The document analyzes and compares various financial ratios of three Indian commercial vehicle companies - Force Motors, Swaraj Mazda, and Eicher Motors. It calculates ratios related to profitability, leverage, liquidity, efficiency, and dividend payout. Of the three, Eicher generally demonstrated the best performance across most ratios, with high profit margins, returns on assets/equity, and inventory/asset turnover. Force Motors showed strong improvement in some ratios from the previous year. Overall, the analysis provides insights into the financial health and operating efficiency of these commercial vehicle companies.
This document analyzes and compares the financial ratios of three Indian commercial vehicle companies: Force Motors, Swaraj Mazda, and Eicher Motors. It provides an overview of each company and examines their profitability, leverage, liquidity, and market performance based on ratios like profit margin, return on capital employed, return on equity, return on total assets, debt-to-equity ratio, and current ratio. The analysis finds that Eicher has the best profitability ratios overall, while Swaraj Mazda uses less debt leverage than the other companies. Force Motors needs to utilize its resources more efficiently to improve its return on assets.
The document analyzes various profitability and liquidity ratios for automobile companies in India from 2009-2011.
For profitability ratios, Force Motors had the highest gross profit margin each year, indicating efficient production. Eicher Motors and Volkswagen had the highest net profit margins in some years. Force Motors and Hindustan Motors had negative earnings per share and return on equity in some years due to economic recession.
For liquidity ratios, current and quick ratios decreased for some companies due to higher inventory levels. Debtor turnover was highest for Hindustan Motors, while creditor turnover was lowest for Force Motors. Inventory turnover was highest for Volkswagen in 2011. Asset turnover was lowest for Force Motors each year
The document analyzes the capital structure of major automobile companies in India over a five year period from 2007-2008 to 2011-2012. It examines the leverage, cost of capital, and financial ratios of companies like Maruti Suzuki, Tata Motors, Bajaj Auto, Mahindra & Mahindra, and Hero MotoCorp. The analysis finds that Tata Motors has the highest financial leverage and debt ratios on average, while Maruti Suzuki has the lowest. Bajaj Auto has the highest interest coverage and fixed asset turnover ratios, indicating efficient use of assets. The return on net worth is highest for Bajaj Auto and Hero MotoCorp, showing a satisfactory relationship between profits and funds employed.
This is one complete analysis of Financial Statements of Tata Motors. It includes Ratio analysis, Trend analysis, common size statement as well as comparative income statement and cash flow statement.
This document provides a summary of a research analysis project presentation on Atlas Honda Limited Pakistan (AHL) conducted by Hammad Ahmed Qureshi. The presentation covers: an overview of AHL's business and financial performance from 2011-2009; the global and local motorcycle industries; AHL as a market leader; data sources; ratio, cash flow, and cross-sectional analyses of AHL; the company's future; and conclusions and recommendations. Key points include AHL having a 35% market share in Pakistan as the largest motorcycle manufacturer, ratio analyses assessing profitability, liquidity, management efficiency, and gearing, and a comparison of AHL's financial performance to competitor Dhoom Yamaha Limited Motorcycles. Eth
This document analyzes and compares key financial ratios and cash flows of Reliance Capital and India Bulls for the years 2005-2007. It finds that while both companies have grown profits significantly over this period, Reliance Capital relies more heavily on investment income, has higher leverage, and a larger capital base. India Bulls invests a larger portion of profits back into assets. Both companies have increased borrowing substantially to fund expansion. Overall, Reliance Capital's profitability is more dependent on one-time investment gains while India Bulls maintains steadier margins.
DuPont is the method of measuring the performance which was started by DuPont Corporation in 1920’s. With this method, assets are measured at their gross book value rather than at net book value in order to produce a higher return on equity (ROE). It is also known as "DuPont identity".
Tata Motors and Maruti Suzuki are two major automobile companies in India. Tata Motors has a higher debt to equity ratio, indicating it is more reliant on debt financing. Maruti Suzuki has significantly higher reserves and surplus compared to Tata Motors, and saw a 23% increase in reserves year-over-year compared to 14% for Tata. While both companies have experienced declines in share prices recently, Tata Motors may be a better investment due to underperformance from declining sales and profits in recent years from investments and acquisitions.
This document analyzes and compares the financial ratios of three Indian commercial vehicle companies: Force Motors, Swaraj Mazda, and Eicher Motors. It provides an overview of each company and examines their profitability, leverage, liquidity, and market performance based on ratios like profit margin, return on capital employed, return on equity, return on total assets, debt-to-equity ratio, and current ratio. The analysis finds that Eicher has the best profitability ratios overall, while Swaraj Mazda uses less debt leverage than the other companies. Force Motors needs to utilize its resources more efficiently to improve its return on assets.
The document analyzes various profitability and liquidity ratios for automobile companies in India from 2009-2011.
For profitability ratios, Force Motors had the highest gross profit margin each year, indicating efficient production. Eicher Motors and Volkswagen had the highest net profit margins in some years. Force Motors and Hindustan Motors had negative earnings per share and return on equity in some years due to economic recession.
For liquidity ratios, current and quick ratios decreased for some companies due to higher inventory levels. Debtor turnover was highest for Hindustan Motors, while creditor turnover was lowest for Force Motors. Inventory turnover was highest for Volkswagen in 2011. Asset turnover was lowest for Force Motors each year
The document analyzes the capital structure of major automobile companies in India over a five year period from 2007-2008 to 2011-2012. It examines the leverage, cost of capital, and financial ratios of companies like Maruti Suzuki, Tata Motors, Bajaj Auto, Mahindra & Mahindra, and Hero MotoCorp. The analysis finds that Tata Motors has the highest financial leverage and debt ratios on average, while Maruti Suzuki has the lowest. Bajaj Auto has the highest interest coverage and fixed asset turnover ratios, indicating efficient use of assets. The return on net worth is highest for Bajaj Auto and Hero MotoCorp, showing a satisfactory relationship between profits and funds employed.
This is one complete analysis of Financial Statements of Tata Motors. It includes Ratio analysis, Trend analysis, common size statement as well as comparative income statement and cash flow statement.
