Financial Analysis on

2 Wheeler Automobile Industry

of 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 Education
Dontanpalli, Shankerpalli Road,
Hyderabad 501203, A.P., India

dustry

______
ducation

Sheet #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

INDEX
Profit & Loss Statement
Balance Sheet
Leverage Analysis
Ratio Analysis
Liquidity Ratio - Graphical
Activity Ratio - Graphical
Leverage Ratio - Graphical
Profitability Ratio - Graphical
Capital Structure
Changes in Working Capital / Fund Flow
Working Capital Comperasion - Graphical
Working Capital Policy
Risk(Liquidity) - Return(Profitability) Trade-off
Forecasting - Bajaj Auto
Forecasting - TVS Motor
Forecasting - Hero MotoCorp
Forecasting - Kinetic Engineeting
Forecasting - LML

0
Details
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Equity Shares in issue (lakhs)
Face Value of Equity Shares
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

Mar '11

Bajaj Auto
Mar '10 Mar '09 Mar '08

Mar '07

17,386.51 12,420.95
934.71
607.70
16,451.80 11,813.25
1,176.00
22.50
82.79
47.60
17,710.59 11,883.35

9,310.24
610.07
8,700.17
-6.20
-24.49
8,669.48

9,856.66 10,741.91
1,029.51 1,321.67
8,827.15 9,420.24
170.27
567.16
67.85
-0.90
9,065.27 9,986.50

11,965.30
86.61
494.33
61.77
450.18
237.76
-16.66
13,279.29
3,255.30
4,431.30
1.69
4,429.61
122.84
0.00
4,306.77
46.77
4,353.54
1,011.02
3,342.52
1,313.99
0.00
1,157.47
187.77

8,187.11
70.35
411.76
57.54
407.61
221.94
-15.67
9,340.64
2,520.21
2,542.71
5.98
2,536.73
136.45
0.00
2,400.28
26.87
2,427.15
710.12
1,717.03
1,153.53
0.00
578.73
96.12

6,502.10
60.89
366.67
57.08
381.73
225.56
-14.42
7,579.61
1,096.07
1,089.87
21.01
1,068.86
129.79
0.00
939.07
18.72
957.79
301.61
656.18
1,077.51
0.00
318.30
54.10

6,760.04
69.20
350.09
53.72
390.15
209.63
-23.04
7,809.79
1,085.21
1,255.48
5.16
1,250.32
173.96
1.12
1,075.24
59.32
1,134.56
378.78
755.78
1,049.75
0.00
289.37
49.18

6,969.50
79.34
310.07
74.53
457.17
230.89
-32.05
8,089.45
1,329.89
1,897.05
5.34
1,891.71
190.26
0.39
1,701.06
26.60
1,727.66
490.09
1,237.57
1,119.95
0.00
404.73
68.78

2,893.67
10.00
115.51
4.00
169.69

1,446.84
10.00
118.67
4.00
202.40

1,446.84
10.00
45.35
2.20
129.23

1,446.84
10.00
52.24
2.00
109.73

1,011.84
10.00
122.31
4.00
546.96

Trading profit and loss a/c

Particular
Opening Stock
Purchases
Raw Materials

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Particular

362.76

272.84

358.65

275.31

11,965.30

8,187.11

6,502.10

6,760.04

86.61
494.33
61.77

70.35
411.76
57.54

60.89
366.67
57.08

69.2
350.09
53.72

12,608.01

8,726.76

6,986.74

7,233.05

7,433.44 Total

450.18
237.76
4431.3

407.61
221.94
2542.71

381.73
225.56
1089.87

390.15
209.63
1255.48

457.17 Gross Profit

230.89 Preoperative Exp Capitalised
1897.05 Other Income

Total
Operating Profit
EBDIT
Depreciation
Other Written Off
EBIT
Interest
EBT
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
EAT

5119.24
3,255.30
4,431.30
122.84
0.00
4,308.46
1.69
4,306.77
46.77
4,353.54
1,011.02
3,342.52

3172.26
2,520.21
2,542.71
136.45
0.00
2,406.26
5.98
2,400.28
26.87
2,427.15
710.12
1,717.03

1697.16
1,096.07
1,089.87
129.79
0.00
960.08
21.01
939.07
18.72
957.79
301.61
656.18

1855.26
1,085.21
1,255.48
173.96
1.12
1,080.40
5.16
1,075.24
59.32
1,134.56
378.78
755.78

2585.11 Total
1,329.89
1,897.05
190.26
0.39
1,706.40
5.34
1,701.06
26.6
1,727.66
490.09
1,237.57

Equity Shares in issue (lakhs)

