Automobile Industry Project

EXECUTIVE SUMMARY
The automobile industry in India is the world’s fifth largest. India was the world's fifth
largest manufacturer of cars and seventh largest manufacturer of commercial vehicles in
2019. Indian automotive industry (including component manufacturing) is expected to reach
Rs. 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. The industry attracted Foreign
Direct Investment (FDI) worth US$ 25.85 billion between April 2000 and March 2021.
The Indian automotive industry is expected to reach US$ 300 billion by 2026. Domestic
automobile production increased at 2.36% CAGR between FY16-FY20 with 26.36 million
vehicles being manufactured in the country in FY20. Overall, domestic automobiles sales
increased at 1.29% CAGR between FY16-FY20 with 21.55 million vehicles being sold in
FY20.
Two wheelers and passenger vehicles dominate the domestic Indian auto market. Passenger
car sales are dominated by small and mid-sized cars. Two wheelers and passenger cars
accounted for 80.8% and 12.9% market share, respectively, accounting for a combined sale
of over 20.1 million vehicles in FY20. Two-wheeler sales stood at 1,195,445 units in March
2021, compared with 1,846,613 units in March 2020, recording a decline of 35.26 %.
Passenger vehicle (PV) sales stood at 279,745 units in March 2021, compared with 2,17,879
units in March 2020, registering a growth of 28.39%.
Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of
6.94% during FY16-FY20. Two wheelers made up 73.9% of the vehicles exported, followed
by passenger vehicles at 14.2%, three wheelers at 10.5% and commercial vehicles at 1.3%.
The main objective of this project is to analyze the financial performance in the form of
efficiency, liquidity and the profitability of the selected automobile companies for the last ten
years (2012-2021). My study is based on secondary data. Financial position is analyzed by
using different ratios.
The net worth ratio states the return that shareholders could receive on their investment in a
company, if all of the profit earned were to be passed through directly to them. Thus, the ratio
is developed from the perspective of the shareholder, not the company, and is used to analyze
investor returns. The ratio is useful as a measure of how well a company is utilizing the
shareholder investment to create returns for them, and can be used for comparison purposes
with competitors in the same industry. Return on capital employed (ROCE) is a financial
ratio that can be used in assessing a company's profitability and capital efficiency. In other
words, this ratio can help to understand how well a company is generating profits from its
capital as it is put to use.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other payables.
The asset turnover ratio measures the value of a company's sales or revenues relative to the
value of its assets. The asset turnover ratio can be used as an indicator of the efficiency with
which a company is using its assets to generate revenue.
The automobile industry has continued its growth trajectory over the past few years. The
Indian automobiles industry has vital role to play in the world’s automobile market. With the
increasing growth in demand on back of rising income, expanding middle class and young
population base, large pool of skilled manpower and growing technology, will be among the
world’s top five auto-producers by 2022. Profit is the engine that drives the business
enterprise. There should be enough profits to every firm or business enterprise to survive and
grow in the long run. Profitability means ability to make profit from all the business activities
of an organization, company, firm, or an enterprise. It shows how efficiently the management
can make profit by using all the resources available in the market. In this project, I have
selected 5 automobile companies in india, which are Tata Motors, Maruti Suzuki, Mahindra
& Mahindra, Hero MotoCorp and Bajaj Auto.
Table of Contents
CHAPTER:1. INTRODUCTION..............................................................................................3
A Brief History of the Automobile Industry in India..............................................................3
Facts of India auto industry..................................................................................................4
Industry Profile..................................................................................................................... 6
Current Profile of the Industry............................................................................................9
Main player in automobile industry:...................................................................................9
Market Size.......................................................................................................................10
Investments/ Developments..............................................................................................11
Government Initiatives:....................................................................................................13
Company Profile:................................................................................................................ 14
1. Tata motors...................................................................................................................14
2. Maruti Suzuki:..............................................................................................................15
3. Mahindra and Mahindra................................................................................................16
4. Hero motor Corp:..........................................................................................................17
5. Bajaj auto:.....................................................................................................................18
CHAPTER: 2. LITERATURE REVIEW................................................................................19
CHAPTER: 3. RESEARCH METHODOLOGY....................................................................21
Research Problem Statement.............................................................................................21
Objectives of the study:......................................................................................................21
Scope of the study:............................................................................................................. 21
Research Design..................................................................................................................21
Sample Unit........................................................................................................................ 22
Data collection....................................................................................................................22
Time span of data:.............................................................................................................. 22
Tools used...........................................................................................................................22
CHAPTER: 4. DATA ANALYSIS & INTERPREATATION................................................23
Current Ratio...................................................................................................................... 23
Quick Ratio:........................................................................................................................ 24
Net Profit Ratio................................................................................................................... 26
Operating Profit Ratio:........................................................................................................28
Page 1 of 61
Return on capital employed............................................................................................... 30
Net Worth Ratio:.................................................................................................................32
Asset Turnover Ratio:......................................................................................................... 34
Proprietary Ratio:............................................................................................................... 36
CHAPTER: 5. FINDINGS & CONCLUSION........................................................................39
Findings:..............................................................................................................................39
Conclusion.......................................................................................................................... 39
BIBLIOGRAPHY:...................................................................................................................41
APPENDIX:.............................................................................................................................42
Page 2 of 61
CHAPTER:1. INTRODUCTION
A Brief History of the Automobile Industry in India:
The Indian automobile industry is one of the biggest markets in the world, both in terms of
usages of vehicles and production of the vehicles. Speaking of the historical roots of the
automobile market in India, the first time a vehicle entered the road was in 1897.
Until 1930, India had no manufacturing facilities and automobile were Imported directly
from other countries. The historical decade in the manufacturing process was that of the
1940, in Indian companies such as Hindustan Motors and premier began manufacturing cars
from other firms. Hindustan Motors is one of the oldest Indian car manufacturers. It is best
known for the Ambassador which has been virtually unchanged for about 30 years. It is still
very popular as a taxi and is widely used by Indian politicians. Many people have come to
associate India with ambassador is a prominent part of the Indian.
While many developments contributed to the birth of the modern automobile, most
automotive Industry buffs and the library of congress credit German Investor Karl Benz with
creating the First modern automobile. The three-wheeled ‘Motorwagen, first created Benz in
1886, became the first production automobile. The first car that plied on Indian roads was as
early as 1897 and the first Indian to own a car in 1901 was Jamshedji Tata. It was
in 1942, before India's independence that Hindustan Motors manufactured the first
automobile in India. Before that, the cars were imported directly. (Aug 15, 2017)
The first car launched in the Indian market after 1940. During the same decade, Mahindra &
Mahindra also began to produce utility vehicles. Hindustan Motors is
the first automobile company in India.
Shortly after independence in 1947, the government of India tried to create an automotive
component manufacturing industry to complement the car fraternity. In 1953, an import
substitution programmed was lunched, and the import of fully built-up cars began to be
restricted. From 1960 to the 1980s, the Indian market was dominated by Hindustan Motors,
which accumulated a large amount of participation due to its ambassador model.
However, from 1950 to 1960, the industry grows at a slow rate due to the trade restrictions
imposed on imports. Shortly after this repressive phase, demand increased, but to a lesser
extent, what was observed mainly in the segment of tractors and commercial vehicles.
It was in the 1980s that the two firms, Hindustan Motors and Premier, were challenged by a
new participant, Maruti Udyog Limited. Shortly after the liberalization period, carmakers
who were previously not allowed to invest in the Indian market due to strict policies arrived
in the country.
Post liberalization, the alliance between Maruti and Suzuki was the first joint venture
between an Indian and a foreign company. Slowly and steadily, economic reforms brought
the entry of major foreign companies such as Hyundai and Honda, which expanded their
bases to the country.
Page 3 of 61
From 2000 to 2010, almost all major automotive companies expanded their presence in India
by establishing manufacturing facilities in different parts of the country.
As the manufacturing process in the early 2000s gained strength, car exports were quite slow
in that period. Maruti Suzuki was among the best-selling car brands and that began sending
vehicles to the main European markets.
During the same decade, the government of India introduced mandatory emission standards
to reduce the pollution produced by vehicles. The updated guidelines were known as ‘Bharat
Stage’ and came into force in the main cities since these standards were based on strict
European standards.
Currently, Bharat Stage IV is implemented in 13 cities including Delhi (NCR), Mumbai,
Calcutta, Chennai, Bangalore, Hyderabad, Ahmadabad, Pune, Surat, Kanpur, Lucknow,
Solapur, and Agra while the rest of the nation is still under Bharat Stage III.
Over the years, the automotive market in India has evolved by leaps and bounds, as almost all
large companies are present in the country. India has now become a center for car
manufacturers to install their plants to manufacture vehicles destined for national and
international markets.
The three prominent regions in which most of the Indian car industry is a concentrated area in
the south, west, and north. In the southern region, Chennai is the vehicle manufacturing
center, while the Mumbai and Pune belt ranks second. For the north, the NCR has a fair share
in the concentration of production facilities.
To list some commendable feats of the Indian auto industry, it emerged as the fourth largest
exporter of passenger cars behind Japan, South Korea, and Thailand in 2009. While in 2010,
India emulated its performance from the previous year to become the third-largest car
exporter of cars in Asia. The biggest reward came for the Indian car market in 2011 as it
became the sixth largest country in the world in terms of production.
Facts of India auto industry:
 The 2-wheeler contributes to 79.17% of the total automotive production in the country.
 Constant growth in demand due to the steady increase in income, the middle class, and a
young population.
 The Government of India takes initiatives to establish manufacturing plants through Make
in India.
 India has a large pool of skilled labor and a growing technological base.
 It has the 12th largest population in the world with a growth rate of 20.8%, which increases
the demand for luxury cars.
 By 2020, India’s participation in the global passenger vehicle market is expected to reach
8% of the current 2.4% registered in 2015.
The automobile sector today is one of the key sectors of the country contributing majorly to
the economy of India. It directly and indirectly provides employment to over 1.5 million
people
Page 4 of 61
in the country. A stable government framework, increased purchasing power, large domestic
market, and an ever-increasing development in infrastructure have made India a favourable
destination for investment. It is one of the largest sectors in the world, both in terms of sales
volume and production. The Indian automobile industry has a well established
name globally being the second largest two-wheeler market in the world, fourth largest
commercial vehicle market in the world, and eleventh largest passenger car market in the
world and expected to become the third largest automobile market in the world only behind
USA and China.
The automobile sector facilitates the improvement in various infrastructures like power, rail
and road transport. Due to its deep forward and backward linkages with several key
segments of the economy, the automobile industry is having a strong multiplier effect on the
growth of a country and hence is capable of being the driver of economic growth. It plays a
major catalytic role in developing transport sector in one hand and help industrial sector on
the other to grow faster and thereby generate a significant employment opportunity. In India,
automobile is one of the largest industries showing impressive growth over the years and has
been significantly making increasing contribution to overall industrial development in the
country.
The norms for foreign investment and import of technology have also been liberalized over
the years for manufacture of vehicles. At present, 100% foreign direct investment is
permissible under the automatic route in this sector, including passenger car segment. The
Indian automobile industry proved to be in good shape in the last year even after the
economic downturn. This was majorly due to the fact of renewed interest shown by global
automobile players like Nissan Motors which consider India to be a potential market. The
industry accounts for 7.1 per cent of the country's Gross Domestic Product. The Two
Wheelers segment with 80 per cent market share is the leader of the Indian Automobile
market owing to a growing middle class and a young population. Moreover, the growing
interest of the companies in exploring the rural markets further aided the growth of the sector.
The overall Passenger Vehicle (PV) segment has 14 per cent market share.
The report by CRISI (2013) says that automobile industry is expected to grow at an
increasing pace after looking at the past performances in years and also with the help of the
data analysis. But there are concerns arising due to the increasing prices of the fuels which
could hamper the growth and this presents the uncertainty. Automobile is anything that has an
engine and runs on wheels and facilitates travel on the road. Over the years, automobiles have
been used and evolved in order to help in road travel. It has helped people in reducing the
time and place utility and enabled thing that were once impossibility. Roads have the biggest
network than any kind of transportation and this is one reason why the use of automobiles for
road has been increasing. Indian stock market had witnessed the highest benchmark in 2008
but after that due to global crisis i.e., U.S. Market crash, FII started withdrawing the funds
which led the market crashed too historical low. In this study an attempt has been made to
study the performance of selected leading auto sector stocks in the Indian capital market since
year 2012 to year 2021 to find out the health and performance of Indian automobile sector.
Page 5 of 61
Industry Profile:
The automobile industry is an important driven of the economic growth in India and one of
the successful sectors in which the country has high participation in global value chains
(GVCs). The automobile industry is a key driven of macroeconomic growth and
technological advancement. India was the world’s fourth largest manufactures of cars and
seventh largest manufacturer of commercial vehicles and two wheelers in the world in 2019.
Indian automotive industry (including component manufacturing) is expected to reach Rs
16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Indian automobile industry received
Foreign Direct Investment (FDI) worth US$ 23.89 billion between December 2019 and April
2000. Five percent of total FDI inflow in India went to automobiles sector. Karnataka became
the first Indian state government to introduce an Electric Vehicle Policy. It has launched its
Electric vehicle and Energy Storage Policy in 2017.
The automotive industry includes two-wheeler, four- wheeler, passenger vehicle and
commercial vehicles. The automobile sector currently contributes about 50 per cent of the
manufacturing gross domestic product (GDP) in India, 26 percent of the Industry GDP and
7.1 percent of overall GDP, up from 2.7 percent in 1992-1993.
India’s annual production stood at 29.08 million vehicles (including passenger vehicles,
commercial vehicles, three wheelers and two wheelers) in FY18 as against 25.33 million in
FY17, registering a healthy growth of 14.8% over the same period last year. As of April
2018, India has about 120 vehicles (all segments including 19 cars per 1000) on every 1000
people, which is expected to rise to a rise to almost 300 vehicles in next 10 years for every
1000 people. Currently, 24.37 million automobiles are added every year and it is expected to
rise to 55.84 million by 2028, still much lesser than the global average vehicle penetration.
Domestic automobile production increased at 2.36 percent CAGR between FY16- FY20 with
26.36 million vehicles being manufactured in country in FY20. Overall, domestic
automobiles sales increased at 1.29 percent CAGR between FY16- FY20 with 21.55 million
vehicles being sold in FY20.
Two wheelers and passenger vehicles dominate the domestic Indian auto market. Passenger
car sales are dominated by small and mid-sized cars. Two wheelers and passenger cars
accounted for 80.8 percent and 12.9 percent market share, respectively, accounting for a
combined sale of over 20.1 million vehicles in FY20.
Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of
6.94 percent during FY16- FY20. Two wheelers made up 73.9 percent of the vehicle
exported, followed by passenger vehicles at 14.2 percent, three wheelers at 10.5 percent and
commercial vehicles at 1.3 percent.
The government aims to develop India as a global manufacturing and research and
development hub. It has set up National Automotive Testing and R&D infrastructure project
centres as well as National Automotive Bored to act as facilitators between the gov and the
industry. Electric vehicle sales, excluding e-rickshaws, in India witnessed a growth of 20
Page 6 of 61
percent and reached 1.56 lakh units in FY20 driven by two wheelers. The government of
India Expects automobile sector to attract US$ 8-10 billion in local and foreign investment by
2023.
The two wheelers segment leads the Indian Automobiles market with 80% market share
owing to a growing middle class and a young population. This is followed by the passenger
vehicle segment with 14% market share. India is also likely to benefit from low car
penetration, emerging demographic dividend, increasing urbanization, rising incomes levels
and consumption.
The top companies like Maruti Suzuki, Hyundai Motors, M&M, Tata motors, Ashok
Leyland, Hero Motocrop, HMSI, TVS, Bajaj Auto and Piaggio with their expensive dealing
networks, promotional, convenient customer services have played a key role in the growth
and development of the automobile industry in India. According to a new survey, 87% of
Indian drivers and Vehicle owners would by an electric vehicle that helped to reduced air
pollution, the outlook for the industry is very strong with India expected to become 3rd largest
automobile manufacturing country after China and USA by 2030.
India became the fourth largest auto market in 2018 with sales increasing 8.3 percent year on
year to 3.99 million units. Automobile exports grew 14.50 percent during FY19. It is
expected to grow at a CAGR of 3.05 percent during 2016-2026. In addition, several
initiatives by the government of India and the major automobile players in the Indian market
are expected to make India leader in the two-wheeler and four-wheeler market in the world
by 2020. The Indian automobile industry is the fourth largest in the world with an annual
turnover of $100 billion.
The sector contributes approximately 13 per cent of excise revenue to the government . The
total investment in this sector is around $40 billion in the last decade. The decade of 2001-
2010 saw a compounded annual sales growth of 15.67 per cent, which included 10 per cent
exports. The yearly growth of exports was 23 per cent from 2000 to 2015 due to constant
government
support. In 2018-19, 4.06 million cars were manufactured and at present around 32 million
cars run on Indian streets. The two-wheeler segment dominates the industry with a share of
80 per cent. In 2019-20, however, the sector faced troubles in maintaining sales and
profitability numbers on quarterly and even yearly basis. In August 2019, there was a 35.9
per cent drop in domestic sales for market leader Maruti Suzuki with 94,728 units being sold
due to subdued market confidence, slow economic growth and crisis in the non-banking
financial companies (NBFCs).
The March 2020 numbers show the effect of lockdown due to the COVID-19 pandemic. The
last month of any financial year is usually the peak period for inventory clearance for the
industry. Maruti Suzuki India saw its total domestic passenger vehicle sales fall 47.4 per cent
to 76,240 units in March 2020 compared with 145,000 units in March 2019. The export sales
were down almost 55 per cent to 4,712 units from 10,463 a year ago. With overall sales down
by 16 per cent, the company ended FY20 with a total sale of 1.563 million units, down from
1.862 million in the previous fiscal. Similarly, there was a 40 per cent decline in domestic
Page 7 of 61
sales of Hyundai Motor India to 26,300 units in March 2020. Similar trend was seen in
Mahindra
Page 8 of 61
and Mahindra's domestic passenger vehicle sales, which drastically plunged 88 per cent to
3,384 units in March 2020 from 27,637 units in March 2019.
The switch from Bharat Stage 4 (BS4) to Bharat Stage 6 (BS6) emission norms has also
added to the woes of the sector as BS6 was to be implemented from April 1, 2020. This
brought in long-term problems to the automobile industry from both manufacturing end to
sales point such as research and development, technological upgradation and closing down of
plants to stop piling up of old inventory. As new BS6 vehicles were few in the market and the
switch to BS6 saw the overall demand sales of BS4 vehicles drop, this led to an increase in
inventory of old (BS4) vehicles both in two-wheeler and four-wheeler segments.
Hence many automobile plants of leading players were closed for few days to halt
production, which led to loss of jobs of the contractual workforce. Macroeconomic issues that
added to this crisis include the decline in demand/consumption both from the rural and urban
markets, and a liquidity crunch in the financial markets. NBFCs have had an enormous
exposure to vehicle financing in the country, covering all segments. In July 2019, NBFCs
financed almost 70 per cent of new two-wheelers and 60 per cent of new commercial
vehicles sold in the country comprising of Infrastructure Leasing & Financial Services
(IL&FS) and Dewan Housing Finance Ltd (DHFL) which were leading NBFCs. When
IL&FS and DHFL went into financial distress, they transmitted this contagion from the
financial services sector to automobile sector dragging it down.
The Society of Indian Automobile Manufacturers (SIAM) in July 2019 wrote to the
government of India to take appropriate measures to promote flow of credit in the system to
facilitate new vehicle purchases. This was emphasized to improve liquidity specifically in the
NBFC sector lending that saw both monthly and quarterly basis downfall in sales and had
even led to closure of a few dealerships.
The reverse gear of the India auto industry came immediately after the government declared a
nationwide lockdown on March 22, 2020 to contain the spread of COVID-19. SIAM declared
that the plant closure of auto original equipment manufacturers and component manufacturers
will lead to a loss of INR 2,300 crore per day and a cumulatively three-week shut down of the
automotive industry will translate into a total revenue loss of INR 48,300 crore.
Supporting the lockdown, all automakers immediately temporarily closed down which
included Maruti Suzuki, Honda, Hyundai, Tata Motors, Mahindra and Mahindra, Toyota
Kirloskar Motors, Kia Motors and others. Even the two-wheeler manufacturers Hero
MotoCorp, Honda Motorcycle, Scooter India, TVS Motor Company, Bajaj Auto, Suzuki
Motorcycle and Yamaha have shut down manufacturing.
A minor support came on March 27, 2020, when the Federation of Automobile Dealers
Associations appealed to the Supreme Court to allow the sale of BS4 vehicle inventory which
has piled up amid the COVID-19 crisis. The Supreme Court gave an extension of ten days,
post the ongoing 21-day lockdown to sell the old inventory of BS4 vehicles with a caveat that
only
Page 9 of 61
10 per cent of the unsold BS4 inventory could be sold in India excluding Delhi-NCR region
where none can be sold. The unsold stock includes around 700,000 two-wheelers, 15,000
passenger cars and 12,000 commercial vehicles.
Let us hope that the Indian automobile industry, which had been accelerating for the last two
decades and has now gone into reverse gear, has seen the worst. But the present global
pandemic with the lockdown, job losses and declining demand casts a spell of gloom for the
industry in the near future. Automobile industry, the business of producing and selling self-
powered vehicles, including passenger cars, trucks, farm equipment, and other
commercial vehicles. The large number of people the industry employs has made it a key
determinant of economic growth.
Current Profile of the Industry:

AUTOMOBILES
Two – Wheelers Passenger Vehicles Commercial Vehicles Three-Wheelers
Mopeds Passenger cars Light commercial Passenger Carries

Vehicles
Scooter Utility Vehicles Goods Carries
Medium and
Main player in automobile
Motorcycles industry:
Multi-purpose Heavy
 Tata Motors: Commercial Commercial
Vehicles and passenger
Vehicles Vehicles.
Electric two –
 Maruti Suzuki: Passenger Vehicles. Vehicles
wheelers
 Hyundai Motor India: Passenger vehicles.
 Mahindra and Mahindra: Commercial vehicles, Passenger Vehicles, Three Wheelers,
two wheelers.
 Ashok Leyland: Commercial Vehicles.
 Hero Honda Motors: Two Wheelers.
 Bajaj auto: Two wheelers, Three Wheelers.
Page 10 of 61
Page 11 of 61
Market Size:
 Domestic automobiles production increased at 2.36% CAGR between FY16-20 with
26.36 million vehicles being manufactured in the country in FY20. Overall, domestic
automobiles sales increased at 1.29% CAGR between FY16-FY20 with 21.55 million
vehicles being sold in FY20.
 In FY21, the total passenger vehicles production reached 22,652,108.
 In May 2021, production of automobiles (passenger, three-wheeler, two-wheeler
vehicles and quadricycle) was 806,755 units.
 Two wheelers and passenger vehicles dominate the domestic Indian auto market.
Passenger car sales are dominated by small and mid-sized cars. Two wheelers and
passenger cars accounted for 80.8% and 12.9% market share, respectively, accounting
for a combined sale of over 20.1 million vehicles in FY20. Two-wheeler sales stood at
995,097 units, while passenger vehicle sales stood at 261,633 units in April 2021.
 Overall, automobile export reached 4.77 million vehicles in FY20, growing at a
CAGR of 6.94% during FY16-FY20. Two wheelers made up 73.9% of the vehicles
exported, followed by passenger vehicles at 14.2%, three wheelers at 10.5% and
commercial vehicles at 1.3%.
 EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and reached
1.56 lakh units in FY20 driven by two wheelers. According to NITI Aayog and Rocky
Mountain Institute (RMI) India's EV finance industry is likely to reach Rs. 3.7 lakh
crore (US$ 50 billion) in 2030. A report by India Energy Storage Alliance estimated
that EV market in India is likely to increase at a CAGR of 36% until 2026. In
addition, projection for EV battery market is forecast to expand at a CAGR of 30%
during the same period.
 Premium motorbike sales in India recorded seven-fold jump in domestic sales,
reaching 13,982 units during April-September 2019. The luxury car market is
expected to register sales of 28,000-33,000 units in 2021, up from 20,000-21,000
units sold in 2020. The entry of new manufacturers and new launches is likely to
propel this market in 2021.
Investments/ Developments:
In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted Foreign Direct Investment (FDI) worth US$ 25.85 billion between April 2000 and
March 2020, according to the data released by Department for Promotion of Industry and
Internal Trade (DPIIT). Some of the recent/planned investments and developments in the
automobile sector in India are as follows:
 In FY21, passenger vehicles sales reached 27.11 lakhs units, two-wheelers reached
151.19 lakhs units, commercial vehicles sales reached 5.69 lakhs units and for three-
wheelers it was 2.16 lakhs units.
Page 12 of 61
 In 2019-20, the total passenger vehicles sales reached ~2.8 million, while ~2.7 million
units were sold in FY21.
 In February 2021, the Delhi government started the process to set up 100 vehicle
battery charging points across the state to push adoption of electric vehicles.
 In January 2021, Fiat Chrysler Automobiles (FCA) announced an investment of US$
250 million to expand its local product line-up in India.
 A cumulative investment of ~Rs. 12.5 trillion (US$180 billion) in vehicle production
and charging infrastructure would be required until 2030 to meet India’s electric
vehicle (EV) ambitions.
 In January 2021, Lamborghini announced it is aiming to achieve sales in India higher
than the 2019-levels, after recovering from pandemic-induced disruptions.
 In January 2021, Tesla, the electric car maker, set up a R&D centre in Bengaluru and
registered its subsidiary as Tesla India Motors and Energy Private Limited.
 In November 2020, Mercedes Benz partnered with the State Bank of India to provide
attractive interest rates, while expanding customer base by reaching out to potential
HNI customers of the bank.
 Hyundai Motor India invested ~Rs. 3,500 crore (US$ 500 million) in FY20, with an
eye to gain the market share. This investment is a part of Rs. 7,000 crore (US$ 993
million) commitment made by the company to the Tamil Nadu government in 2019.
 In October 2020, Kinetic Green, an electric vehicles manufacturer, announced plan to
set up a manufacturing facility for electric golf carts besides a battery swapping unit
in Andhra Pradesh. The two projects involving setting up a manufacturing facility for
electric golf carts and a battery swapping unit will entail an investment of Rs. 1,750
crore (US$ 236.27 million).
 In October 2020, Japan Bank for International Cooperation (JBIC) agreed to provide
US$ 1 billion (Rs. 7,400 crore) to SBI (State Bank of India) for funding the
manufacturing and sales business of suppliers and dealers of Japanese automobile
manufacturers and providing auto loans for the purchase of Japanese automobiles in
India.
 In October 2020, MG Motors announced its interest in investing Rs. 1,000 crore (US$
135.3 million) to launch new models and expand operations in spite of the anti-China
sentiments.
 In October 2020, Ultraviolette Automotive, a manufacturer of electric motorcycle in
India, raised a disclosed amount in a series B investment from GoFrugal
Technologies, a software company.
 In September 2020, Toyota Kirloskar Motors announced investments of more than Rs
2,000 crore (US$ 272.81 million) in India directed towards electric components and
technology for domestic customers and exports.
 During early September 2020, Mahindra & Mahindra singed a MoU with Israel-based
REE Automotive to collaborate and develop commercial electric vehicles.
 In April 2020, TVS Motor Company bought UK’s iconic sporting motorcycle brand,
Norton, for a sum of about Rs. 153 crore (US$ 21.89 million), making its entry into
the top end (above 850cc) segment of the superbike market.
Page 13 of 61
 In March 2020, Lithium Urban Technologies partnered with renewable energy
solutions provider, Fourth Partner Energy, to build charging infrastructure across the
country.
 In January 2020, Tata Auto Comp Systems, the auto-components arm of Tata Group
entered a joint venture with Beijing-based Prestolite Electric to enter the electric
vehicle (EV) components market.
Government Initiatives:
The Government of India encourages foreign investment in the automobile sector and has
allowed 100% foreign direct investment (FDI) under the automatic route.
Some of the recent initiatives taken by the Government of India are -
 In Union Budget 2021-22, the government introduced the voluntary vehicle scrappage
policy, which is likely to boost demand for new vehicles after removing old unfit
vehicles currently plying on the Indian roads.
 In February 2021, the Delhi government started the process to set up 100 vehicle
battery charging points across the state to push adoption of electric vehicles.
 The Union Cabinet outlaid Rs. 57,042 crore (US$ 7.81 billion) for automobiles &
auto components sector in production-linked incentive (PLI) scheme under the
Department of Heavy Industries.
 The Government aims to develop India as a global manufacturing centre and a
Research and Development (R&D) hub.
 Under NAT Rip, the Government of India is planning to set up R&D centres at a total
cost of US$ 388.5 million to enable the industry to be on par with global standards.
 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the
country for introduction of EVs in their public transport systems under the FAME
(Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India)
scheme. The Government will also set up incubation centre for start-ups working in
the EVs space.
 In February 2019, the Government of India approved FAME-II scheme with a fund
requirement of Rs. 10,000 crore (US$ 1.39 billion) for FY20-22.
Page 14 of 61
Company Profile:
1. Tata motors:
Formerly known as Tata Engineering and Locomotive Company (TELCO), the company was
founded in 1945 as a manufacturer of locomotives. The company manufactured its first
commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1988 with the launch of the Tata
Mobile followed by the Tata Sierra in 1991, becoming the first Indian manufacturer to
achieve the capability of developing a competitive indigenous automobile. Tata Motors was
established in 1945 under the Tata Group. It is among the world’s leading manufacturers of
automobiles with around 81,090 employee strengths. It was the market leader in commercial
vehicles segment with about 45% market share in FY19. It is present in segments like cars
and utility vehicles, trucks and buses, and defence vehicles. The company has extended its
presence internationally through joint ventures (JV) like the strategic alliance with Fiat and
Marcopolo. Tata Motors is present in about 175 countries with research and development
(R&D) centres in UK, Italy, India and South Korea.
Tata Motors Group (Tata Motors) is a $44 billion organisation. It is a leading global
automobile manufacturing company. Its diverse portfolio includes an extensive range of cars,
sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is one of India's
largest OEMs offering an extensive range of integrated, smart and e-mobility solutions.
Page 15 of 61
2. Maruti Suzuki:
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an

Indian automobile manufacturer, based in New Delhi. It was founded in 1981 and owned by
the Government of India until 2003, when it was sold to Suzuki Motor Corporation. As of
July 2018, it had a market share of 53 percent in the Indian passenger car market.
The company was formed as a government company with Suzuki as a minor partner to make
a people's car for middle class India. Over the years the company's product range has
widened ownership has changed hands and the customer has evolved.
On October 2, 1982 the company signed the licence and joint venture agreement with Suzuki
Motor Corporation Japan. In the year 1983 the company started their productions and
launched Maruti 800. In the year 1984 they introduced Maruti Omni and during the next year
they launched Maruti Gypsy in the market. In the year 1987 the company forayed into the
foreign market by exporting first lot of 500 cars to Hungary.
In the year 1990 the company launched India's first three-box car Sedan. In the year 1992
Suzuki Motor Corporation Japan increased their stake in the company to 50%. In the year
1993 they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the
market. In the year 1995 the company commenced their second plant. In the year 1997 they
started Maruti Service Master as a model workshop in India to look after sales services. In the
year 1999 the third plant with new press paint and assembly shops became operational. In the
year 2000 the company launched Maruti Alto in the market. In the year 2002 Suzuki Motor
Corporation increased their stake in the company to 54.2%.
Page 16 of 61
3. Mahindra and Mahindra:
Mahindra & Mahindra Limited is an Indian multinational automotive manufacturing

corporation headquartered in Mumbai, Maharashtra, India. It was established in 1945 as
Muhammad & Mahindra and later renamed as Mahindra and Mahindra. It is one of the
largest vehicle manufacturers by production in India and the largest manufacturer of tractors
in the world. It is a part of the Mahindra Group, an Indian conglomerate. It was ranked 17th
on a list of top companies in India by Fortune India 500 in 2018.
Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947

to bring the iconic Willys Jeep onto Indian roads. Over the years, we’ve diversified into many
new businesses in order to better meet the needs of our customers. We follow a unique
business model of creating empowered companies that enjoy the best of entrepreneurial
independence and Group-wide synergies.
This principle has led our growth into a US $16.5 billion multinational group with more
than 180,000 employees in over 100 countries across the globe. Mahindra & Mahindra Ltd.
(M&M) engages in the automotive industry. The company offers cars, electric vehicles,