This document provides a summary of a research analysis project presentation on Atlas Honda Limited Pakistan (AHL) conducted by Hammad Ahmed Qureshi. The presentation covers: an overview of AHL's business and financial performance from 2011-2009; the global and local motorcycle industries; AHL as a market leader; data sources; ratio, cash flow, and cross-sectional analyses of AHL; the company's future; and conclusions and recommendations. Key points include AHL having a 35% market share in Pakistan as the largest motorcycle manufacturer, ratio analyses assessing profitability, liquidity, management efficiency, and gearing, and a comparison of AHL's financial performance to competitor Dhoom Yamaha Limited Motorcycles. Eth
This document analyzes and compares key financial ratios and cash flows of Reliance Capital and India Bulls for the years 2005-2007. It finds that while both companies have grown profits significantly over this period, Reliance Capital relies more heavily on investment income, has higher leverage, and a larger capital base. India Bulls invests a larger portion of profits back into assets. Both companies have increased borrowing substantially to fund expansion. Overall, Reliance Capital's profitability is more dependent on one-time investment gains while India Bulls maintains steadier margins.
DuPont is the method of measuring the performance which was started by DuPont Corporation in 1920’s. With this method, assets are measured at their gross book value rather than at net book value in order to produce a higher return on equity (ROE). It is also known as "DuPont identity".
Tata Motors and Maruti Suzuki are two major automobile companies in India. Tata Motors has a higher debt to equity ratio, indicating it is more reliant on debt financing. Maruti Suzuki has significantly higher reserves and surplus compared to Tata Motors, and saw a 23% increase in reserves year-over-year compared to 14% for Tata. While both companies have experienced declines in share prices recently, Tata Motors may be a better investment due to underperformance from declining sales and profits in recent years from investments and acquisitions.
Capital Structure & Financial Leverage Analysis of Software Industryanujsurana
The document analyzes the capital structure and financial leverage of software companies compared to other industries. It finds that software companies typically do not use debt financing and instead rely on internal cash flows and cash balances. This is because the business risks facing software companies are high due to volatility in intangible assets. Maintaining high liquidity allows software firms to adapt quickly and reduces their overall risk without taking on additional financial risk from debt.
Financial Statement Analysis of Toyota Indus MotorsAyesha Majid
Toyota Indus Motor Company is a public automotive company based in Karachi, Pakistan. It is a joint venture between Toyota Motor Corporation, Toyota Tsusho Corporation, and House of Habib. The document provides an overview of the company's profile, mission, vision, strengths, weaknesses, opportunities, threats, industry analysis, and ratio analysis including liquidity, profitability, leverage, asset utilization, and market value ratios for the years 2016-2012.
Financial statement analysis involves establishing relationships between balance sheet and income statement items to identify a firm's financial strengths and weaknesses. This allows for more effective decision making by understanding the company's financial health. The document analyzes financial ratios over the last 5 years for Tata Teleservices Ltd to assess its profitability, liquidity, solvency, and overall financial position. It finds that while revenue is growing, current ratios are low and inconsistent, indicating weak liquidity. Gross profit ratios also fluctuate, showing uneven profit performance.
Financial ratio analysis for honda motor companyHITESH BHARTI
Honda Motor Company's financial ratios are analyzed over a five year period from 2007-2011. The document analyzes Honda's liquidity, profitability, turnover efficiency, leverage, and cash flow ratios and compares them to industry averages. Key findings are that Honda's current ratio, liquid ratio, and debt ratios are lower than industry averages, indicating less risk, while profitability ratios like net margin and return on equity are consistently higher. Turnover ratios declined over time, suggesting room for improvement in inventory management and asset utilization.
Capital Structure analysis of Tata MotorsVishrut Shah
The document analyzes the capital structure of Tata Motors over a 10-year period from 2004-2013. It finds that Tata Motors used a combination of equity and debt financing, with debt levels generally higher than industry standards. Higher debt provided tax benefits but also increased financial risk as seen by declining interest coverage ratios over time. While debt enhanced earnings in some years, returns on assets were typically lower than cost of debt, indicating capital structure did not consistently benefit shareholders through trading on equity. Overall, the document finds that Tata Motors' capital structure relied heavily on debt financing, which increased risk more than benefitted the company's financial performance.
This document provides an overview of ratio analysis for Atlas Honda. It includes summaries of various financial ratios categorized as liquidity, activity, debt, profitability, and market ratios. Several ratios for Atlas Honda from 2008-2012 are presented, including current ratio, quick ratio, inventory turnover, average collection period, debt ratio, gross profit margin, return on assets, and price to earnings ratio. The document also briefly introduces the DuPont system of analysis for further assessing a company's financial condition.
A Project Report On Financial Analysis Of Eicher Motors LimitedBhavik Parmar
This document provides an introduction and overview of Eicher Motors Limited, an India-based company engaged in automobile products and commercial vehicles. Some key details include:
- Eicher Motors manufactures and sells commercial vehicles, motorcycles, and automotive components. It has a presence in over 40 countries.
- The company was incorporated in 1982 and introduced its first truck, the Canter, in 1986 in collaboration with Mitsubishi Motors.
- It has over 5000 employees across 10 manufacturing facilities and 24 marketing offices in India. The company works with around 950 vendors and has a network of around 800 dealers.
Ambuja Cements Ltd. is acquiring a majority stake in ACC Ltd. from Holcim. Specifically, Ambuja will acquire Holcim's 50.01% equity stake in ACC for INR 11,727 crore in a two-step transaction. This will provide scale, synergy opportunities, and a solid pan-India footprint. Key benefits for minority shareholders include acquiring ACC at an attractive price, a favorable deal structure, and projected cost synergies of INR 900 crore that can improve earnings and dividends. Ambuja also has a strong financial position to support continued investments.
Teamlease Services Ltd is coming up with an IPO to raise approximately Rs. 3,913-4,237 million. The company provides human resource services including staffing solutions. Majority of the IPO proceeds will be used to fund working capital needs. At the issue price, the stock is valued at a high P/E ratio compared to peers. Due to high valuation and risks around seasonal business, entry barriers and regulations, the note recommends avoiding the issue.
The document analyzes the profitability and financial stability of YTL Corporation Berhad from 2012-2013 using various financial ratios. It finds that while the company's net profit margin and ability to pay interest increased slightly, its return on equity and ability to control expenses decreased. Additionally, the company has high total debt levels and inefficient inventory and debt collection times. Overall, the document recommends against investing in YTL Corporation Berhad due to its lack of good profitability despite strong financial stability and low share price.
This document analyzes the financial performance of a company over 5 years from 2009-2013 using various ratios and analyses. It summarizes key financial metrics like net income, sales, assets, and liabilities. Trend analyses show sales, costs, profits, and other figures generally increased year over year, with some fluctuations. The document provides a comprehensive review of the company's financial standing and growth over this period.