Earning Per Share (Rs)

2893.67 1446.84 1446.84

115.5114 118.6745 45.35263

Direct expenses
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Total
Selling and Admin Expenses
Miscellaneous Expenses
Net Profit(EBDIT)

529.83 Sales Turnover

Excise Duty
6,969.50
Closing stock
Stock Adjustments
79.34
310.07
74.53

1446.84 1011.84
52.2366 122.3089

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

17,387
-934.71

12,421
-607.70

9,310
-610.07

9,857
-1,029.51

10,742
-1,321.67

547.28
82.79

446.21
47.6

338.84
-24.49

349.61
67.85

309.70
-0.9

16,534.59

11,860.85

8,675.68

8,895.00

9,419.34

3,926.58
16.66
1176

3,134.09
15.67
22.5

1,688.94
14.42
-6.2

1,661.95
23.04
170.27

1,985.90
32.05
567.16

5119.24

3172.26

1697.16

1855.26

2585.11

Balance Sheet (in Rs. Crores)

Details
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets / Net Asset
Contingent Liabilities
Book Value (Rs)

Mar '11

Bajaj Auto
Mar '10 Mar '09 Mar '08

Mar '07

289.37
289.37
0.00
0.00
4,620.85
0.00
4,910.22
23.53
301.62
325.15
5,235.37

144.68
144.68
0.00
0.00
2,783.66
0.00
2,928.34
12.98
1,325.60
1,338.58
4,266.92

144.68
144.68
0.00
0.00
1,725.01
0.00
1,869.69
0.00
1,570.00
1,570.00
3,439.69

144.68
144.68
0.00
0.00
1,442.91
0.00
1,587.59
6.95
1,327.39
1,334.34
2,921.93

101.18
101.18
0.00
0.00
5,433.14
0.00
5,534.32
22.46
1,602.97
1,625.43
7,159.75

3,395.16 3,379.25
1,912.45 1,899.66
1,482.71 1,479.59
149.34
120.84
4,795.20 4,021.52
547.28
446.21
362.76
272.84
155.45
100.20
1,065.49
819.25
3,891.66 2,291.29
401.04
1.21
5,358.19 3,111.75
0.00
0.00
2,624.35 2,218.06
3,925.72 2,248.72
6,550.07 4,466.78
-1,191.88 -1,355.03
0.00
0.00
5,235.37 4,266.92
959.66
818.25
169.69
202.40

3,350.20
1,807.91
1,542.29
106.48
1,808.52
338.84
358.65
135.68
833.17
1,567.09
1.19
2,401.45
0.00
1,378.20
1,224.15
2,602.35
-200.90
183.30
3,439.69
924.96
129.23

2,994.68
1,726.07
1,268.61
34.74
1,857.14
349.61
275.31
54.74
679.66
1,099.68
1.33
1,780.67
0.00
1,185.19
834.04
2,019.23
-238.56
0.00
2,921.93
1,129.29
109.73

3,178.54
1,904.94
1,273.60
107.62
6,447.53
309.70
529.83
62.16
901.69
2,925.24
21.32
3,848.25
0.00
1,683.46
2,833.79
4,517.25
-669.00
0.00
7,159.75
811.66
546.96

Balance Sheet (in Rs. Crores)

Liability
Share capital
Equity Share Capital
Share Application Money
Preference Share Capital
Total Share Capital
Reserves and surplus
Reserves
Revaluation Reserves
Share holders capital(NAV)
Secured Loan
Secured Loan
Unsecured loan
Unsecured loan
Current Liability and Provision
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions

Total Liability

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

289.37
0.00
0.00
289.37

144.68
0.00
0.00
144.68

144.68
0.00
0.00
144.68

144.68
0.00
0.00
144.68

101.18
0.00
0.00
101.18

4620.85
0
4,910.22

2783.66
0
2,928.34

1725.01
0
1,869.69

1442.91
0
1,587.59

5433.14
0
5,534.32

23.53

12.98

0.00

6.95

22.46

301.62

1,325.60

1,570.00

1,327.39

1,602.97

0
2624.35
3925.72
6550.07

0
2218.06
2248.72
4466.78

0
1378.2
1224.15
2602.35

0
1185.19
834.04
2019.23

0
1683.46
2833.79
4517.25

11,785.44

8,733.70

6,042.04

4,941.16 11,677.00

ce Sheet (in Rs. Crores)

Assets

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Fixed Assets
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress

