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Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
Maruti vs mahindra
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Maruti vs mahindra

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maruti vs mahindra

maruti vs mahindra

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  • 1. FINANCIAL STATEMENT ANALYSIS MSIL V/S M&ML Slide 1
  • 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
  • 3. COMPANY PROFILE RATIOS COMPARISION MANAGEMENT Profit and Loss Ratios % to Net Sales NET SALES AND PAT FINANCIAL STATEMENT ANALYSIS CONCLUSION MSIL V/S M&ML Slide 3
  • 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
  • 7. COMPANY PROFILE RATIOS COMPARISION MANAGEMENT OPERATING PROFITS FINANCIAL STATEMENT ANALYSIS CONCLUSION PROFITS MSIL V/S M&ML Slide 7
  • 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
  • 9. COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION RATIO ANALYSIS LIQUIDITY RATIOS Quick Ratio Quick Ratio = Current Assets – Inventories Current Liabilities Mahindra Maruti 0.77 FINANCIAL STATEMENT ANALYSIS MSIL V/S M&ML 0.90 Slide 9
  • 10. COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION RATIO ANALYSIS LIQUIDITY RATIOS Debt Equity Ratio • Debt Equity Ratio = Total Liabilities Share holders Equity FINANCIAL STATEMENT ANALYSIS Mahindra Maruti 0.22 MSIL V/S M&ML 0.07 Slide 10
  • 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
  • 27. COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION CORE VALUES VISION Customer Obsession Fast, Flexible & First Mover Innovation & Creativity Networking & Partnership Openness & Learning FINANCIAL STATEMENT ANALYSIS MSIL V/S M&ML Slide 27
  • 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
  • 29. COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION CONCLUSION 1. On an average we can conclude that Maruti Suzuki India Limited is performing better in many fronts than Mahindra & Mahindra FINANCIAL STATEMENT ANALYSIS MSIL V/S M&ML Slide 29
  • 30. THANK YOU FINANCIAL STATEMENT ANALYSIS MSIL V/S M&ML Slide 30

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