AAPRESENTATION PRESENTATION

ON COMPREHENSIVE PROJECTON COMPREHENSIVE PROJECTONON

“COMPARATIVE FINANCIAL PERFORMANCE “COMPARATIVE FINANCIAL PERFORMANCE OF CEMENT INDUSTRY”OF CEMENT INDUSTRY”

  Submitted bySubmitted by

Rupesh VasavaRupesh Vasava[Enrollment No.:107020592056][Enrollment No.:107020592056]

 Jaynand Patalia Jaynand Patalia[Enrollment No.:107020592058][Enrollment No.:107020592058]

OVERVIEW OF CEMENT INDUSTRYOVERVIEW OF CEMENT INDUSTRY

Cement is one of the core industries which plays a vital role in the growth and expansion of a nation.

The Indian cement industry is extremely energy intensive and is the third largest user of coal in the country.

The Indian cement industry is the second largest producer of quality cement.

The cement industry is also one of the major contributors to the exchequer by way of indirect taxes.

INFORMATION OF AMBUJA CEMENT INFORMATION OF AMBUJA CEMENT LTD.LTD.

Type: Public Limited. Industry: Cement. Founded: 1986. Headquarters: Mumbai, India. Key people: Suresh Neotia, Founder and Chairman.

N.S. Sekhsaria, Co-Founder.

Onne Var Der Weijde, Managing Director. Revenue: 7637.81 crores. Website: www.ambujacement.com

INFORMATION OF BINANI INFORMATION OF BINANI CEMENT LTD.CEMENT LTD.

Type: Public Limited. Industry: cement. Founded: 1986. Headquarters: Mumbai, India. Key people: Vinod Juneja, Managing

Director. Revenue: 1872.16 crores. Website: www.binaniindustries.com

COMPARATIVE ANALYSISCOMPARATIVE ANALYSIS

Comparative analysis of the Cement Industry includes comparison of various financial ratios like:ROI.Leverage Analysis.DuPont Analysis.Ratio Analysis.

0.62

0.73

0.48

0.370.34

0.26

0.380.32

0.45

0.19

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

2006 2007 2008 2009 2010

RETURN ON NET ASSETS

AMBUJA CEMENT

BINANI CEMENT

43.05

37.95

24.72

18.8316.87

31.74

42.09

22.81

41.76

15.63

0

5

10

15

20

25

30

35

40

45

50

2006 2007 2008 2009 2010

RETURN ON EQUITY

AMBUJA CEMENT

BINANI CEMENT

36.49

53.22

36.43

29.71 28.14

34.89 36.6

20.7

32.18

16.5

0

10

20

30

40

50

60

2006 2007 2008 2009 2010

RETURN ON PROFIT MARGIN

AMBUJA CEMENT

BINANI CEMENT

6659

6258 60

40

50

35

47

32

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010

FINANCIAL LEVERAGE(INCOME STATEMENT)

AMBUJA CEMENT

BINANI CEMENT

1.060.82 0.82 0.88 0.84

3.01

2.222.04 1.96

2.62

0

0.5

1

1.5

2

2.5

3

3.5

2006 2007 2008 2009 2010

FINANCIAL LEVERAGE(BALANCE SHEET)

AMBUJA CEMENT

BINANI CEMENT

34.71 36.2

28.85 27.0725.18

27.39

34.48 35.38

21.43

31.15

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009 2010

OPERATING PROFIT MARGIN

AMBUJA CEMENT

BINANI CEMENT

0.7 0.64 0.740.57

0.75

2.61

0.62 0.49 0.360.68

0

0.5

1

1.5

2

2.5

3

2006 2007 2008 2009 2010

QUICK RATIO

AMBUJA CEMENT

BINANI CEMENT

CONCLUSIONSCONCLUSIONSAmbuja Cement Ltd is performing well than Binani

Cement Ltd.The efficiency of the companies is improving after the

recession of 2008.The industry experts project the sector to grow by 9

to 10% for the current financial year.The cement industry is expected to grow steadily in

2011-2012 and increase capacity by another 50 million tons.

The cement industry has maintained volume growth of around 10% YoY.

The cement industry growth in the year 2010 was 14.6%.

FINDINGSFINDINGSThe Ambuja cement uses very less debt

funds for their investment.The profitability of the Binani cement

has increased as compared to the Ambuja cement.

Binani cement uses the basis of cash sales.

The inventory maintenance of Binani cement is not good.

THANK YOUTHANK YOU