FINANCIAL MANAGEMENT AT BAJAJ

AUTO

By:-
Virendra Mahawar
M.B.A.
 FINANCIAL MANAGEMENT
• Bajaj earned bulk of its revenue from the
automotive business.
• In 2002-03 Bajaj achieved a turnover of
Rs.5071 crore & EBITDA of Rs.817 crore.
• Return on operating capital, which had dipped
to a low of 14% in 2000-01, increased to 60%
in 2002-03.
• Return on operating capital was also huge
increased from 14% to 60%.
WORKING CAPITAL
Debtors declined from Rs. 198 crores on
31st march 2002, to Rs.167 crore on 31st
march 2003-reduction of 16%.
Reducing inventory level s by using of
direct online delivery.
Inventory of raw materials and
components declined from 7 days to 6
days.
COST STRUCTURE
value eng and good relation with vendor.
Material cost was reduced from 63.3%
from 62% in 2003
Despite a 16.5% increase in net sales &
other operating income –factory &
administration costs had come down from
5.3% of net sales & operating income to
4.3%.
INVESTMENTS

Bajaj reduced its equity investment and

paid attention more on the G-Sec and
Bond mrk.
During 2002-03 , Bajaj provided Rs.26.7
million towards impairment in the carrying
costs of its investment portfolio.
Return on capital employed was 60% and
overall 31% which was far lower than
hero Honda’s 95%.
RETURN ON CAPITAL
a free cash reserve of Rs.2700 crore.
Bajaj invested its surplus fund in secured
and fixed investmentsecurities like G-Sec,
T-Bills etc.
Bajaj had a capital employed of Rs. 4000
crore, of which only 1,300 crore was
deployed in its two-wheeler operation.
THANK YOU