3395.16
1912.45
1482.71
149.34

3379.25
1899.66
1479.59
120.84

3350.2
1807.91
1542.29
106.48

2994.68
1726.07
1268.61
34.74

3178.54
1904.94
1273.6
107.62

Investment

4,795.20

4,021.52

1,808.52

1,857.14

6,447.53

Current Assets loans and Advances

Inventories
Sundry Debtors
Cash and Bank Balance
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances

547.28
362.76
155.45
3,891.66
401.04
5,358.19

446.21
272.84
100.2
2,291.29
1.21
3,111.75

338.84
358.65
135.68
1,567.09
1.19
2,401.45

349.61
275.31
54.74
1,099.68
1.33
1,780.67

309.70
529.83
62.16
2,925.24
21.32
3,848.25

183.3

11,785.44

8,733.70

6,042.04

Miscellaneous Expenses
Miscellaneous Expenses

Total Assets

4,941.16 11,677.00

LIQUIDITY RATIOS
1. Current Ratio
Current Ratio = Current asset / current liabilities

Years -->
Total Current Assets
Current Liabilities
Current Ratio

Mar '11
5,358.19
6,550.07
0.82

Mar '10
3,111.75
4,466.78
0.70

Mar '09
2,401.45
2,602.35
0.92

Mar '08
1,780.67
2,019.23
0.88

Liquid Ratio
Liquid Ratio = Liquid asset / liquid or current liabilities

Liquid Assets
Liquid Liabilities

C.

Mar '11
Mar '10
Mar '09
Mar '08
4,409.87 2,664.33 2,061.42 1,429.73
6,550.07 4,466.78 2,602.35 2,019.23
0.67
0.60
0.79
0.71

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

Check

Cash & Bank Bal

Current Liabilities

Mar '11
Mar '10
Mar '09
Mar '08
155.45
100.20
135.68
54.74
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

Cost of goods sold

Average stock

A.1)

Mar '11
Mar '10
Mar '09
Mar '08
12,608.01 8,726.76 6,986.74 7,233.05
496.745
392.525
344.225
329.655
25.38
22.23
20.30
21.94

Days of Inventory Holding

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

Taken as a standard
No. of Operating Days
Inventory Turnover Ratio

b)

Mar '11
Mar '10
Mar '09
Mar '08
360
360
360
360
25.38125 22.23237 20.29702 21.94127
14.18
16.19
17.74
16.41

Debtors Turnover Ratio/Receivables Turnover Ratio

Debtors Turnover Ratio = Credit Sales / Average Debtors

Credit Sales
Average Debtors

Mar '11
Mar '10
Mar '09
Mar '08
16,451.80 11,813.25 8,700.17 8,827.15
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

Taken as a standard
No. of Operating Days
Debtors Turnover Ratio

Mar '11
Mar '10
Mar '09
Mar '08
360.00
360.00
360.00
360.00
51.76778 37.41389 27.44706 21.92699
6.954133 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)

Net Sales
Average Collection Period (in Days)

c)

Mar '11
Mar '10
Mar '09
Mar '08
16,451.80 11,813.25 8,700.17 8,827.15
6.954133 9.622094 13.11616 16.41812
2365.759 1227.721
663.317 537.6468

Creditors Turnover Ratio

Creditors Turnover Ratio = Credit Purchases / Average creditors

Credit purchases
Is this zero Average Creditors

Mar '11
Mar '10
Mar '09
Mar '08
11,965.30 8,187.11 6,502.10 6,760.04
#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

d)

Assets Turnover Ratio

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

Cost of Goods sold

Check this Total Assets

e)

Mar '11
Mar '10
Mar '09
Mar '08
12,608.01 8,726.76 6,986.74 7,233.05
5,235.37 4,266.92 3,439.69 2,921.93
2.408237 2.045213 2.031212 2.475436

Working Capital Turnover Ratio

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

Cost of Goods sold

Working Capital

Mar '11
Mar '10
Mar '09
Mar '08
12,608.01 8,726.76 6,986.74 7,233.05
-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

Check this - Outsiders'

total assetsFund
/ total of assets side
Check this - Shareholders
guess this shdfund
be BS5\

b)

Mar '11
Mar '10
Mar '09
Mar '08
4,910.22 2,928.34 1,869.69 1,587.59
5,235.37 4,266.92 3,439.69 2,921.93
0.94
0.69
0.54
0.54

Proprietary Ratio/Equity Ratio/ Net worth Ratio/Shareholders Fund to Total Asset/ Net worth to Total Asset
Proprietary Ratio = Shareholder's Fund / Total Assets

Check this - Shareholders

total assets / Fund
total of assets side
Check this - Total
total Assets
assets / total of assets side

c)

