BAJAJ AUTO FINANCIAL

ANALYSIS

BY
ANILKUMAR T
NAMAN
ANKITA
• Bajaj Auto is a major Indian automobile
manufacturer.
• It is India's largest and the world's 4th largest
two- and three-wheeler maker.
• Chairman RahulBajaj
BALANCE SHEET OF BAJAJ AUTO
Sources Of Funds Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Total Share Capital 101.18 101.18 144.68 144.68 144.68

Equity Share Capital 101.18 101.18 144.68 144.68 144.68

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 4,669.55 5,433.14 1,442.91 1,725.01 2,783.66

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 4,770.73 5,534.32 1,587.59 1,869.69 2,928.34

Secured Loans 0.02 22.46 6.95 0.00 12.98

Unsecured Loans 1,467.13 1,602.97 1,327.39 1,570.00 1,325.60

Total Debt 1,467.15 1,625.43 1,334.34 1,570.00 1,338.58

Total Liabilities 6,237.88 7,159.75 2,921.93 3,439.69 4,266.92

Application Of Funds Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
Gross Block 2,894.22 3,178.54 2,994.68 3,350.20 3,379.25
Less: Accum. Depreciation 1,761.22 1,904.94 1,726.07 1,807.91 1,899.66
Net Block 1,133.00 1,273.60 1,268.61 1,542.29 1,479.59
Capital Work in Progress 43.33 107.62 34.74 106.48 120.84
Investments 5,856.97 6,447.53 1,857.14 1,808.52 4,021.52
Inventories 272.93 309.70 349.61 338.84 446.21
Sundry Debtors 301.55 529.83 275.31 358.65 272.84
Cash and Bank Balance 80.84 62.16 54.74 135.68 100.20
Total Current Assets 655.32 901.69 679.66 833.17 819.25
Loans and Advances 2,282.98 2,925.24 1,099.68 1,567.09 2,291.29
Fixed Deposits 1.25 21.32 1.33 1.19 1.21
Total CA, Loans & Advances 2,939.55 3,848.25 1,780.67 2,401.45 3,111.75
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 1,419.08 1,683.46 1,185.19 1,378.20 2,218.06
Provisions 2,315.89 2,833.79 834.04 1,224.15 2,248.72
Total CL & Provisions 3,734.97 4,517.25 2,019.23 2,602.35 4,466.78
Net Current Assets -795.42 -669.00 -238.56 -200.90 -1,355.03
Miscellaneous Expenses 0.00 0.00 0.00 183.30 0.00
Total Assets 6,237.88 7,159.75 2,921.93 3,439.69 4,266.92
Contingent Liabilities 719.06 811.66 1,129.29 924.96 818.25
Book Value (Rs) 471.49 546.96 109.73 129.23 202.40
PROFIT AND LOSS ACCOUNT
Income

