Presentation

Inter Firm
Comparison
 Table of Contents
Table of Contents....................................................................................................... 3
Operational performance .........................................................................................4
Operating profit & Operating margin..........................................................................4
2.1 Cost structure.......................................................................................................5
Capital Market Performance......................................................................................6
3.1. Return on share price..........................................................................................6
Recent Strategies....................................................................................................... 7
Outlook.......................................................................................................................7
Operational performance

1.1. Sales & sales growth

During the quarter ended June

2010Tata motor sales witnessed
growth of 56.25% The strong growth
was due to launches of new product
Magic Iris, Indigo Manza, Indico vista,
Tata Prima , Tata aria. Also car of Tata
is very competitive and
durable. .Mahindra & Mahindra
witness lowest sale growth i.e.
21.63%. Maruti Suzuki sale growth was
due to launch of A-Star & dipper
penetration &customer loyalty, but
sale growth was not significant as
company lack luxury car & entry of
Toyota, Volkswagon , Chevrolet
Beat .Also increase in income
changes the tastes & preference of
the customers.

Operating profit & Operating

margin
During the quarter ended June 2010 M &
M has highest margins of 16.31 segments. As it has launched Renault Logan, GIO
truck .It able to reduce its cost of production, while OPM of Maruti Suzuki is 10.85 as
it is facing high competition from other players in the market
. Volume of Maruti Suzuki is good which will help the share price to rise in long
Source: BSE India
run. The company for the quarter ended June2010 has witnessed dip in the margins
for Maruti Suzuki as increase in royalty payment, increase in input cost, Local competition
declining exports. While (Tata Motors) OPM has increase as it succeeded in reducing
cost of production by improving operational efficiencies, launching new product,
have economies of scale, which helped the company to improve its operating profit.
Also OPM Growth in OPM (M&M) is due to higher volume, reduction in cost by wisely
managed expertise. OPM increased significantly after it (M&M) acquired Punjab
Tractor Ltd.
2.1 Cost structure
Company Maruti Tata Mahindra &
Suzuki Motors Mahindra
Year 09 10 09 10 09 10
Raw materials 78.1 79.6 70.3 75.4 67.49 75.92
5 2 9 1
Staff cost 2.11 2.00 6.27 4.92 7.29 6.12

Other expenditure 9.64 10.7 18.5 15.1 12.29 9.37

8 0 9
Interest 0.10 0.10 3.99 3.03 0.14 0.00
Depreciation 3.09 3.00 3.61 2.97 2.09 1.91
Tax 3.53 2.21 0.54 1.37 3.25 3.10

Source: BSE India

Raw material cost has increased for all the three companies due to increase in
prices. Tax expended has declined due to cut in excise duty. Staff cost has came
down due to efficient use of the resource, increase in production & launched of new
vehicle. Percentage increase in raw-material prices 1.47% for Maruti Suzuki, 5.02%
for Tata Motors & 8.43% for
Mahindra & Mahindra.

2.2. Financial
performance
During the quarter ended
AMJ 10 PAT of Maruti
Suzuki rises as compared
to quarters ended AMJ 09 Relativeshareprice&
due to increase in export & sensexAPR09 -MAR10
200
domestic sales. New 150
100
version of car like A-star, 50
0
grand Vitara, carvo, Splash,
rA -0 9

p -0 9

b -1 0
n -0 9
l -0
9

c -0 9

r -1 0
g -0 9

t -0 9
v -0 9

n -10
y -0 9

Ju

M
D
Ju

Ja
M

N
p

S
A
e

e
F
c
u

e
o

a
a

Source: BSE India

Source: BSE India
Sensex M&M
TATAMOTORS MARUTI SUZUKI

Source: BSE India

Maruti Kizashi helped it to increase its sale & so profit. PAT of M&M is fall due
to increasing cost of raw material i.e. increase in expenditure is more than its
revenue..PAT adversely affected due to new launched, global depreciation.
European crisis has affected its profit adversely.PAT of Tata Motors rises as
company has economies of scale,
able to increase its sales despite of recession. The new vehicle as well as
wide range of product helped it to increase its sale & to improve its profits.

