

3 Leverage Analysis

4 Ratio Analysis5 Liquidity Ratio - Graphical

6 Activity Ratio - Graphical

7 Leverage Ratio - Graphical

8 Profitability Ratio - Graphical

9 Capital Structure

10 Changes in Working Capital / Fund Flow

11 Working Capital Comperasion - Graphical

12 Working Capital Policy

13 Risk(Liquidity) - Return(Profitability) Trade-off

14 Forecasting - Bajaj Auto

15 Forecasting - TVS Motor

16 Forecasting - Hero MotoCorp

17 Forecasting - Kinetic Engineeting

18 Forecasting - LML

ry

cation



Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Income

Sales Turnover 17,386.51 12,420.95 9,310.24 9,856.66 10,741.91

Excise Duty 934.71 607.70 610.07 1,029.51 1,321.67

Net Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24Other Income 1,176.00 22.50 -6.20 170.27 567.16

Stock Adjustments 82.79 47.60 -24.49 67.85 -0.90

Total Income 17,710.59 11,883.35 8,669.48 9,065.27 9,986.50

Expenditure

Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50

Power & Fuel Cost 86.61 70.35 60.89 69.20 79.34

Employee Cost 494.33 411.76 366.67 350.09 310.07

Other Manufacturing Expenses 61.77 57.54 57.08 53.72 74.53

Selling and Admin Expenses 450.18 407.61 381.73 390.15 457.17

Miscellaneous Expenses 237.76 221.94 225.56 209.63 230.89

Preoperative Exp Capitalised -16.66 -15.67 -14.42 -23.04 -32.05

Total Expenses 13,279.29 9,340.64 7,579.61 7,809.79 8,089.45

Operating Profit 3,255.30 2,520.21 1,096.07 1,085.21 1,329.89

PBDIT 4,431.30 2,542.71 1,089.87 1,255.48 1,897.05

Interest 1.69 5.98 21.01 5.16 5.34

PBDT 4,429.61 2,536.73 1,068.86 1,250.32 1,891.71

Depreciation 122.84 136.45 129.79 173.96 190.26

Other Written Off 0.00 0.00 0.00 1.12 0.39

Profit Before Tax 4,306.77 2,400.28 939.07 1,075.24 1,701.06

Extra-ordinary items 46.77 26.87 18.72 59.32 26.60

PBT (Post Extra-ord Items) 4,353.54 2,427.15 957.79 1,134.56 1,727.66Tax 1,011.02 710.12 301.61 378.78 490.09

Reported Net Profit 3,342.52 1,717.03 656.18 755.78 1,237.57

Total Value Addition 1,313.99 1,153.53 1,077.51 1,049.75 1,119.95

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 1,157.47 578.73 318.30 289.37 404.73

Corporate Dividend Tax 187.77 96.12 54.10 49.18 68.78

Per share data (annualised)

Equity Shares in issue (lakhs) 2,893.67 1,446.84 1,446.84 1,446.84 1,011.84

Face Value of Equity Shares 10.00 10.00 10.00 10.00 10.00

Earning Per Share (Rs) 115.51 118.67 45.35 52.24 122.31

Equity Dividend (%) 4.00 4.00 2.20 2.00 4.00

Book Value (Rs) 169.69 202.40 129.23 109.73 546.96

0

DetailsBajaj Auto



Particular Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Particular

Opening Stock 362.76 272.84 358.65 275.31 529.83 Sales Turnover

Purchases Excise Duty

Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50Closing stock

Direct expenses Stock Adjustment

Power & Fuel Cost 86.61 70.35 60.89 69.2 79.34

Employee Cost 494.33 411.76 366.67 350.09 310.07


Total 12,608.01 8,726.76 6,986.74 7,233.05 7,433.44 Total

Selling and Admin Expenses 450.18 407.61 381.73 390.15 457.17 Gross Profit

Miscellaneous Expenses 237.76 221.94 225.56 209.63 230.89 Preoperative Exp

Net Profit(EBDIT) 4431.3 2542.71 1089.87 1255.48 1897.05 Other Income

Total 5119.24 3172.26 1697.16 1855.26 2585.11 Total


EBDIT 4,431.30 2,542.71 1,089.87 1,255.48 1,897.05

Depreciation 122.84 136.45 129.79 173.96 190.26


EBIT 4,308.46 2,406.26 960.08 1,080.40 1,706.40

Interest 1.69 5.98 21.01 5.16 5.34

EBT 4,306.77 2,400.28 939.07 1,075.24 1,701.06

Extra-ordinary items 46.77 26.87 18.72 59.32 26.6PBT (Post Extra-ord Items) 4,353.54 2,427.15 957.79 1,134.56 1,727.66