Mar '11
Mar '10
Mar '09
Mar '08
4,910.22 2,928.34 1,869.69 1,587.59
5,235.37 4,266.92 3,439.69 2,921.93
0.938
0.686
0.544
0.543

Solvency Ratio
Solvency Ratio = Outsider's Fund / Total Assets

Outsider's Fund
Check this - Total
total Assets
assets / total of assets side

d)

Mar '11
Mar '10
Mar '09
Mar '08
325.15 1,338.58 1,570.00 1,334.34
5,235.37 4,266.92 3,439.69 2,921.93
0.062106 0.313711 0.456436 0.456664

Funded Debt to Total Capitalisation Ratio

Funded Debt to Capitalisation = Long Term Borrowings / Total Capital
Mar '11

check this one

Long Term Borrowings
Total Capital

0
289.37
0

Mar '10
0
144.68
0

Mar '09
0
144.68
0

Mar '08
0
144.68
0

4. Profitability Ratios
a)

Gross Profit Ratio

Gross Profit Ratio = Gross Profit / Sales * 100

Check
Check

Gross Profit
Sales

b)

Operating Ratio

3,926.58 3,134.09
16,451.80 11,813.25
23.87%
26.53%

1,688.94
8,700.17
19.41%

1,661.95
8,827.15
18.83%

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

Check

Cost of goods sold

Operating expenses
Sales

c)

Operating Profit Ratios

12,608.01 8,726.76
749.71
687.09
16,451.80 11,813.25
81.19%
79.69%

6,986.74
664.37
8,700.17
87.94%

7,233.05
653.50
8,827.15
89.34%

0.811931 0.796889
16,451.80 11,813.25
0.00%
0.01%

0.879421
8,700.17
0.01%

0.893442
8,827.15
0.01%

3,342.52 1,717.03
16,451.80 11,813.25
20%
15%

656.18
8,700.17
8%

755.78
8,827.15
9%

Operating Profit Ratios = Operation Ratio / Sales * 100

Operation Ratio
Sales

d)

Net Profit Ratio

Net Profit Ratio = Net Profit / Sales * 100
Net Profit
Sales

e)

Interest Coverage Ratio/Debt Service Ratio

Interest Coverage Ratio = EBIT / Interest
EBIT
Interest

f)

4,308.46
1.69
2549.385

2,406.26
5.98
402.3846

960.08
21.01
45.69634

1,080.40
5.16
209.3798

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

Earnings Per Share

Earnings Per Share = Net profit / No of Equity Shares
Net profit
No of Equity shares

g)

Price Earnings Ratio

Price Earnings Ratio = Market Price / EPS
Market Price
EPS

h)

Return On Shareholders Fund

Return On Shareholders Fund = Net profit / Shareholder's Fund * 100
Net profit
Shareholder's Fund
#DIV/0!

i)

#DIV/0!

#DIV/0!

#DIV/0!

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!

<-- Current Ration -->

Current Ratio of Prestige Gardens

Mar '07
3,848.25
4,517.25
0.85

0.92

1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00

0.82

0.88

0.70

Mar '11

Mar '10

Mar '09

Mar '08

0.82

0.70

0.92

0.88

Series1

Chart Title

Axis Title

Mar '07
3,517.23
4,517.25
0.78

Series1

Mar '11

Mar '10

Mar '09

Mar '08

0.67

0.60

0.79

0.71

Chart Title
Mar '07
Mar '08

Axis Title

Mar '07
62.16
4,517.25
0.01

0.01
0.03

Mar '09

Mar '10

0.02

Mar '11

0.02

0.00

0.01

0.02

0.03
Axis Title

0.04

0.05

0.00

0.01

0.02

0.03

0.04

Axis Title

Chart Title
60.00

Axis Title

50.00
48.00

40.00

30.00
20.00

25.38

22.23

20.30

21.94

Mar '10

Mar '09

Mar '08

10.00

Mar '07
7,433.44
154.85
48.00

0.00
Mar '11

Mar '07

Axis Title

Mar '07
360
48.00413
7.50

<-- Inventory Turnover Ratio -->

Inventory Turnover Ratio of Prestige Garden

20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
-

17.74
16.19

7.50

Mar '11

Mar '10

Mar '09
<-- Years -->

Mar '07
9,420.24
264.915
35.55948

16.41

14.18

Mar '08

Mar '07

0.05

Mar '07
360.00
35.55948
10.12388

Mar '07
9,420.24
10.12388
930.4968

Mar '07
6,969.50
#DIV/0!

