maruti vs mahindra
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maruti vs mahindraTRANSCRIPT
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 1
Maruti v/s Mahindra
Harsh Agarwal A39
Kiran Kannan A39
Samiksha Singh A58Shivani Sharan A62Shri Krishan Sharma A63
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 2
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
For more than three decades, Maruti Suzuki has been a household name across urban and rural India, through multiple business challenges.
Since 1982, the pride of owning a Maruti Suzuki vehicle has grown despite the availability of multiple brands.
Today, Maruti produces more than 1 million units annually, with 15 different models and over 500 variants
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 3
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
NET SALES AND PAT Profit and Loss Ratios % to Net Sales
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 4
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
FINANCIAL HIGHLIGHTS •Total revenue (net of excise) was Rs. 444,003 million as against Rs. 364,139 million in the previous year showing an increase of 22 percent.
•Sale of vehicles in the domestic market was 1,051,046 units as compared to 1,006,316 units in the previous year showing an
increase of 4 per cent.•Total number of vehicles exported was 120,388 units as compared to 127, 379 units in the previous year.
•Profit before tax (PBT) was Rs. 29,910 million against Rs. 21,462 million showing an increase of 39 per cent and profit after tax (PAT) stood at Rs. 23,921 million against Rs. 16,352 million in the previous year showing an increase of 46 per cent.
DIVIDEND The board recommends a dividend of Rs. 8 (eight) per equity share of Rs. 5 each for the year ended 31st March 2013 amounting to Rs. 2,417 million.
CRISIL RATINGS
The Company was awarded the highest financial credit rating of AAA/stable (long term)and A1 (short term) on its bank facilities by CRISIL
The rating underscores the financial strength of the Company in terms of the highest safety with regard to timely fulfillment of its financial obligations.
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 5
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
• Mahindra & Mahindra Limited (M&M) is an Indian multinational automobile manufacturing corporation headquartered in Mumbai.
• One of the largest vehicle manufacturers by production in India and the largest seller of tractors across the world. It is a part of Mahindra Group, an Indian conglomerate.
• Ranked as the 10th most trusted brand in India, by The Brand Trust Report, India Study 2014.
• Ranked 21st in the list of top companies of India in Fortune India 500 in 2011.
• Major competitors in the Indian market include Maruti Suzuki, Tata Motors, Ashok Leyland, Toyota, Hyundai, Mercedes-Benz (Merc) etc.
• Incorporated in 1945 and converted into Public Limited in 1955 at Mumbai.
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 6
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
The Automotive and Farm Divisions of your Company have shown good performance during the year, reflecting substantial growth in the net income of the Company by 26.8% from Rs. 32,319 crores in the previous year to Rs. 40,990 crores in the year under review.
FINANCIAL HIGHLIGHT
DIVIDEND
A dividend of Rs. 12.50 per Ordinary (Equity) Share and also a Special Dividend of Re. 0.50 per Ordinary (Equity) Share aggregating Rs. 13.00 per Ordinary (Equity) Share of the face value of Rs. 5 each, payable to those Shareholders whose names appear in the Register of Members as on the Book Closure Date.
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 7
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
OPERATING PROFITS PROFITS
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 8
MANAGEMENT CONCLUSION
RATIO ANALYSIS
LIQUIDITY RATIOS
Current Ratio• The Current Ratio formula is:
Current Ratio = Current Assets
• Current Liabilities
Mahindra Maruti
1.02 1.04
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 9
MANAGEMENT CONCLUSION
RATIO ANALYSIS
LIQUIDITY RATIOS
Quick RatioQuick Ratio
= Current Assets – Inventories
Current Liabilities Mahindra Maruti
0.77 0.90
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 10
MANAGEMENT CONCLUSION
RATIO ANALYSIS
LIQUIDITY RATIOS
Debt Equity Ratio• Debt Equity Ratio= Total Liabilities Share holders Equity
Mahindra Maruti
0.22 0.07
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 11
MANAGEMENT CONCLUSION
FINANCIAL LEVERAGE RATIOS
1. Debt to Asset
• Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets.
• Total Debt to Total Asset=
(Short term Debt + Long Term Debt)/ Total Assets
Maruti Calculations
1389.20/ 19968.1= 0.069570
Mahindra Calculation
3227.07/ 17885.9 = 0.180425
INFERENCE: -The higher the ratio, the higher the degree of leverage, and consequently, financial risk. Accordingly Mahindra’s financial risk as per the degree of leverage is higher than Maruti’s.
