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    Harpreet Harpreet Document Transcript

    • HistoryTVS Motor traces its origins back to the entrepreneurial spirit of Trichur Vengaram SundaramIyengar who gave up lucrative careers in the Indian Railways and in banking to set up his ownbusiness. He began with Madurais first bus service in 1911 and founded T.V.Sundaram Iyengarand Sons Limited, a company that consolidated its presence in the transportation business with alarge fleet of trucks and buses under the name of Southern Roadways Limited.[2] When he diedin 1955 his sons took the company ahead with several forays in the automobile sector, includingfinance, insurance, manufacture of two-wheelers, tyres and components. The group has managedto run 33 companies that account for a combined turnover of nearly $3 billion.Early yearsSundaram Clayton, then the flagship company, was founded in 1962 in collaboration withClayton Dewandre Holdings, United Kingdom. It manufactured brakes, exhausts, compressorsand various other automotive parts. The company set up a plant at Hosur in 1978 to manufacturemopeds as part of a new division.[3] A technical collaboration with the Japanese auto giantresulted in the joint-venture Ind Suzuki Limited in 1982 between Sundaram Clayton Ltd andSuzuki Motor Corporation. Commercial production of motorcycles began in 1984.Suzuki relationshipTVS and Suzuki shared a 19 year long relationship that was aimed at technology transfer toenable design and manufacture of two-wheelers specifically for the Indian market. RechristenedTVS-Suzuki, the company brought out several models such as the Suzuki Samurai, SuzukiShogun and Suzuki Fiero. Differences in opinion on how to run the join venture eventually led tothe partners going their separate ways in 2001 with the company being renamed TVS Motor,relinquishing rights to use the Suzuki name. There was also a 30 month moratorium periodduring which Suzuki promised not to enter the Indian market with competing two-wheelers.[4]The company also got over a period of labour unrest that required Chairman Venu Srinivasan totake tough measures to resurrect a company that was in a state of turmoil. He would go on toinvest in new technology, nurture in-house design, and implement Toyota-style qualityprograms.[5]RecentOver the years TVS Motor has grown to be the largest in the group, both in terms of size andturnover, with four state of the art[6] manufacturing plants in Hosur, Mysore and Nalagarh inIndia and Karawang in Indonesia. TVS Motor is credited with many innovations in the Indianautomobile industry, notable among them being the introduction of Indias first two-seatermoped, the TVS 50cc. The company became the leader in its category of sub 100 cc mopeds,having sold 7 million units. It also introduced the TVS Scooty, which is Indias second largestbrand in the scooterette segment.[7] The TVS Jive launched in November 2009 became Indiasfirst clutch-free motorbike aimed at a stress-free rider experience[8] while the unisex scooter TVSWego is targeted at urban couples, featuring body-balance technology for easier handling.[9] On