Mar '07
7,433.44
7,159.75
1.038226

Mar '07
7,433.44
-781.77
-9.508474

Mar '07
5,534.32
7,159.75
0.77

o Total Asset/ Net worth 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!

0.85

Mar '07
0.85

Mar '07
0.78

0.05

0.05

0.06

0.05

0.06

Ratio Analysis (in Rs. Crores)

Details

Mar '11
11,965.30
86.61
494.33
61.77
12,608.01
360
36.89
496.75
317.80
5,358.19
6,550.07
-1,191.88

Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
COGS
No. of Operating Days
Avg. Daily Operating Expenses
Avg. Inventories
Avg. Debtors
Gross Working Capital
Current Liabilities
Net Assets/Net Working Capital
LIQUIDITY RATIOS
Current Ratio
0.82
Quick Ratio
0.67
Net Working Capital Ratio
-0.23
Interval Measure
130.42
Cash Ratio
0.02
ACTIVITY RATIOS/MANAGEMENT EFFICIENCY RATIOS
Inventory Turnover Ratio
25.38
Debtors Turnover Ratio
51.77
Net Assets Turnover Ratio
-0.23
Days of Inventory Holding
14.18
Average Collection Period (in Days)
6.95
Investment in Debtors (in Rs. Crores)
Rate of Return on Debtors
LEVERAGE RATIOS
Debt Ratio
Debt - Equity Ratio
Capital Emplyed to Net worth Ratio
Equity Multiplier
PROFITABILITY RATIOS
Net Profit Margin Ratio
Operating Expense Ratio
Return on Investment (ROTA)
Return on Investment (RONA)
Return On Equity (ROE)

Mar '10
8,187.11
70.35
411.76
57.54
8,726.76
360
25.95
392.53
315.75
3,111.75
4,466.78
-1,355.03

Bajaj Auto
Mar '09
6,502.10
60.89
366.67
57.08
6,986.74
360
21.05
344.23
316.98
2,401.45
2,602.35
-200.90

Mar '08
6,760.04
69.20
350.09
53.72
7,233.05
360
21.69
329.66
402.57
1,780.67
2,019.23
-238.56

Mar '07
6,969.50
79.34
310.07
74.53
7,433.44
360
22.47
3,848.25
4,517.25
-669.00

0.70
0.60
-0.32
102.73
0.02

0.92
0.79
-0.06
97.97
0.05

0.88
0.71
-0.08
65.97
0.03

0.85
0.78
-0.09
157.47
0.01

22.23
37.41
-0.32
16.19
9.62

20.30
27.45
-0.06
17.74
13.12

21.94
21.93
-0.08
16.41
16.42

-0.09
-

114,408.00 113,668.20 114,112.80 144,925.20

2.92%
1.51%
0.58%
0.52%

0.06
0.07
1.07
1.60

0.31
0.46
1.46
2.21

0.46
0.84
1.84
2.58

0.46
0.84
1.84
2.59

0.23
0.29
1.29
1.60

0.20
0.81
0.55
0.82
0.68

0.15
0.79
0.37
0.56
0.59

0.08
0.87
0.20
0.28
0.35

0.09
0.88
0.26
0.37
0.48

0.13
0.86
0.19
0.24
0.22

Leverage Analysis (in Rs. Crores)

Mar '11 Mar '10
4,308.46 2,406.26
16,451.80 11,813.25
115.51
118.67

EBIT
Sales
EPS (in Rs.)
Changes
% change in EBIT
% change in sales
% change in EPS
Degree
Degree of Operating leverage
Degree of Finacial leverage
Degree of Combine Leverage

0.790521 1.506312
0.392657 0.357818
-0.02665 1.616706

Bajaj Auto
Mar '09 Mar '08 Mar '07
960.08 1,080.40 1,706.40
8,700.17 8,827.15 9,420.24
45.35
52.24
122.31
-0.11137
-0.01439
-0.13178

-0.36685
-0.06296
-0.57291

2.013264 4.209712 7.741737 5.826864

-0.03372 1.073287 1.183343 1.56169
-0.06788 4.518231 9.161132 9.099753

Y-O-Y DOL Comparison

Y-OY
DFL
Com
pari
son

Degree

Bajaj Auto

TVS
Hero MotoCorp

Kinetic
3

LML

1.8
1.6
1.4
1.2B
1a
0.8j
0.6a
0.4j
A
0.2
u
0
t
-0.2oM
a
r

Degree

Details

'
1
1

0
Mar '11

Mar '10

Mar '09

Year

Mar '08

Year

Details

Mar '11

Mar '10

LIQUIDITY RATIOS
Current Ratio
0.82
0.70
Quick Ratio
0.67
0.60
Net Working Capital Ratio
-0.23
-0.32
Interval Measure
130.42
102.73
Cash Ratio
0.02
0.02
LIQUIDITY RATIOS-GRAPHICAL REPRESENTATION

Bajaj Auto
Mar '09 Mar '08
0.92
0.79
-0.06
97.97
0.05

0.88
0.71
-0.08
65.97
0.03

Current Ratio Comparision

1.00

0.80

TVS Motor

1.20

#REF!

