comparative analysis maruti & tcs
DESCRIPTION
TRANSCRIPT
COMPARATIVE ANALYSIS OF
MARUTI & TCS By:
Priyatosh Pradhan
ICFAI TRIPURA
PROJECT STUDY
BRIEF ABOUT PROJECT STUDY
• ACKNOWLEDGEMENT:- PROF SRINIVAS• OBJECTIVE:- TO KNOW PRACTICAL
APPLICATION OF CAPITAL BUDGETTING.• METHODOLOGY:- COMPLETELY ON
SECONDARY DATA• LIMITATION:- LACK OF SOME DATA
BOARD OF DIRECTORS
SHAREHOLDING PATTERN
MARKET SHARE
2003-04
2004-05
2005-06
2006-07
2007-08
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
3591.2
4378.8
5452.6
6853.9
8415.4
EQUITY Rs(in crore)
EQUITY Rs(in crore)
2003-04
2004-05
2005-06
2006-07
2007-08
0
100
200
300
400
500
600
700
800
900
1000
311.9 307.6
71.7
630.8
900.2
DEBT Rs(in crore)
DEBT Rs(in crore)
TREND ANALYSIS2007-08 2006-07 2005-06 2004-05 2003-04
Debt Equity Ratio 0.004 0.01 0.02 0.07 0.08Debt Ratio 0.003 0.009 0.02 0.05 0.06Equity Ratio 0.80 0.58 0.67 0.70 0.67
2007-08 2006-07 2005-06 2004-05 2003-040
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Debt Equity RatioDebt RatioEquity Ratio
A new plant opened at Manesar near Gurgaon in 2006. NEW K SERIES PLANT INSTALLED IN PUNE IN 2007-08.
WORKING CAPITAL ANALYSIS
2007-08 2006-07 2005-06 2004-05 2003-04
Current Assets 30,520 45,980 42,568 29,720 20,189Current Liabilities 26,790 23,250 20,875 16,080 15,318Working Capital 19,738 25,238 21,693 13,640 4,871
2007-08 2006-07 2005-06 2004-05 2003-040
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Current AssetsCurrent LiabilitiesWorking Capital
DEGREE OF FINANCIAL LEVERAGE YEAR 2005-06 2004-05 2003-04
EBIT 18129 13409 8155
INTEREST 223 360 457
COORPRATE TAXES
.50 .50 .50
PREFERANCE DIVIDEND
NIL NIL NIL
DFL = EBIT/EBIT-INTEREST-PREFERANCE DIVIDEND/1-CORPRATE TAX
YEAR 2006 2005 2004DFL 0.50 0.51 0.52
CURRENT RATIOCURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES
• Current Liability coverage: Higher the current ratio, greater is the assurancewe have that current liabilities will be paid.• Buffer against losses: Current Ratio shows the margin of safety available tocover shrinkage in non cash current asset values when ultimately disposing offor liquidating them• Reserve of liquid funds: It is the measure of margin of safety againstuncertainties and random shocks to the company’s cash flows.
COMPARISION
ABOUT TCS
TCS is one of the top software companies in the world Tata Consultancy Services started in 1968. The first Indian company to make forays into the US
market with clients ranging from IBM, American Express, Sega etc.
TCS is presently the top software services firm in Asia. About 90 percent of TCS' revenue comes from
consulting. TCS has already patented 12 E-Commerce solution
product packages and has filed six more applications for patent licences.
The present CEO of the company is Mr.S.Ramadorai. The companies strength is about 14,000.
The company TCS is listed in National Stock Exchange and Bombay Stock Exchange in India.
TCS HAS 50 SUBSIDIARIES ACROSS THE GLOBE.
BRIEF COMPANY INFORMATIONSTOCK INFO NA
REVENUES* $2.2 BILLION
Revenue Growth 36.6%
RETURN ON EQUITY 70.5%
Total Return 44.3%†
PROFITS* $502.7 MILLION
Industry SERVICES
AREA OF BUSINESS IT SERVICE BUSINESS SOLUTION OUT SOURCING BUSINESS PROCESS OUT SOURCING CONSULTING ENTERPRIZE SOLUTION IT MANUFACTURING SERVICE ENGINEERING AN D INDUSTRIAL SERVICE
INTER NATIONAL MARKET
AFRICA
ASIA PACIFIC
CHINA
EUROPE
MIDDLE EAST
NORTH AND SOUTH AMERICA
3 MAIN STRENGTHS OF TCS APPLY TECHNOLOGY WITH FINANCIAL
CONSTRAIN
THEY PROVIDE EXPERIENCE IN ADVANCE AND COMPLEX TECHNOLOGY PROJECTS.