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 12
MANAGEMENT CONCLUSION
FINANCIAL LEVERAGE RATIOS
2. Debt to Equity
• 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.
• Debt to Equity=
Total Liabilities/ Shareholder’s equity
Maruti Calculations:
1389.20/(151+ 18427.90) = 0.07477
Mahindra’s Calculations:
3227.07/(295.16+14363.76)= 0.22014
INFERENCE: - Accordingly Maruti’s Debt to Equity ratio is better than Mahindra’s
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 13
MANAGEMENT CONCLUSION
FINANCIAL LEVERAGE RATIOS
3. Equity Multiplier
• A measure of financial leverage. Calculated as: Total Assets / Total Stockholders' Equity
The equity multiplier is a way of examining how a company uses debt to finance its assets. Also known as the financial leverage ratio or leverage ratio
Maruti’s Calculations:
Total Assets / Total Stockholders' Equity= 19968.1/(151+18427.9)= 1.0748
Mahindra’s Calculations:
Total Assets / Total Stockholders' Equity=
17885.99/(295.16+14363.76)=1.220
INFERENCE: - Higher equity multiplier leads to a higher return on equity. Accordingly Mahindra’s return on equity would be higher than Maruti’s
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 14
MANAGEMENT CONCLUSION
FINANCIAL LEVERAGE RATIOS
4. Interest Coverage Ratio• A ratio used to determine how easily a company can pay interest on outstanding debt. The interest
coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period
• Interest coverage ratio= EBIT/ Interest Expense
Maruti Calculations:
(PBDIT- Dep)/ Interest= (5042-1861.2)/189.8=16.758
Mahindra’s Calculations:
PBDIT- Dep)/ Interest=(5349.09-710.81)/191.19=24.260
INFERENCE: - The lower the ratio, the more the company is burdened by debt expense.• A ratio under 1 means that the company is having problems generating enough cash flow to pay its interest
expenses.• Ideally you want the ratio to be over 1.5. Accordingly Mahindra’s Interest coverage ratio is better than
Maruti’s.
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 15
MANAGEMENT CONCLUSION
WORKING CAPITAL ANALYSIS
PARTICULARS MAR’13 MAR’12 change
Total CA, Loans & Advances 7,868.30 8,022.70
-154.40Total CL & Provisions 6,719.90 6,036.50
683.40
working capital 1,148.40 1,986.20 -837.80
MARUTI MAHINDRA
PARTICULARS MAR’13 MAR’12 change Total CA, Loans & Advances 9,798.79 8,520.77
1,278.02Total CL & Provisions 9,567.60 8,566.67
1,000.93
working capital 231.19 -45.90 277.09
INFERENCE : WORKING CAPITAL OF MAHINDRA IS MORE ALTHOUGH WORKING CAPITAL IN THE YEAR 2013 MARUTI HAS IT HIGHER.
MSIL V/S M&ML
DEBTORS TURNOVER RATIO
YEAR MAR’13 MAR’12
DEBTORS TURNOVER RATIO
36.92
40.39
Net credit sales/ Average debtors
MARUTI MAHINDRA
YEARMAR’13 MAR’12
DEBTORS TURNOVER RATIO
19.27
19.61
INFERENCE: This implies that the company is effective enough to extend credit as well as collecting debts. Higher ratio depicts that the company’s collection of debt and extension of credit is efficient. MARUTI has
higher DTR compared to MAHINDRA
MSIL V/S M&ML
CREDITOR TURNOVER RATIO
COGS/ Average creditor
MARUTI MAHINDRA
Cogs = 30613.89 Average creditors= 2208.2Creditor turnover ratio = 13.86
Cogs = 32677.6
Average creditors= 1429.7Creditor turnover ratio = 22.85
INFERENCE: This ratio implies that the company is efficient enough to pay off its suppliers. MAHINDRA is a lower ratio hence; it proves that the company takes time to pay off its creditors
compared MARUTI
MSIL V/S M&ML
INVENTORY TURNOVER RATIO
MAR’13 MAR’12
INVENTORY TURNOVER RATIO
23.68
19.81
COGS/ Average Inventory
MARUTI MAHINDRA
INFERENCE: This show how many times the company’s inventory is sold and replaced over a period of time.