Tax 1,011.02 710.12 301.61 378.78 490.09

EAT 3,342.52 1,717.03 656.18 755.78 1,237.57

Equity Shares in issue (lakhs) 2893.67 1446.84 1446.84 1446.84 1011.84

Earning Per Share (Rs) 115.5114 118.6745 45.35263 52.2366 122.3089

Trading profit and loss a/c




17,387 12,421 9,310 9,857 10,742

-934.71 -607.70 -610.07 -1,029.51 -1,321.67

547.28 446.21 338.84 349.61 309.70

82.79 47.6 -24.49 67.85 -0.9

16,534.59 11,860.85 8,675.68 8,895.00 9,419.34

3,926.58 3,134.09 1,688.94 1,661.95 1,985.90

16.66 15.67 14.42 23.04 32.05

1176 22.5 -6.2 170.27 567.16

5119.24 3172.26 1697.16 1855.26 2585.11




Sources Of Funds

Total Share Capital 289.37 144.68 144.68 144.68 101.18

Equity Share Capital 289.37 144.68 144.68 144.68 101.18

Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 4,620.85 2,783.66 1,725.01 1,442.91 5,433.14

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 4,910.22 2,928.34 1,869.69 1,587.59 5,534.32

Secured Loans 23.53 12.98 0.00 6.95 22.46

Unsecured Loans 301.62 1,325.60 1,570.00 1,327.39 1,602.97

Total Debt 325.15 1,338.58 1,570.00 1,334.34 1,625.43

Total Liabilities 5,235.37 4,266.92 3,439.69 2,921.93 7,159.75

Application Of Funds

Gross Block 3,395.16 3,379.25 3,350.20 2,994.68 3,178.54

Less: Accum. Depreciation 1,912.45 1,899.66 1,807.91 1,726.07 1,904.94

Net Block 1,482.71 1,479.59 1,542.29 1,268.61 1,273.60

Capital Work in Progress 149.34 120.84 106.48 34.74 107.62

Investments 4,795.20 4,021.52 1,808.52 1,857.14 6,447.53

Inventories 547.28 446.21 338.84 349.61 309.70

Sundry Debtors 362.76 272.84 358.65 275.31 529.83

Cash and Bank Balance 155.45 100.20 135.68 54.74 62.16

Total Current Assets 1,065.49 819.25 833.17 679.66 901.69

Loans and Advances 3,891.66 2,291.29 1,567.09 1,099.68 2,925.24

Fixed Deposits 401.04 1.21 1.19 1.33 21.32

Total CA, Loans & Advances 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 2,624.35 2,218.06 1,378.20 1,185.19 1,683.46

Provisions 3,925.72 2,248.72 1,224.15 834.04 2,833.79

Total CL & Provisions 6,550.07 4,466.78 2,602.35 2,019.23 4,517.25

Net Current Assets -1,191.88 -1,355.03 -200.90 -238.56 -669.00


Total Assets / Net Asset 5,235.37 4,266.92 3,439.69 2,921.93 7,159.75

Contingent Liabilities 959.66 818.25 924.96 1,129.29 811.66

Book Value (Rs) 169.69 202.40 129.23 109.73 546.96

Balance Sheet (in Rs. Crores)

DetailsBajaj Auto



Liability Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Share capital

Equity Share Capital 289.37 144.68 144.68 144.68 101.18

Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Total Share Capital 289.37 144.68 144.68 144.68 101.18

Reserves and surplus

Reserves 4620.85 2783.66 1725.01 1442.91 5433.14

Revaluation Reserves 0 0 0 0 0

Share holders capital(NAV) 4,910.22 2,928.34 1,869.69 1,587.59 5,534.32

Secured Loan

Secured Loan 23.53 12.98 0.00 6.95 22.46

Unsecured loan

Unsecured loan 301.62 1,325.60 1,570.00 1,327.39 1,602.97

Current Liability and Provision

Deffered Credit 0 0 0 0 0

Current Liabilities 2624.35 2218.06 1378.2 1185.19 1683.46

Provisions 3925.72 2248.72 1224.15 834.04 2833.79

Total CL & Provisions 6550.07 4466.78 2602.35 2019.23 4517.25

Total Liability 11,785.44 8,733.70 6,042.04 4,941.16 11,677.00

Balance Sheet (in




Fixed Assets

Gross Block 3395.16 3379.25 3350.2 2994.68 3178.54

Less: Accum. Depreciation 1912.45 1899.66 1807.91 1726.07 1904.94Net Block 1482.71 1479.59 1542.29 1268.61 1273.6