pickups, and commercial vehicles. The company has presence in countries like Australia,
Europe, Latin America, Malaysia, South Korea, and South Africa. M&M also provides
components, spares and services.
Page 17 of 61
4. Hero motor Corp:
With innovation at the core of its philosophy, the New Delhi (India) headquartered Hero
MotoCorp has been at the forefront of designing and developing technologically advanced
motorcycles and scooters for customers around the world. It became the world's largest two-
wheeler manufacturer in 2001, in terms of unit volume sales in a calendar year, and has
maintained the coveted title for the past 20 consecutive years. With over 100 million satisfied
customers across the globe, it continues to champion socio-economic progress and
empowerment through its range of products and services. Hero MotoCorp is the dominant
market leader in India – the world's largest two-wheeler market – with over 50% share in the
domestic motorcycle market.
Led by Dr Pawan Munjal, Chairman, Hero MotoCorp, it has taken rapid strides to expand its
presence to 40 countries across Asia, Africa, and South & Central America. Hero MotoCorp
is a truly global enterprise with a workforce that comprises of people from different
nationalities including India, Bangladesh, Colombia, Germany, Austria, Japan and France.
Hero MotoCorp Ltd is a motorcycle manufacturing company domiciled in India. The

company manufactures and distributes motorcycles, scooters, and related spare parts. Sales of
motorcycles comprise the largest contribution to consolidated revenue, followed by scooter
sales. While Hero MotoCorp derives the vast majority of revenue from domestic operations,
the company also has operations in Latin America, South Asia, Africa, and the Middle East.
Hero MotoCorp principally manufactures and assembles production domestically. Hero
MotoCorp Limited (formally Hero Honda Motors Limited) is the world’s largest
manufacturer of two-wheelers. It is present in South Asia, Africa, Middle East, and Latin
America. Hero MotoCorp was the first Indian two-wheeler company to establish a
manufacturing plant in Latin America. Its key products include two wheelers up to 350cc and
spare parts. The company has an objective to reach 50 global markets by 2020.
Page 18 of 61
5. Bajaj auto:
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches
over a wide range of industries, spanning automobiles (two wheelers manufacturer and
three wheelers manufacturer), home appliances, lighting, iron and steel, insurance, travel
and finance. The group's flagship company, Bajaj Auto, is ranked as the world's fourth
largest three and two-wheeler manufacturer and the Bajaj brand is well-known across
several countries in Latin America, Africa, Middle East, South and South East Asia.
Founded in 1926, at the height of India's movement for independence from the British,
the group has an illustrious history. The integrity, dedication, resourcefulness and
determination to succeed which are characteristic of the group today, are often traced
back to its birth during those days of relentless devotion to a common cause. Jamnalal
Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi.
In 2007, Bajaj Auto acquired a 14% stake in KTM that has since grown to 48%. This
partnership catalysed Bajaj Auto’s endeavour to democratise motorcycle racing in India.
Bajaj Auto today exclusively manufactures Duke range of KTM bikes and exports them
worldwide. In FY2018, KTM was the fastest growing motorcycle brand in the country.
Page 19 of 61
CHAPTER: 2. LITERATURE REVIEW
1. Ravichandran, M. & Subramanium (2018) the main idea behind this study is to assessment
of viability, stability and profitability of Force motors limited. Operating position of the
company can be measured by using various financial tools such as profitability ratio,
solvency ratio, comparative statement & graphs etc. This study finds that company has got
enough funds to meet its debts & liabilities. Company can further improve financial
performance by reducing the administrative, selling & operating expenses.
2. Jothi, K. & Geethalakshmi, A. (2017), this study tries to evaluate the profitability &
financial position of selected companies of Indian automobile industry using statistical tools
like, ratio analysis, mean, standard deviation, correlation. The study reveals the positive
relationship between profitability, short term and long-term capital.
3. Mathur, Shivam and Aggarwal, Krati (2016), the main idea this study is measure operating
position of the company by using various financial tools such as profitability ratio, solvency
ratio, comparative statement & graphs etc. This study finds that company has got enough
funds to meet its debts & liabilities.
4. Surekha B. & Krishnalah K. Rama (2015), this study reveals the prosperity of Tata motors
company. It can be concluded that inner strength of company is remarkable. Company can
further improve its profitability by optimum capital gearing, reduction in administration and
financial expenses for the growth of company.
5. Dharmaraj and Kathirvel (2013), the Indian Automobile Industry marked a new journey in
the 1991 with the financial revolutionary New Industrial Policy Act 1991, opening automatic
route which allowed the 100 per cent Foreign Direct Investment (FDI). Here, an attempt is
made to find out the effect of FDI on the financial performance of Indian Automobile
Industry. For this purpose, sixteen companies were selected and analysed through various
financial ratios. Descriptive statistical tools like Mean, Standard Deviation and Student’s
paired„t‟ Test were used to test the hypothesis.
6. Daniel A. Moses Joshunar (2013), the study has been conducted to identify the financial
strength and weakness of the Tata motors Ltd. using past 5-year financial statements. Trend
analysis & ratio analysis used to comment of financial status of company. Financial
performance of company is satisfactory and also suggested to increase the loan levels of
company for the better performance.
7. Ray Sarbapriya (2012), this study tries to evaluate the performance of Indian automobile
industry in terms of various financial indicators, sales trend, production trend, export trend
etc. for the period of 2003-04 to2009-10. The result suggests that the automobile industry has
been passing through turbulent phases characterized by enhanced debt burden, low utilization
of assets, and above all, huge liquidity crunch. The key to success in the industry is to
improve labour productivity, labour flexibility, and capital efficiency.
Page 20 of 61
8. Dharmaraj and Dr. N. Kathirvel (2013) analyse the financial performance of selected
Indian automobile companies and appreciate the increasing growth rate and the performance
it has shown in the recent past and says that the companies are strong financial and have a
good potential to grow in the future.
9. Sheela Christina (2017) carried out the study on Financial Performance of Wheels India
Limited-Chennai. The study deals with Analytical type of research design with the help of
and also checked out for the validity and reliability before conducting the study. The
researcher used the following financial tool namely ratio analysis, comparative balance sheet
and DuPont analysis and also statistical tools such as trend analysis and correlation.
Profitability ratios indicate there is a decrease in the profit level, utilization of fixed assets
and working capital in the last financial year. Thus, the company can take necessary steps to
improve sales and profit. Finally, the study reveals that the financial performance is
satisfactory.
10. Neha Mittal (2018) studies the determination of capital structure choice of the selected
Indian industries. The main objective is to investigate whether and to what extent the main
structure theories can explain the capital structure choice of Indian firms. It has applied
multiple regression models on the selected industries by taking data for the period 2009-2017.
It examines the relevance of capital structure in selected Indian industries based on a
regression analysis and data study. It concludes that the main variables determining capital
structure of industries in India are agency cost, asset’s structure, non-debt tax shield and size.
The coefficients of these variables are significant at one per cent and five per cent levels.
Page 21 of 61
CHAPTER: 3. RESEARCH METHODOLOGY
Research Problem Statement:
“A comparative study of performance of Indian Automobile Industry”
Objectives of the study:
 To study the financial performance of Tata motors, Maruti Suzuki, Mahindra &
Mahindra, Hero MotoCorp and Bajaj auto companies.
 To analyses the liquidity and solvency position of companies in automobile industry.
 To study and compare the profitability position of Tata motors, Maruti Suzuki,
Mahindra & Mahindra, Hero MotoCorp and Bajaj Auto.
 To measure financial efficiency and turnover of selected automobile companies.
 To analyse market position of the companies with help of using ratios.
Variables of the study:
 Shareholder’s equity
 Assets
 Liabilities
 Capital employed
 Return on asset
 Net sales
Scope of the study:
The study has conducted for five selected automobile companies (Tata motors, Maruti
Suzuki, Mahindra & Mahindra, Hero MotoCorp and Bajaj Auto) on the basis of their market
capitalization. The study has undertaken for a period of 10 years initiating from 2012 to 2021.
The purpose of the study is to analysis of profitability of selected Indian Automobile
Companies. The techniques of ratio analysis have used to compare the profitability of the
selected automobile companies in India. This present study is concerned with the financial
performance of selected automobile companies. Financial measures whether the company’s
strategy and its implementation and execution are effectively contributing towards
Profitability, Liquidity, Efficiency and Solvency so that the business can be carried out
smoothly ensuring success, growth and bottom-line improvement.
Research Design:
The project is mainly based on the descriptive research design which is used for comparative
study of Indian automobile industry through using the financial statement.
Page 22 of 61
Sample Unit:
The study of this project report is on the Indian automobile industry. In this project report,
there are five selecting sample units for the study which are Tata motors, Maruti Suzuki,
Mahindra & Mahindra, Hero MotoCorp and Bajaj Auto. These 5 sample units are selected on
the basis of their market capitalization.
Data collection:
The proposed study is entirely based on secondary data. The data has been compiled from
Annual Reports of the respective companies from the Internet. The necessary data has been
collected from money control.com, Yahoo Finance and the website of the respective
automobile companies.
Time span of data:
In this project study, I have collected the last 10 years secondary data from 2012 to 2021 in
the form of financial statement.
Tools used:
For analyzing the data to using the ratio analysis, hypothesis testing and anova test of each
selected company.
 The Ratio analysis is a widely used tool of financial analysis. The ratio analysis is
used to analyze and interpret the financial statement of the selected Indian automobile
companies. Here, the performance of companies has been analyzing through using the
liquidity ratio, efficiency ratio and profitability ratio. The ratio of each company is
also representing data through charts.
 The anova test is also used in this study which help to understand the how the
different companies are respond with help of hypothesis testing, what are different
significant effect of ratios across selected five company according last 10 years data.
Page 23 of 61
CHAPTER: 4. DATA ANALYSIS & INTERPREATATION
Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other payables.
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Current ratio
Companies 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Avg.
TATA Motors 0.66 0.62 0.68 0.7 0.68 0.68 0.81 0.86 0.73 0.74 0.72
Maruti Suzuki 0.42 0.39 0.36 0.28 0.32 0.39 0.47 0.54 0.7 0.97 0.49
Mahindra & 0.53 0.51 0.55 0.58 0.62 0.59 0.67 0.8 0.77 0.82 0.64
Mahindra
Hero MotoCorp 0.63 0.68 0.87 0.52 0.53 0.59 0.74 0.59 0.51 0.29 0.6
Bajaj Auto 0.76 0.674 0.81 0.67 0.55 0.75 0.77 0.62 0.70 0.99 0.73
Current ratio
1.2
1
0.8
0.6
0.4
0.2
0
2021202020192018201720162015201420132012Avg.
TATA Motors Maruti suzuki Mahindra & mahindra

