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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 2007-08—a fall of


10% over the previous year, versus overall market decline of 7.8%.
Thus, Bajaj Auto’s 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 To Class of Authori Issued Paid up Paid up Paid up
year year shares zed capital shares face capital
capital value

2007 2008 Equity 150 144.68 144683 10 144.7cr


share 510
2006 2007 Equity 150 101.18 101183 10 101.2cr
share 510
Leverage ratios 2008 2007 2006
Long term debt / Equity 0.84 0.28 0.30

Total debt/equity 0.84 0.29 0.30

Owners fund as % of total source 54.33 77.29 76.47

Fixed assets turnover ratio 2.95 2.96 2.62


Liquidity ratios
Current ratio 0.88 0.85 0.78

Current ratio (inc. st loans) 0.88 0.84 0.78

Quick ratio 0.64 0.75 0.68

Inventory turnover ratio 29.33 36.88 34.14


Payout ratios 2008 2007 2006

Dividend payout ratio (net profit) 44.78 38.24 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 96,900
Less: excise duty 10,267
Net sales 86,633
Other operating income 3,829
Total operating income 90,462
Cost of materials consumed, net of expenditures capitalised 65,973
Share of material cost 72.9%
Stores and tools 747
Share of stores and tools 0.8%
Labour cost 3,416
Share of labour cost 3.8%
Factory and administrative expenses 3,031
Share of factory and administrative expenses 3.4%
Sales and after sales expenses 4,359
Share of sales and after sales expenses 4.8%
Total expenditure 77,526
Total expenditure 77,526
Operating profit 12,936
O perating profit as a share of total operating income 1 4.3%
Voluntary Retirement Scheme 1,024
Revised operating profit 11,912
Revised operating profit as a share of total income 13.2%
Interest 52
Depreciation 1,740
Net operating profit 10,120
Non-operating income
Income 1 ,226
Expenses -
Non-operating income, net 1,226
Profit before taxation 11,346
Provision for taxation 3,788
Profit after taxation 7,558
Operating working capital

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 As at 31st


March 2008
Current assets
Inventories 3,496
Sundry debtors 2,753
Cash and bank balances 561
Other current assets 4,438
Sub-total 11,248
Less: Current liabilities
Sundry creditors 9,445
Advance against orders 948
O ther current liabilities 1,032
S ub-total 11,425
Working capital -177
Return on operating capital
employed
Rs. In Million As at 31st
March 2008

Fixed assets 12,928


Capital Advances 831
Technical know-how 105
Working capital -177
Total 13,687
Operating profit before
interest and taxation 10,172
Pre-tax return on operating
capital employed 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 1,446.8
b) Reserves & Surplus 14,429.1
15,875.9
2. Loan Funds
a) Secured Loans 69.5
b) Unsecured Loans 13,273.9
13,343.4
3. Deferred Tax Adjustments
a) Deferred Tax Liabilities 1,419.4
b) Deferred Tax Assets
109.8
Total 29,329.1
II. Application of Funds
1 . Fixed Assets
a) Gross Block 29,841.5
b) Less: Depreciation and write downs 17,260.7
c) N et Block 12,580.8
d) Capital Work in progress, expenditure to date 347.4
12,928.2
2. T ekchnical Know-how 105.3
3. Investments 18,571.4
4. C urrent Assets, Loans and Advances
a) Inventories 3,496.1
b) Sundry Debtors 2,753.1
c) C ash and Bank Balances 560.7
d) Other Current Assets 799.5
e) Loans and Advances 8,887.7
16,497.1
Less: Current Liabilities and Provisions
a) Liabilities 10,432.5
b) Provisions 8,340.4
18,772.9
N et Current Assets (2,275.8)
Total 29,329.1
Facts

CEO RAHUL BAJAJ

MD RAJIV BAJAJ

TURNOVER 86,659.2

STOCK PRICE 686.85

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