1. The document evaluates the financial performance of Air Asia Berhad over two years (2010-2009) using various financial ratios.
2. The ratios show that Air Asia's liquidity, as measured by current and quick ratios, improved from 2009 to 2010 but remained lower than industry averages. Average collection period also decreased.
3. Operating efficiency ratios like return on investment and operating profit margin were positive in both years but declined slightly in 2010, while asset turnover remained below industry average.
PIA is Pakistan's national airline carrier. It was established in 1955 and operates flights out of major airports in Karachi, Lahore, and Islamabad. PIA's vision is to be a world-class airline that exceeds customer expectations through safety, innovation, and quality service. The document analyzes PIA's financial statements from 2011-2012 using various ratios to evaluate its short-term liquidity, long-term credit risk, profitability, and market performance. The analysis finds that PIA has weak liquidity and profitability, high debt, and losses over this period. While some ratios improved slightly from 2011-2012, PIA's financial position remains troubled.
Edelweiss Financial Services: Q4FY15 operating profit up 77.56% y/y; BuyIndiaNotes.com
Edelweiss Financial Services Ltd reported a 73.53% rise in net sales to Rs. 12092.50 million for the fourth quarter of fiscal year 2015 compared to the same period last year. Net profit increased 45.61% to Rs. 883.70 million. Operating profit grew 77.56% to Rs. 7415.30 million. The company recommended a final dividend of Rs. 0.20 per share. Estimates show net sales and profit are expected to grow at a compound annual rate of 26% and 28% from 2014 to 2017. The document provides the company's financial highlights and performance updates for the fourth quarter of fiscal year 2015.
This document summarizes a study on capital returns in the automobile and banking sectors in India. It introduces concepts of capital returns, average returns, and index investing. It then provides an overview of the automobile sector in India, describing major companies like Ashok Leyland, Eicher Motors, Hindustan Motors, Tata Motors, and Isuzu Motors. It also outlines the banking sector in India, highlighting major banks like Bank of Baroda, Punjab National Bank, Syndicate Bank, Union Bank of India, and Bank of Maharashtra. The study aims to analyze and compare the performance, growth trends, and relationships with market indexes of selected automobile and banking companies.
Ambika Cotton Mills Limited - Equity Research ReportDr. Vijay Malik
Detailed analysis of Ambika Cotton Mills Limited as a potential investment opportunity.
A consistently growing company with decent profitability, run by competent shareholders-friendly management, which is using the cash generated from operations to reduce debt and reward its shareholders. On top of it, the stock is available cheap with good margin of safety.
The document discusses the Indian auto industry, including its key players such as Tata Motors, Mahindra & Mahindra, and suppliers. It analyzes factors driving the industry's growth like rising incomes, government policies, and increased consumer demand. The industry is focused on automotive, farm equipment, IT, and infrastructure development sectors. The document also includes financial analysis and ratios for Tata Motors and Mahindra & Mahindra from 2003 to 2007.
Infosys is an Indian multinational technology company that provides business consulting and IT services. It has pursued an expansion strategy in recent years through acquisitions and setting up special economic zones with tax benefits. Infosys has zero debt and is wholly equity financed, with its weighted average cost of capital consisting only of the cost of equity, which is estimated to be 13.52% based on its beta. Analysis of Infosys's financials over the last 5 years shows increasing dividends paid out as a percentage of profits. Dividend payouts generally cause short-term increases in share price before the ex-dividend date, when the price adjusts downward by the dividend amount.
Infosys was started in 1981 by seven people with $250. It has pioneered the global delivery model and has a global footprint with 63 offices and over 114,000 employees. The company's vision is to be a globally respected corporation providing best-of-breed business solutions using technology delivered by best-in-class people, while its mission is to achieve its objectives in a fair and honest manner towards clients, employees, and society.
Infosys was founded in 1981 by Narayan Murthy and six others. It initially started with a capital of $250 and is now a $8.39 billion global consulting and IT services company with over 161,000 employees. Vishal Sikka is the first non-founder CEO, having replaced SD Shibulal in 2014. Infosys focuses on IT services, consulting, solutions, outsourcing and integration. It has a presence on major stock exchanges like BSE, NSE and NYSE.
The internship was divided into four parts
4 weeks: Site execution with emphasis on HSE and QA/QC.
2 weeks: Updating the status of Tower in Tracking Tool and creating a MSP program on the remaining activities left in the building.
1 week : Contract analysis
1 week : Marketing concepts used and preparation of case study on company.
This document provides a summary of the Volvo Eicher collaboration joint venture. It begins with an overview stating that VE Commercial Vehicles Ltd. is a 50:50 joint venture between Volvo Group and Eicher Motors formed in July 2008. It is a leading commercial vehicle manufacturer in India. The second sentence provides background that Eicher Trucks and Buses has been operating in India for 25 years. The final sentence summarizes that the joint venture will leverage Volvo's technology and quality and Eicher's understanding of the Indian commercial vehicle market.
Capital Structure & Financial Leverage Analysis of Software Industryanujsurana
The document analyzes the capital structure and financial leverage of software companies compared to other industries. It finds that software companies typically do not use debt financing and instead rely on internal cash flows and cash balances. This is because the business risks facing software companies are high due to volatility in intangible assets. Maintaining high liquidity allows software firms to adapt quickly and reduces their overall risk without taking on additional financial risk from debt.
Financial Statement Analysis of Toyota Indus MotorsAyesha Majid
Toyota Indus Motor Company is a public automotive company based in Karachi, Pakistan. It is a joint venture between Toyota Motor Corporation, Toyota Tsusho Corporation, and House of Habib. The document provides an overview of the company's profile, mission, vision, strengths, weaknesses, opportunities, threats, industry analysis, and ratio analysis including liquidity, profitability, leverage, asset utilization, and market value ratios for the years 2016-2012.
Financial statement analysis involves establishing relationships between balance sheet and income statement items to identify a firm's financial strengths and weaknesses. This allows for more effective decision making by understanding the company's financial health. The document analyzes financial ratios over the last 5 years for Tata Teleservices Ltd to assess its profitability, liquidity, solvency, and overall financial position. It finds that while revenue is growing, current ratios are low and inconsistent, indicating weak liquidity. Gross profit ratios also fluctuate, showing uneven profit performance.