Hero MotocorpBajaj Auto
Testing of Hypotheses
H0 = There is no significant difference in the Current Ratio of various Indian Automobile
Companies.
H1 = There is significant difference in the Current Ratio of various Indian Automobile
Companies.
Page 24 of 61
ANNOVA
Groups Count Sum Average Variance

TATA Motors 10 7.152538 0.715254 0.005157
Maruti Suzuki 10 4.850614 0.485061 0.043531
Mahindra & Mahindra 10 6.444158 0.644416 0.013346
Hero MotoCorp 10 5.953651 0.595365 0.024043
Bajaj Auto 10 7.331635 0.733163 0.014474
Source of Variation SS df MS F
Between Groups 0.402173 4 0.100543 4.999616
Within Groups 0.904958 45 0.02011
Total 1.307131 49
Level of Significance = 5% FCal = 4.999 FTab = 2.87 FCal > FTab
 In the above table, the value with 5 % level of significance is 0.00 < 0.05. So, we
reject the null hypothesis. Therefore, it can be said that there is a difference in the
Current ratio of selected Indian private banks.
Interpretation:
The Above table shows that the average current ratio of Bajaj auto is the highest among the
other selected Indian automobile companies followed by Maruti Suzuki, Mahindra and
Mahindra, Hero Moto Corp, Tata motors. it indicates that the net current assets of Bajaj auto
is higher as compared to the other selected Indian automobile companies if the average net
current asset of each company is compared with automobile industry average that is 0.64 it is
found that Mahindra and Mahindra, Tata motors, and Bajaj auto are doing better performance
whereas Maruti Suzuki and Hero Moto Corp are poor as compared to an automobile industry
average.
Quick Ratio:
The Quick Ratio, also known as the Acid-test or Liquidity ratio, measures the ability of a
business to pay its short-term liabilities by having assets that are readily convertible into cash.
These assets are, namely, cash, marketable securities, and accounts receivable. These assets
are known as “quick” assets since they can quickly be converted into cash.
Page 25 of 61
Quick ratio
Companies 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Avg.
TATA Motors 0.41 0.34 0.39 0.39 0.4 0.39 0.49 0.51 0.44 0.44 0.42
Maruti Suzuki 0.25 0.15 0.16 0.09 0.09 0.12 0.15 0.3 0.38 0.63 0.23
Mahindra & 0.35 0.29 0.33 0.36 0.35 0.31 0.37 0.47 0.42 0.45 0.37
Mahindra
Hero MotoCorp 0.4 0.42 0.64 0.35 0.38 0.4 0.49 0.36 0.29 0.1 0.38
Bajaj Auto 0.53 0.44 0.64 0.51 0.35 0.52 0.47 0.42 0.47 0.74 0.51
Quick Ratio
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
TATA Motors Maruti suzuki Mahindra & mahindra Hero Motocorp Bajaj Auto
H0 = There is no significant difference in the Quick Ratio of various Indian Automobile
Companies.
H1 = There is significant difference in the Quick Ratio of various Indian Automobile
Companies.
ANOVA

TATA Motors 10 4.199155 0.419915 0.002654
Maruti Suzuki 10 2.313247 0.231325 0.029251
Hero MotoCorp 10 3.837444 0.383744 0.018983
Bajaj Auto 10 5.092002 0.5092 0.01252
Page 26 of 61
Between Groups 0.404308 4 0.101077 7.545835
Within Groups 0.602779 45 0.013395
Total 1.007087 49
Level of Significance = 5% FCal = 7.55, FTab = 2.87 FCal > FTab
 In the given above table, the value with 5 % level of significance is 0.00 < 0.05. So,
we reject the null hypothesis. Therefore, it can be said that there is a difference in the
Quick ratio of these selected Indian Automobile companies.
Interpretation:
About table shows that the average quick ratio of Bajaj auto is the highest among the other
selected Indian automobile companies followed by Maruti Suzuki, Mahindra and Mahindra,
Hero Moto Corp, Tata motors. it indicates that the net quick assets of Bajaj auto is higher as
compared to the other selected Indian automobile companies. if the average net quick asset of
each company is compared with automobile industry average that is 0.38. it is found that Tata
motors, and Bajaj auto are doing better performance whereas Mahindra and Mahindra, Maruti
Suzuki and Hero Moto Corp are poor as compared to an automobile industry average.
Net Profit Ratio:
The net profit percentage is the ratio of after-tax profits to net sales. It reveals the
remaining profit after all costs of production, administration, and financing have been
deducted from sales, and income taxes recognized. As such, it is one of the best measures
of the overall results of a firm, especially when combined with an evaluation of how well
it is using its working capital. The measure is commonly reported on a trend line, to judge
performance over time. It is also used to compare the results of a business with its
competitors.
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑅𝑎𝑡𝑖𝑜 = × 100
𝑁𝑒𝑡 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
Page 27 of 61
Net profit Ratio
Companies 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Avg.
TATA Motors -5.23 -4.24 -9.62 2.28 2.21 4 5.35 6.06 5.22 8.19 1.42
Maruti Suzuki 5.997 7.345 8.706 9.67 10.78 8.26 7.462 6.37 5.53 4.53 7.46
Mahindra & 0.72 -1.2 3.77 6.95 3.34 3.37 3.6 5.84 5.3 4.67 3.64
Mahindra
Hero MotoCorp 9.62 12.6 10.1 11.5 11.8 11 8.65 8.34 8.91 10.1 10.3
Bajaj Auto 16.4 16.35 15.08 15.6 17.57 16.1 13.01 16 15.2 15.3 15.7
Net profit Ratio

20
15
10
0
1 2 3 4 5 6 7 8 9 10
-5
-10
-15
H0 = There is no significant difference in the net profit Ratio of various Indian Automobile
companies.
H1 = There is significant difference in the net profit ratio of various Indian Automobile
companies.
Page 28 of 61
ANOVA
TATA Motors 10 14.22084 1.422084 33.71376
Maruti Suzuki 10 74.63991 7.463991 3.750757
Hero MotoCorp 10 102.5462 10.25462 2.05648
Bajaj Auto 10 156.5912 15.65912 1.414826
Between Groups 1258.398 4 314.5994 33.69461
Within Groups 420.1554 45 9.336787
Total 1678.553 49
 In the above given table, the value with 5 % level of significance is 0.00 < 0.05. So,
net profit ratio of selected Indian Automobile companies.
Interpretation:
About table shows that the average net profit margin ratio of Bajaj auto is the highest among
the other selected Indian automobile companies followed by Maruti Suzuki, Mahindra and
Mahindra, Hero Moto Corp, Tata motors. it indicates that the net profit of Bajaj auto is higher
as compared to the other selected Indian automobile companies. if the average net profit of
each company is compared with automobile industry average that is 7.70. it is found that
Hero MotoCorp and Bajaj auto are doing better performance whereas Mahindra and
Mahindra, Maruti Suzuki and Tata motors are poor as compared to an automobile industry
average.
Operating Profit Ratio:
Operating profit ratio establishes a relationship between operating Profit earned and net
revenue generated from operations (net sales). operating profit ratio is a type of profitability
ratio which is expressed as a percentage.
Net sales include both Cash and Credit Sales, on the other hand, Operating Profit is the net
operating profit i.e., the Operating Profit before interest and taxes. Operating Profit ratio
helps to find out Operating Profit earned in comparison to revenue earned from operations.
Page 29 of 61
Operating profit Ratio
Companies 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Avg.
TATA Motors 12.9 6.89 8.17 11.7 11 14.9 14.9 15 13 13.5 12.2
Maruti Suzuki 7.6 9.67 12.8 15.1 15.2 25.2 13.5 11.7 9.77 7 12.8
Mahindra & 18.4 17.5 14.5 14.4 12.8 18.3 12.2 13.7 13.3 12.4 14.7
Mahindra
Hero MotoCorp 13 13.7 14.7 16.4 16.3 15.5 12.8 14 13.8 15.3 14.6
Bajaj Auto 17.8 17 17.1 19.2 20.3 25.4 19 20.6 18.4 18.9 19.4
Operating profit Ratio

