Post on 11-Apr-2015
Players: Indian auto industry
Global OEM
Global OEM
Indian OEM
Indian OEM
Indian Suppliers
Indian Suppliers
Global Suppliers
Global Suppliers
Engineering &
Development
Engineering &
Development
Indian Auto
Industry
Indian Auto
Industry
• GM • Toyota • Ford • Hyundai• Suzuki • Honda• Skoda• Volvo• Mercedes
• Tata Motors• Mahindra &
Mahindra• Bajaj Auto• TVS Motors• Hero Honda• Bajaj Tempo• Ashok Leyland
• Bharat Forge• Sundram
Fasteners• Rane Group• Shriram Pistons• RICO Auto• Sono Koyo
Steering
• Delphi• Visteon• Bosch• Denso• Valeo• Thyssen
Krupp
Shorter life cycle
Growth in Income levels
Easier financing
Government Policies
New productlaunches
Indian Automotive
Industry
Indian Automotive
Industry
Increasing consumer demand
Cost Competitiveness
Overall economic growth
Export Competitiveness
Reduced cost to consumer
India emerging as a manufacturing hub
CORE BUSINESS ACTIVITIES CORE BUSINESS ACTIVITIES
AUTOMOTIVE SECTOR
FARM EQUIPMENTS SECTOR
INFORMATION TECHNOLOGY
INFRASTUCTURE DEVELOPMENT
CAPITAL STRUCTURE ANALYSIS CAPITAL STRUCTURE ANALYSIS
CAPITAL BUDGETTING DECISION
CAPITAL BUDGETTING DECISION
NEED TO RAISE FUNDNEED TO RAISE FUND
CAPITAL STRUCTURE DECISION
CAPITAL STRUCTURE DECISION
PAYOUT POLICYDESIRED DEBT-EQUITY MIX
EXISTING CAPITAL STRUCTURE
EXISTING CAPITAL STRUCTURE
EFFECT ON RISKEFFECT ON RETURN
EFFECT ON COST OF CAPITAL
VALUE OF THE FIRMVALUE OF THE FIRM
OPTIMUM CAPITAL STRUCTURE
OPTIMUM CAPITAL STRUCTURE
CAPITAL STRUCTURE DECISION PROCESS
In year 05-06 There was a bonus issue (1:1)
In year 05-06 There was a bonus issue (1:1)
LeverageLeverage
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
COVERAGE RATIO 3.68 8.46 29.94 39.60 77.85
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
RATIO ANALYSIS RATIO ANALYSIS
M&M FY03 FY04 FY05 FY06 FY07EPS 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 BSESTOCK PERFORMANCE OF M&M ON BSE
Source: BSESource: BSE
WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS
CURRENT ASSETS CURRENT ASSETS
OUTLOOKOUTLOOK
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
THANK YOU