Capital Work in Progress 149.34 120.84 106.48 34.74 107.62

Investment 4,795.20 4,021.52 1,808.52 1,857.14 6,447.53

Current Assets loans and Advances

Inventories 547.28 446.21 338.84 349.61 309.70

Sundry Debtors 362.76 272.84 358.65 275.31 529.83

Cash and Bank Balance 155.45 100.2 135.68 54.74 62.16

Loans and Advances 3,891.66 2,291.29 1,567.09 1,099.68 2,925.24

Fixed Deposits 401.04 1.21 1.19 1.33 21.32

Total CA, Loans & Advances 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25

Miscellaneous Expenses

Miscellaneous Expenses 0 0 183.3 0 0

Total Assets 11,785.44 8,733.70 6,042.04 4,941.16 11,677.00

Rs. Crores)

Assets



LIQUIDITY RATIOS

1. Current Ratio

Current Ratio = Current asset / current liabilities

Years --> Mar '11 Mar '10 Mar '09 Mar '08

Total Current Assets 5,358.19 3,111.75 2,401.45 1,780.67

Current Liabilities 6,550.07 4,466.78 2,602.35 2,019.23

Current Ratio 0.82 0.70 0.92 0.88

Liquid Ratio

Liquid Ratio = Liquid asset / liquid or current liabilities

Mar '11 Mar '10 Mar '09 Mar '08

Liquid Assets 4,409.87 2,664.33 2,061.42 1,429.73

Liquid Liabilities 6,550.07 4,466.78 2,602.35 2,019.23

0.67 0.60 0.79 0.71

C. Super Quick Ratio / Absolute Liquid Ratio:-

Absolute Liquid Ratio = (Cash and Bank + Marketable securities) / current liabilities

Mar '11 Mar '10 Mar '09 Mar '08Check Cash & Bank Bal 155.45 100.20 135.68 54.74

Current Liabilities 6,550.07 4,466.78 2,602.35 2,019.23

0.02 0.02 0.05 0.03



Turnover Ratios / Activity Ratios / Management Efficiency Ratios

a) Stock Turnover Ratio/Inventory Turnover Ratio

Stock Turnover Ratio = Cost of good sold or Sales / Average stock

Mar '11 Mar '10 Mar '09 Mar '08

Cost of goods sold 12,608.01 8,726.76 6,986.74 7,233.05

Average stock 496.745 392.525 344.225 329.655

25.38 22.23 20.30 21.94

A.1) Days of Inventory Holding

Days of Inventory Holding = No. of Operating Days / Inventory Turnover Ratio

Mar '11 Mar '10 Mar '09 Mar '08

Taken as a No. of Operating Days 360 360 360 360

Inventory Turnover Ratio 25.38125 22.23237 20.29702 21.94127

14.18 16.19 17.74 16.41

b) Debtors Turnover Ratio/Receivables Turnover Ratio

Debtors Turnover Ratio = Credit Sales / Average Debtors

Mar '11 Mar '10 Mar '09 Mar '08

Credit Sales 16,451.80 11,813.25 8,700.17 8,827.15

Average Debtors 317.8 315.745 316.98 402.57

51.76778 37.41389 27.44706 21.92699



b.1) Average Collection Period (in Days)

Average Collection Period (in Days) = No. of Operating Days / Debtors Turnover Ratio

Mar '11 Mar '10 Mar '09 Mar '08

Taken as a No. of Operating Days 360.00 360.00 360.00 360.00

Debtors Turnover Ratio 51.76778 37.41389 27.44706 21.926996.954133 9.622094 13.11616 16.41812

Investment in Debtors (in Rs. Crores)

Investment in Debtors (in Rs. Crores) = Net Sales/ Average Collection Period (in Days)

Mar '11 Mar '10 Mar '09 Mar '08

Net Sales 16,451.80 11,813.25 8,700.17 8,827.15

Average Collection Period (in Days) 6.954133 9.622094 13.11616 16.41812

2365.759 1227.721 663.317 537.6468

c) Creditors Turnover Ratio

Creditors Turnover Ratio = Credit Purchases / Average creditors

Mar '11 Mar '10 Mar '09 Mar '08

Credit purchases 11,965.30 8,187.11 6,502.10 6,760.04

Is this zero Average Creditors

#DIV/0! #DIV/0! #DIV/0! #DIV/0!



d) Assets Turnover Ratio

Assets Turnover Ratio = Cost of goods sold or Sales / Total Assets

Mar '11 Mar '10 Mar '09 Mar '08

Cost of Goods sold 12,608.01 8,726.76 6,986.74 7,233.05Check this Total Assets 5,235.37 4,266.92 3,439.69 2,921.93