30
25
20
15
10
1 2 3 4 5 6 7 8 9 10
H0= There is no significant difference in the operating profit Ratio of various Indian
Automobile companies.
H1 = There is significant difference in the operating profit ratio of various Indian Automobile
companies.
Page 30 of 61
ANOVA
TATA Motors 10 121.9134 12.19134 7.91335
Maruti Suzuki 10 127.5262 12.75262 27.3552
Hero MotoCorp 10 145.633 14.5633 1.624096
Bajaj Auto 10 193.7328 19.37328 5.999964
Between Groups 319.4283 4 79.85706 8.194075
Within Groups 438.5569 45 9.745709
Total 757.9851 49
Operating profit ratio of selected Indian Automobile companies.
Interpretation:
About table shows that the average operating profit ratio of Bajaj auto is the highest among
the other selected Indian automobile companies followed by Maruti Suzuki, Mahindra and
Mahindra, Hero Moto Corp, Tata motors. it indicates that the the net revenue from operations
of Bajaj auto is higher as compared to the other selected Indian automobile companies. if the
average net revenue from operations of each company is compared with automobile industry
average that is 14.74. it is found that Bajaj auto is doing better performance whereas Hero
MotoCorp, Mahindra and Mahindra, Maruti Suzuki and Tata motors are poor as compared to
an automobile industry average.
Return on capital employed:
Return on capital employed (ROCE) is a financial ratio that can be used in assessing a
company's profitability and capital efficiency. In other words, this ratio can help to
understand how well a company is generating profits from its capital as it is put to use. The
ROCE ratio is one of several profitability ratios financial managers, stakeholders, and
potential investors may use when analysing a company for investment.
Return on Capital Employed (ROCE), a profitability ratio, measures how efficiently a
company is using its capital to generate profits. The return on capital employed metric is
considered one
Page 31 of 61
of the best profitability ratios and is commonly used by investors to determine whether a
company is suitable to invest in or not.
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑏𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 & 𝑡𝑎𝑥

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟′𝑠 𝐸𝑞𝑢𝑖𝑡𝑦 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
Return on capital employed
Companies 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Avg.
TATA Motors 1.22 0.6 1.36 0.97 4.19 1.41 1.14 0.83 2.59 1.91 1.62
Maruti Suzuki 0.15 0.2 0.35 0.47 0.44 0.86 0.41 0.32 0.3 0.22 0.37
Mahindra & 0.24 0.22 0.32 0.27 0.25 0.49 0.26 0.32 0.37 0.36 0.31
Mahindra
Hero MotoCorp 0.47 0.4 0.6 0.76 0.82 1.16 1.05 1.31 1.36 2.01 0.99
Bajaj Auto 0.23 0.3 0.29 0.3 0.31 0.55 0.49 0.58 0.68 1.08 0.48
Return on capital employed

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
1 2 3 4 5 6 7 8 9 10
H0= There is no significant difference in the Return on capital employed of various Indian
H1 = There is significant difference in the Return on capital employed of various Indian
Page 32 of 61
ANOVA

TATA Motors 10 16.21596 1.621596 1.134949
Maruti Suzuki 10 3.722787 0.372279 0.040224
Hero MotoCorp 10 9.944763 0.994476 0.239874
Bajaj Auto 10 4.827853 0.482785 0.067868
Between Groups 12.25913 4 3.064782 10.2894
Within Groups 13.40362 45 0.297858
Total 25.66275 49
Return on Capital Employed of selected Indian Automobile companies.
Interpretation:
About table shows that the average return on capital employed ratio of Tata motors is the
highest among the other selected Indian automobile companies followed by Maruti Suzuki,
Mahindra and Mahindra, Hero Moto Corp, Bajaj auto. it indicates that the net earnings before
interest and tax of Tata motors is higher as compared to the other selected Indian automobile
companies. if the average net earnings before interest and tax of each company is compared
with automobile industry average that is 0.75. it is found that Hero MotoCorp and Tata
motors are doing better performance whereas Mahindra and Mahindra, Maruti Suzuki and
Bajaj auto are poor as compared to an automobile industry average.
Net Worth Ratio:
The net worth ratio states the return that shareholders could receive on their investment in a
company, if all of the profit earned were to be passed through directly to them. The ratio is
useful as a measure of how well a company is utilizing the shareholder investment to create
returns for them, and can be used for comparison purposes with competitors in the same
industry. Return on net worth indicates the profitability of the company by providing the
picture of how much return it earns on its capital. It shows whether or not the company is
efficient enough to grow its net worth every year for the future growth potential of the
company. Higher
Page 33 of 61
ratio indicates that the company is utilising the money of the shareholders in an efficient
manner. On the other hand, a lower ratio indicates that the company is not using the money
efficiently. It is not investing the cash in a good opportunity.
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ 𝑅𝑎𝑡𝑖𝑜 =
𝑁𝑒𝑡 𝑤𝑜𝑟𝑡ℎ
Return on net worth

Companies 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Avg.
TATA Motors 4.13 4.22 4.5 3.18 4.69 3.59 4.74 3.59 5.11 5.08 4.28
Maruti Suzuki 1.39 1.6 1.88 1.92 1.91 2.17 2.14 2.11 2.37 2.36 1.99
Mahindra & 1.73 1.78 2.69 2.59 2.86 3.07 2.8 3.22 3.5 3.65 2.79
Mahindra
Hero MotoCorp 2.07 2.15 2.67 2.78 2.86 3.65 4.27 4.59 4.82 5.6 3.55
Bajaj Auto 1.07 1.45 1.38 1.29 1.29 1.77 1.98 2.05 2.58 3.31 1.82
Return on net worth

6
1
1 2 3 4 5 6 7 8 9 10
0
H0= There is no significant difference in the Return on Net Worth of various Indian
H1 = There is significant difference in the Return on Net Worth of various Indian Automobile
companies.
Page 34 of 61
ANOVA
TATA Motors 10 42.84048 4.284048 0.439631
Maruti Suzuki 10 19.86087 1.986087 0.098723
Hero MotoCorp 10 35.48148 3.548148 1.489309
Bajaj Auto 10 18.17633 1.817633 0.482614
Between Groups 43.53183 4 10.88296 18.62042
Within Groups 26.30086 45 0.584464
Total 69.83269 49
Return on Net Worth of selected Indian Automobile companies.
Interpretation:
About table shows that the average net worth ratio of Tata motors is the highest among the
Mahindra, Hero Moto Corp, Bajaj auto. it indicates that the net income of Bajaj auto is higher
as compared to the other selected Indian automobile companies. if the average net income of
each company is compared with automobile industry average that is 2.87. it is found that
Hero MotoCorp and Tata motors are doing better performance whereas Mahindra and
Mahindra, Maruti Suzuki and Bajaj auto are poor as compared to an automobile industry
average.
Asset Turnover Ratio:
The asset turnover ratio measures the value of a company's sales or revenues relative to the
value of its assets. The asset turnover ratio can be used as an indicator of the efficiency with
which a company is using its assets to generate revenue. The higher the asset turnover ratio,
the more efficient a company is at generating revenue from its assets. Conversely, if a
company has a low asset turnover ratio, it indicates it is not efficiently using its assets to
generate sales.
Page 35 of 61
𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠
𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 = 𝐵𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝐴𝑠𝑠𝑒𝑡+𝐸𝑛𝑑𝑖𝑛𝑔 𝐴𝑠𝑠𝑒𝑡
2
Asset Turnover Ratio

Companies 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Avg.
TATA Motors 1.46 1.6 1.99 1.69 2.03 1.96 2.09 1.92 2.31 2.3 1.94
Maruti Suzuki 1.33 1.53 1.82 1.87 1.81 2.12 2.06 1.9 2.15 2.13 1.87
Mahindra & 0.67 0.68 1.02 1.02 1.1 1.28 1.17 1.29 1.42 1.48 1.11
Mahindra
Hero MotoCorp 2.03 2.04 2.62 2.74 2.82 3.9 4.22 4.51 4.48 4.45 3.38
Bajaj Auto 1.02 1.38 1.31 1.23 1.22 1.7 1.93 1.97 2.46 3.16 1.74
Asset Turnover Ratio

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
1 2 3 4 5 6 7 8 9 10
H0= There is no significant difference in the Total Asset turnover ratio of various Indian
H1 = There is significant difference in the Total Asset turnover ratio of various Indian
Page 36 of 61
ANOVA
TATA Motors 10 19.35087 1.935087 0.079179
Maruti Suzuki 10 18.7198 1.87198 0.073683
Hero MotoCorp 10 33.79365 3.379365 1.059267
Bajaj Auto 10 17.37511 1.737511 0.442027
Between Groups 27.77079 4 6.942698 20.06535
Within Groups 15.57019 45 0.346004
Total 43.34099 49
Level of Significance = 5% FCal =20.07, FTab = 2.87 FCal > FTab
Total Asset Turnover Ratio of selected Indian Automobile companies.
Interpretation:
About table shows that the average asset turnover ratio of Hero MotoCorp is the highest
among the other selected Indian automobile companies followed by Maruti Suzuki, Mahindra
and Mahindra, Tata motors, Bajaj auto. it indicates that the total sales of Hero MotoCorp is
higher as compared to the other selected Indian automobile companies. if the average total
sales of each company is compared with automobile industry average that is 2. it is found that
Hero MotoCorp is doing better performance whereas Tata motors, Mahindra and Mahindra,
Maruti Suzuki and Bajaj auto are poor as compared to an automobile industry average.
Proprietary Ratio:
The proprietary ratio (also known as the equity ratio) is the proportion of shareholders'
equity to total assets, and as such provides a rough estimate of the amount of capitalization
currently used to support a business. The word “Proprietors” is a synonym for “owners of a
business”, proprietors’ fund, in this case, would only be the funds which belong to the
owners/shareholders of the business. Proprietors’ funds are also known as Owners’ funds,
Shareholders’ funds, Net Worth, etc.
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟′𝑠 𝐸𝑞𝑢𝑖𝑡𝑦
𝑃𝑟𝑜𝑝𝑟𝑖𝑒𝑡𝑎𝑟𝑦 𝑅𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
Page 37 of 61
Proprietary Ratio
Companies 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Avg.
TATA Motors 0.32 0.38 0.4 0.55 0.44 0.56 0.45 0.54 0.46 0.46 0.46
Maruti Suzuki 0.99 1 1 1 0.99 1 0.99 0.92 0.92 0.93 0.97
Mahindra & 0.38 0.36 0.39 0.41 0.39 0.42 0.42 0.41 0.41 0.42 0.4
Mahindra
Hero MotoCorp 1 0.999 0.999 1 1 1.082 1 1 0.943 0.809 0.98
Bajaj Auto 1 1 1 1 1 1 0.99 0.99 0.99 0.98 1
Proprietary Ratio
1.2
0.8
0.6
0.4
0.2
0
1 2 3 4 5 6 7 8 9 10
H0 = There is no significant difference in the proprietary ratio of various Indian Automobile
companies.
H1 = There is significant difference in the proprietary ratio of various Indian Automobile
companies.
Page 38 of 61
ANOVA
TATA Motors 10 4.550664 0.455066 0.006023
Maruti Suzuki 10 9.71945 0.971945 0.001167
Hero MotoCorp 10 9.831691 0.983169 0.004846
Bajaj Auto 10 9.952471 0.995247 4.94E-05
Source of Variation SS Df MS F
Between Groups 3.727278 4 0.931819 372.6284
Within Groups 0.11253 45 0.002501
Total 3.839808 49
 In the above table, the value with 5 % level of significance is 0.00 < 0.05. So, we
reject the null hypothesis. Therefore, it can be said that there is a difference in the
Proprietary ratio of selected Indian Automobile companies.
Interpretation:
About table shows that the average proprietary ratio of Bajaj auto is the highest among the
Mahindra, Hero Moto Corp, Tata motors. it indicates that the shareholders equity of Bajaj
auto is higher as compared to the other selected Indian automobile companies. if the average
shareholders’ equity of each company is compared with automobile industry average that is
0.76. it is found that Maruti Suzuki, Hero MotoCorp and Bajaj auto are doing better
performance whereas Mahindra and Mahindra and Tata motors are poor as compared to an
automobile industry average.
Page 39 of 61
CHAPTER: 5. FINDINGS & CONCLUSION
Findings:
In this project report, I have studied the performance of selected five companies of Indian
Automobile industry, which are based on liquidity, efficiency and profitability position of the
companies.
 For the liquidity ratio, I found that current ratio and quick ratio of all the five selected
companies and also found the ANOVA test which shows that F-value is more than the
significance level i.e., 0.05. Therefore, I reject the null hypothesis, which states that
there is a significance difference between liquidity position of the companies.
 For the profitability ratio, I found that Net profit ratio, Operating profit ratio, Return
on Capital Employed, Return on Net Worth of all the five selected companies and
also found the ANOVA test which shows that F-value is more than the significance
level i.e., 0.05. Therefore, I reject the null hypothesis, which states that there is a
significance difference between profitability position of the companies.
 In the efficiency ratio, I found that Asset turnover ratio of all the five selected
companies and also found the ANOVA test which shows that F-value is more than the
significance level i.e., 0.05. Therefore, I reject the null hypothesis, which states that
there is a significance difference between profitability position of the companies.
 In the part of solvency ratio, I also found that proprietary ratio of all the selected
companies and also found out the ANOVA test of this ratio which shows that the F-
value is more than the significance level i.e., 0.05. therefore, I reject the null
hypothesis, which states that there is a significance difference between leverage
position of the companies.
Conclusion:
Indian automobile has a lot of scope for two wheelers, three wheelers and four wheelers due
to development in infrastructure of the country. In this project report, the Ratio analysis helps
to compare the financial statements of the companies and comparison of financial
performance based on liquidity, efficiency, profitability and leveraged position of companies
also investigated over a period of time.
The proprietary ratio of Bajaj Auto and Hero MotoCorp is high than the other companies,
which indicates the financial health or the financial position of the company is good, which
means the larger portion of total capital is comes from the equity rather than borrowed fund.
The Efficiency Ratios of Hero MotoCorp is high rank among other Automobile companies.
This shows that Hero MotoCorp effectively manages its resources and assets.
The profitability ratio of the Tata Motors and Hero MotoCorp is higher than other automobile
companies. It shows Hero MotoCorp and Tata motors earned high profit and it is good for the
company.
Page 40 of 61
So that, on the basis of various ratio it can say that the Bajaj Auto and Mahindra & Mahindra
gives the satisfactory result but the Tata Motors and Hero MotoCorp sustains the good
position in the market, so the shareholders can invest their shares daringly in this companies,
which gives the wholesome return to them and their shares will be safe and secured in this
companies.
The Government aims to develop India as a global manufacturing and research and
development (R&D) hub in automobile sector. Bharat stage emission standards (BS-6) are
given by government of India to regulate the output of air pollutants from vehicles and
making improvement in fuel efficiency, emission control and engine design. As a part of the
Atmanirbhar Bharat scheme, the automotive and related ancillary sector is included in the
production-linked incentive (PLI) scheme. The government should provide financing options,
reduce GST on raw materials, reduce duties on lithium-ion cell batteries. These measures
could boost the sales of electric vehicles, which helps to boosts the economy of the country.
The pollution levels are kept in check, a vehicle scrappage policy has been introduced. Under
the new policy, vehicles that are more than 20 years old will need to undergo a fitness check.
Vehicles that do not pass the test will need to be scrapped.
Page 41 of 61
BIBLIOGRAPHY:
 Becker, D. (2013). The Indian Automobile Industry. KPMG
 A. Dharmaraj, D. N. (2013). Analyzing the performance of selected Indian