    • 1 June 2012, TVS Motors reported a dip of 5% in its total sales for May 2012.[10] In July 2012, TVS Motors and BMW Motorrad were reported to be in talks for technology sharing.[11] Balance Sheet of TVS Motor ------------------- in Rs. Cr. ------------------- Company Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsSources Of FundsTotal Share Capital 47.51 47.51 23.75 23.75 23.75Equity Share Capital 47.51 47.51 23.75 23.75 23.75Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 1,121.79 951.90 841.63 789.38 797.83Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 1,169.30 999.41 865.38 813.13 821.58Secured Loans 356.70 565.93 829.98 622.42 452.68Unsecured Loans 358.76 219.49 173.31 283.56 213.66Total Debt 715.46 785.42 1,003.29 905.98 666.34Total Liabilities 1,884.76 1,784.83 1,868.67 1,719.11 1,487.92 Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsApplication Of FundsGross Block 2,142.43 1,972.25 1,909.14 1,865.36 1,790.97Less: Accum. Depreciation 1,116.86 1,034.66 953.41 869.42 774.49Net Block 1,025.57 937.59 955.73 995.94 1,016.48Capital Work in Progress 52.51 57.39 27.05 40.43 26.57Investments 930.92 661.13 739.26 477.71 338.96Inventories 584.56 527.92 289.73 320.55 405.38Sundry Debtors 234.07 270.62 220.31 181.56 87.86Cash and Bank Balance 13.03 5.94 39.74 42.00 3.44Total Current Assets 831.66 804.48 549.78 544.11 496.68Loans and Advances 299.84 464.09 410.98 427.11 342.87Fixed Deposits 0.00 0.07 61.27 0.05 0.29Total CA, Loans & Advances 1,131.50 1,268.64 1,022.03 971.27 839.84Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 1,149.47 1,047.94 838.62 776.08 725.71Provisions 106.27 91.98 66.87 65.49 60.99Total CL & Provisions 1,255.74 1,139.92 905.49 841.57 786.70Net Current Assets -124.24 128.72 116.54 129.70 53.14Miscellaneous Expenses 0.00 0.00 30.09 75.33 52.77Total Assets 1,884.76 1,784.83 1,868.67 1,719.11 1,487.92
    • Contingent Liabilities 212.51 204.19 121.27 170.10 135.65Book Value (Rs) 24.61 21.04 36.43 34.23 34.59 TVS Motor Company Previous Years » Profit & Loss account ------------------- in Rs. Cr. ------------------- Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 7,712.33 6,712.53 4,679.59 4,008.91 3,683.53 Excise Duty 586.13 533.05 316.48 337.99 464.03 Net Sales 7,126.20 6,179.48 4,363.11 3,670.92 3,219.50 Other Income 21.71 121.64 46.65 79.47 98.07 Stock Adjustments 15.14 143.88 -1.95 -60.56 26.07 Total Income 7,163.05 6,445.00 4,407.81 3,689.83 3,343.64 Expenditure Raw Materials 5,292.29 4,806.50 3,169.76 2,753.53 2,502.45 Power & Fuel Cost 127.91 68.10 49.74 46.25 40.72 Employee Cost 370.11 328.69 251.39 204.69 176.55 Other Manufacturing Expenses 49.84 48.12 41.25 28.16 25.18 Selling and Admin Expenses 0.00 734.94 617.81 444.16 443.91 Miscellaneous Expenses 831.82 32.65 21.85 12.49 11.45 Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00 Total Expenses 6,671.97 6,019.00 4,151.80 3,489.28 3,200.26 Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mths Operating Profit 469.37 304.36 209.36 121.08 45.31 PBDIT 491.08 426.00 256.01 200.55 143.38 Interest 57.09 70.30 75.36 64.61 11.47 PBDT 433.99 355.70 180.65 135.94 131.91 Depreciation 117.53 107.25 102.53 102.89 94.59 Other Written Off 0.00 0.36 1.95 1.95 1.95 Profit Before Tax 316.46 248.09 76.17 31.10 35.37 Extra-ordinary items -2.86 0.00 0.00 0.00 0.00 PBT (Post Extra-ord Items) 313.60 248.09 76.17 31.10 35.37 Tax 67.39 53.51 -11.84 0.02 3.60 Reported Net Profit 249.07 194.58 88.01 31.08 31.77 Total Value Addition 1,379.68 1,212.50 982.04 735.75 697.81 Preference Dividend 0.00 0.00 0.00 0.00 0.00 Equity Dividend 61.77 52.27 28.51 16.63 16.63 Corporate Dividend Tax 10.01 8.21 4.36 2.83 2.83 Per share data (annualised) Shares in issue (lakhs) 4,750.87 4,750.87 2,375.44 2,375.44 2,375.44
