A PRESENTATION ON COMPREHENSIVE PROJECT ON“COMPARATIVE FINANCIAL PERFORMANCE OF CEMENT INDUSTRY” Submitted by Rupesh Vasava [Enrollment No.:107020592056] Jaynand Patalia [Enrollment No.:107020592058]
OVERVIEW OF CEMENT INDUSTRY Cement is one of the core industries which plays a vital role in the growth and expansion of a nation. The Indian cement industry is extremely energy intensive and is the third largest user of coal in the country. The Indian cement industry is the second largest producer of quality cement. The cement industry is also one of the major contributors to the exchequer by way of indirect taxes.
INFORMATION OF AMBUJA CEMENT LTD. Type: Public Limited. Industry: Cement. Founded: 1986. Headquarters: Mumbai, India. Key people: Suresh Neotia, Founder and Chairman. N.S. Sekhsaria, Co-Founder. Onne Var Der Weijde, Managing Director. Revenue: 7637.81 crores. Website: www.ambujacement.com
INFORMATION OF BINANI CEMENT LTD. Type: Public Limited. Industry: cement. Founded: 1986. Headquarters: Mumbai, India. Key people: Vinod Juneja, Managing Director. Revenue: 1872.16 crores. Website: www.binaniindustries.com
COMPARATIVE ANALYSISComparative analysis of theCement Industry includescomparison of various financialratios like:ROI.Leverage Analysis.DuPont Analysis.Ratio Analysis.
RETURN ON NET ASSETS0.8 0.730.70.6 0.620.5 0.48 0.450.4 0.38 AMBUJA CEMENT 0.37 0.32 0.340.3 BINANI CEMENT 0.260.2 0.190.1 0 2006 2007 2008 2009 2010 RETURN ON EQUITY5045 43.05 42.09 41.7640 37.9535 31.743025 24.72 AMBUJA CEMENT 22.8120 18.83 BINANI CEM ENT 16.87 15.631510 5 0 2006 2007 2008 2009 2010
CONCLUSIONS Ambuja Cement Ltd is performing well than Binani Cement Ltd. The efficiency of the companies is improving after the recession of 2008. The industry experts project the sector to grow by 9 to 10% for the current financial year. The cement industry is expected to grow steadily in 2011-2012 and increase capacity by another 50 million tons. The cement industry has maintained volume growth of around 10% YoY. The cement industry growth in the year 2010 was 14.6%.
FINDINGS The Ambuja cement uses very less debt funds for their investment. The profitability of the Binani cement has increased as compared to the Ambuja cement. Binani cement uses the basis of cash sales. The inventory maintenance of Binani cement is not good.