Automobile Companies. Global Research Analysis, Vol. 2.
 Pandey, I.M. 2010, „Financial Management‟, Ninth Edition, Vikas Publishing, House
Pvt. Ltd.
 Pillai, R.S. N. and Bahavathi, „Management Accounting‟, (New Delhi: S. Chand and
Company Ltd).
 https://www.bajajauto.com
 https://www.tatamotors.com
 https://www.marutisuzuki.com
 https://www.heromotocorp.com
 https://www.companieshistory.com/mahindra-mahindra/
 https://www.ibef.org
 https://www.moneycontrol.com
 https://www.investopedia.com
 https://www.accountingtools.com
 https://www.en.wikipedia.org
 https://www.indiabudget.gov.in/
Page 42 of 61
APPENDIX:
Profit and loss account
Tata Motors
Consolidated Profit & Loss
account ------------------- in Rs. Cr. -------------------
Mar '21 Mar '20 Mar '19 Mar '18 Mar '17
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 249,794.75 261,067.97 301,938.40 295,409.34 274,492.12
Excise Duty 0.00 0.00 0.00 790.16 4,799.61
Net Sales 249,794.75 261,067.97 301,938.40 294,619.18 269,692.51
Other Income -17,014.64 7,534.46 -28,855.33 6,773.13 -4,700.04
Stock Adjustments -4,684.16 -2,231.19 -2,053.28 2,046.58 7,399.92
Total Income 228,095.95 266,371.24 271,029.79 303,438.89 272,392.39
Expenditure
Raw Materials 154,886.41 166,400.53 196,712.06 190,107.14 175,713.19
Power & Fuel Cost 1,112.87 1,264.95 1,585.93 1,308.08 1,159.82
Employee Cost 27,648.48 30,438.60 33,243.87 30,300.09 28,332.89
Other Manufacturing Expenses 5,226.63 4,188.49 4,224.57 3,531.87 3,413.57
Selling and Admin Expenses 4,384.63 7,614.24 8,729.63 8,968.59 8,698.68
Miscellaneous Expenses 19,564.14 30,942.90 30,724.73 27,923.61 30,185.59
Total Expenses 212,823.16 240,849.71 275,220.79 262,139.38 247,503.74
Operating Profit 32,287.43 17,987.07 24,664.33 34,526.38 29,588.69
PBDIT 15,272.79 25,521.53 -4,191.00 41,299.51 24,888.65
Interest 8,097.17 7,243.33 5,758.60 4,681.79 4,238.01
PBDT 7,175.62 18,278.20 -9,949.60 36,617.72 20,650.64
Depreciation 23,546.71 21,425.43 23,590.63 21,553.59 17,904.99
Profit Before Tax -16,371.09 -3,147.23 -33,540.23 15,064.13 2,745.65
PBT (Post Extra-ord Items) -16,371.09 -3,147.23 -33,540.23 15,064.13 2,745.65
Tax 2,541.86 395.25 -2,437.45 4,341.93 3,251.23
Reported Net Profit -13,072.43 -11,070.85 -29,035.73 6,710.65 5,961.36
Share Of P/L Of Associates 378.96 1,000.00 -209.50 -2,278.26 -1,493.00
Net P/L After Minority Interest & Share 365.92 -9,103.79 927.36 7,116.22 6,442.00
Of Associates
Total Value Addition 57,936.75 74,449.18 78,508.73 72,032.24 71,790.55
Per share data (annualised)
Shares in issue (lakhs) 38,288.11 35,974.77 33,958.51 33,958.51 33,958.51
Earning Per Share (Rs) -34.14 -30.77 -85.50 19.76 17.55
Book Value (Rs) 144.29 172.93 177.21 281.01 170.98
Page 43 of 61
------------------- in Rs. Cr. -------------------
account
Income
Sales Turnover 277,660.59 266,345.25 236,626.43 193,583.95 170,677.58
Excise Duty 0.00 3,548.92 3,792.77 4,766.32 5,023.09
Net Sales 277,660.59 262,796.33 232,833.66 188,817.63 165,654.49
Other Income 2,796.36 714.03 -156.79 208.82 -169.77
Stock Adjustments 2,750.99 3,330.35 2,840.58 3,031.43 2,535.72
Total Income 283,207.94 266,840.71 235,517.45 192,057.88 168,020.44
Expenditure
Raw Materials 168,230.20 165,033.30 148,109.33 124,746.40 113,220.54
Power & Fuel Cost 1,143.63 1,121.75 1,128.69 1,069.06 1,017.19
Employee Cost 28,880.89 25,548.96 21,556.42 16,584.05 12,298.45
Other Manufacturing Expenses 3,468.77 2,875.17 2,565.21 2,021.59 1,389.23
Total Expenses 239,105.96 226,888.03 200,836.54 167,301.76 145,878.97
PBDIT 44,101.98 39,952.68 34,680.91 24,756.12 22,141.47
Interest 4,889.08 4,861.49 4,733.78 3,553.34 2,982.22
PBDT 39,212.90 35,091.19 29,947.13 21,202.78 19,159.25
Depreciation 16,710.78 13,388.63 11,078.16 7,569.30 5,625.38
Profit Before Tax 22,502.12 21,702.56 18,868.97 13,633.48 13,533.87
PBT (Post Extra-ord Items) 22,502.12 21,702.56 18,868.97 13,633.48 13,533.87
Tax 3,025.05 7,642.91 4,764.79 3,770.99 -40.04
Reported Net Profit 11,100.72 14,059.65 14,104.18 9,862.49 13,573.91
Minority Interest 0.00 86.78 59.45 83.67 82.33
Share Of P/L Of Associates -577.47 -13.42 53.71 -113.79 -24.92
Net P/L After Minority Interest & 18,143.53 14,171.00 14,976.40 10,495.32 14,348.04
Share Of Associates

Preference Dividend 0.00 2.27 0.00 0.00 0.00
Equity Dividend 0.00 0.00 648.56 645.20 1,280.70
Corporate Dividend Tax 0.00 60.21 117.21 110.94 207.92
Earning Per Share (Rs) 32.69 43.67 43.82 30.92 42.77
Book Value (Rs) 232.51 174.73 203.75 117.86 104.16
Page 44 of 61
Balance sheet
Tata Motors
Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------
Sources Of Funds
Total Share Capital 765.81 719.54 679.22 679.22 679.22
Equity Share Capital 765.81 719.54 679.22 679.22 679.22
Share Application Money 0.00 867.50 0.00 0.00 0.00
Reserves 54,480.91 61,491.49 59,500.34 94,748.69 57,382.67
Networth 55,246.72 63,078.53 60,179.56 95,427.91 58,061.89
Secured Loans 114,775.56 99,678.15 90,967.76 13,031.09 12,632.54
Unsecured Loans 0.00 0.00 0.00 64,963.26 61,856.58
Total Debt 114,775.56 99,678.15 90,967.76 77,994.35 74,489.12
Minority Interest 1,573.49 813.56 523.06 525.06 453.17
Total Liabilities 171,595.77 163,570.24 151,670.38 173,947.32 133,004.18
Application Of Funds
Gross Block 238,239.09 213,582.59 183,285.64 176,022.48 139,200.70
Less: Accum. Depreciation 99,531.48 86,475.45 72,051.17 54,608.62 43,256.62
Net Block 138,707.61 127,107.14 111,234.47 121,413.86 95,944.08
Capital Work in Progress 20,963.93 35,622.29 31,883.84 40,033.50 33,698.84
Investments 24,620.28 16,308.48 15,770.72 20,812.75 20,337.92
Inventories 36,088.59 37,456.88 39,013.73 42,137.63 35,085.31
Sundry Debtors 12,679.08 11,172.69 18,996.17 19,893.30 14,075.55
Cash and Bank Balance 46,792.46 33,726.97 32,648.82 34,613.91 36,077.88
Total Current Assets 95,560.13 82,356.54 90,658.72 96,644.84 85,238.74
Loans and Advances 63,273.85 60,726.81 57,646.78 52,445.56 38,534.78
Total CA, Loans & Advances 158,833.98 143,083.35 148,305.50 149,090.40 123,773.52
Current Liabilities 145,075.24 133,485.29 133,472.55 138,501.25 125,937.96
Provisions 26,454.79 25,065.73 22,051.60 18,901.94 14,812.22
Total CL & Provisions 171,530.03 158,551.02 155,524.15 157,403.19 140,750.18
Net Current Assets -12,696.05 -15,467.67 -7,218.65 -8,312.79 -16,976.66
Total Assets 171,595.77 163,570.24 151,670.38 173,947.32 133,004.18
Contingent Liabilities 0.00 15,590.75 17,148.64 15,431.46 24,214.53
Book Value (Rs) 144.29 172.93 177.21 281.01 170.98
Page 45 of 61
Sources Of Funds
Reserves 78,273.23 55,595.27 64,936.80 36,959.63 32,422.28
Net worth 78,952.41 56,239.05 65,580.58 37,597.70 33,057.03
Secured Loans 11,377.11 14,728.81 14,608.75 16,981.04 15,774.04
Unsecured Loans 50,584.06 54,482.67 40,345.72 26,741.24 22,930.03
Total Debt 61,961.17 69,211.48 54,954.47 43,722.28 38,704.07
Gross Block 145,722.77 144,447.00 123,773.39 98,046.05 87,926.36
Less: Revaluation Reserves 0.00 22.87 22.87 39.60 92.90
Net Block 107,231.76 88,456.62 69,068.80 55,128.68 44,267.51
Investments 23,767.02 15,336.74 10,686.67 9,057.72 8,917.71
Inventories 32,655.73 29,272.34 27,270.89 20,969.01 18,216.02
Sundry Debtors 13,570.91 12,579.20 10,574.23 10,942.66 8,236.84
Provisions 13,735.52 21,170.27 20,160.97 16,071.74 12,841.76
Net Current Assets -15,571.30 -6,549.58 7,937.67 -913.64 2,937.18
Total Assets 141,346.42 125,883.87 120,955.70 81,690.46 72,068.23
Contingent Liabilities 43,504.88 22,345.82 28,191.10 21,360.25 23,479.60
Book Value (Rs) 232.51 174.73 203.75 117.86 104.16
Page 46 of 61
Maruti Suzuki India
Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------

Income
Sales Turnover 70,372.00 75,660.00 86,068.50 82,041.10 77,316.40
Excise Duty 0.00 0.00 0.00 2,231.70 9,231.40
Net Sales 70,372.00 75,660.00 86,068.50 79,809.40 68,085.00
Other Income 2,977.10 3,282.60 2,533.20 2,032.60 2,279.60
Stock Adjustments -273.60 238.70 -211.60 -40.80 379.30
Total Income 73,075.50 79,181.30 88,390.10 81,801.20 70,743.90
Expenditure
Raw Materials 50,717.90 53,572.80 60,261.60 55,181.50 47,345.60
Power & Fuel Cost 476.60 699.50 863.30 673.40 518.60
Employee Cost 3,431.60 3,416.20 3,285.00 2,863.40 2,360.30
Selling and Admin Expenses 561.00 670.30 733.80 868.60 832.40
Total Expenses 64,746.80 68,586.10 74,853.70 67,705.20 58,106.20
PBDIT 8,328.70 10,595.20 13,536.40 14,096.00 12,637.70
Interest 101.80 134.20 75.90 345.80 89.40
PBDT 8,226.90 10,461.00 13,460.50 13,750.20 12,548.30
Depreciation 3,034.10 3,528.40 3,020.80 2,759.80 2,603.90
Tax 931.90 1,425.20 2,973.20 3,286.20 2,616.20
Share Of P/L Of Associates -169.00 -118.40 -155.70 -163.30 -172.80
Share Of Associates