MAR’13 MAR’12
INVENTORY TURNOVER RATIO
16.71
13.51
MSIL V/S M&ML
OPERATING CYCLE
RECEIVABLES + ITR
MARUTI MAHINDRA
INFERENCE: This implies how well a company manages its critical operational capital assets, as opposed to impact on cash.
RECEIVABLES = 36.92 ITR = 23.68OPERATING CYCLE = 60.6 times
RECEIVABLES = 19.27 ITR = 16.71OPERATING CYCLE =35.98 times
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 20
MANAGEMENT CONCLUSION
ACTIVITY BASED RATIOS
• The Inventory turnover ratio is an indicator of how fast the inventory is sold.A high ratio is good from the view point of liquidity and vice versa.
• It is calculated as : Cost of goods sold
• Average Inventory
Mahindra Maruti
11.71% 23.68%
1. Inventory Turnover Ratio
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 21
MANAGEMENT CONCLUSION
ACTIVITY BASED RATIOS
2. Debtors Turnover Ratio
• The Debtors turnover ratio measures how rapidly receivables are collected. A high ratio is indicative of shorter time-lag between credit sales amd cash collection.
• It is calculated as : Net Credit sales
• Average DebtorsMahindra Maruti
8.60% 36.29%
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 22
MANAGEMENT CONCLUSION
ACTIVITY BASED RATIOS
3. Average collection period
• The average collection period is an indicator of how fast the money is being received by the debtors. The lower the value the better the result.
• It is calculated as : Total months
• Debtors Turnover RatioMahindra Maruti
1.39 months 0.33 months
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 23
MANAGEMENT CONCLUSION
ACTIVITY BASED RATIOS
4. Total asset turnover• The amount of sales or revenues generated per
dollar of assets. The Asset Turnover ratio is an indicator of the efficiency with which a company is deploying its assets
• It is calculated as : Sales or Revenues
• Total Assets
• Higher the ratio, the better it is, since it implies the company is generating more revenues per dollar of assets.
Mahindra Maruti
0.49 2.21
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 24
MANAGEMENT CONCLUSION
ACTIVITY BASED RATIOS
5. Fixed asset turnover
• The amount of sales or revenues generated per dollar of fixed assets. The Fixed Asset Turnover ratio is an indicator of efficiency of fixed assts being utlilized.
• It is calculated as : Sales or Revenues
• Total Fixed Assets
• Higher the ratio, the better it is, since it implies the company is generating more revenues by proper use of its fixed assets.
Mahindra Maruti
1.30 2.25
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 25
MANAGEMENT CONCLUSION
Return On Capital Employed(%) 25.42
Return On Net Worth(%) 22.87
Return on Assets 238.75
Return On Capital Employed(%) 15.92
Return On Net Worth(%) 12.87
Return on Asses 615.03
DU PONT ANALYSIS
MSIL V/S M&ML
COMPANY PROFILE RATIOS COMPARISION
FINANCIAL STATEMENT ANALYSIS Slide 26
MANAGEMENT CONCLUSION
Earnings Per Share 79.19
Dividend Payout Ratio Net Profit
11.82
Earnings Per Share 54.61
Dividend Payout Ratio Net Profit
26.57
SHAREHOLDER’S RATIOS
Inference1. While Maruti gives a better earnings per share, the Dividend payout ratio to the shareholder’s is better of Mahindra
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 27
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
VISION CORE VALUES
Customer Obsession
Fast, Flexible & First Mover
Innovation & Creativity
Networking & Partnership
Openness & Learning
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 28
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
VISION MISSION
To create a fully collaborative environment in which suppliers can deliver exactly what the company needs, when it needs it, and at a
competitive cost
To create India's largest automobile and automobile-related products distribution
network by providing dealers and customers with
the largest choice of unique world-class
products and services.
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 29
COMPANY PROFILE RATIOS COMPARISION MANAGEMENT CONCLUSION
CONCLUSION
1. On an average we can conclude that Maruti Suzuki India Limited is performing better in many fronts than Mahindra & Mahindra
MSIL V/S M&MLFINANCIAL STATEMENT ANALYSIS Slide 30
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