Financial ratio analysis for honda motor companyHITESH BHARTI
Honda Motor Company's financial ratios are analyzed over a five year period from 2007-2011. The document analyzes Honda's liquidity, profitability, turnover efficiency, leverage, and cash flow ratios and compares them to industry averages. Key findings are that Honda's current ratio, liquid ratio, and debt ratios are lower than industry averages, indicating less risk, while profitability ratios like net margin and return on equity are consistently higher. Turnover ratios declined over time, suggesting room for improvement in inventory management and asset utilization.
Capital Structure analysis of Tata MotorsVishrut Shah
The document analyzes the capital structure of Tata Motors over a 10-year period from 2004-2013. It finds that Tata Motors used a combination of equity and debt financing, with debt levels generally higher than industry standards. Higher debt provided tax benefits but also increased financial risk as seen by declining interest coverage ratios over time. While debt enhanced earnings in some years, returns on assets were typically lower than cost of debt, indicating capital structure did not consistently benefit shareholders through trading on equity. Overall, the document finds that Tata Motors' capital structure relied heavily on debt financing, which increased risk more than benefitted the company's financial performance.
This document provides an overview of ratio analysis for Atlas Honda. It includes summaries of various financial ratios categorized as liquidity, activity, debt, profitability, and market ratios. Several ratios for Atlas Honda from 2008-2012 are presented, including current ratio, quick ratio, inventory turnover, average collection period, debt ratio, gross profit margin, return on assets, and price to earnings ratio. The document also briefly introduces the DuPont system of analysis for further assessing a company's financial condition.
A Project Report On Financial Analysis Of Eicher Motors LimitedBhavik Parmar
This document provides an introduction and overview of Eicher Motors Limited, an India-based company engaged in automobile products and commercial vehicles. Some key details include:
- Eicher Motors manufactures and sells commercial vehicles, motorcycles, and automotive components. It has a presence in over 40 countries.
- The company was incorporated in 1982 and introduced its first truck, the Canter, in 1986 in collaboration with Mitsubishi Motors.
- It has over 5000 employees across 10 manufacturing facilities and 24 marketing offices in India. The company works with around 950 vendors and has a network of around 800 dealers.
Ambuja Cements Ltd. is acquiring a majority stake in ACC Ltd. from Holcim. Specifically, Ambuja will acquire Holcim's 50.01% equity stake in ACC for INR 11,727 crore in a two-step transaction. This will provide scale, synergy opportunities, and a solid pan-India footprint. Key benefits for minority shareholders include acquiring ACC at an attractive price, a favorable deal structure, and projected cost synergies of INR 900 crore that can improve earnings and dividends. Ambuja also has a strong financial position to support continued investments.
Teamlease Services Ltd is coming up with an IPO to raise approximately Rs. 3,913-4,237 million. The company provides human resource services including staffing solutions. Majority of the IPO proceeds will be used to fund working capital needs. At the issue price, the stock is valued at a high P/E ratio compared to peers. Due to high valuation and risks around seasonal business, entry barriers and regulations, the note recommends avoiding the issue.
The document analyzes the profitability and financial stability of YTL Corporation Berhad from 2012-2013 using various financial ratios. It finds that while the company's net profit margin and ability to pay interest increased slightly, its return on equity and ability to control expenses decreased. Additionally, the company has high total debt levels and inefficient inventory and debt collection times. Overall, the document recommends against investing in YTL Corporation Berhad due to its lack of good profitability despite strong financial stability and low share price.
This document analyzes the financial performance of a company over 5 years from 2009-2013 using various ratios and analyses. It summarizes key financial metrics like net income, sales, assets, and liabilities. Trend analyses show sales, costs, profits, and other figures generally increased year over year, with some fluctuations. The document provides a comprehensive review of the company's financial standing and growth over this period.
1. The document evaluates the financial performance of Air Asia Berhad over two years (2010-2009) using various financial ratios.
2. The ratios show that Air Asia's liquidity, as measured by current and quick ratios, improved from 2009 to 2010 but remained lower than industry averages. Average collection period also decreased.
3. Operating efficiency ratios like return on investment and operating profit margin were positive in both years but declined slightly in 2010, while asset turnover remained below industry average.
PIA is Pakistan's national airline carrier. It was established in 1955 and operates flights out of major airports in Karachi, Lahore, and Islamabad. PIA's vision is to be a world-class airline that exceeds customer expectations through safety, innovation, and quality service. The document analyzes PIA's financial statements from 2011-2012 using various ratios to evaluate its short-term liquidity, long-term credit risk, profitability, and market performance. The analysis finds that PIA has weak liquidity and profitability, high debt, and losses over this period. While some ratios improved slightly from 2011-2012, PIA's financial position remains troubled.
Edelweiss Financial Services: Q4FY15 operating profit up 77.56% y/y; BuyIndiaNotes.com
Edelweiss Financial Services Ltd reported a 73.53% rise in net sales to Rs. 12092.50 million for the fourth quarter of fiscal year 2015 compared to the same period last year. Net profit increased 45.61% to Rs. 883.70 million. Operating profit grew 77.56% to Rs. 7415.30 million. The company recommended a final dividend of Rs. 0.20 per share. Estimates show net sales and profit are expected to grow at a compound annual rate of 26% and 28% from 2014 to 2017. The document provides the company's financial highlights and performance updates for the fourth quarter of fiscal year 2015.
This document summarizes a study on capital returns in the automobile and banking sectors in India. It introduces concepts of capital returns, average returns, and index investing. It then provides an overview of the automobile sector in India, describing major companies like Ashok Leyland, Eicher Motors, Hindustan Motors, Tata Motors, and Isuzu Motors. It also outlines the banking sector in India, highlighting major banks like Bank of Baroda, Punjab National Bank, Syndicate Bank, Union Bank of India, and Bank of Maharashtra. The study aims to analyze and compare the performance, growth trends, and relationships with market indexes of selected automobile and banking companies.
Ambika Cotton Mills Limited - Equity Research ReportDr. Vijay Malik
Detailed analysis of Ambika Cotton Mills Limited as a potential investment opportunity.
A consistently growing company with decent profitability, run by competent shareholders-friendly management, which is using the cash generated from operations to reduce debt and reward its shareholders. On top of it, the stock is available cheap with good margin of safety.
The document discusses the Indian auto industry, including its key players such as Tata Motors, Mahindra & Mahindra, and suppliers. It analyzes factors driving the industry's growth like rising incomes, government policies, and increased consumer demand. The industry is focused on automotive, farm equipment, IT, and infrastructure development sectors. The document also includes financial analysis and ratios for Tata Motors and Mahindra & Mahindra from 2003 to 2007.