Capital Market Performance

Maruti Suzuki share has crossed Sensex level despite of fall in sale as company
volume is good and it help in maintaining its level, so sustainable volume helped it
to maintain a great significance over other. Share price was highest in Sep 2009
after it decline significantly and fluctuate to Rs. 1230.
In case of Tata motors it was reached at highest level in July 2009 after that it fall
continuously & reach at lower point
in January 2010 (87.6) and then rises & fluctuate aroundBSE
Source: Rs. India
750. Share prices rises
in April 2010 but fall again and hovers around Rs. 750.
M&M share prices fall continuously and reaches lowest in April 2010. Its prices
fluctuate around Rs. (500-600).Therefore
out of three M&M saw drastic fall but Maruti G ro w th in s h are p ric e AM J 10 Vs AM J 09
able to maintain its level due to strong
350.00
volume. Trends of Tata Motors reflect that
300.00
it will rise but M&M &Maruti Suzuki share
250.00
will fall.
200.00
%
150.00
100.00
3.1. Return on share price
5 0 .0 0
Return for share price of Tata
0 .0 0
Motors (325.18%) is highest as M a ru ti S u z u k i M & M T a ta M o to rs
company has successfully
launched new product like Nano, G ro w th in s h a re p ric e

Indigo Manza, Indico Vista, and

Tata Prima in the market. Maruti
Suzuki registered growth of
(51.86%).M&M share price growth was (47.18)%. Increase in cost of raw
material has affected its profits and so in price of share. Sales turnover is
less for M&M which affect share price. Share price Source: of M&M BSE fall drastically
India
but not able to regain which
affected its growth, while Maruti price was affected by increase in royalty
payment.
 Tata Motor share price rises continuously as it has increased its sale and
able to launch car at reasonable rate.

Recent Strategies
Maruti Suzuki is going to launch a variety of product like Maruti Carvo,
Maruti SX4, Maruti Grand Vitara, Maruti Kizashi to attract different customer base &
increasing sale. The company is working sustainably to improved its quality
and to achieve economies of scale, It has increased its supply chain
efficiencies. It is expanding its production capacity in Manesar Plant from
(1700-2500) Crores to meet increasing demand .
The company (Tata Motors) has continuously developing new & innovative
product to deliver better value to its customer & increasing its customer
base. In operational strategy, company is innovative design, also to reach
untapped market by addressing & highlighting its product The company plan
is to widen the range of car & able to reach untapped market . It has also
planned to expand its market globally. Company focuses on managing cash
efficiently. Company is widening the range of JLR to step up its network in
china. The company is raising $700-750mn by DVR to retire significance part
of debt. Company is launching Tata Prima, Tata Indica Vista, and Tata Nano
Hybrid Indigo Manza in coming quarter .
Company (M&M) enhancing its employee management skills for developing
strategic leadership so that they able to tackle problem. It is building a long
& depth network to reach last customer. The company setting a plant at
chakkan to increase in production of UV & LCV. It is going to acquire
Ssangyong to become a global SUV player. As Ssangyong has dipper
penetration in Western & Eastern Europe, Asia, America & this will help M&M
to form long network. Company will launch Maximo electric truck to increase
its sale and to reduce its cost of production. Company is also buying asset of
Hindustan Motors which will help it in input material. Company is launching
GIO truck, Maxximo truck, Renault logan in coming quarters.

Outlook
The control over cost & superior quality provides Maruti Suzuki to increase
its customer base, As it has economies of scale, vast network & close
relation with customer & advantage over cost will help company to capture
and to grow at faster rate. The new & competitive price car will give it room
to recapture the market share. Company is debt free & have healthy cash
balance i.e. health of company is sound and it can do better in the future.
Company volume is growing at a good rate so this will provide edge to the
company over its competitor. New product will give it chance to regain its
market position.

Tata Motors restructured its business and paid its debt by 7 million, after
which company seems to be stronger and more viable. The Company has
enormous talent capabilities and skills, in addition to an impressive
development of product and process technologies. These will help it to
achieve a more prominent position in the international automobile
marketplace in the coming years. In coming year the company will launch
wider range of product in all segments as it is sustainably working on
innovation & designing of product to reach end consumer. This will help
company to reach to a large base of customer.

Company (M&M) has ample of liquidity which makes it a sound & efficient
company from all respect. As it is buying stake in Ssangyong a South-Korean
based company which has large dealer- network of 1300 & it will help
company to grow and expand its business globally. It has tie up with
Syndicate bank. M&M has strong base and acquisition will smoothen the
growth of the company. Also new & diversified product can attract customer
and help to improve its sale.

Thank You