The document compares the financial performance of Ambuja Cement Ltd. and Binani Cement Ltd. over the years 2006-2010. It analyzes various financial ratios such as return on net assets, return on equity, return on profit margin, financial leverage, operating profit margin, and quick ratio. The analysis shows that Ambuja Cement Ltd. has generally performed better financially than Binani Cement Ltd. It also concludes that the cement industry is projected to grow by 9-10% and capacity by 50 million tons from 2011-2012.

1. A
PRESENTATION
ON COMPREHENSIVE PROJECT
ON
“COMPARATIVE FINANCIAL PERFORMANCE
OF CEMENT INDUSTRY”
Submitted by
Rupesh Vasava
[Enrollment No.:107020592056]
Jaynand Patalia
[Enrollment No.:107020592058]

2. 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.

3. 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

4. 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

5. COMPARATIVE ANALYSIS
Comparative analysis of the
Cement Industry includes
comparison of various financial
ratios like:
ROI.
Leverage Analysis.
DuPont Analysis.
Ratio Analysis.

6. RETURN ON NET ASSETS
0.8
0.73
0.7
0.6 0.62
0.5 0.48
0.45
0.4 0.38 AMBUJA CEMENT
0.37
0.32 0.34
0.3 BINANI CEMENT
0.26
0.2 0.19
0.1
0
2006 2007 2008 2009 2010
RETURN ON EQUITY
50
45
43.05 42.09 41.76
40
37.95
35
31.74
30
25 24.72 AMBUJA CEMENT
22.81
20 18.83 BINANI CEM ENT
16.87
15.63
15
10
5
0
2006 2007 2008 2009 2010

7. RETURN ON PROFIT MARGIN
60
53.22
50
40
36.49
34.89 36.6 36.43
32.18
30 29.71 AMBUJA CEMENT
28.14
BINANI CEMENT
20 20.7
16.5
10
0
2006 2007 2008 2009 2010
FINANCIAL LEVERAGE
(INCOME STATEMENT)
70
66
60 62 60
59 58
50 50
47
40 40 AMBUJA CEMENT
35
30 32 BINANI CEMENT
20
10
0
2006 2007 2008 2009 2010

8. FINANCIAL LEVERAGE
(BALANCE SHEET)
3.5
3 3.01
2.5 2.62
2.22
2 2.04 1.96 AMBUJA CEMENT
1.5 BINANI CEMENT
1 1.06
0.82 0.82 0.88 0.84
0.5
0
2006 2007 2008 2009 2010

9. OPERATING PROFIT MARGIN
40
35 34.71 36.2 35.38
34.48
30 31.15
27.39 28.85
27.07
25 25.18
20 21.43
AMBUJA CEMENT
15
BINANI CEMENT
10
5
0
2006 2007 2008 2009 2010

11. QUICK RATIO
3
2.5 2.61
2
1.5 AMBUJA CEMENT
1 BINANI CEMENT
0.7 0.64
0.62 0.74 0.75
0.68
0.5 0.49 0.57
0.36
0
2006 2007 2008 2009 2010

14. 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%.

15. 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.

16. THANK YOU