Infosys is an Indian multinational technology company that provides business consulting and IT services. It has pursued an expansion strategy in recent years through acquisitions and setting up special economic zones with tax benefits. Infosys has zero debt and is wholly equity financed, with its weighted average cost of capital consisting only of the cost of equity, which is estimated to be 13.52% based on its beta. Analysis of Infosys's financials over the last 5 years shows increasing dividends paid out as a percentage of profits. Dividend payouts generally cause short-term increases in share price before the ex-dividend date, when the price adjusts downward by the dividend amount.
Infosys was started in 1981 by seven people with $250. It has pioneered the global delivery model and has a global footprint with 63 offices and over 114,000 employees. The company's vision is to be a globally respected corporation providing best-of-breed business solutions using technology delivered by best-in-class people, while its mission is to achieve its objectives in a fair and honest manner towards clients, employees, and society.
Infosys was founded in 1981 by Narayan Murthy and six others. It initially started with a capital of $250 and is now a $8.39 billion global consulting and IT services company with over 161,000 employees. Vishal Sikka is the first non-founder CEO, having replaced SD Shibulal in 2014. Infosys focuses on IT services, consulting, solutions, outsourcing and integration. It has a presence on major stock exchanges like BSE, NSE and NYSE.
The internship was divided into four parts
4 weeks: Site execution with emphasis on HSE and QA/QC.
2 weeks: Updating the status of Tower in Tracking Tool and creating a MSP program on the remaining activities left in the building.
1 week : Contract analysis
1 week : Marketing concepts used and preparation of case study on company.
This document provides a summary of the Volvo Eicher collaboration joint venture. It begins with an overview stating that VE Commercial Vehicles Ltd. is a 50:50 joint venture between Volvo Group and Eicher Motors formed in July 2008. It is a leading commercial vehicle manufacturer in India. The second sentence provides background that Eicher Trucks and Buses has been operating in India for 25 years. The final sentence summarizes that the joint venture will leverage Volvo's technology and quality and Eicher's understanding of the Indian commercial vehicle market.
The document is a summer training report submitted by Muddassar Taha from the Department of Civil Engineering at Zakir Hussain College of Engineering and Technology, AMU, Aligarh. It details his summer training completed at Jaypee Greens in Greater Noida under the supervision of Bipin Chand Ji, Assistant General Manager. The report includes an acknowledgement section thanking those involved, an introduction to Jaypee Group and Jaypee Greens, and sections on construction workflows, Kingston Boulevard construction including foundations and sequencing, and details on batching plants, concrete tests, and brickwork observed during the training.
The internship was divided into four parts
4 weeks: Site execution with emphasis on HSE and QA/QC.
2 weeks: Updating the status of Tower in Tracking Tool and creating a MSP program on the remaining activities left in the building.
1 week : Contract analysis
1 week : Marketing concepts used and preparation of case study on company.
The document is a project report submitted by Arpit Jain for his B.Tech in Mechanical Engineering. It discusses his internship project at Eicher Engines in Alwar, India. Eicher Engines is a subsidiary of TAFE Motors and Tractors Limited, which is part of the Amalgamations Group. The report provides an introduction to the company, describes its product range including tractor and stationary engines. It also includes process flow charts, department descriptions and an overview of the quality assurance system at Eicher Engines. The main focus of the project was inspection of the material composition of a Valtra engine component.
Supply Chain Management of Jaypee Cementjigyasa soni
This document provides an overview of the supply chain management processes of Jaypee Cement. It begins with background on Jaypee Cement, including its products and facilities. It then discusses Jaypee Cement's supply chain operations, including procurement, manufacturing, distribution, and inventory management. The procurement and manufacturing process involves mining limestone and coal, crushing and stockpiling the raw materials, and grinding them for cement production. Jaypee Cement has its own mines and sources coal through government linkages and the open market to power its plants. The document outlines Jaypee Cement's distribution network and brand portfolio before concluding.
Summer Training Report on Jaypee Greens Wish Town Sector 128, NoidaTarun Parashar
This document provides an overview of Jaypee Greens Wish Town project in Noida Sector 128. It discusses Jaiprakash Associates Ltd, the parent company of Jaypee Group, outlining its business interests and milestones. The document then focuses on specific aspects of the Wish Town project, including fire safety, maintenance, foundations, walls, testing procedures and specifications for the Kosmos Towers building.
Con project on eicher motors by vinay khatri.doc main mainVinay Jeengar
This document provides an overview of Eicher Motors Limited, an India-based company engaged in commercial vehicles, motorcycles, and components. It discusses Eicher's subsidiaries, operating segments, plants and facilities, products, market share, advantages like technological expertise, extensive network, customized applications, and efficient cost of ownership. The document also profiles Eicher commercial vehicles and their diversification in various fields like tractors, motorcycles, gears, management consultancy, and more.
This document provides an executive summary and introduction for a marketing strategy project for Jaypee Cement aimed at increasing market share. The summary discusses analyzing the cement industry and Jaypee Cement's competitors to identify opportunities. It also discusses understanding customers and segmentation to develop tactics. The objectives are to understand marketing processes, analyze the industry and company finances, and identify strengths/weaknesses and opportunities/threats to create a strategy.
The document provides information about Jaypee Cement's supply chain management processes. It discusses [1] Jaypee Cement's products and brands, [2] an overview of its procurement and manufacturing process from mining limestone to cement packaging, and [3] details of its distribution network across India. The supply chain involves procuring raw materials, manufacturing cement through pyroprocessing, packaging and distributing the finished product to customers via a network of 156 distribution points across the country using both road and rail transportation.
1. The document is a summer internship project report submitted by Megha Sanghavi to the S.R. Luthra Institute of Management in partial fulfillment of an MBA degree.
2. The report analyzes employee satisfaction at UltraTech Cement, part of the Aditya Birla Group, where Megha completed her summer internship.
3. Various statistical tools like SPSS, MS Excel, and MS Word were used to analyze data collected through a questionnaire to interpret employee satisfaction levels at UltraTech Cement.
This document provides a presentation on Atlas Honda Limited Pakistan (AHL) analyzing its business and financial performance from 2011-2009. The objectives are to overview AHL's performance, the global and local motorcycle industry, analyze AHL's ratios and cash flows, discuss ethical matters and cross-sectional analysis, and provide a business analysis and future outlook. Key points analyzed include AHL's market leadership, products, financial ratios, cash flows, SWOT analysis, and recommendations to address weaknesses like expanding its product base and reducing costs.