2.408237 2.045213 2.031212 2.475436

e) Working Capital Turnover Ratio

Working Capital Turnover Ratio = Cost of Goods slod or sales / Working capital

Mar '11 Mar '10 Mar '09 Mar '08

Cost of Goods sold 12,608.01 8,726.76 6,986.74 7,233.05

Working Capital -1,558.86 -1,398.81 -545.03 -505.53

-8.087968 -6.238703 -12.819 -14.30786

`

Leverage Ratio

Long Term Solvency Ratios / Solvency Ratios:-

. Activity Ratio or Performance or Turnover Ratio:

a) Debt Equity Ratio

Debt Equity Ratio = Outsider's Fund / Shareholders Fund



Mar '11 Mar '10 Mar '09 Mar '08

Check this - Outsiders' Fund 4,910.22 2,928.34 1,869.69 1,587.59

Check this - Shareholders fund 5,235.37 4,266.92 3,439.69 2,921.93

0.94 0.69 0.54 0.54

b) Proprietary Ratio/Equity Ratio/ Net worth Ratio/Shareholders Fund to Total Asset/ Net w

Proprietary Ratio = Shareholder's Fund / Total Assets

Mar '11 Mar '10 Mar '09 Mar '08

Check this - Shareholders Fund 4,910.22 2,928.34 1,869.69 1,587.59

Check this - Total Assets 5,235.37 4,266.92 3,439.69 2,921.93

0.938 0.686 0.544 0.543

c) Solvency Ratio

Solvency Ratio = Outsider's Fund / Total Assets

Mar '11 Mar '10 Mar '09 Mar '08

Outsider's Fund 325.15 1,338.58 1,570.00 1,334.34

Check this - Total Assets 5,235.37 4,266.92 3,439.69 2,921.93

0.062106 0.313711 0.456436 0.456664

d) Funded Debt to Total Capitalisation Ratio

Funded Debt to Capitalisation = Long Term Borrowings / Total Capital

Mar '11 Mar '10 Mar '09 Mar '08

check this Long Term Borrowings 0 0 0 0

Total Capital 289.37 144.68 144.68 144.68

0 0 0 0



4. Profitability Ratios

a) Gross Profit Ratio

Gross Profit Ratio = Gross Profit / Sales * 100

Check Gross Profit 3,926.58 3,134.09 1,688.94 1,661.95

Check Sales 16,451.80 11,813.25 8,700.17 8,827.15

23.87% 26.53% 19.41% 18.83%

b) Operating Ratio

Operating Ratio = (cost of goods sold + other operating expenses)/Sales

Cost of goods sold 12,608.01 8,726.76 6,986.74 7,233.05

Check Operating expenses 749.71 687.09 664.37 653.50

Sales 16,451.80 11,813.25 8,700.17 8,827.15

81.19% 79.69% 87.94% 89.34%

c) Operating Profit Ratios

Operating Profit Ratios = Operation Ratio / Sales * 100

Operation Ratio 0.811931 0.796889 0.879421 0.893442

Sales 16,451.80 11,813.25 8,700.17 8,827.15

0.00% 0.01% 0.01% 0.01%

d) Net Profit Ratio

Net Profit Ratio = Net Profit / Sales * 100

Net Profit 3,342.52 1,717.03 656.18 755.78

Sales 16,451.80 11,813.25 8,700.17 8,827.15

20% 15% 8% 9%



e) Interest Coverage Ratio/Debt Service Ratio

Interest Coverage Ratio = EBIT / Interest

EBIT 4,308.46 2,406.26 960.08 1,080.40

Interest 1.69 5.98 21.01 5.16

2549.385 402.3846 45.69634 209.3798

f) Earnings Per Share

Earnings Per Share = Net profit / No of Equity Shares

Net profit

No of Equity shares

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

g) Price Earnings Ratio

Price Earnings Ratio = Market Price / EPS

Market Price

EPS

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

h) Return On Shareholders Fund

Return On Shareholders Fund = Net profit / Shareholder's Fund * 100

Net profit

Shareholder's Fund

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

i) Return on Investment / Total assets

Return on Investment / Total assets = Net profit / Total Assets * 100

Net profit

Total Assets#DIV/0! #DIV/0! #DIV/0! #DIV/0!



Mar '07

3,848.25

4,517.25

0.85

Mar '07

3,517.23

4,517.25

0.78

Mar '0762.16

4,517.25

0.01

Mar '11 Mar '10 Mar '09 Mar '08

Series1 0.82 0.70 0.92 0.88

0.82

0.70

0.920.88

0.00

0.10

0.20

0.30

0.40

0.50

0.600.70

0.80

0.90

1.00

< - - C u r r e n t R a t i o n - - >

Current Ratio of Prestige Gardens

Mar '11 Mar '10 Mar '09 Mar '08

Series1 0.67 0.60 0.79 0.71

A x i s T i t l e

Chart Title

0.02

0.02

0.03

0.01

0.00 0.01 0.02 0.03 0.04 0.