    • Earning Per Share (Rs) 5.24 4.10 3.71 1.31 1.34 Equity Dividend (%) 130.00 110.00 120.00 70.00 70.00 Book Value (Rs) 24.61 21.04 36.43 34.23 34.59 TVS Motor Company Capital Structure Period Instrument --- CAPITAL (Rs. cr) --- -PAIDUP- From To Authorised Issued Shares (nos) Face Value Capital 2011 2012 Equity Share 50 47.51 475087114 1 47.51 2010 2011 Equity Share 50 47.51 475087114 1 47.51 2009 2010 Equity Share 25 23.75 237543557 1 23.75 2008 2009 Equity Share 25 23.75 237543557 1 23.75 2007 2008 Equity Share 25 23.75 237543557 1 23.75 2006 2007 Equity Share 25 23.75 237543557 1 23.75 2005 2006 Equity Share 25 23.75 237543557 1 23.75 2004 2005 Equity Share 25 23.75 237543557 1 23.75 2003 2004 Equity Share 25 23.1 231000700 1 23.1 2002 2003 Equity Share 25 23.1 23100070 10 23.1 2001 2002 Equity Share 25 23.1 23100070 10 23.1 2000 2001 Equity Share 25 23.1 23100070 10 23.1 1999 2000 Equity Share 25 23.1 23100070 10 23.1 1986 1999 Equity Share 25 23.1 23100000 10 23.1 1984 1985 Equity Share 10 7.7 7700000 10 7.7 1982 1984 Equity Share 10 1.76 1760000 10 1.7 Key Financial Ratios of TVS Motor Company Mar Mar 11 Mar 10 Mar 09 Mar 08 12Investment Valuation RatiosFace Value 1.00 1.00 1.00 1.00 1.00Dividend Per Share 1.30 1.10 1.20 0.70 0.70Operating Profit Per Share (Rs) 9.88 6.41 8.81 5.10 1.91Net Operating Profit Per Share (Rs) 150.00 130.07 183.68 154.54 135.53Free Reserves Per Share (Rs) -- 19.90 33.89 29.79 31.09Bonus in Equity Capital 49.98 49.98 -- -- --Profitability RatiosOperating Profit Margin(%) 6.58 4.92 4.79 3.29 1.40Profit Before Interest And Tax Margin(%) 4.92 3.12 2.40 0.48 -1.49Gross Profit Margin(%) 4.93 3.18 2.44 0.49 -1.53Cash Profit Margin(%) 5.12 4.94 5.06 3.53 2.96
    • Adjusted Cash Margin(%) 5.12 4.94 5.06 3.53 2.96Net Profit Margin(%) 3.48 3.08 1.98 0.82 0.96Adjusted Net Profit Margin(%) 3.48 3.08 1.98 0.82 0.96Return On Capital Employed(%) 19.81 18.38 9.85 5.37 1.08Return On Net Worth(%) 21.30 19.46 10.53 4.21 4.13Adjusted Return on Net Worth(%) 21.30 20.45 14.45 3.76 0.13Return on Assets Excluding Revaluations 24.61 21.04 35.16 31.06 32.37Return on Assets Including Revaluations 24.61 21.04 35.16 31.06 32.37Return on Long Term Funds(%) 22.64 19.08 9.85 5.37 1.08Liquidity And Solvency RatiosCurrent Ratio 0.71 1.00 1.13 1.15 1.07Quick Ratio 0.44 0.59 0.75 0.68 0.47Debt Equity Ratio 0.61 0.79 1.16 1.11 0.81Long Term Debt Equity Ratio 0.41 0.72 1.16 1.11 0.81Debt Coverage RatiosInterest Cover 6.54 4.67 2.44 1.43 1.40Total Debt to Owners Fund 0.61 0.79 1.16 1.11 0.81Financial Charges Coverage Ratio 8.60 6.20 3.83 3.05 9.82Financial Charges Coverage Ratio Post Tax 7.42 5.30 3.55 3.10 12.19Management Efficiency RatiosInventory Turnover Ratio 13.19 13.27 17.12 13.31 9.61Debtors Turnover Ratio 28.24 25.17 21.71 27.25 32.31Investments Turnover Ratio 13.19 13.27 17.12 13.31 9.61Fixed Assets Turnover Ratio 3.34 3.13 2.29 1.97 1.80Total Assets Turnover Ratio 3.79 3.46 2.33 2.14 2.16Asset Turnover Ratio 3.88 3.38 2.43 2.29 1.80Average Raw Material Holding -- 13.97 11.36 15.11 14.00Average Finished Goods Held -- 15.53 9.06 11.12 23.92Number of Days In Working Capital -6.28 7.50 9.62 12.72 5.94Profit & Loss Account RatiosMaterial Cost Composition 74.26 77.78 72.64 75.00 77.72Imported Composition of Raw Materials 12.90 11.04 10.20 12.17 7.80ConsumedSelling Distribution Cost Composition -- 9.63 11.49 9.34 11.02Expenses as Composition of Total Sales 15.85 14.28 12.19 14.27 10.38Cash Flow Indicator RatiosDividend Payout Ratio Net Profit 28.81 31.08 37.34 62.61 61.25Dividend Payout Ratio Cash Profit 19.57 20.01 17.07 14.31 15.16Earning Retention Ratio 71.19 70.42 72.78 29.93 -1,846.00Cash Earning Retention Ratio 80.43 80.62 85.41 85.33 80.05AdjustedCash Flow Times 1.95 2.52 4.46 6.83 6.83 Mar Mar 11 Mar 10 Mar 09 Mar 08 12Earnings Per Share 5.24 4.10 3.71 1.31 1.34Book Value 24.61 21.04 36.43 34.23 34.59