Sales Turnover 8,653.83 10,741.91 9,856.66 9,310.24 12,420.95

Excise Duty 1,081.70 1,321.67 1,029.51 610.07 607.70

Net Sales 7,572.13 9,420.24 8,827.15 8,700.17 11,813.25

Other Income 458.96 567.16 170.27 -4.52 38.76

Stock Adjustments 49.01 -0.90 67.85 -24.49 47.60

Total Income 8,080.10 9,986.50 9,065.27 8,671.16 11,899.61

Expenditure

Raw Materials 5,446.62 6,969.50 6,760.04 6,502.10 8,187.11

Power & Fuel Cost 59.09 79.34 69.20 60.89 70.35

Employee Cost 282.45 310.07 350.09 366.67 411.76

Other Manufacturing Expenses 79.50 74.53 53.72 58.10 73.80

Selling and Admin Expenses 299.99 457.17 390.15 383.41 423.87

Miscellaneous Expenses 198.52 230.89 209.63 226.22 221.94

Preoperative Exp Capitalised -24.81 -32.05 -23.04 -14.42 -15.67

Total Expenses 6,341.36 8,089.45 7,809.79 7,582.97 9,373.16

Operating Profit 1,279.78 1,329.89 1,085.21 1,092.71 2,487.69
PBDIT 1,738.74 1,897.05 1,255.48 1,088.19 2,526.45
Interest 0.34 5.34 5.16 21.01 5.98
PBDT 1,738.40 1,891.71 1,250.32 1,067.18 2,520.47
Depreciation 191.00 190.26 173.96 129.79 136.45
Other Written Off 3.62 0.39 1.12 0.00 0.00
Profit Before Tax 1,543.78 1,701.06 1,075.24 937.39 2,384.02
Extra-ordinary items 59.03 26.60 59.32 18.72 24.25
PBT (Post Extra-ord Items) 1,602.81 1,727.66 1,134.56 956.11 2,408.27
Tax 479.11 490.09 378.78 301.61 707.50
Reported Net Profit 1,101.63 1,237.96 755.95 656.48 1,702.73
Total Value Addition 894.74 1,119.95 1,049.75 1,080.87 1,186.05
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 404.74 404.73 289.37 318.30 578.73
Corporate Dividend Tax 56.76 68.78 49.18 54.10 96.12
Per share data (annualised)
Shares in issue (lakhs) 1,011.84 1,011.84 1,446.84 1,446.84 1,446.84
Earning Per Share (Rs) 108.87 122.35 52.25 45.37 117.69
Equity Dividend (%) 400.00 400.00 200.00 220.00 400.00
Book Value (Rs) 471.49 546.96 109.73 129.23 202.40
RATIO ANALYSIS
 LEVERAGE RATIOS
• Debt-equity Ratio
Debt 1338.58
= = 0.435
Equity (144+2928)
• Debt-asset Ratio
Debt 1338.58
= = 0.313
Assets 4266.92
• Interest Coverage Ratio
Profit before interest and tax 2384.02
= = 3.23
Interest 707.5
 TURNOVER RATIOS
• Inventory Turnover
Cost of goods sold 12420.95
Average inventory =
(446.21 + 338)/2 =29.19

• Debtors’ Turnover
Net credit sales
Average debtors =37.41
• Fixed Assets Turnover
Net sales
Average net fixed assets =3.50
• Total Assets Turnover
Net sales
Average total assets
=2.77
 LIQUIDITY RATIOS
• Current Ratio
Current assets 1355.03
Current liabilities =2218.06 = 0.61

• Acid-Test Ratio
Quick assets (1355.03-135)
Current liabilities = 2218.06 = 0.55

• Cash Ratio
Cash and bank Current
balances investments (100.2 +4021.52)
+
Current liabilities 2218.06
= = 1.858
 PROFITABILITY RATIOS
• Gross Profit Margin Ratio
Gross profit 2384
Net sales =
11813.25 = 20.1%

• Net Profit Margin Ratio

Net profit 1702.73
=
Net sales 11813.25 = 14.41%

• Return on Assets (ROA)

Profit after tax 1702.73
Average total assets = (3439.69 + 4266.92)/2
=44.1%
 PROFITABILITY RATIOS
• Earning Power
Profit before interest and tax 2384.02
Average total assets = (3439.69 + 4266.92)/2 =61.8%

• Return on Capital Employed

Profit before interest and tax
(1 – Tax rate) 2384.02(1 – 0.054)
Average total assets = ((3439.69 + 4266.92)/2
= 58.5%

• Return on Equity
Equity earnings 578.73
Average equity = = 0.131 or 13.1
percent
 VALUATION RATIOS
· Price-earnings Ratio
Market price per share 2850.75
= = 24.22
Earnings per share 117.69
· Yield
Dividend Price change
+
Initial price Initial price
Dividend yield Capital gains/losses yield
584 1.0
= 9.35% = 5%
20.0 20.0
· Market Value to Book Value Ratio
Market value per share 2850.75
= = 14.1
Book value per share 202.4
THANK YOU