• GM • Toyota • Ford • Hyundai • Suzuki • Honda • Skoda • Volvo • Mercede
Players: Indian auto industry • Global OEM
Indian Auto Industr y
•
Indian OEM
• • • • •
Tata Motors Mahindra & Mahindra Bajaj Auto TVS Motors Hero Honda Bajaj Tempo Ashok Leyland
s
• Delph
i • Viste on • Bosch • Denso • Valeo • Thyss en
Global Suppli ers
Engineeri ng & Developm ent
Indian Supplier s
• Bharat • • • • •
Forge Sundram Fasteners Rane Group Shriram Pistons RICO Auto Sono Koyo Steering
Governm ent Policies
Shorter
cycle
life
New produc t launch es
Export
Competitiveness Reduced cost to consumer India emerging as a manufacturing hub
Overall
economic growth
Indian Automoti ve Industry Cost Competitiven ess
Increas Growth in ing Income consu levels mer Easier deman financing d
CORE BUSINESS ACTIVITIES
AUTOMOTIVE SECTOR
FARM EQUIPMENTS SECTOR INFORMATION TECHNOLOGY INFRASTUCTURE
CAPITAL STRUCTURE ANALYSIS
CAPITAL BUDGETTING DECISION NEED TO RAISE FUND CAPITAL STRUCTURE DECISION EXISTING CAPITAL STRUCTURE
DESIRED DEBTEQUITY MIX
EFFECT ON RETURN
PAYOUT POLICY
EFFECT ON RISK
EFFECT ON COST OF CAPITAL
OPTIMUM CAPITAL STRUCTURE
VALUE OF THE FIRM CAPITAL STRUCTURE DECISION PROCESS
Leverage In year 05-06 There was a bonus issue (1:1)
RATIO ANALYSIS FY03
FY04
FY05
FY06
FY07
EPS
7.61
26.46
43.83
25.61
40.38
OPERATING MARGIN NET PROFIT MARGIN COVERAGE RATIO RETURN ON NET WORTH
8.21
10.47
10.90
10.71
11.45
3.79
6.88
7.56
10.28
10.34
3.68
8.46
29.94
39.60
77.85
5.82
17.53
24.79
20.77
27.28
PAT (cr)
88.25
306.91
489.39
597.72
961.28
NO OF EQUITY SHARES (in Lakhs)
1,160.09
1,160.09
1,116.48
2,334.00
2380.33
M&M
FY03
FY04
FY05
FY06
FY07
EPS
7.61
26.46
43.83
25.61
40.38
OPERATING MARGIN
8.21
10.47
10.90
10.71
11.45
NET PROFIT MARGIN
3.79
6.88
7.56
10.28
10.34
RETURN ON NET WORTH
5.82
17.53
24.79
20.77
27.28
PAT (cr)
88.25
306.91
489.39
597.72
961.28
NO OF EQUITY SHARES (in Lakhs)
1,160.09
1,160.09
1,116.48
2,334.00
2380.33
TATA MOTORS
FY03
FY04
FY05
FY06
FY07
EPS
9.66
23.34
34.08
35.57
43.76
OPERATING MARGIN
11.71
13.25
11.25
10.68
11.71
NET PROFIT MARGIN
3.29
6.10
7.02
7.35
6.94
RETURN ON NET WORTH
12.32
22.98
30.12
24.77
24.67
PAT (cr)
308.83
820.18
1,232.91
1,361.65
1,686.31
NO OF EQUITY SHARES (in Lakhs)
3,197.84
3,529.58
3,617.52
3,828.34
3,853.74
STOCK PERFORMANCE OF M&M ON BSE
Source: BSE
WORKING CAPITAL ANALYSIS
CURRENT ASSETS
OUTLOOK
AUTOMOBILE INDUSTRY MOVING IN TANDEM WITH GDP INDIAN GOVT APPROVES AGGRICULTURAL CREDIT OF 237 Lac CRORE RISK & CONCERNS ENVIRONMENT & EMMISSION NORMS FLUCTUATION IN FOREX RATES
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