Rajesh conducted a financial analysis of Amtek Auto to evaluate the automotive manufacturing company's financial health and risk profile. Rajesh analyzed Amtek Auto's balance sheets, income statements, key financial ratios, and compared these metrics to industry averages. Based on declining ratios, high debt levels, and underperformance versus competitors, Rajesh recommended clients reduce their holdings in Amtek Auto and proceed cautiously with future investments until the company demonstrates improved and sustained financial performance.
Financial Statement Analysis of Toyota Indus MotorsAyesha Majid
Financial Statement Analysis of Toyota Indus Motors from financial year 2011-2016. A subsidiary of Toyota Motors, Toyota Tsusho Corporation of Japan and House of Habib.
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Project work
1. Analyzing and Comparing Financial
Ratios of automobile companies (Force
motors, Swaraj-Mazda, Eicher-Volvo)
A PROJECT REPORT BY:- Rahul Bhardwaj(12dcp-086), Rahul
Jain(12dcp-087), Rahul Jain(12dcp-088), Raj Kumar Singh(12dcp-
089):-
FINANCIAL ANALYSIS OF INDIAN COMMERCIAL VEHICLE
INDUSTRIES
2. Financial Analysis of Indian Commercial Vehicle Industries
1
An Overview of the Indian Automobile Industry
The Indian automobile industry is a globally established industry . Some of the leading
names echoing in the Indian automobile industry include Maruti Suzuki, Tata Motors,
Mahindra and Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors, Force,
Swaraj Mazda, Eicher motors etc. The automobile sector of India is the seventh largest in
the world. Tata Motors is the leader in the Indian commercial vehicles market while it
holds more than 60% share. Tata Motors also enjoys the credit of being the world’s fifth
largest manufacturer of medium and heavy commercial vehicles
FORCE MOTORS- AN INTRODUCTION (NSE: )
Force Motors started production of the HANSEAT 3-Wheelers in collaboration
with Vidal & Sohn Tempo Werke Germany and went on to establish a strong
presence in the Light commercial vehicle (LCV) field with the MATADOR, the
Force Motors has introduced new Light Commercial Vehicles, a new family of
Utility Vehicles, new state-of-the-art Tractors, and a new range of heavy
commercial vehicles.
SWARAJ MAZDA - AN INTRODUCTION (NSE:
SWARAJMAZD; BSE: 505192)
Swaraj Mazda is a joint venture of Swaraj Enterprise and Mazda . Swaraj
symbolizes Indian technology and engineering, and Mazda has R&D at a global
scale. The company produces vehicles for goods and passenger applications, such
as Bus, Ambulance, Water Tanks, Trucks, etc. It is now known as SML ISUZU
Ltd. since 1st
October 2010.
EICHER-VOLVO - AN INTRODUCTION
Eicher Motors Limited, incorporated in 1982, is the flagship company of the Eicher Group in India
and a leading player in the Indian automobile industry. Its 50-50 joint venture with the Volvo
group, VE Commercial Vehicles Limited. . Eicher Motors manufactures and markets the iconic
Royal Enfield motorcycles. Eicher Motors recorded revenue of over USD 1 billion in 2010. The
company is known to make tractors, haullages and tippers.
SECTION V: MARKET PERFORMANCE
3. Financial Analysis of Indian Commercial Vehicle Industries
2
The market performance of all the three companies vis-à-vis the S&P CNX NIFTY Index is illustrated in
the graph below:
Nifty
Eicher
Swaraj
Force
SECTION IV: COMPUTATION OF FINANCIAL RATIOS
PROFITABILITY ANALYSIS
a) Profit Margin:
Definition:
A ratio of profitability is calculated as net income divided by revenues, or net profits divided by
sales.
Significance:
4. Financial Analysis of Indian Commercial Vehicle Industries
3
Profit margin is very useful when comparing companies in similar industries. A higher profit
margin indicates a more profitable company that has better control over its costs compared to its
competitors.
Formula used:
Here, we calculate after-tax profit margin, given by: Margin = PAT/Sales.
Factors:
Higher the PAT more is the margin. Lower the sales, higher the profit margin.
Graph:
Observations:
Profit Margin for SML is near about same for both the years, and its comparatively on lower side.
But for Force motor it have shoot up like anything compared to previous year to addition of
exceptional items. Eicher motor have gone okay.
Conclusion:
Profit Margin should not be the only factor considered when evaluating a company’s
performance. Other criteria must also be taken into account, including Company’s closing stock
etc. by an investor, before making a decision.
Swaraj Mazda Force Motors Eicher Volvo
2010-11 4.02 3.9 6.98
2011-12 4.04 41.14 8.76
0
5
10
15
20
25
30
35
40
45
PAT/SALES
5. Financial Analysis of Indian Commercial Vehicle Industries
4
b) Return on Capital Employed (ROCE):
Definition:
It is a ratio that indicates the efficiency and profitability of a company's capital investments.
Significance:
ROCE should always be higher than the rate at which the company borrows; otherwise any
increase in borrowing will reduce shareholders' earnings. It indicates efficiency and profitability
of company’s capital investment.
Formula used:
It is calculated as follows:
ROCE = (PAT + Interest – Tax Savings on Interest)/ (Owned Capital + Borrowed Capital)
Graph:
Observations:
Highest ROCE for Eicher. Good and steady ROCE for Swaraj. Lowest for Force motor.
Conclusion:
A high ROCE for Eicher indicates that the company keeps high profitability and has very good
efficiency.
c) Return on Equity (ROE):
Definition:
The amount of net income returned as a percentage of shareholders equity.
Significance:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 20.14 16.24 38
2011-12 14.47 4.02 45
0
10
20
30
40
50
ROCE
6. Financial Analysis of Indian Commercial Vehicle Industries
5
Return on equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested. It is one of the important factors to be
considered before investment.
Formula used:
It is calculated as: ROE = Profit Available to Equity Shareholders/Shareholders’ Fund
Graph:
Observations:
Constant ROE for Swaraj. Highest ROE for Force motor.Eicher have bettered itself marginaly.
• Conclusion:
Force motor is becoming very good option for investments.
d) Return on Total Assets (ROTA):
Definition:
It is a ratio that measures a company's net earnings against its total net assets.
Significance:
The ratio is considered an indicator of how effectively a company is using its assets to generate
earnings before contractual obligations must be paid.