Equity Dividend 1,812.50 2,416.60 2,416.60 2,265.60 1,057.30
Earnings Per Share (Rs) 139.70 183.98 248.06 255.45 242.89
Book Value (Rs) 1,737.97 1,635.76 1,558.93 1,408.88 1,227.
Page 47 of 61
------------------- in Rs. Cr. -------------------
account
Income
Sales Turnover 65,105.50 56,052.30 49,709.30 49,885.50 40,049.60
Excise Duty 0.00 5,250.90 5,258.70 5,581.10 3,959.70
Net Sales 65,105.50 50,801.40 44,450.60 44,304.40 36,089.90
Other Income 1,474.40 865.00 830.50 830.10 844.30
Stock Adjustments -4.80 460.90 -20.40 -19.20 133.30
Total Income 66,575.10 52,127.30 45,260.70 45,115.30 37,067.50
Expenditure
Raw Materials 38,915.20 36,255.60 31,997.30 33,218.00 28,736.30
Power & Fuel Cost 694.10 713.80 595.70 495.10 229.50
Employee Cost 2,000.30 1,671.00 1,423.70 1,120.20 877.90
Total Expenses 48,695.50 44,418.20 39,226.40 39,956.80 33,698.10
PBDIT 17,879.60 7,709.10 6,034.30 5,158.50 3,369.40
Interest 81.70 217.80 184.50 198.70 61.60
PBDT 17,797.90 7,491.30 5,849.80 4,959.80 3,307.80
Depreciation 2,821.80 2,515.30 2,116.00 1,889.70 1,162.70
Tax 2,087.50 1,185.40 902.20 621.50 511.50
Share Of Associates

Equity Dividend 755.20 755.20 362.50 241.70 216.70
Book Value (Rs) 1,013.51 805.03 711.61 629.89 542.54
Page 48 of 61
Balance sheet
Maruti Suzuki India

Sources Of Funds
Reserves 52,349.60 49,262.00 46,941.10 42,408.40 36,924.10
Networth 52,500.60 49,413.00 47,092.10 42,559.40 37,075.10
Secured Loans 491.60 111.70 157.60 0.00 0.00
Unsecured Loans 0.00 0.00 0.00 120.80 483.60
Total Debt 491.60 111.70 157.60 120.80 483.60
Gross Block 30,753.20 29,167.20 25,909.20 21,130.00 18,464.40
Net Block 14,988.70 15,744.40 15,437.30 13,388.80 13,310.70
Investments 42,944.80 37,488.00 37,503.60 36,123.10 29,150.60
Inventories 3,049.00 3,213.90 3,322.60 3,160.20 3,263.70
Sundry Debtors 1,279.90 1,977.70 2,312.80 1,465.40 1,202.60
Cash and Bank Balance 3,047.10 29.00 187.80 74.00 23.50
Provisions 787.50 732.30 664.90 587.40 471.70
Net Current Assets -6,438.10 -5,103.70 -7,280.50 -8,947.70 -6,139.50
Total Assets 52,992.20 49,543.90 47,267.30 42,696.30 37,574.10
Book Value (Rs) 1,737.97 1,635.76 1,558.93 1,408.88 1,227.33
Page 49 of 61
Sources Of Funds
Reserves 30,465.00 24,167.40 21,345.40 18,876.80 15,530.00
Networth 30,616.00 24,318.40 21,496.40 19,027.80 15,674.50
Unsecured Loans 77.40 330.80 1,865.30 1,568.80 1,262.20

Total Debt 77.40 330.80 1,865.30 1,568.80 1,262.20
Gross Block 15,221.30 26,515.30 22,837.20 19,985.10 14,998.90
Net Block 12,529.60 12,489.50 11,033.70 10,021.70 7,745.50
Capital Work in Progress 1,006.90 1,890.10 2,639.50 1,967.90 612.20
Investments 20,675.80 13,297.70 10,527.10 7,421.40 6,545.00
Inventories 3,132.60 2,674.40 1,763.20 1,887.20 1,837.80

Sundry Debtors 1,323.40 1,144.30 1,489.10 1,489.20 1,006.60
Cash and Bank Balance 50.70 43.20 648.60 814.80 2,463.40
Provisions 414.20 1,652.30 873.40 867.80 692.90
Net Current Assets -3,504.50 -3,014.70 -826.40 1,196.20 2,034.00
Total Assets 30,707.80 24,662.60 23,373.90 20,607.20 16,936.70
Book Value (Rs) 1,013.51 805.03 711.61 629.89 542.54
Page 50 of 61
Mahindra and Mahindra

Income
Sales Turnover 74,277.78 75,381.93 104,720.68 93,264.77 88,983.03
Excise Duty 0.00 0.00 0.00 1,170.82 5,209.98
Net Sales 74,277.78 75,381.93 104,720.68 92,093.95 83,773.05
Other Income -2,295.98 -3,218.52 1,187.83 3,358.38 1,343.30
Stock Adjustments -135.59 -826.62 1,730.48 -83.33 13.83
Total Income 71,846.21 71,336.79 107,638.99 95,369.00 85,130.18
Expenditure
Raw Materials 38,500.67 37,859.44 62,484.03 53,822.77 50,944.00
Power & Fuel Cost 429.56 530.92 817.11 733.90 657.06
Employee Cost 7,813.26 8,214.82 11,563.89 10,004.62 8,910.63
Selling and Admin Expenses 356.82 940.56 1,015.85 905.06 723.40
Total Expenses 60,465.64 61,363.74 91,244.65 78,784.52 73,052.05
PBDIT 11,380.57 9,973.05 16,394.34 16,584.48 12,078.13
Interest 6,102.22 6,021.15 5,021.35 3,987.09 3,648.46
PBDT 5,278.35 3,951.90 11,372.99 12,597.39 8,429.67
Depreciation 3,378.11 3,366.68 3,990.77 3,279.90 2,812.72
Profit Before Tax 1,900.24 585.22 7,382.22 9,317.49 5,616.95
PBT (Post Extra-ord Items) 1,900.24 585.22 7,382.22 9,317.49 5,616.95
Tax 1,645.81 1,975.61 2,853.99 2,367.73 2,299.73
Reported Net Profit 535.83 -900.24 3,948.94 6,403.13 2,798.64
Share Of P/L Of Associates -1,276.66 -1,027.28 -1,366.52 -1,107.26 -899.40
Share Of Associates

Equity Dividend 262.16 1,135.09 937.46 847.97 773.67
Earning Per Share (Rs) 4.83 -8.12 36.30 56.19 49.16
Book Value (Rs) 372.22 358.16 367.52 322.72 522.40
Page 51 of 61
Income
Sales Turnover 80,461.87 75,489.82 78,230.63 74,014.05 63,011.79
Excise Duty 0.00 3,541.23 4,229.70 5,278.39 3,612.85
Net Sales 80,461.87 71,948.59 74,000.93 68,735.66 59,398.94
Other Income 498.13 799.93 822.94 841.44 406.77
Stock Adjustments 458.51 -274.13 238.97 220.36 1,169.74
Total Income 81,418.51 72,474.39 75,062.84 69,797.46 60,975.45
Expenditure
Raw Materials 45,904.25 42,982.35 45,593.78 42,531.00 37,079.92
Power & Fuel Cost 639.97 786.96 923.38 936.88 865.82
Employee Cost 7,689.40 7,146.55 6,885.94 6,819.07 6,590.87
Total Expenses 66,217.49 62,881.17 64,119.74 59,840.23 53,190.69
PBDIT 15,201.02 9,593.22 10,943.10 9,957.23 7,784.76
Interest 3,367.59 3,156.69 2,953.93 2,297.00 1,799.57
PBDT 11,833.43 6,436.53 7,989.17 7,660.23 5,985.19
Depreciation 2,441.65 2,123.83 2,169.57 2,079.86 1,801.67
Tax 2,117.53 1,720.02 1,496.22 1,934.63 1,407.56
Minority Interest 0.00 243.91 486.87 29.95 -66.74
Share Of Associates

Equity Dividend 774.64 745.31 862.25 798.17 767.48
Book Value (Rs) 465.39 416.08 378.20 324.88 271.83
Page 52 of 61
Balance sheet
Mahindra and Mahindra

Sources Of Funds
Employee Stock Opiton 254.88 264.96 0.00 0.00 0.00
Reserves 40,771.89 39,150.07 39,439.45 36,232.06 29,467.10
Networth 41,581.92 39,969.31 39,983.41 36,775.19 29,737.99
Secured Loans 59,553.15 62,515.58 54,067.18 30,802.63 25,998.29
Unsecured Loans 0.00 0.00 0.00 14,332.09 14,247.87
Total Debt 59,553.15 62,515.58 54,067.18 45,134.72 40,246.16
Minority Interest 9,070.31 7,691.74 8,360.57 8,250.47 6,356.90
Gross Block 38,567.87 62,891.06 58,175.88 53,440.06 20,989.01
Less: Accum. Depreciation 17,188.19 33,201.79 29,193.14 27,258.16 0.00
Net Block 21,379.68 29,689.27 28,982.74 26,181.90 20,989.01
Investments 28,777.66 19,210.34 18,268.10 16,017.61 14,662.44
Inventories 9,615.41 11,111.86 12,200.16 9,335.57 8,886.01
Sundry Debtors 6,007.76 6,928.28 9,290.51 8,489.82 7,199.26
Provisions 2,675.22 6,135.67 5,717.09 5,180.94 4,722.95
Net Current Assets 52,175.43 54,420.54 50,400.48 43,691.40 36,410.66
Total Assets 110,205.38 110,176.63 102,411.16 90,160.38 76,341.05
Book Value (Rs) 372.22 358.16 367.52 322.72 522.40
Page 53 of 61
Sources Of Funds
Reserves 26,222.25 25,547.01 22,998.03 19,651.55 16,394.94
Networth 26,492.65 25,842.71 23,293.19 19,946.71 16,689.46
Secured Loans 20,580.71 17,592.77 19,326.24 16,848.99 13,687.30
Unsecured Loans 10,095.19 11,911.70 8,946.16 6,379.75 5,247.42
Total Debt 30,675.90 29,504.47 28,272.40 23,228.74 18,934.72
Minority Interest 5,920.20 5,892.23 5,733.10 5,296.97 4,525.16
Gross Block 43,376.32 40,393.35 38,010.48 36,663.93 33,765.58
Less: Revaluation Reserves 0.00 13.67 13.67 13.99 14.35
Net Block 20,584.71 19,033.07 18,367.29 18,293.35 17,183.92
Investments 11,602.58 10,027.14 8,082.35 6,440.41 5,347.21
Inventories 9,116.12 8,453.39 8,353.54 8,416.90 7,157.67
Sundry Debtors 5,817.60 5,476.16 5,725.42 5,176.97 5,345.06
Provisions 4,479.63 5,653.66 5,088.66 4,283.33 4,175.49
Net Current Assets 28,530.11 29,147.06 28,658.00 22,107.46 16,129.92
Total Assets 63,088.75 61,239.41 57,298.69 48,472.42 40,149.34
Book Value (Rs) 465.39 416.08 378.20 324.88 271.83
Page 54 of 61
Hero MotoCorp
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Income
Sales Turnover 30,800.62 28,836.09 33,650.54 32,871.82 30,871.59
Excise Duty 0.00 0.00 0.00 641.33 2,371.13
Net Sales 30,800.62 28,836.09 33,650.54 32,230.49 28,500.46
Other Income 558.79 1,423.93 673.44 521.11 508.35
Stock Adjustments 143.46 169.78 28.38 23.15 -63.17
Total Income 31,502.87 30,429.80 34,352.36 32,774.75 28,945.64
Expenditure
Raw Materials 21,987.26 19,958.41 23,456.40 21,966.25 19,064.85
Power & Fuel Cost 12.91 132.22 157.48 138.77 112.62
Employee Cost 1,898.72 1,841.70 1,730.24 1,540.13 1,396.01
Total Expenses 26,924.84 25,047.91 28,748.83 26,973.45 23,802.48
PBDIT 4,578.03 5,381.89 5,603.53 5,801.30 5,143.16
Interest 21.84 22.02 8.60 6.25 6.05
PBDT 4,556.19 5,359.87 5,594.93 5,795.05 5,137.11
Depreciation 676.87 817.96 602.01 555.60 492.73
Tax 936.18 940.43 1,625.86 1,546.80 1,281.34
Equity Dividend 1,897.81 1,937.44 1,897.35 1,697.50 1,737.34
Equity Dividend (%) 5,250.00 4,500.00 4,350.00 4,750.00 4,250.00
Book Value (Rs) 759.80 706.97 643.25 589.29 506.33
Page 55 of 61
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Income
Sales Turnover 30,857.48 29,302.94 27,155.82 25,659.91 25,235.02
Excise Duty 2,258.18 1,717.64 1,880.35 1,891.80 1,655.99
Net Sales 28,599.30 27,585.30 25,275.47 23,768.11 23,579.03
Other Income 391.12 337.70 446.38 398.38 364.57
Stock Adjustments 6.82 29.97 -8.36 -32.80 83.84
Total Income 28,997.24 27,952.97 25,713.49 24,133.69 24,027.44
Expenditure
Raw Materials 19,424.80 19,890.84 18,320.46 17,470.73 17,467.69
Power & Fuel Cost 122.13 158.47 137.46 129.18 112.66
Employee Cost 1,319.56 1,172.87 930.04 820.92 735.52
Total Expenses 24,159.11 24,073.09 21,727.05 20,450.83 20,044.09
PBDIT 4,838.13 3,879.88 3,986.44 3,682.86 3,983.35
Interest 2.15 11.09 11.82 11.91 21.30
PBDT 4,835.98 3,868.79 3,974.62 3,670.95 3,962.05
Depreciation 441.40 539.97 1,107.37 1,141.75 1,097.34
Tax 1,262.21 943.18 758.17 411.04 486.58
Equity Dividend 1,437.75 1,198.12 1,299.13 1,198.13 898.59
Equity Dividend (%) 3,600.00 3,000.00 3,250.00 3,000.00 2,250.00
Book Value (Rs) 397.85 327.58 280.43 250.70 214.83
Page 56 of 61
Balance sheet
Hero MotoCorp
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Sources Of Funds
Share Application Money 19.04 15.44 9.59 0.00 0.00
Reserves 15,139.43 14,081.01 12,807.58 11,728.94 10,071.35
Networth 15,198.43 14,136.40 12,857.12 11,768.88 10,111.29

