2. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
For more than three decades, Maruti Suzuki has been a household name across urban and rural India, through multiple
business challenges.
Since 1982, the pride of owning a Maruti Suzuki vehicle has grown despite the availability of multiple brands.
Today, Maruti produces more than 1 million units annually, with 15 different models and over 500 variants
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 2
4. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
FINANCIAL HIGHLIGHTS
CRISIL RATINGS
•
Total revenue (net of excise) was Rs. 444,003 million as against
Rs. 364,139 million in the previous year showing an increase
of 22 percent.
•
Sale of vehicles in the domestic market was 1,051,046 units as
compared to 1,006,316 units in the previous year showing an
The Company was awarded the highest financial
credit rating of AAA/stable (long term)
and
A1 (short term) on its bank facilities by CRISIL
•
•
increase of 4 per cent.
Total number of vehicles exported was 120,388 units as compared
to 127, 379 units in the previous year.
The rating underscores the financial strength of the
Company in terms of the highest safety with regard to
timely fulfillment of its financial obligations.
Profit before tax (PBT) was Rs. 29,910 million against Rs. 21,462
million showing an increase of 39 per cent and profit after tax (PAT)
stood at Rs. 23,921 million against Rs. 16,352 million in the previous
year showing an increase of 46 per cent.
DIVIDEND
The board recommends a dividend of Rs. 8 (eight) per equity share of
Rs. 5 each for the year ended 31st March 2013 amounting to Rs. 2,417
million.
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 4
5. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
• Mahindra & Mahindra Limited (M&M) is an Indian multinational automobile manufacturing corporation
headquartered in Mumbai.
• One of the largest vehicle manufacturers by production in India and the largest seller of tractors across the world. It
is a part of Mahindra Group, an Indian conglomerate.
• Ranked as the 10th most trusted brand in India, by The Brand Trust Report, India Study 2014.
• Ranked 21st in the list of top companies of India in Fortune India 500 in 2011.
• Major competitors in the Indian market include Maruti Suzuki, Tata Motors, Ashok
Leyland, Toyota, Hyundai, Mercedes-Benz (Merc) etc.
• Incorporated in 1945 and converted into Public Limited in 1955 at Mumbai.
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 5
6. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
FINANCIAL HIGHLIGHT
The Automotive and Farm Divisions of your Company have shown good performance during the
year, reflecting substantial growth in the net income of the Company by 26.8% from Rs. 32,319
crores in the previous year to Rs. 40,990 crores in the year under review.
DIVIDEND
A dividend of Rs. 12.50 per Ordinary (Equity) Share and also a Special Dividend of Re. 0.50 per
Ordinary (Equity) Share aggregating Rs. 13.00 per Ordinary (Equity) Share of the face value of Rs. 5
each, payable to those Shareholders whose names appear in the Register of Members as on the
Book Closure Date.
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 6
8. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
RATIO ANALYSIS
LIQUIDITY RATIOS
Current Ratio
• The Current Ratio formula is:
Current Ratio =
•
Current Assets
Mahindra
Current Liabilities
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Maruti
1.02
1.04
Slide 8
11. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
FINANCIAL LEVERAGE RATIOS
1. Debt to Asset
• Total debt to total assets is a leverage ratio that defines the total amount of debt relative to
assets.
• Total Debt to Total Asset=
(Short term Debt + Long Term Debt)/ Total Assets
Maruti Calculations
1389.20/ 19968.1= 0.069570
Mahindra Calculation
3227.07/ 17885.9 = 0.180425
INFERENCE: -The higher the ratio, the higher the degree of leverage, and consequently,
financial risk. Accordingly Mahindra’s financial risk as per the degree of leverage is higher
than Maruti’s.
