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Financial statement analysis(cement and finance sector).

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This presentation contains the Financial Statement Analysis of Ambja cements, Ultra Tech Cements, JM fianancials, Reliance Capital Ltd. …

This presentation contains the Financial Statement Analysis of Ambja cements, Ultra Tech Cements, JM fianancials, Reliance Capital Ltd.
Analysis includes calculation of various financial ratios and their explation.

Published in: Economy & Finance, Business

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  • 1. Financial Statement Analysis Submitted to: Dr. Kumar Bijoy Academic year: 2013-2014 Submitted by: -Pratyush Kumar 75244
  • 2. Sector and Companies Cement Ambuja Cements Ultra Tech Cements Finance Reliance Capital Ltd. JM Financial 2
  • 3. Finance-Investment • A non-banking financial company (NBFC) is a company registered under the Companies Act, 1956 which is primarily engaged in the business activities like loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business. It bars any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. Sundaram Finance is a strong player in the commercial vehicle and car finance segments. Housing finance sector benefited from realty boom since 2002-03. 3
  • 4. Cement • India is the second largest cement producer in the world. However, it is way behind China, where the capacity is more than five times larger. Cement is a low-value and high-volume commodity and is mainly concentrated near limestone deposits available in few States. It has a high rate of excise duty and accounts for 5% of total excise duty collection. During the Tenth Plan, cement production grew at a healthy CAGR of 8.67% while the installed capacity showed modest CAGR of 3.69%. Exports too showed an upward trend. Cement consumption has generally grown at 2% 3% higher than growth of GDP. Keeping the past trends in view and taking into consideration the renewed emphasis on infrastructure, the cement industry can be expected to grow at about 11.5% corresponding to the GDP growth of 9%. 4
  • 5. Ambuja Cements Type Public, (BSE: 500425), (NSE: AMBUJACEM) Industry Cement Founded 1986 Headquarters Mumbai, Maharashtra, India Key people Suresh Neotia, Founder, Chairman Emeritus N. S. Sekhsaria,Co-Founder, Chairman Onne van der Weijde, Managing Director Products Cement Revenue 7637.81 crore(US$1.2 billion)2010 Website www.ambujacement.com 5
  • 6. Ambuja cements volume market share in 2008 is 10% which has seen a dip from 11% in 2007 The four companies--ACC, Ambuja Cement, Grasim and UltraTech-together hold about 39.80% market share. The reason for this dip is Fall in demand Aggressive capacity expansion by competitors Market share 1% Ambuja, ACC, Grasim, Ultra 24% 36% 39% Mid players(Shree, Madras, I ndia) Small players(Home, Orient, Bi nani) 6
  • 7. Current ratio Ambuja Cements 1.8 amt in fixed deposits earlier. Later with deposits having a maturity less than 3 months. 1.6 1.4 1.2 1 Current ratio 0.8 0.6 0.4 0.2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 7
  • 8. Quick ratio Ambuja Cements 1.4 1.2 1 0.8 0.6 Quick ratio 0.4 0.2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 8
  • 9. Total debt to assets ratio Ambuja Cements Debt Includes secured and unsecured loans 0.5 0.45 0.4 0.35 0.3 0.25 Total debt to assets ratio 0.2 0.15 0.1 0.05 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 9
  • 10. working capital turnover ratio Ambuja Cements 20 10 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 -10 -20 working capital turnover ratio -30 -40 -50 Current assets have inc. -60 10
  • 11. proprietary ratio Ambuja Cements 0.8 0.7 0.6 0.5 0.4 proprietary ratio 0.3 0.2 0.1 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 11
  • 12. Debt equity ratio Ambuja Cements 1.2 1 0.8 Debt equity ratio 0.6 0.4 0.2 0 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 12
  • 13. fixed asset turnover ratio Ambuja Cements 1.6 1.4 1.2 1 0.8 0.6 fixed asset turnover ratio 0.4 0.2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 13
  • 14. operating ratio Ambuja Cements 0.4 0.35 0.3 0.25 0.2 operating ratio 0.15 0.1 0.05 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 14
  • 15. Net profit ratio Ambuja Cements 0.35 0.3 0.25 0.2 Net profit ratio 0.15 0.1 0.05 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 15
  • 16. Gross profit ratio Ambuja Cements 0.6 0.5 0.4 0.3 Gross profit ratio 0.2 0.1 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 16
  • 17. debtors turnover ratio Ambuja Cements 100 90 80 70 60 50 debtors turnover ratio 40 30 20 10 0 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 17
  • 18. stock turnover ratio Ambuja Cements 12 10 8 6 stock turnover ratio 4 2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 18
  • 19. PE Ratio 30 25 20 PE Ratio 15 10 5 0 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 19
  • 20. BV to MV Ratio 3 2.5 2 1.5 BV to MV Ratio 1 0.5 0 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 20
  • 21. Ultra Tech Cements 21
  • 22. Current Ratio 0.6 0.5 0.4 0.3 0.2 0.1 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 Quick Ratio 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2013 2012 2011 2010 2009 2008 22
  • 23. From Annual Report 2011 23
  • 24. Proprietory Ratio 1.2 1 0.8 0.6 0.4 0.2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2006 2005 2004 2003 Working Capital Turnover ratio 0 -1 2013 2012 2011 2010 2009 2008 2007 -2 -3 -4 -5 -6 -7 -8 -9 24
  • 25. Fixed Assets Turnover Ratio 2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Operating Ratio 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 25
  • 26. Net Profit Ratio 0.2 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 Gross Profit Ratio 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2013 2012 2011 2010 2009 2008 26
  • 27. JM Financial 27
  • 28. Current ratio JM Financials amt with fixed deposits put into deposit a/c (less than 3 yrs 1.4 1.2 1 Current liabilities increased(other liabilities). 0.8 Current ratio 0.6 Similar trend in CL, with inc. in unclaimed dividend. 0.4 0.2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 28
  • 29. Quick ratio JM Financials 1.4 1.2 1 0.8 Quick ratio 0.6 0.4 0.2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 29
  • 30. Total debt to assets ratio JM Financials 0.00018 0.00016 Company took some secured and unsecured loans. 0.00014 0.00012 0.00010 Total debt to assets ratio 0.00008 0.00006 0.00004 0.00002 0.00000 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 30
  • 31. proprietary ratio JM Financials 0.96 0.94 0.92 0.9 proprietary ratio 0.88 0.86 0.84 0.82 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 31
  • 32. working capital turnover ratio JM Financials 5 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 -5 -10 -15 working capital turnover ratio -20 -25 32
  • 33. fixed asset turnover ratio JM Financials 0.45 0.4 0.35 0.3 fixed asset turnover ratio 0.25 0.2 0.15 0.1 0.05 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 33
  • 34. Operating ratio JM Financials 1.2 1 0.8 0.6 0.4 operating ratio 0.2 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 -0.2 -0.4 34
  • 35. Net profit ratio JM Financials 45 40 35 30 25 Net profit ratio 20 15 10 5 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 35
  • 36. Gross profit ratio JM Financials 5 4.5 4 3.5 3 2.5 Gross profit ratio 2 1.5 1 0.5 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 36
  • 37. PE Ratio 450 400 350 300 250 200 PE Ratio 150 100 50 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 37
  • 38. BV to MV Ratio 25 20 15 10 BV to MV Ratio 5 0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 38
  • 39. THANK YOU 48