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

A x i s T i t l e

Chart Title



Mar '07

7,433.44

154.85

48.00

Mar '07

360

48.00413

7.50

Mar '07

9,420.24

264.915

35.55948

Axis Title

25.3822.23 20.30 21.94

48.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00


A x i s T i t l e

Axis Title

Chart Title

14.18

16.1917.74

16.41

7.50

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00


< - - I n v e n

t o r y

T u r n o v e r R a t i o

- - >

<-- Years -->

Inventory Turnover Ratio of Prestige Garden



Mar '07

360.00

35.5594810.12388

Mar '07

9,420.24

10.12388

930.4968

Mar '07

6,969.50

#DIV/0!



Mar '07

7,433.447,159.75

1.038226

Mar '07

7,433.44

-781.77

-9.508474



Mar '07

5,534.32

7,159.75

0.77

orth to Total Asset

Mar '07

5,534.32

7,159.75

0.773

Mar '07

1,625.43

7,159.75

0.227023

Mar '07

0

101.18

0



1,985.90

9,420.24

21.08%

7,433.44

762.59

9,420.24

87.00%

0.870045

9,420.24

0.01%

1,237.57

9,420.24

13%



1,706.40

5.34

319.5506

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!



Mar '07

0.85

0.85

Mar '07

0.78

0.05

05 0.06






Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50

Power & Fuel Cost 86.61 70.35 60.89 69.20 79.34

Employee Cost 494.33 411.76 366.67 350.09 310.07


COGS 12,608.01 8,726.76 6,986.74 7,233.05 7,433.44No. of Operating Days 360 360 360 360 360

Avg. Daily Operating Expenses 36.89 25.95 21.05 21.69 22.47

Avg. Inventories 496.75 392.53 344.23 329.66 -

Avg. Debtors 317.80 315.75 316.98 402.57 -

Gross Working Capital 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25


Net Assets/Net Working Capital -1,191.88 -1,355.03 -200.90 -238.56 -669.00

Current Ratio 0.82 0.70 0.92 0.88 0.85

Quick Ratio 0.67 0.60 0.79 0.71 0.78

Net Working Capital Ratio -0.23 -0.32 -0.06 -0.08 -0.09Interval Measure 130.42 102.73 97.97 65.97 157.47

Cash Ratio 0.02 0.02 0.05 0.03 0.01

Inventory Turnover Ratio 25.38 22.23 20.30 21.94 -

Debtors Turnover Ratio 51.77 37.41 27.45 21.93 -

Net Assets Turnover Ratio -0.23 -0.32 -0.06 -0.08 -0.09

Days of Inventory Holding 14.18 16.19 17.74 16.41 -

Average Collection Period (in Days) 6.95 9.62 13.12 16.42 -

Investment in Debtors (in Rs. Crores) 114,408.00 113,668.20 114,112.80 144,925.20 -

Rate of Return on Debtors 2.92% 1.51% 0.58% 0.52% -

Debt Ratio 0.06 0.31 0.46 0.46 0.23

Debt - Equity Ratio 0.07 0.46 0.84 0.84 0.29

Capital Emplyed to Net worth Ratio 1.07 1.46 1.84 1.84 1.29

Equity Multiplier 1.60 2.21 2.58 2.59 1.60

Net Profit Margin Ratio 0.20 0.15 0.08 0.09 0.13

Operating Expense Ratio 0.81 0.79 0.87 0.88 0.86

Return on Investment (ROTA) 0.55 0.37 0.20 0.26 0.19

Return on Investment (RONA) 0.82 0.56 0.28 0.37 0.24

Return On Equity (ROE) 0.68 0.59 0.35 0.48 0.22

LEVERAGE RATIOS

PROFITABILITY RATIOS

ACTIVITY RATIOS/MANAGEMENT EFFICIENCY RATIOS

LIQUIDITY RATIOS

Ratio Analysis (in Rs. Crores)

Bajaj AutoDetails





Leverage Analysis (in Rs. Crores)


EBIT 4,308.46 2,406.26 960.08 1,080.40 1,706.40

Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24

EPS (in Rs.) 115.51 118.67 45.35 52.24 122.31

Changes% change in EBIT 0.790521 1.506312 -0.11137 -0.36685 -

% change in sales 0.392657 0.357818 -0.01439 -0.06296 -

% change in EPS -0.02665 1.616706 -0.13178 -0.57291 -

Degree

Degree of Operating leverage 2.013264 4.209712 7.741737 5.826864 -

Degree of Finacial leverage -0.03372 1.073287 1.183343 1.56169 -

Degree of Combine Leverage -0.06788 4.518231 9.161132 9.099753 -

DetailsBajaj Auto

0

1

2

3

4

5

6

7

8

9

Mar '11 Mar '10 Mar '09 Mar '08

D e g r e e

Year

Y-O-Y DOL Comparison

Bajaj Auto

TVS

Hero MotoCorp

Kinetic

LML

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

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Y-O-

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DFL

Com

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B

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A

u

t

o






Current Ratio 0.82 0.70 0.92 0.88 0.85

Quick Ratio 0.67 0.60 0.79 0.71 0.78

Net Working Capital Ratio -0.23 -0.32 -0.06 -0.08 -0.09

Interval Measure 130.42 102.73 97.97 65.97 157.47Cash Ratio 0.02 0.02 0.05 0.03 0.01