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 11
12. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
FINANCIAL LEVERAGE RATIOS
2. Debt to Equity
• A measure of a company's financial leverage calculated by dividing its total liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
• Debt to Equity=
Total Liabilities/ Shareholder’s equity
Maruti Calculations:
1389.20/(151+ 18427.90) = 0.07477
Mahindra’s Calculations:
3227.07/(295.16+14363.76)= 0.22014
INFERENCE: - Accordingly Maruti’s Debt to Equity ratio is better than Mahindra’s
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 12
13. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
FINANCIAL LEVERAGE RATIOS
3. Equity Multiplier
• A measure of financial leverage. Calculated as:
Total Assets / Total Stockholders' Equity
The equity multiplier is a way of examining how a company uses debt to
finance its assets. Also known as the financial leverage ratio or leverage
ratio
Maruti’s Calculations:
Total Assets / Total Stockholders' Equity= 19968.1/(151+18427.9)= 1.0748
Mahindra’s Calculations:
Total Assets / Total Stockholders' Equity=
17885.99/(295.16+14363.76)=1.220
INFERENCE: - Higher equity multiplier leads to a higher return on equity.
Accordingly Mahindra’s return on equity would be higher than Maruti’s
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 13
14. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
FINANCIAL LEVERAGE RATIOS
4. Interest Coverage Ratio
• A ratio used to determine how easily a company can pay interest on outstanding debt. The interest
coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period
by the company's interest expenses of the same period
• Interest coverage ratio= EBIT/ Interest Expense
Maruti Calculations:
(PBDIT- Dep)/ Interest= (5042-1861.2)/189.8=16.758
Mahindra’s Calculations:
PBDIT- Dep)/ Interest=(5349.09-710.81)/191.19=24.260
INFERENCE: - The lower the ratio, the more the company is burdened by debt expense.
• A ratio under 1 means that the company is having problems generating enough cash flow to pay its interest
expenses.
• Ideally you want the ratio to be over 1.5. Accordingly Mahindra’s Interest coverage ratio is better than
Maruti’s.
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 14
15. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
WORKING CAPITAL ANALYSIS
MAHINDRA
MARUTI
PARTICULARS
Total CA, Loans &
Advances
Total CL &
Provisions
working capital
MAR’13
MAR’12
7,868.30 8,022.70
6,719.90 6,036.50
1,148.40 1,986.20
change
-154.40
683.40
-837.80
PARTICULARS
Total CA, Loans &
Advances
Total CL &
Provisions
working capital
MAR’13
MAR’12 change
9,798.79
8,520.77
9,567.60
8,566.67
231.19
-45.90
1,278.02
1,000.93
277.09
INFERENCE : WORKING CAPITAL OF MAHINDRA IS MORE ALTHOUGH WORKING CAPITAL IN THE YEAR 2013
MARUTI HAS IT HIGHER.
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 15
16. DEBTORS TURNOVER RATIO
Net credit sales/ Average debtors
MAHINDRA
MARUTI
MAR’13
YEAR
DEBTORS
TURNOVER
RATIO
MAR’13
36.92
MAR’12
YEAR
40.39
DEBTORS
TURNOVER
RATIO
MAR’12
19.27
19.61
INFERENCE: This implies that the company is effective enough to extend credit as well as collecting debts.
Higher ratio depicts that the company’s collection of debt and extension of credit is efficient. MARUTI has
higher DTR compared to MAHINDRA
MSIL V/S M&ML
17. CREDITOR TURNOVER RATIO
COGS/ Average creditor
MARUTI
MAHINDRA
Cogs = 32677.6
Cogs = 30613.89
Average creditors= 1429.7
Creditor turnover ratio = 22.85
Average creditors= 2208.2
Creditor turnover ratio = 13.86
INFERENCE: This ratio implies that the company is efficient enough to pay off its suppliers.
MAHINDRA is a lower ratio hence; it proves that the company takes time to pay off its creditors
compared MARUTI
MSIL V/S M&ML
18. INVENTORY TURNOVER RATIO
COGS/ Average Inventory
MARUTI
MAR’13
INVENTORY
TURNOVER
RATIO
23.68
MAHINDRA
MAR’13
MAR’12
19.81
INVENTORY 16.71
TURNOVER
RATIO
MAR’12
13.51
INFERENCE: This show how many times the company’s inventory is sold and replaced over a period of time.
