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    Financial Management at Bajaj Auto

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    Shikha Agarwal
    Bajaj Auto was founded in 1926 by Jamunalal Bajaj. It is now led by Rahul Bajaj and is India's second largest motorcycle maker. Under Rahul Bajaj's leadership, the company's turnover increased significantly. Bajaj Auto manufactures motorcycles and scooters and is known for its R&D, product development, and low cost manufacturing. Some of its popular models include Chetak scooter and Pulsar motorcycle. The company has shown strong financial performance in recent years with increased profits, margins, and recovery of debtors.

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    Financial Management at Bajaj Auto

    Uploaded by

    Shikha Agarwal
    218 views11 pages
    Bajaj Auto was founded in 1926 by Jamunalal Bajaj. It is now led by Rahul Bajaj and is India's second largest motorcycle maker. Under Rahul Bajaj's leadership, the company's turnover increased significantly. Bajaj Auto manufactures motorcycles and scooters and is known for its R&D, product development, and low cost manufacturing. Some of its popular models include Chetak scooter and Pulsar motorcycle. The company has shown strong financial performance in recent years with increased profits, margins, and recovery of debtors.

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    this presentation is presented on the case financial amangement at bajaj auto

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    Bajaj Auto was founded in 1926 by Jamunalal Bajaj. It is now led by Rahul Bajaj and is India's second largest motorcycle maker. Under Rahul Bajaj's leadership, the company's turnover increased significantly. Bajaj Auto manufactures motorcycles and scooters and is known for its R&D, product development, and low cost manufacturing. Some of its popular models include Chetak scooter and Pulsar motorcycle. The company has shown strong financial performance in recent years with increased profits, margins, and recovery of debtors.

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    218 views11 pages

    Financial Management at Bajaj Auto

    Uploaded by

    Shikha Agarwal
    Bajaj Auto was founded in 1926 by Jamunalal Bajaj. It is now led by Rahul Bajaj and is India's second largest motorcycle maker. Under Rahul Bajaj's leadership, the company's turnover increased significantly. Bajaj Auto manufactures motorcycles and scooters and is known for its R&D, product development, and low cost manufacturing. Some of its popular models include Chetak scooter and Pulsar motorcycle. The company has shown strong financial performance in recent years with increased profits, margins, and recovery of debtors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Presented to: Prof.

    Vineeta Mishra Presented by: Amit Sachdeva Megha Aggarwal Rahul Verma

    Founded in 1926 by Jamunalal Bajaj. His son,Kamalnayan bajaj, then 27, took over the reins of

    business in 1942. The present chairman of group ,Rahul bajaj, took charge of the business in 1965.Under his leadership,the turnover of the bajaj auto has gone up from Rs72 million to Rs.100.76 billion. The Co. was incorporated on April30,2007 as a wholly owned subsidiary of erstwhile bajaj auto ltd. With the name Bajaj investment & holding ltd. The Co. received the certificate of commencement of business 0n May7,2007

    Bajaj is Indias second largest motorcycle maker,

    smaller than Honda Motorcycle Scooter India, but larger than TVS Motor co. ltd. Bajaj Auto, is ranked as the worlds fourth largest two and three wheeler manufacturer The company is well known for their R&D, product development, process engineering and low cost manufacturing skills.

    In the mid 1940s, BAL started as an important of two and three

    wheeler in the early 1960s, BAL , in collaboratin with piaggo, started manufacturing vespa brand scooters at its plant near pune, Maharashtra. In 1970, BAL started manufacturing scooter unde the Bajaj brand. Bals first scooter model under the bajaj brand was introduced in 1972 is Chetak In the late 1990s the Indian two wheeler market witnesses a shift in consumer preferences. In 2005-06 scooter sales in the indian market were around 1 million units annually and considered predominantly of gearless scooters. In early 2006 BAL announced that it would launch two new models of gearless scooters in 20006-07

    In 2002-03, Bajaj achieved a turnover of Rs.5071 crore

    and (EBITDA) of Rs.817 crore.

    EBITDA = Revenue Costs

    Return on operating capital, which had dipped to a

    low of 14% in 2000-01, increased to 60% in 2002-03.

    Debtors declined from Rs. 198 crores on 31st March 2002, to Rs. 167 crore on 31st March 2003 a reduction of 16%.

    Bajajs debt-equity ratio was 0.26 and interest coverage

    was 717.76 times in 2003.


    In 2003, Bajaj had Rs.3139.42 crore of reserve & surplus. In September 2000, Bajaj had spent about Rs 720 crore

    to buy back 15% of its equity.

    .
    Attributes P/E Ratio EPS NET PROFIT MARGIN(%) LAST DIVIDENT (%) RETURN ON AVG. EQUITY Bajaj Auto 31.74 45.39 7.40 220 38.92 Hero Honda 25.75 64.18 10.30 1000 33.72 12.75

    GROSS PROFIT 11.06 MARGIN(%)

    Sales of 136,780 units are its highest ever sales. Demand for commercial vehicles continue to be strong. Share in domestic market 40%.

    Working capital is negative for all the year.


    Current ratio and liquid ratio is also showing a decreasing trend.

    In the Motorcycle segment BOXER estimated 45% sales in the entry level market. However Pulsar accounted for 17000units sales in a month in 2002.

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