Gross Block 10,519.84 10,101.96 7,994.83 7,573.79 6,857.99
Net Block 5,988.41 6,117.08 4,618.58 4,654.54 4,395.59
Capital Work in Progress 436.59 341.27 541.86 318.39 465.05
Investments 10,499.67 8,222.65 5,968.61 7,525.20 5,889.85
Inventories 1,469.55 1,091.97 1,072.37 823.58 656.31
Sundry Debtors 2,426.76 1,603.14 2,821.57 1,520.18 1,561.87
Cash and Bank Balance 257.15 241.86 136.46 141.34 136.73

Provisions 332.83 268.93 176.23 174.73 114.31
Net Current Assets -1,726.24 -544.60 1,728.07 -729.25 -639.20
Total Assets 15,198.43 14,136.40 12,857.12 11,768.88 10,111.29
Contingent Liabilities 248.55 249.43 821.50 437.86 480.68
Book Value (Rs) 759.80 706.97 643.25 589.29 506.33
Page 57 of 61
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Sources Of Funds
Reserves 7,904.81 6,501.39 5,559.93 4,966.30 4,249.89
Networth 7,944.75 6,541.33 5,599.87 5,006.24 4,289.83
Secured Loans 0.00 0.00 0.00 302.16 1,011.39
Total Debt 0.00 0.00 0.00 302.16 1,011.39
Gross Block 5,926.16 4,697.98 3,761.52 4,427.29 4,980.69
Net Block 3,836.74 2,912.69 2,243.25 3,070.98 3,785.51
Investments 4,266.37 3,154.11 4,088.77 3,623.83 3,964.26
Inventories 672.98 815.49 669.55 636.76 675.57
Sundry Debtors 1,282.80 1,389.59 920.58 665.00 272.31

Provisions 883.19 799.68 1,594.31 1,439.86 1,090.07
Net Current Assets -763.76 -238.02 -1,586.26 -1,448.50 -2,487.39
Total Assets 7,339.35 6,541.33 5,599.87 5,308.40 5,301.22
Contingent Liabilities 650.44 816.42 487.63 502.00 252.62
Book Value (Rs) 397.85 327.58 280.43 250.70 214.83
Page 58 of 61
Bajaj Auto

Income
Sales Turnover 27,741.08 29,918.65 30,357.63 25,617.27 23,088.03
Excise Duty 0.00 0.00 0.00 398.34 1,321.35
Net Sales 27,741.08 29,918.65 30,357.63 25,218.93 21,766.68
Other Income 1,276.46 1,491.38 1,682.93 1,112.27 1,209.19
Stock Adjustments 219.48 63.01 56.42 -9.68 43.68
Total Income 29,237.02 31,473.04 32,096.98 26,321.52 23,019.55
Expenditure
Raw Materials 19,829.13 21,576.84 22,343.31 17,787.30 15,027.31
Power & Fuel Cost 0.00 116.57 115.01 100.26 96.46
Employee Cost 1,288.10 1,390.81 1,256.89 1,069.48 997.39
Miscellaneous Expenses 1,918.65 1,313.53 1,066.11 979.17 874.49
Total Expenses 23,035.88 24,886.02 25,224.54 20,373.60 17,390.97
PBDIT 6,201.14 6,587.02 6,872.44 5,947.92 5,628.58
Interest 6.66 3.16 4.48 1.31 1.40
PBDT 6,194.48 6,583.86 6,867.96 5,946.61 5,627.18
Depreciation 259.37 246.43 265.69 314.80 307.29
Tax 1,384.41 1,480.22 2,027.98 1,714.47 1,508.07
Net P/L After Minority Interest & Share 4,857.02 5,211.91 4,585.60 4,250.94 4,079.48
Of Associates

Equity Dividend 0.00 5,208.60 1,736.20 1,591.52 144.68
Corporate Dividend Tax 0.00 1,049.33 337.49 296.50 29.45
Book Value (Rs) 942.51 748.60 802.92 705.86 617.09
Page 59 of 61
Income
Sales Turnover 23,883.20 22,523.55 21,167.69 21,170.90 19,594.65
Excise Duty 0.00 909.28 1,009.40 1,128.91 0.00
Net Sales 23,883.20 21,614.27 20,158.29 20,041.99 19,594.65
Other Income 983.72 243.66 681.81 797.13 469.39
Stock Adjustments -63.45 56.46 12.57 0.00 85.65
Total Income 24,803.47 21,914.39 20,852.67 20,839.12 20,149.69
Expenditure
Raw Materials 15,434.59 15,352.38 14,289.56 14,781.00 14,596.76
Power & Fuel Cost 120.66 114.80 106.37 121.57 102.09
Employee Cost 917.12 898.48 731.76 649.93 550.18
Miscellaneous Expenses 835.41 1,191.83 887.97 811.46 721.30
Total Expenses 17,741.99 17,557.49 16,015.66 16,363.96 15,970.33
PBDIT 7,061.48 4,356.90 4,837.01 4,475.16 4,179.36
Interest 1.05 6.49 0.82 1.19 22.79
PBDT 7,060.43 4,350.41 4,836.19 4,473.97 4,156.57
Depreciation 307.16 267.46 181.32 165.01 146.73
Tax 1,617.65 1,271.05 1,420.47 1,228.52 1,019.66
Minority Interest 0.00 -0.01 -0.36 -0.17 -0.14
Share Of Associates

Equity Dividend 2,893.68 1,446.84 1,446.84 1,302.15 1,302.15
Book Value (Rs) 484.52 383.43 351.36 278.72 210.17
Page 60 of 61
Balance sheet
Bajaj Auto

Sources Of Funds
Reserves 26,984.06 21,372.71 22,944.44 20,135.87 17,567.20
Networth 27,273.43 21,662.08 23,233.81 20,425.24 17,856.57
Gross Block 1,683.53 4,118.27 4,271.60 4,506.25 4,502.46
Less: Accum. Depreciation 0.00 2,419.25 2,507.66 2,627.92 2,500.67
Net Block 1,683.53 1,699.02 1,763.94 1,878.33 2,001.79
Investments 24,686.65 19,913.58 20,602.85 18,894.57 15,477.04
Inventories 1,493.89 1,063.50 961.51 742.58 728.38
Sundry Debtors 2,716.85 1,725.10 2,559.69 1,491.87 953.29
Provisions 154.35 238.47 155.18 237.79 199.06
Net Current Assets 903.26 -10.70 819.01 -404.11 335.60
Total Assets 27,273.44 21,662.09 23,233.82 20,425.26 17,856.60
Book Value (Rs) 942.51 748.60 802.92 705.86 617.09
Page 61 of 61
Sources Of Funds
Reserves 13,730.94 10,805.95 9,877.89 7,775.93 5,792.35
Networth 14,020.31 11,095.32 10,167.26 8,065.30 6,081.72
Unsecured Loans 0.00 111.77 57.74 98.41 122.92
Total Debt 0.00 111.77 57.74 98.41 122.92
Gross Block 4,450.68 4,631.70 4,736.40 4,385.70 3,839.32
Net Block 2,086.10 2,448.03 2,659.62 2,355.41 1,920.03
Investments 11,006.80 8,985.25 8,447.77 6,058.92 4,472.78
Inventories 719.07 814.15 641.21 643.96 703.61
Sundry Debtors 717.93 716.96 796.21 734.33 401.93
Cash and Bank Balance 867.03 592.74 500.90 566.51 1,659.84
Provisions 160.52 1,992.01 1,973.93 1,744.02 2,176.20
Net Current Assets 875.21 -481.09 -1,026.39 -544.17 -229.65
Total Assets 14,020.35 11,207.13 10,225.06 8,163.71 6,204.81
Book Value (Rs) 484.52 383.43 351.36 278.72 210.17
Page 62 of 61

Automobile Industry Project

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Automobile Industry Project

Uploaded by

Copyright:

Available Formats

EXECUTIVE SUMMARY

A Brief History of the Automobile Industry in India:

Facts of India auto industry:

Current Profile of the Industry:

Two – Wheelers Passenger Vehicles Commercial Vehicles Three-Wheelers

Mopeds Passenger cars Light commercial Passenger Carries

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an

Mahindra & Mahindra Limited is an Indian multinational automotive manufacturing

Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947

Hero MotoCorp Ltd is a motorcycle manufacturing company domiciled in India. The

Research Problem Statement:

“A comparative study of performance of Indian Automobile Industry”

Objectives of the study:

Variables of the study:

Scope of the study:

Time span of data:

TATA Motors Maruti suzuki Mahindra & mahindra

Groups Count Sum Average Variance

Groups Count Sum Average Variance

Net Profit Ratio:

Net profit Ratio

Operating Profit Ratio:

Operating profit Ratio

Return on capital employed:

𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑏𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 & 𝑡𝑎𝑥

Return on capital employed

Return on capital employed

Groups Count Sum Average Variance

Level of Significance = 5% FCal = 10.29, FTab = 2.87 FCal > FTab

Net Worth Ratio:

Return on net worth

Return on net worth

Between Groups 43.53183 4 10.88296 18.62042

Within Groups 26.30086 45 0.584464

Level of Significance = 5% FCal = 18.62, FTab = 2.87 FCal > FTab

Asset Turnover Ratio:

Asset Turnover Ratio

Asset Turnover Ratio

Between Groups 27.77079 4 6.942698 20.06535

Within Groups 15.57019 45 0.346004

Level of Significance = 5% FCal =20.07, FTab = 2.87 FCal > FTab

Groups Count Sum Average Variance

TATA Motors 10 4.550664 0.455066 0.006023

Maruti Suzuki 10 9.71945 0.971945 0.001167

Mahindra & Mahindra 10 3.998853 0.399885 0.000418

Hero MotoCorp 10 9.831691 0.983169 0.004846

Bajaj Auto 10 9.952471 0.995247 4.94E-05

Between Groups 3.727278 4 0.931819 372.6284

Within Groups 0.11253 45 0.002501

Level of Significance = 5% FCal = 372.62 FTab = 2.87 FCal > FTab

 A. Dharmaraj, D. N. (2013). Analyzing the performance of selected Indian

Total Value Addition 70,875.76 61,854.73 52,727.21 42,555.36 32,658.43

Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------

Total Value Addition 14,028.90 15,013.30 14,592.10 12,523.70 10,760.60

Total Value Addition 9,780.30 8,162.60 7,229.10 6,738.80 4,961.80

Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------

Unsecured Loans 77.40 330.80 1,865.30 1,568.80 1,262.20

Inventories 3,132.60 2,674.40 1,763.20 1,887.20 1,837.80

Book Value (Rs) 1,013.51 805.03 711.61 629.89 542.54

Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------

Total Value Addition 21,964.97 23,504.30 28,760.62 24,961.75 22,108.05

Total Value Addition 20,313.24 19,898.82 18,525.96 17,309.23 16,110.77

Consolidated Balance Sheet ------------------- in Rs. Cr. -------------------