LIQUIDITY RATIOS-GRAPHICAL REPRESENTATION

LIQUIDITY RATIOS

DetailsBajaj Auto

0.00

0.20

0.40

0.60

0.80

1.00

1.20

R A T I O S

YEAR

Current Ratio Comparision

Bajaj Auto

TVS Motor

Hero MotoCorp

#REF!

#REF!

0.00

0.20

0.40

0.60

0.80

1.00

1.20

R A T I O S

Quic

k

Rati

o

Com

pari

sion

80.00

100.00

120.00

140.00

160.00

180.00

R A T I O S

Interval Measure

Comparision

Bajaj Auto

TVS Motor

Hero MotoCorp

#REF!



0.00

20.00

40.00

60.00

YEAR

#REF!






Inventory Turnover Ratio 25.38 22.23 20.30 21.94 -

Debtors Turnover Ratio 51.77 37.41 27.45 21.93 -

Net Assets Turnover Ratio -0.23 -0.32 -0.06 -0.08 -0.09

Days of Inventory Holding 14.18 16.19 17.74 16.41 -Average Collection Period (in

Days) 6.95 9.62 13.12 16.42 -

Rate of Return on Debtors 2.92% 1.51% 0.58% 0.52% -

ACTIVITY RATIOS/MANAGEMENT EFFICIENCY RATIOS-GRAPHICAL REPRESENTATION

ACTIVITY RATIOS/MANAGEMENT EFFICIENCY RATIOS

DetailsBajaj Auto

0.00

5.00

10.00

15.00

20.00

25.00

30.00

R A T I O S

YEAR

Inventory Turnover Ratio

Comparison

Bajaj Auto

TVS Motor

Hero MotoCorp

#REF!

#REF!

0.00

10.00

20.00

30.00

40.00

50.00

60.00

R A T I O S

Deb

tors

Turn

overRati

o

Com

pa…

B

a

j

a j

A

u

t

o

14.00

16.00

18.00

20.00

Days of Inventory Holding

ComparisonAver

age

Coll

ecti

on

Peri



0.00

2.00

4.00

6.00

8.00

10.00

12.00

D A Y S

YEAR

Bajaj Auto

TVS Motor

Hero MotoCorp

#REF!

#REF!

0.00

5.00

10.00

15.00

20.00

D A

Y S

od…

B

a

j

a

jA

u

t

o






Debt Ratio 0.06 0.31 0.46 0.46 0.23

Debt - Equity Ratio 0.07 0.46 0.84 0.84 0.29

Capital Emplyed to Net worth Ratio 1.07 1.46 1.84 1.84 1.29

Equity Multiplier 1.60 2.21 2.58 2.59 1.60

LEVERAGE RATIOS

LEVERAGE RATIOS-GRAPHICAL REPRESENTATION

DetailsBajaj Auto

0.00

0.20

0.40

0.60

0.80

1.00

1.20


R A T I O S

YEAR

Debt Ratio Comparison

Bajaj Auto

TVS Motor

Hero MotoCorp

Kinetic

LML

0.00

0.20

0.40

0.60

0.80

1.00

1.20

M

a

r

'

1

R A T I O S

Deb

t -

Equi

ty

Rati

o

Com

pa…

B

a

j

a

j

A

u

t

o

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Ma

R A T I O S

M

Co



r '11

YEAR

Equity

ultiplier

mparison

BajajAuto

TVS

Motor

Hero

MotoC

orp

Kinetic

LML




Net Profit Margin Ratio 0.20 0.15 0.08 0.09 0.13

Operating Expense Ratio 0.81 0.79 0.87 0.88 0.86

Return on Investment (ROTA) 0.55 0.37 0.20 0.26 0.19

Return on Investment (RONA) 0.82 0.56 0.28 0.37 0.24Return On Equity (ROE) 0.68 0.59 0.35 0.48 0.22

PROFITABILITY RATIOS

PROFITABILITY RATIOS-GRAPHICAL REPRESENTATION

DetailsBajaj Auto

0.00

0.20

0.40

0.60

0.80

1.00

1.20


R A T I O S

YEAR

Net Profit Margin

Ratio Comparison

Bajaj Auto

TVS

Hero MotoCorp

Kinetic

LML

0.00

0.20

0.40

0.60

0.80

1.00

1.20

M

a

r

'