1.00

#REF!

0.80

RATIOS

Hero MotoCorp

0.60

0.20

0.40
0.20

0.00

0.00
YEAR

YEAR

Interval Measure
Comparision
180.00
160.00
140.00
120.00
Bajaj Auto
RATIOS

RATIOS

Bajaj Auto

0.40

0.85
0.78
-0.09
157.47
0.01

Quic
k
Rati
o
Com
pari
sion

1.20

0.60

Mar '07

100.00
80.00
60.00

TVS Motor
Hero MotoCorp
#REF!

#REF!

60.00

#REF!

40.00
20.00
0.00
YEAR

Bajaj Auto
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
ACTIVITY RATIOS/MANAGEMENT EFFICIENCY RATIOS
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
Details

30.00

25.00

20.00

RATIOS

Bajaj Auto
TVS Motor

15.00

Hero MotoCorp
#REF!
#REF!

10.00

5.00

Deb
tors
Turn
over
Rati
o
Com
pa
60.00
B
50.00a
j
a
40.00
j
A
30.00
u
t
20.00
o

RATIOS

Inventory Turnover Ratio

Comparison

10.00
0.00

0.00
YEAR

Days of Inventory Holding

Comparison
20.00
18.00
16.00
14.00

Aver
age
Coll
ecti
on
Peri
od

Bajaj Auto

DAYS

12.00

TVS Motor

10.00

Hero MotoCorp
8.00

#REF!

6.00

#REF!

4.00
2.00
0.00
YEAR

Peri
od
20.00
B
a
15.00j
a
10.00j
A
u
5.00
t
o
0.00

DAYS

14.00

LEVERAGE RATIOS
Debt Ratio
0.06
Debt - Equity Ratio
0.07
Capital Emplyed to Net worth Ratio
1.07
Equity Multiplier
1.60
LEVERAGE RATIOS-GRAPHICAL REPRESENTATION

Mar '10
0.31
0.46
1.46
2.21

Bajaj Auto
Mar '09 Mar '08
0.46
0.84
1.84
2.58

0.46
0.84
1.84
2.59

Debt Ratio Comparison

1.20

1.00

RATIOS

0.80
Bajaj Auto
TVS Motor

0.60

Hero MotoCorp
Kinetic
0.40

LML

0.20

0.00
Mar '11

Mar '10

Mar '09
YEAR

Mar '08

Mar '07

Mar '07
0.23
0.29
1.29
1.60

Deb
tEqui
ty
Rati
o
Com
pa

Equity
Multiplier
Comparison
3.00

2.50

2.00

1.20
1.00B
0.80a
j
0.60
a
0.40j
0.20A
0.00u
tM
oa
r

RATIOS

Mar '11

RATIOS

Details

'
1
YEAR

1.50

1.00

0.50

0.00
Mar '11
YEAR

Equity
Multiplier
Comparison

Bajaj
Auto
TVS
Motor
Hero
MotoC
orp
Kinetic

LML

Mar '11
YEAR

Details

Mar '11

Mar '10

PROFITABILITY RATIOS
Net Profit Margin Ratio
0.20
Operating Expense Ratio
0.81
Return on Investment (ROTA)
0.55
Return on Investment (RONA)
0.82
Return On Equity (ROE)
0.68
PROFITABILITY RATIOS-GRAPHICAL REPRESENTATION

0.15
0.79
0.37
0.56
0.59

Bajaj Auto
Mar '09 Mar '08
0.08
0.87
0.20
0.28
0.35

Mar '07

0.09
0.88
0.26
0.37
0.48

Net Profit Margin

Ratio Comparison

0.13
0.86
0.19
0.24
0.22

Oper
ating
Expe
nce

1.20

1.00

TVS

0.60

Hero MotoCorp
Kinetic
0.40

LML

0.20

1.20
1.00
0.80B
a
0.60
j
0.40a
0.20j
0.00A
uM
ta
or

RATIOS

Bajaj Auto

0.00
Mar '11

Mar '10

Mar '09

Mar '08

'
1

Mar '07

YEAR

RONA Comparison
1.20

1.00

YEAR

ROE
Com
paris
on
1.20

0.80

1.00
0.80
RATIOS

RATIOS

0.80

Ratio
Com
par

Bajaj Auto

RATIOS

RATIOS

0.80

0.20

B
0.60
a
j
0.40
a
j
0.20
A
u
0.00
t
M
o
a
r

0.00

'
1
1

TVS

0.60

Hero MotoCorp
Kinetic
0.40

LML

Mar '11

Mar '10

Mar '09
YEAR

Mar '08

Mar '07
YEAR

Capital Structure (in Rs. Crores)