Formula Used:
ROTA = PAT/ (Total Assets - Capital work in progress - Intangible assets)
Factors:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 17.18 17.54 24.9
2011-12 17.36 72.1 33.31
0
10
20
30
40
50
60
70
80
ROE
7. Financial Analysis of Indian Commercial Vehicle Industries
6
1. Higher the pat, higher the ROTA.
2. More the assets, lesser the ROTA.
Graph:
Observations:
1.Force- lowest rota performance out of all.
2. Eicher– better for rota.
3. Ultratech – last two yrs were not so good
Conclusion:
Greater the earnings, more effective the company is. ROTA is an important factor for investing
in a company.
e) Return on Operating Assets (ROOA):
Definition:
An extension of ROTA, wherein the purpose is to identify the return generated only via the
company’s core competency – its operations.
Significance:
We are considering assets that are used only in creating revenue. Numerically, the lesser the value
of assets, better the ROA. The company should maximize the use of operating assets to generate
more revenue. Assets that are not useful in generating revenue should be minimized. ROA is not
a very important parameter in helping an investor to buy a stock of the company as it excludes
other investments which could be non-productive.
Swaraj Mazda Force Motors Eicher Volvo
2010-11 11.47 7.82 15.47
2011-12 6.82 3.04 25.44
0
5
10
15
20
25
30
ROTA
8. Financial Analysis of Indian Commercial Vehicle Industries
7
Formula used: ROA = (PAT – Other Income + Exceptional Expenses) / (Total Assets –
Assets under Development – Current Investments – Non Current Investments - Intangible
Asset)
Graph:
Observation and conclusion:
Ranking based on ROA-
1. Eicher
2. Swaraj
3. Force motorS
Force motor needs to utilized it resources more efficiently.
LEVERAGE RATIOS
Any ratio used to calculate the financial leverage of a company to get an idea of the company's
methods of financing or to measure its ability to meet financial obligations are termed as
Leverage ratios. There are several different ratios, but the main factors looked at include debt,
equity, assets and interest expenses.
a) Debt-Equity Ratio:
Definition:
It is a measure of a company's financial leverage calculated by dividing its total liabilities by
stockholders' equity.
Significance:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 6.56 5.36 12
2011-12 5.22 -9.64 22
-15
-10
-5
0
5
10
15
20
25
AxisTitle
ROA
9. Financial Analysis of Indian Commercial Vehicle Industries
8
It indicates what proportion of equity and debt the company is using to finance its assets. An ideal
Debt/Equity ratio hovers around the 2.0 mark. A High ratio means a company has taken lot of
loans and interest payable is hence, more. A low Debt to Equity ratio is preferred but that can also
mean that the Company does not take any risks. This may lead to high earnings but we have to
see whether the earning is greater than interest expenses. Debt to Equity Ratios also depend on
the Industry. It is also called as the Risk Taking Ability of a Company. It is one of the most
important ratios to be taken into consideration before investing.
Formula used:
D/E = Long term Borrowings / Shareholders’ Fund
Graph:
Observations and conclusion:
Both Swaraj and Eicher are very risk savvy companies it seem from the above data. Less Debt
equity ratio means less risk but also less profit. The case different with Force motor though.
LIQUIDITY RATIOS
These are a class of financial metrics that is used to determine a company's ability to pay off its
short-terms debts & obligations. Generally, the higher the value of the ratio, the larger the margin
of safety that the company possesses to cover short-term debts.
a) Current Ratio
Definition:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 0 2.13 0
2011-12 0 0.46 0
0
0.5
1
1.5
2
2.5
Debt/Equity Ratio
10. Financial Analysis of Indian Commercial Vehicle Industries
9
It is a liquidity ratio that measures a company's ability to pay short-term obligations.
Significance:
Typically, a good Current ratio is preferred but if the Current Ratio is down it may because of
reasons such as scope expansion or company growth.
Formula used:
Current Ratio = Current Assets / Current Liabilities
Graph:
Observation and conclusion:
Current Ratio assure the lender how safe and recoverable is their investment in near future.
Here Force motor is in lead and again it have improve a lot from last year.
b) Quick Ratio/Liquidity Ratio:
Definition:
It is an indicator of a company's short-term liquidity.
Significance:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 1.39 0.97 1.2
2011-12 1.9 2.6 0.76
0
0.5
1
1.5
2
2.5
3
Current Ratio
11. Financial Analysis of Indian Commercial Vehicle Industries
10
The quick ratio measures a company's ability to meet its short-term obligations with its most
liquid assets. The higher the quick ratio, the better the position of the company.
Formula used:
Quick/Liquidity Ratio = (Current Assets – Inventories)/ (Current Liabilities – Working
Capital)
Graph:
Observation and conclusion:
Higher the margin more the safety. When it comes to converting assets into liquidity in near
future Force motor seems more favorable compared to both others.
EFFICIENCY RATIOS
Ratios that are typically used to analyze how well a company uses its assets and liabilities
internally are known as efficiency ratios. Efficiency Ratios can calculate the turnover of
receivables, the repayment of liabilities, the quantity and usage of equity and the general use of
inventory and machinery.
a) Inventory Turnover Ratio:
Definition:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 1.39 0.97 0.85
2011-12 1.9 2.6 0.44
0
0.5
1
1.5
2
2.5
3
Quick Ratio
12. Financial Analysis of Indian Commercial Vehicle Industries
11
A ratio showing how many times a company's inventory is sold and replaced over a period. It can
be done for raw material and for finished goods.
Formula used:
Raw material IT ratio = Raw material consumed / Average Raw Material Inventory
Finished Goods IT ratio = Cost of Production / Average Inventory
Significance:
Higher Inventory Turnover Days is not good for the company. But we should also check the
amount of stock a company buys and sells at a time. Company having low stock will obviously
sell the stock faster than a company having greater stock.
Graph:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 7.53 4.2 30.4
2011-12 6.82 4.43 31.44
0
5
10
15
20
25
30
35
Raw Material Turnover Ratio
13. Financial Analysis of Indian Commercial Vehicle Industries
12
Observations and conclusion:
Inventory Turnover ratio is a very important tool to predict how effetely the business is being
rum. ITR needs to kept balanced. If it’s value is high shelf cost will increase, if it is low there will
be chances of shortage. To avoid such conditions it need to be in balance mode. Above Eicher
seems to be okay.
b) Asset Turnover Ratio:
Definition:
It is a financial ratio of net sales to total assets.
