Bajaj Auto is India's largest manufacturer of two- and three-wheelers. In 2007-08, its net sales decreased 6.8% to Rs. 86.63 billion while exports increased 20.8% to Rs. 20.48 billion. Its motorcycle sales fell 10% to 2.14 million units, with market share declining slightly to 32.7%. Operating profit fell 16.7% to Rs. 10.12 billion. The board proposed a dividend of Rs. 20 per share for 2007-08. Bajaj Auto enjoys negative working capital and had a pre-tax return on operating capital employed of 74%.
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Bajaj Auto is India's largest manufacturer of two- and three-wheelers. In 2007-08, its net sales decreased 6.8% to Rs. 86.63 billion while exports increased 20.8% to Rs. 20.48 billion. Its motorcycle sales fell 10% to 2.14 million units, with market share declining slightly to 32.7%. Operating profit fell 16.7% to Rs. 10.12 billion. The board proposed a dividend of Rs. 20 per share for 2007-08. Bajaj Auto enjoys negative working capital and had a pre-tax return on operating capital employed of 74%.
Bajaj Auto is India's largest manufacturer of two- and three-wheelers. In 2007-08, its net sales decreased 6.8% to Rs. 86.63 billion while exports increased 20.8% to Rs. 20.48 billion. Its motorcycle sales fell 10% to 2.14 million units, with market share declining slightly to 32.7%. Operating profit fell 16.7% to Rs. 10.12 billion. The board proposed a dividend of Rs. 20 per share for 2007-08. Bajaj Auto enjoys negative working capital and had a pre-tax return on operating capital employed of 74%.
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Download as PPT, PDF, TXT or read online from Scribd
Bajaj Auto is India's largest manufacturer of two- and three-wheelers. In 2007-08, its net sales decreased 6.8% to Rs. 86.63 billion while exports increased 20.8% to Rs. 20.48 billion. Its motorcycle sales fell 10% to 2.14 million units, with market share declining slightly to 32.7%. Operating profit fell 16.7% to Rs. 10.12 billion. The board proposed a dividend of Rs. 20 per share for 2007-08. Bajaj Auto enjoys negative working capital and had a pre-tax return on operating capital employed of 74%.
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BAJAJ AUTO LTD
Presented by:
Hitesh Rame
Introduction Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th largest two- and three-wheeler maker. Bajaj Auto makes and exports motor scooters, motorcycles and the auto rickshaw. Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment
Quick facts Founder - Jamnalal Bajaj Year of Establishment -1926 Industry Automotive - Two & Three Wheelers Business Group -The Bajaj Group Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO Presence: Distribution network covers 50 countries.
Objectives To cater the market needs of transportation by providing 2 wheeler and 3 wheeler vehicles. BALW has been producing the catalogue products to cater to the changing market requirements.
Highlights for 2007-08: Bajaj Auto stand-alone
Net sales (net of excise duty) decreased by 6.8% to Rs.86.63 billion. Exports increased by 20.8% toRs.20.48 billion. Motorcycle sales by volume was 2.14 million in 2007-08a fall of 10% over the previous year, versus overall market decline of 7.8%. Thus, Bajaj Autos market share in motorcycles fell marginally from 33.5% in 2006-07 to 32.7% in 2007-08 . Operating EBITDA (earnings before interest, taxes, depreciation and amortization) fell by 9.6%, from Rs.14.31 billion in 2006-07 to Rs.12.94 billion in 2007-08. This translates to an operating EBITDA margin of 14.3% of operating income. Operating profit before tax (PBT) fell by 16.7% from Rs.12.15 billion in 2006-07 to Rs.10.12 billion in 2007-08.
Capital structure From year To year Class of Authorize Issued shares d capital capital Paid up shares Paid up face value 10 10 Paid up capital
2007 2006
2008 2007
Equity share Equity share
150 150
144.68 14468351 0 101.18 10118351 0
144.7cr 101.2cr
Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio
2008 0.84 0.84 54.33 2.95
2007 0.28 0.29 77.29 2.96
2006 0.30 0.30 76.47 2.62
0.88 0.88 0.64 29.33
0.85 0.84 0.75 36.88
0.78 0.78 0.68 34.14
Payout ratios Dividend payout ratio (net profit)
2008 44.78
2007 38.24
2006 41.89
Dividend payout ratio (cash profit)
36.36
33.14
35.60
Earning retention ratio
56.41
52.71
52.71
Cash earnings retention ratio
64.43
60.28
60.57
Abridged Profit and Loss Statement
Rs. In Million 2007-08 Operations Sales Less: excise duty Net sales Other operating income Total operating income Cost of materials consumed, net of expenditures capitalised 65,973 Share of material cost Stores and tools Share of stores and tools Labour cost Share of labour cost Factory and administrative expenses Share of factory and administrative expenses Sales and after sales expenses 4,359 Share of sales and after sales expenses Total expenditure 96,900 10,267 86,633 3,829 90,462 72.9% 747 0.8% 3,416 3.8% 3,031 3.4% 4.8% 77,526
Total expenditure Operating profit O perating profit as a share of total operating income Voluntary Retirement Scheme Revised operating profit Revised operating profit as a share of total income Interest Depreciation Net operating profit Non-operating income Income Expenses Non-operating income, net Profit before taxation Provision for taxation Profit after taxation
Bajaj Auto enjoys negative working capital. This is even after monies being locked up on account of refunds of VAT and excise duty, amounting to Rs. 1,710 million. Rs. In Million Current assets Inventories Sundry debtors Cash and bank balances Other current assets Sub-total Less: Current liabilities Sundry creditors Advance against orders O ther current liabilities S ub-total Working capital As at 31st March 2008 3,496 2,753 561 4,438 11,248 9,445 948 1,032 11,425 -177
Return on operating capital employed
Rs. In Million Fixed assets Capital Advances Technical know-how Working capital Total Operating profit before interest and taxation Pre-tax return on operating capital employed As at 31st March 2008 12,928 831 105 -177 13,687 10,172 74%
Dividends The board of directors of Bajaj Auto has proposed a dividend of Rs.20 per equity share (200 per cent) for the financial year 2007-08, subject to approval by the shareholders at the annual general meeting. As the company was incorporated on 30 April, 2007, there was no dividend paid in the previous year.
Balance sheet I. Sources of Funds 1 . Shareholders Funds a) Share Capital b) Reserves & Surplus 2. Loan Funds a) Secured Loans b) Unsecured Loans 3. Deferred Tax Adjustments a) Deferred Tax Liabilities b) Deferred Tax Assets II. Application of Funds 1 . Fixed Assets a) Gross Block b) Less: Depreciation and write downs c) N et Block d) Capital Work in progress, expenditure to date 2. T ekchnical Know-how 3. Investments 4. C urrent Assets, Loans and Advances a) Inventories b) Sundry Debtors c) C ash and Bank Balances d) Other Current Assets e) Loans and Advances Less: Current Liabilities and Provisions a) Liabilities b) Provisions N et Current Assets (2,275.8) Total 29,329.1 1,446.8 14,429.1 15,875.9 69.5 13,273.9 13,343.4 1,419.4 109.8 Total 29,329.1 29,841.5 17,260.7 12,580.8 347.4 12,928.2 105.3 18,571.4 3,496.1 2,753.1 560.7 799.5 8,887.7 16,497.1 10,432.5 8,340.4 18,772.9