1

R A T I O S

Oper

ating

Expe

nce

Ratio

Com

par…

B

a

j

a

jA

u

t

o

0.80

1.00

1.20

RONA Comparison

0.80

1.00

1.20

ROE

Comparis

on



0.00

0.20

0.40

0.60


R A T I O S

YEAR

Bajaj Auto

TVS

Hero MotoCorp

Kinetic

LML

0.00

0.20

0.40

0.60

M

a

r

'

1

1

R A T I O S

B

a

j

a

j

A

u

to





Capital Structure (in Rs. Crores)


Instrument

Authorised Capital 300 150 150 150 150

Issued Capital 289.37 144.68 144.68 144.68 101.18

No of Shares (In Lakhs) 2,893.67 1,446.84 1,446.84 1,446.84 1,011.84Face Value 10.00 10.00 10.00 10.00 10.00

Paid Up Capital 289.37 144.68 144.68 144.68 101.18

Dividend Per Share 4.00 4.00 2.20 2.00 4.00

Shrare Prices 1459.8 1055.55 309.23 287.23 NA

Earning Per Share 115.51 118.67 45.35 52.24 122.31

Net Income Approach(Kd<Ko<Ke)

Net Operating Income 3,255.30 2,520.21 1,096.07 1,085.21 1,329.89

Total Debt 325.15 1338.58 1570.00 1334.34 1625.43

Interest on Debt 1.69 5.98 21.01 5.16 5.34

Equity Earnings 3253.61 2514.23 1075.06 1080.05 1324.55

Cost of Equity (Ke) 7.91% 11.24% 14.67% 18.19% -

Cost of Debt (Kd) 0.52% 0.45% 1.34% 0.39% 0.33%

Market Value Of Equity (E) 41118.18 22362.81 7330.13 5938.80 -

Market Value Of Debt (D) 325.15 1338.58 1570 1334.34 1625.43

Total Value Of Firm (V) 41443.33 23701.39 8900.13 7273.14 -

Cost of Capital (Ko) 7.85% 10.63% 12.32% 14.92% -

DetailsBajaj Auto

Equity Share

0.00%

5.00%

10.00%

15.00%

20.00%


Capital Structure : Bajaj

Auto

Cost of Equity (Ke) Cost of Debt (Kd)

Cost of Capital (Ko)

0

0.5

1

1.5

Mar '11

Capital Structure :

TVS Motor

Cost of Equity (Ke)

Cost of Debt (Kd)

Cost of Capital (Ko)






CURRENT ASSETS

Inventories 547.28 446.21 338.84 349.61 309.70

Sundry Debtors 362.76 272.84 358.65 275.31 529.83

Cash and Bank Balance 155.45 100.20 135.68 54.74 62.16Loans and Advances 3,891.66 2,291.29 1,567.09 1,099.68 2,925.24

Fixed Deposits 401.04 1.21 1.19 1.33 21.32

Total Current Assets 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25

CURRENT LIABILITIES


Provisions 3,925.72 2,248.72 1,224.15 834.04 2,833.79

Total Current Liabilities 6,550.07 4,466.78 2,602.35 2,019.23 4,517.25

Working Capital -1,191.88 -1,355.03 -200.90 -238.56 -669.00

Changes in Working Capital 163.15 -1,154.13 37.66 430.44 -

Increase/Decrease in Working

Capital (in Rs. Crores)

Increase (Application of Fund)

Decrease(Intersoursing of Fund)





Increase (Application of Fund)Decrease(Intersoursing of Fund) -

-

Mar'10 over Mar'09

Mar'09 over Mar'08

Mar'08 over Mar'07

Mar'11 over Mar'10

163.15

-

430.44

Statement Showing Changes in Working Capital / Fund Flow (in Rs. Crores)

DetailsBajaj Auto

37.66

-

-1,154.13





Mar'11 Mar'10

Bajaj Auto -1,191.88 -1,355.03

Net Working Capital Comparision (in Rs. Crores)

-1,600.00

-1,400.00

-1,200.00

-1,000.00

-800.00

-600.00

-400.00

-200.00

0.00

200.00

Mar'11 Mar'10 M

N E T W O R

K I N G C A P I T A L

Y

Net Working Ca





Mar'09 Mar'08 Mar'07

-200.90 -238.56 -669.00

r'09 Mar'08 Mar'07

EAR

pital Comparison

Bajaj Auto

#REF!

#REF!

#REF!

#REF!