MSIL V/S M&ML
19. OPERATING CYCLE
RECEIVABLES + ITR
MARUTI
MAHINDRA
RECEIVABLES = 36.92
ITR = 23.68
OPERATING CYCLE = 60.6 times
RECEIVABLES = 19.27
ITR = 16.71
OPERATING CYCLE =35.98 times
INFERENCE: This implies how well a company manages its critical operational capital assets, as opposed to impact
on cash.
MSIL V/S M&ML
20. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
ACTIVITY BASED RATIOS
1. Inventory Turnover Ratio
•
•
The Inventory turnover ratio is an indicator of
how fast the inventory is sold.A high ratio is
good from the view point of liquidity and vice
versa.
It is calculated as : Cost of goods sold
•
Mahindra
11.71%
Maruti
23.68%
Average Inventory
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 20
21. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
ACTIVITY BASED RATIOS
2. Debtors Turnover Ratio
•
The Debtors turnover ratio measures how
rapidly receivables are collected. A high ratio
is indicative of shorter time-lag between credit
sales amd cash collection.
•
It is calculated as : Net Credit sales
•
Mahindra
Average Debtors
FINANCIAL STATEMENT ANALYSIS
8.60%
MSIL V/S M&ML
Maruti
36.29%
Slide 21
22. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
ACTIVITY BASED RATIOS
3. Average collection period
•
The average collection period is an indicator
of how fast the money is being received by the
debtors. The lower the value the better the
result.
•
It is calculated as : Total months
•
Debtors Turnover Ratio
FINANCIAL STATEMENT ANALYSIS
Mahindra
1.39 months
MSIL V/S M&ML
Maruti
0.33 months
Slide 22
23. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
ACTIVITY BASED RATIOS
4. Total asset turnover
•
The amount of sales or revenues generated per
dollar of assets. The Asset Turnover ratio is an
indicator of the efficiency with which a
company is deploying its assets
•
It is calculated as : Sales or Revenues
•
•
Mahindra
Total Assets
0.49
Higher the ratio, the better it is, since it
implies the company is generating more
revenues per dollar of assets.
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Maruti
2.21
Slide 23
24. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
ACTIVITY BASED RATIOS
5. Fixed asset turnover
•
The amount of sales or revenues generated per
dollar of fixed assets. The Fixed Asset
Turnover ratio is an indicator of efficiency of
fixed assts being utlilized.
•
It is calculated as : Sales or Revenues
•
•
Mahindra
Total Fixed Assets
1.30
Higher the ratio, the better it is, since it
implies the company is generating more
revenues by proper use of its fixed assets.
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Maruti
2.25
Slide 24
25. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
DU PONT ANALYSIS
25.42
Return On Net Worth(%)
12.87
Return on Asses
615.03
22.87
Return on Assets
15.92
Return On Net Worth(%)
Return On Capital Employed(%)
Return On Capital Employed(%)
238.75
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 25
26. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
CONCLUSION
SHAREHOLDER’S RATIOS
Earnings Per Share
79.19
Earnings Per Share
54.61
Dividend Payout Ratio
Net Profit
11.82
Dividend Payout Ratio
Net Profit
26.57
Inference
1. While Maruti gives a better earnings per share, the Dividend payout ratio to the
shareholder’s is better of Mahindra
FINANCIAL STATEMENT ANALYSIS
MSIL V/S M&ML
Slide 26
28. COMPANY PROFILE
RATIOS COMPARISION
MANAGEMENT
MISSION
VISION
To create a fully collaborative environment
in which suppliers can deliver exactly
what the company needs, when it needs
it, and at a competitive cost
FINANCIAL STATEMENT ANALYSIS
CONCLUSION
To create India's largest automobile and
automobile-related products distribution network
by providing dealers and customers with the
largest choice of unique world-class products
and services.
MSIL V/S M&ML
Slide 28