Instrument
Authorised Capital
Issued Capital
No of Shares (In Lakhs)
Face Value
Paid Up Capital
Dividend Per Share
Shrare Prices
Earning Per Share

300
289.37
2,893.67
10.00
289.37
4.00
1459.8
115.51

Bajaj Auto
Mar '10
Mar '09
Mar '08
Equity Share
150
150
150
144.68
144.68
144.68
1,446.84
1,446.84
1,446.84
10.00
10.00
10.00
144.68
144.68
144.68
4.00
2.20
2.00
1055.55
309.23
287.23
118.67
45.35
52.24

Net Income Approach(Kd<Ko<Ke)

Net Operating Income
Total Debt
Interest on Debt
Equity Earnings
Cost of Equity (Ke)
Cost of Debt (Kd)
Market Value Of Equity (E)
Market Value Of Debt (D)
Total Value Of Firm (V)
Cost of Capital (Ko)

3,255.30
325.15
1.69
3253.61
7.91%
0.52%
41118.18
325.15
41443.33
7.85%

2,520.21
1338.58
5.98
2514.23
11.24%
0.45%
22362.81
1338.58
23701.39
10.63%

Details

Mar '11

1,096.07
1570.00
21.01
1075.06
14.67%
1.34%
7330.13
1570
8900.13
12.32%

Mar '07

1,085.21
1334.34
5.16
1080.05
18.19%
0.39%
5938.80
1334.34
7273.14
14.92%

20.00%

1.5

15.00%

10.00%

0.5

5.00%

0
Mar '11
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Cost of Equity (Ke)

Cost of Equity (Ke)

Cost of Debt (Kd)

Cost of Capital (Ko)

Cost of Debt (Kd)

1,329.89
1625.43
5.34
1324.55
0.33%
1625.43
-

Capital Structure :
TVS Motor

Capital Structure : Bajaj

Auto

0.00%

150
101.18
1,011.84
10.00
101.18
4.00
NA
122.31

Cost of Capital (Ko)

Statement Showing Changes in Working Capital / Fund Flow (in Rs. Crores)
Bajaj Auto
Details
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
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
62.16
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 Current Assets
5,358.19 3,111.75 2,401.45 1,780.67 3,848.25
CURRENT LIABILITIES
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 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)
Mar'11 over Mar'10
Increase (Application of Fund)
163.15
Decrease(Intersoursing of Fund)
Mar'10 over Mar'09
Increase (Application of Fund)
Decrease(Intersoursing of Fund)
-1,154.13
Mar'09 over Mar'08
Increase (Application of Fund)
37.66
Decrease(Intersoursing of Fund)
Mar'08 over Mar'07
Increase (Application of Fund)
430.44
Decrease(Intersoursing of Fund)
-

Net Working Capital Comparision (in Rs. Crores)

Mar'11
Bajaj Auto

Mar'10
-1,191.88

-1,355.03

Net Working Capital Co

200.00

0.00
Mar'11

Mar'10

Mar'09

-200.00

NET WORKING CAPITAL

-400.00

-600.00

-800.00

-1,000.00

-1,200.00

-1,400.00

-1,600.00

YEAR

YEAR

Mar'09

Mar'08
-200.90

Mar'07
-238.56

-669.00

king Capital Comparison

Mar'09

Mar'08

Mar'07

Bajaj Auto
#REF!
#REF!
#REF!
#REF!

YEAR

YEAR

Working Capital Policy (in Rs. Crores)

Details
Fixed Assets (FA)
Current Assets (CA)
CA:FA
Year-wise Working
Capital Policy
Average CA:FA
Overall Working
Capital Policy (over
the period of 5 yrs)

Mar '11
6,427.25
-1,191.88
-0.19
Moderate

Bajaj Auto
Mar '10
Mar '09
5,621.95
3,457.29
-1,355.03
-200.90
-0.24
-0.06
Moderate

Moderate

Mar '08
3,160.49
-238.56
-0.08
Moderate

Mar '07
7,828.75
-669.00
-0.09
Moderate

-0.13
Moderate Current Assets Policy

Current Assets:Fixed Assets

1.20

1.00

0.80

CA: FA RATIO

0.60
Bajaj Auto
TVS Motor
0.40

Hero MotoCorp
Kinetic Eng.