Working Capital Policy (in Rs. Crores)


Fixed Assets (FA) 6,427.25 5,621.95 3,457.29 3,160.49 7,828.75

Current Assets (CA) -1,191.88 -1,355.03 -200.90 -238.56 -669.00

CA:FA -0.19 -0.24 -0.06 -0.08 -0.09

Year-wise WorkingCapital Policy

Moderate Moderate Moderate Moderate Moderate

Average CA:FA

Overall Working

Capital Policy (over

the period of 5 yrs)

Moderate Current Assets Policy

DetailsBajaj Auto

-0.13

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

1.20


C A : F A R A T I O

YEAR

Current Assets:Fixed Assets

Bajaj Auto

TVS Motor

Hero MotoCorp

Kinetic Eng.

LML





Risk(Liquidity) - Return(Profitability) Trade Off (in Rs. Crores)


Net Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24

EBIT (in Rs. Crores) 4,308.46 2,406.26 960.08 1,080.40 1,706.40

Fixed Assets (FA) 6,427.25 5,621.95 3,457.29 3,160.49 7,828.75Current Assets (CA) -1,191.88 -1,355.03 -200.90 -238.56 -669.00

Total Assets 5,235.37 4,266.92 3,256.39 2,921.93 7,159.75

ROTA 82.30% 56.39% 29.48% 36.98% 23.83%

CA:FA -0.19 -0.24 -0.06 -0.08 -0.09

Average ROTA (over


Average CA:FA (over


Liquidity vs Profitability

Companies Liquidity Profitability

Bajaj Auto -0.13 45.80%

Bajaj Auto

Details

Moderate Current Assets Policy

Moderate Liquidity (solvency) but High Return on Total Assets

(profitability)

45.80%

-0.13

-0.20

-0.10

0.00

0.10

0.20

0.30

0.40

0.50

Bajaj Auto

L I Q U I D I T Y & P R O F I T A B I L I T Y

COMPANIES

Liquidity vs

Profitability

Liquidit

y

Profita

bility





Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 % of Sales

Income

Sales Turnover 17,386.51 12,420.95 9,310.24 9,856.66 10,741.91

Excise Duty 934.71 607.70 610.07 1,029.51 1,321.67

Net Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24 0.168282641

Other Income 1,176.00 22.50 -6.20 170.27 567.16

% of Sales 7.15 0.19 -0.07 1.93 6.02 7.785234944

Stock Adjustments 82.79 47.60 -24.49 67.85 -0.90

% of Sales 0.50 0.40 -0.28 0.77 -0.01 0.28

Total Income 17,710.59 11,883.35 8,669.48 9,065.27 9,986.50

Expenditure

Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50

% of Sales 72.73 69.30 74.74 76.58 73.98 73.47

Power & Fuel Cost 86.61 70.35 60.89 69.20 79.34

% of Sales 0.53 0.60 0.70 0.78 0.84 0.69

Employee Cost 494.33 411.76 366.67 350.09 310.07

% of Sales 3.00 3.49 4.21 3.97 3.29 3.59


% of Sales 0.38 0.49 0.66 0.61 0.79 0.58

Selling and Admin Expenses 450.18 407.61 381.73 390.15 457.17

% of Sales 2.74 3.45 4.39 4.42 4.85 3.97


% of Sales 1.45 1.88 2.59 2.37 2.45 2.15

Preoperative Exp Capitalised -16.66 -15.67 -14.42 -23.04 -32.05

% of Sales -0.10 -0.13 -0.17 -0.26 -0.34 -0.20

Total Expenses 13,279.29 9,340.64 7,579.61 7,809.79 8,089.45


PBDIT 4,431.30 2,542.71 1,089.87 1,255.48 1,897.05

Interest 1.69 5.98 21.01 5.16 5.34

PBDT 4,429.61 2,536.73 1,068.86 1,250.32 1,891.71

Depreciation 122.84 136.45 129.79 173.96 190.26

% of Change -0.10 0.05 -0.25 -0.09 -0.10


Profit Before Tax 4,306.77 2,400.28 939.07 1,075.24 1,701.06

Extra-ordinary items 46.77 26.87 18.72 59.32 26.60

PBT (Post Extra-ord Items) 4,353.54 2,427.15 957.79 1,134.56 1,727.66

Tax 1,011.02 710.12 301.61 378.78 490.09

% of PBT 0.23 0.29 0.31 0.33 0.28 0.29

Reported Net Profit 3,342.52 1,717.03 656.18 755.78 1,237.57

DetailsBajaj Auto



Forecasted Value

19,220.35

1496.349588

53.19323251

20,769.90

14120.65061

132.5439397

690.4872674

112.1840266

762.9467958

412.9436428

-38.47510301

16,193.28

3,027.07

4,576.61

5.34

4,571.27

111.0364059

0

4,571.27

0

4,571.27

1332.283199

3 238 99

Documents

SRI Research V1