THEY HAVE EXTENSIVE EXPERIENCE IN MULTI VENDOR INTEROPERABILITY
OPERATING PROFIT
2004-05 2005-06 2006-07 2007-080.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
2,377.27
3,272.96
4,300.97
5,020.11
operating profit Rs (in crore)
CAPITAL STRUCTURE ANALYSIS OF TCSConsolidated Balance Sheet
Mar’08 Mar’07 Mar’06 Mar’05 Mar’04
Sources of Fund
Owners Fund
Equity share capital 97.86 97.86 48.93 48.01 36.44
Share application money - - - - -
Preference share capital 100.00 - - - -
Reserves & surplus 10,806.95 7,961.13 5,560.40 3,273.04 10.64
Loan Fund
Secured loans 9.27 41.76 26.52 111.01 -
Unsecured loans 8.98 8.98 8.98 9.73 375.00
Total 11,023.06 8,109.73 5,644.83 3,441.79 422.08
SHOWING DEBTYEAR 2007-08 2006-07 2005-06 2004-05 2003-04
SECURED LOAN 9.27 41.76 26.52 111.01 0
UNSECURED LOAN 8.98 8.98 8.98 9.73 37.5
TOTAL 18.25 50.74 35.5 120.74 37.5
2003-04 2004-05 2005-06 2006-07 2007-080
20
40
60
80
100
120
140
37.5
120.74
35.5
50.74
18.25
DEBT RS(IN CRORE)
DEBT RS(IN CRORE)
SHOWING EQUITY CAPITALYear
2007-08 2006-07 2006-05 2005-04 2003-04
Sources of fund
Owners fundEquity share capital 97.86 97.86 48.93 48.01 36.44
Share application money
Preference share capital 100.00
Reserve and surplus 10,806.95 7,961.13 5,560.40 3,273.04 10.64
TOTAL 11,004.81 8,058.99 5,609.33 3,321.05 47.08
2003-04 2004-05 2005-06 2006-07 2007-080
2000
4000
6000
8000
10000
12000
47.08
3321.05
5609.33
8058.99
11004.81
equity capital
equity capital
SOLVENCY RATIODEBT EQUITY RATIO It is a measure of a company's financial leverage calculated by
dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and
debt the company is using to finance its assets. DER = LTL / Shareholder's Equity
2007-08 2006-07 2005-06 2004-05 2003-04
LTL 18.25 50.74 35.5 120.74 37.5
OWNER’S FUND
11004.81 8058.99 5609.33 3321.05 47.08
DEBT EQUITY RATIO
0.00166 0.00629 0.00632 0.0361 0.7965
SOURCES OF FUND
Year
2007-08
2006-07 2006-05
2005-04
2003-04
Sources of fund
Owners fund
Equity share capital
144.50 144.50 144.50 144.50 144.50
Share application money
Preference share capital
Reserve and surplus
8,270.90 6,709.40 5,308.10 4,234.30 3,446.70
TOTAL 8415.40 6853.90 5452.60 4378.80 3591.20
Year
2007-08 2006-07 2006-05 2005-04 2003-04
Sources of fund
Owners fund
Equity share capital
97.86 97.86 48.93 48.01 36.44
Share application money
Preference share capital
100.00
Reserve and surplus
10,806.95
7,961.13 5,560.40 3,273.04 10.64
TOTAL 11,004.81
8,058.99 5,609.33 3,321.05 47.08
Maruti TCS
2003-04 2004-05 2005-06 2006-07 2007-080
2000
4000
6000
8000
10000
12000
47.08
3321.05
5609.33
8058.99
11004.81
EQUITY Rs. (in Crore)
equity capital
2003-04 2004-05 2005-06 2006-07 2007-080
100020003000400050006000700080009000
3591.24378.8
5452.6
6853.9
8415.4
EQUITY Rs. (in Crore)
EQUITY Rs(in crore)
Maruti
TCS
LOAN FUNDS
YEAR 2007-08 2006-07 2005-06 2004-05 2003-04
SECURED LOAN 0.10 63.50 71.70 307.60 311.90
UNSECURED LOAN 900.10 567.30
TOTAL 900.20 630.80 71.70 307.60 311.90
Maruti
TCS
YEAR 2007-08 2006-07 2005-06 2004-05 2003-04SECURED LOAN 9.27 41.76 26.52 111.01 0
UNSECURED LOAN 8.98 8.98 8.98 9.73 37.5
TOTAL 18.25 50.74 35.5 120.74 37.5
2003-04 2004-05 2005-06 2006-07 2007-080
20
40
60
80
100
120
140
37.5
120.74
35.5
50.74
18.25
DEBT RS(IN CRORE)
DEBT RS(IN CRORE)
2003-04 2004-05 2005-06 2006-07 2007-080
100200300400500600700800900
1000
311.9 307.6
71.7
630.8
900.2
DEBT Rs(in crore)
DEBT Rs(in crore)
Maruti
TCS
Solvency Ratios
2007-08 2006-07 2005-06 2004-05 2003-04
LTL 308 835 1,217 3,076 3,119
Owners Fund 90,010 56,730 56,635 44,888 37,582
Debt Equity Ratio 0.004 0.01 0.02 0.07 0.08
Maruti
TCS
2007-08 2006-07 2005-06 2004-05 2003-04
LTL 18.25 50.74 35.5 120.74 37.5
Owners Fund 11,004.81 8,058.99 5,609.33 3,321.05 47.08
Debt Equity Ratio 0.00166 0.00629 0.00632 0.0361 0.7965
Debt Equity Ratio
Maruti TCS0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
2007-082006-072005-062004-052003-04