Significance:
The asset turnover ratio measures a company's ability to generate net sales from asset investments
- specifically property, plant and equipment (P&E) - net of depreciation. A higher asset turnover
ratio shows that the company has been more effective in using the investment in assets to
generate revenues.
Formula used:
AT Ratio = Sales / (Total Assets - Assets under development – Intangible Assets)
Graph:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 9.95 5.95 35.26
2011-12 9.16 5.9 30.37
0
5
10
15
20
25
30
35
40
Finished Good Inventory Turnover
Ratio
14. Financial Analysis of Indian Commercial Vehicle Industries
13
Observations and conclusion:
Here all the three companies are doing fairly ok. Eicher is leading though.
c) Debtors’ Turnover Ratio:
Definition:
An accounting measure used to quantify a firm's effectiveness in extending credit as well as
collecting debts.
Significance:
The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.
Formula used:
Debtors’ Turnover = Net Credit Sales/Average Trade Receivables
Graph:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 1.69 1.44 2.14
2011-12 1.69 1.2 2.42
0
0.5
1
1.5
2
2.5
3
AxisTitle
Asset Turnover Ratio
15. Financial Analysis of Indian Commercial Vehicle Industries
14
Observation:
Best Debtor Turnover Days is for Eicher i.e. its rotating cash very efficiently. And it is lowest for
Swaraj mazda. Both Force motor and Swaraj need to improve their debtor’s ratios.
DIVIDEND PAYOUT
a) Dividend Payout Ratio:
Definition:
The percentage of earnings paid to shareholders in dividends.
Formula used:
Dividend payout ratio = Proposed Dividend / Net Income
Significance:
Higher Ratio companies should be preferred but it is not an important factor for buying of shares
of the company as it does not tell us where the company is going. If the company gives a huge
dividend then obviously the investor gains.
Swaraj Mazda Force Motors Eicher Volvo
2010-11 1 9.56 42.1
2011-12 1.02 9.7 62
0
10
20
30
40
50
60
70
AxisTitle
Debtor's Turnover Ratio
16. Financial Analysis of Indian Commercial Vehicle Industries
15
Graph:
Observations and conclusion:
Swaraj is very generous in giving Dividend compared to other two companies. But All of the
companies have decreased their dividends from last year.
b) Dividend Yield:
Definition:
A financial ratio that shows how much a company pays out in dividends each year relative to its
share price. In the absence of any capital gains, the dividend yield is the return on investment for
a stock.
Formula used:
Dividend Yield = Proposed Dividend / Market Capitalization of the Company.
Significance:
Higher the dividend yield, it is good for the company. Improves investor sentiments.
It indicates ”bang for your buck.”
Swaraj Mazda Force Motors Eicher Volvo
2010-11 0.37 0.11 0.12
2011-12 0.32 0.02 0.11
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
AxisTitle
Dividend Payout Ratio
17. Financial Analysis of Indian Commercial Vehicle Industries
16
Graph:
Observations and conclusion:
When it comes to giving dividend Swaraj Mazda is leading ahead of both Eicher and Force
motor. Though investors do not earn much from the dividend a company pays, still it’s a factor to
be consider while investing.
ECONOMIC VALUE ADDED
Definition:
A measure of a company's financial performance based on the residual wealth calculated by
deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). It is also
referred to as "economic profit".
Significance:
Measures how much value is added to Company’s finances every year. It captures true Economic
Profit.
Formula used:
EVA = Net Operating Profit after Taxes (NOPAT) - (Capital * Cost of Capital)
Graph:
Swaraj Mazda Force Motors Eicher Volvo
2010-11 2.43 1.16 0.008
2011-12 2.44 2.34 0.007
0
0.5
1
1.5
2
2.5
3AxisTitle
Dividend Yield
18. Financial Analysis of Indian Commercial Vehicle Industries
17
Observations and conclusion:
Eicher has got the highest value addition over the years. It have grown up from the previous
considerably. Swaraj’s EVA have decreased substantially from the previous and force motor have
done the worst by going in negatives.
SECTION VI: CONCLUSION
Seeing the data we have collected and processed it seems that Eicher motor is on very right track and it is
pose to grow. So one can definitely invest into Eicher motor. Other two are not doing so well in these
terms. Force motor is improving but it’s still a long way to go.Swaraj mazda is relatively new to the share
market. So its need to take its own time to show results.
Disclaimer: Our analysis & interpretation is limited to the ratios we have computed, and our own
intuition.
SECTION VI: ROAD AHEAD FOR INDIAN COMMERCIAL VEHICLE
INDUSTRY:-The Indian commercial vehicle market will double to 1.6 million units in next five
years thanks to the increase in infrastructure spend, rapid urbanisation and entry of major multinational
players in the country said Ernst & Young in its latest report on 'Mega trends shaping the Indian
commercial vehicle market.'
The country is likely to see the emergence of more than six cities (each with a total population of
over 10 million) and 63 cities with a projected population of more than1 million by 2025.
Swaraj Mazda Force Motors Eicher Volvo
2010-11 1433.3 3600 2327.2
2011-12 381.118 -1200 4156.5
-2000
-1000
0
1000
2000
3000
4000
5000
AxisTitle
Economic Value Added
19. Financial Analysis of Indian Commercial Vehicle Industries
18
E&Y says the Indian market which has seen the entry of international majors like Daimler,
Volvo, Beiqi Foton will see a CAGR growth of 15% till 2016-17.
The overall commercial vehicle sales in India grew by 18.20% in 2011-12 at 8,09,532 untis Vs
6,84,905 units in 2010-11. The sales of medium & heavy trucks posted a growth of 8.79% in
2011-12 at 2,99,309 vs 2,75,121 units in 2010-11 & light commercial vehicles grew faster at
almost 30% with 4,11,460 units sold in the last fiscal.
According to the report, the stakeholders across the Indian CV industry are likely to be impacted
by rapidly changing events - right from the operating environment, fleet operator/ manager
preferences, competition, distribution channel and also supply chain.
Urging the need of road infrastructure development to facilitate OEMs, Rakesh Batra, partner &
national leader, automotive practice, Ernst & Young, said, "By 2012, one expects to have six-
laning of 6,500 km and a development of 1000 km of expressways. Of the 66,590 km of National
Highway, only 38% are single-lane, leading to logistics inefficiencies as trucks can cover only
250 km per day vs. 600 km globally. Moreover, the development of road infrastructure enables
OEMs to introduce higher power vehicles. By 2012, the modernisation of roads under the NHDP
( National Highway Development Program) is expected to involve a total investment of US$47.2
billion."