Bajaj Auto Financial Analysis

Presented by:
Shailesh Mishra Trilokinath Gupta Purushottam Singh

HISTORY
Founded in 1926. The man behind BAJAJ: JAMANALAL BAJAJ. He valued honesty over profit, actions over words and common good over individual gain. KAMALNAYAN BAJAJ, in 1942, diversified it into various manufacturing activities.

 1931, started as sugar manufacturing factory.

1945, turned as the BAJAJ AUTO.

RAHUL BAJAJ took charge of business in 1965 Worth US$ 3 billion

BAJAJ AUTO
Learning, Innovation, Perfection, Speed and Transparency

Manufacturers of Scooters, Motor Bikes, 3-Wheelers, Spare parts. Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. Initially it used to import the two wheelers from outside, but from 1959 it started manufacturing of two wheelers in the country. It is India's largest and the world's 4th largest twoand three-wheeler maker.

Timeline of new releases

1971 - three-wheeler goods carrier 1972 - Bajaj Chetak 1990- Bajaj Sunny 1997- Kawasaki Bajaj Boxer 1998 - Kawasaki Bajaj Caliber,legend,Bajaj Spirit 2000 - Bajaj Saffire 2001 - Eliminator, Pulsar 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke 2006 - Bajaj Platina 2007 - Bajaj Pulsar-200(Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi , XCD 125 DTS-Si

Automobile industry
Tenth largest in the world with an annual production of approximately 2 million units

AUTOMOBILE

2 WHEELER

3 WHEELER

PASSENGER VEHICLE

COMMERCIAL VEHICLE

Trends in Automobile sector

Argo Scooters - The scooters from BAJAJ in U.S.A

Export Destinations

Financial Highlights 1999-2009

.
years 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09

partic ulars
Net 3810.5 3658.9 4221.4 4895.9 5580.1 4755.1 5736.3 7469.3 9292.2 8663.2 Sales (crore) Gross 970.5 Profit (crore) Net 613.7 Profit (crore) workin 6327 g capital (crore) 546.8 767.5 959.8 1140.3 960.4 1086.4 1580.7 1728.0 1134.7

262.6

521.1

538.4

731.5

731.5

766.8

1101.6 1237.9 755.9

5873

3353

2144

(2730)

(2042)

(6886)

(5141)

(2275)

(1122)

We adopt the ratio analysis method to . analyze the financial position of Bajaj Auto Ltd

Objectives of Ratio Analysis

Standardize financial information for comparisons Evaluate current operations Compare performance with past performance Compare performance against other firms or industry standards Study the efficiency of operations . Study the risk of operations

Analysis and

. interpretation

Liquid Ratio
.

Absolute Liquid Ratio

Inventory Turnover Ratio

Debtors Turnover Ratio

.
.

Creditors Turnover Ratio

Working Capital Turnover Ratio

.

.
.

Bajaj Auto V/s Hero Honda

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

RETURN ON AVG. 38.92 EQUITY

GROSS PROFIT MARGIN(%)

11.06

12.75

. COMPARISON
ATTRIBUTES
SALES(2009) MKT CAP SHARE HOLDING (PROMOTERS) NON PROMO.SHARE HOLDING

BAJAJ AUTO
8893(CR) 21448(CR) 49.6% 23.75%

HERO HONDA
12534(CR) 32400(CR) 54.96% 36.76%

OTHERS HOLDING

9.49%

1.18%

CONCLUSION
BAJAJ AUTO NET PROFIT MARGIN IS LOWER THAN HERO HONDAS RETURN ON AVG EQUITY OF BAJAJ AUTOS IS MORE THAN HERO HONDA MARKET CAPITAL OF HERO HONDA IS ALSO MORE THAN BAJAJ AUTO. BAJAJ AUTOS FINANCIAL POSITION IS NOT AS PER STD. WORKING CAPITAL RATIO IS NEGATIVE FOR ALL THE YEAR WHICH IS NOT GOT FOR THE COMPANY CURRENT RATIO AND LIQUID RATIO IS ALSO SHOWING A DECREASING TREND

CONCLUSION..
BAJAJ AUTO SHOULD TRY TO IMPROVE ITS CURRENT RATIO WORKING CAPITAL IS NEGATIVE WHICH IS NOT IMPRESSIVE SALES IN THE CURRENT YR.DECREASES DUE TO RECESSION OVERALL FINANCIAL AND EARNING CAPACITY OF BAJAJ AUTO IS LOWER THAN HERO HONDA

COMMUNITY SERVICE
JankiDevi Bajaj Gram Vikas Sanstha. Samaj Seva Kendra. Kamalnayan Bajaj Hospital.

THANK YOU
.