0.20

LML

0.00
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
-0.20

-0.40

YEAR

Risk(Liquidity) - Return(Profitability) Trade Off

Net Sales
EBIT (in Rs. Crores)
Fixed Assets (FA)
Current Assets (CA)
Total Assets
ROTA
CA:FA
Average ROTA (over
the period of 5 yrs)
Average CA:FA (over
the period of 5 yrs)
Liquidity vs Profitability
Companies
Bajaj Auto

Mar '11
16,451.80
4,308.46
6,427.25
-1,191.88
5,235.37
82.30%
-0.19

Mar '07
9,420.24
1,706.40
7,828.75
-669.00
7,159.75
23.83%
-0.09

45.80%
-0.13
Moderate Liquidity (solvency) but High Return on Total Assets
(profitability)
Liquidity
Profitability
-0.13
45.80%

Liquidity vs
Profitability
0.50

0.40

LIQUIDITY & PROFITABILITY

Details

(in Rs. Crores)

Bajaj Auto
Mar '10
Mar '09
Mar '08
Moderate Current Assets Policy
11,813.25
8,700.17
8,827.15
2,406.26
960.08
1,080.40
5,621.95
3,457.29
3,160.49
-1,355.03
-200.90
-238.56
4,266.92
3,256.39
2,921.93
56.39%
29.48%
36.98%
-0.24
-0.06
-0.08

0.30

0.20

Liquidit
y

0.10

Profita
bility

0.00
Bajaj Auto
-0.10

-0.20

COMPANIES

Details
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
% of Sales
Stock Adjustments
% of Sales
Total Income
Expenditure
Raw Materials
% of Sales
Power & Fuel Cost
% of Sales
Employee Cost
% of Sales
Other Manufacturing Expenses
% of Sales
Selling and Admin Expenses
% of Sales
Miscellaneous Expenses
% of Sales
Preoperative Exp Capitalised
% of Sales
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
% of Change
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
% of PBT
Reported Net Profit

Mar '09

Bajaj Auto
Mar '08 Mar '07

17,386.51 12,420.95
934.71
607.70
16,451.80 11,813.25
1,176.00
22.50
7.15
0.19
82.79
47.60
0.50
0.40
17,710.59 11,883.35

9,310.24
610.07
8,700.17
-6.20
-0.07
-24.49
-0.28
8,669.48

9,856.66 10,741.91
1,029.51 1,321.67
8,827.15 9,420.24 0.168282641
170.27
567.16
1.93
6.02 7.785234944
67.85
-0.90
0.77
-0.01
0.28
9,065.27 9,986.50

11,965.30
72.73
86.61
0.53
494.33
3.00
61.77
0.38
450.18
2.74
237.76
1.45
-16.66
-0.10
13,279.29
3,255.30
4,431.30
1.69
4,429.61
122.84
-0.10
0.00
4,306.77
46.77
4,353.54
1,011.02
0.23
3,342.52

6,502.10
74.74
60.89
0.70
366.67
4.21
57.08
0.66
381.73
4.39
225.56
2.59
-14.42
-0.17
7,579.61
1,096.07
1,089.87
21.01
1,068.86
129.79
-0.25
0.00
939.07
18.72
957.79
301.61
0.31
656.18

6,760.04
76.58
69.20
0.78
350.09
3.97
53.72
0.61
390.15
4.42
209.63
2.37
-23.04
-0.26
7,809.79
1,085.21
1,255.48
5.16
1,250.32
173.96
-0.09
1.12
1,075.24
59.32
1,134.56
378.78
0.33
755.78

Mar '11

Mar '10

8,187.11
69.30
70.35
0.60
411.76
3.49
57.54
0.49
407.61
3.45
221.94
1.88
-15.67
-0.13
9,340.64
2,520.21
2,542.71
5.98
2,536.73
136.45
0.05
0.00
2,400.28
26.87
2,427.15
710.12
0.29
1,717.03

6,969.50
73.98
79.34
0.84
310.07
3.29
74.53
0.79
457.17
4.85
230.89
2.45
-32.05
-0.34
8,089.45
1,329.89
1,897.05
5.34
1,891.71
190.26

% of Sales

73.47
0.69
3.59
0.58
3.97
2.15
-0.20

-0.10
0.39
1,701.06
26.60
1,727.66
490.09
0.28
1,237.57

0.29

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