; Mahndra Satyam
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Mahndra Satyam

VIEWS: 12 PAGES: 32

  • pg 1
									 BIJU PATNAIK UNIVERSITY OF TECHNOLOGY
           A FINANCIAL PROJECT
                   ON
        PROFITABILITY OF
“MAHINDRA AND MAHINDRA LIMITED”.
                   Prepared by-
            ANIL KUMAR MOHANTY.
                Roll no-11MB002
              Regd no-1106287002

       Under the supervision and guidance of-
          Asst. Prof. Mr. Ajitav Acharya
                           .
            DEPARTMENT OF MBA

    GANDHI INSTITUTE FOR TECHNOLOGICAL
               ADVANCEMENT.

                         A
         Summer Internship Project Report
        Submitted in partial fulfillment of the
         Master of Business Administration
          Under BPUT, Rourkela, Orissa.
                      CERTIFICATE
          This is clearly that Mr.Anil Kumar Mohanty a student

of   department    business      administration,Gandhi   institute   for

technological     advancement,undertaken      the   project    entitled,

“Financial Statement Analysis of Mahindra”. He has undertaken

to present the project report.

     I also certify this report is originally and has not submitted for

the award or any such degree. It will not ever been submitted

anywhere.




Signature of the H.O.D.                        Signature of the Guide
Department of MBA                              Asst.Prof.Finance
                    DECLARATION

         I do hereby declare that the dissertation entitled “A
PROJECT ON “Financial Statement Analysis of Mahindra”.
Being submitted by me to the is my own prepared basing upon the
data and information gathered from various garments during
research period repaired under the guidance of Asst prof. finance
Mr. Ajitav Acharya, GITA.




PLACE                               Mr. Anil kumar mohanty

DATE:                               Roll no: 11mb002

                                    Semester Roll No: 1106287002
                 ACNOWLEDGEMENT


         On the eve of the publication of this project report on,
Profitability of “Financial Statement Analysis of Mahindra”.,”I
acknowledge support of some of any nears and dear’s who have
spent their valuable time piloting me in right direction to complete
this project successfully.
         I first express my deep sense of gratitude to Asst. Prof Mr.
Ajitav Acharya, who inspired me to take up this project work and
was my philosopher and guide all through.
        Last but not the least, I thank my parents and friends who
have always been beside and encouraged me in a very short span of
time.
        I also thank all the staff of internet sites who help’s me a lot
for preparing this project report.




                                         Mr. Anil Kumar mohanty
                  CONTENTS
Chapter 1: Introduction


Chapter 2: Company profile


Chapter 3: Owners profile


Chapter 4: Products


Chapter 5: Profitability, Income statements & Ratio Analysis


Chapter 6: Graphical presentations of profit


Chapter 7: Suggestions


Chapter 8: References
CHAPTER: 1

  Introduction
 Introduction
         Few groups can identify as closely with India's destiny and
industrial progress as the Mahindra Group. In fact, Mahindra is like a
microcosm of India. Both were born around the same time, had the
same aspirations and both experienced the inevitable troughs

and crests in the journey towards their goals. And both continue to march on the path to
progress and global recognition.

                             The birth of Mahindra & Mahindra began when K.C. Mahindra
                         visited the United States of America as Chairman of the India Supply
                         Mission. He met Barney Roos, inventor of the rugged 'general
                         purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a

vehicle that had proved its invincibility on the battlefields of World War II be ideal for India's
rugged terrain and its kutcha rural roads?

    Swift action followed this thought. The Mahindra brothers joined hands with a distinguished
gentleman called
    Ghulam Mohammed & on October 2nd, 1945, Mahindra & Mohammed was set up as a franchise
for
assembling Jeeps from Willys, USA.

      Two years later, India became an independent nation and Mahindra & Mohammed changed
its name to
 Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and became the
first
Finance Minister of Pakistan.

     Since then, Mahindra & Mahindra has grown steadily in size and stature and evolved into a
Groupthat
occupies a premier position in almost all key sectors of the economy. The Group's history is
studded
with milestones. Each one taking the Group forward. In fact, today, its total turnover is about 6.3
billion
dollars.

Mahindra is a group in a hurry, engaged in an ambitious, sustained and prolonged
penetration into the global arena. Its spirit can be encapsulated in the words of the poet
Robert Frost, a favourite of India's first Prime Minister, Pandit Jawaharlal Nehru:
"The woods are lovely, dark and deep, But I have promises to keep, And miles to go before
I sleep, And miles to go before I sleep." For Mahindra & Mahindra, this translates into
many more milestones to be set up before it rests.
             Company Background

Date of Establishment   1945

                        2905.42 ( USD in Millions )
Revenue

                        287163.7966031 ( Rs. in Millions )
Market Cap
                        Gateway Building,Apollo Bunder,Mumbai-
Corporate Address       400001, Maharashtra
                        www.mahindra.com
                        Chairperson - Keshub Mahindra
Management Details      MD - Anand G Mahindra
                        Directors - A K Nanda, A S Ganguly, Anand G
                        Mahindra, Anupam Puri, Arun Kanti Dasgupta,
                        Bharat Doshi, Deepak S Parekh, Keshub
                        Mahindra, M M Murugappan, Nadir B Godrej,
                        Narayan Shankar, Narayanan Vaghul, R K
                        Kulkarni

                        Automobiles-Tractors
Business Operation
Background              Mahindra & Mahindra was established on
                        October 2, 1945 when K.C. Mahindra visited
                        the United States of America as Chairman of
                        the India Supply Mission. He met Barney Roos,
                        inventor of the rugged 'general purpose vehicle'
                        or Jeep and had a flash of inspiration: wouldn't
                        a vehicle that had proved its invincibility on the
                        battlefields of World War II be ideal for India's
                        rugged terrain and its kutcha rura
Financials              Total Income - Rs. 134544.5 Million ( year
                        ending Mar 2010)
                        Net Profit - Rs. 8367.8 Million ( year ending
                        Mar 2010)
Company Secretary       Narayan Shankar
Bankers
Auditors                Deloittee Haskins & Sells
CHAPTER-2
 Company profile
COMPANY PROFILE
Mahindra & Mahindra was established on October 2, 1945 when K.C. Mahindra
visited the United States of America as Chairman of the India Supply Mission. He
met Barney Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had
a flash of inspiration: wouldn't a vehicle that had proved its invincibility on the
battlefields of World War II be ideal for India's rugged terrain and its kutcha rural
roads. Swift action followed thought. The Mahindra brothers joined hands with a
distinguished gentleman called Ghulam Mohammed. And, Mahindra & Mohammed
was set up as a franchise for assembling jeeps from Willys, USA.
Two years later, India became an independent nation and Mahindra & Mohammed
changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to
Pakistan post-partition and became the first Finance Minister of Pakistan.
Mahindra & Mahindra is the only Indian company among the top three tractor
manufacturers in the world. The Group has a leading presence in key sectors of the
Indian economy.The Group employs over 50,000 people and has several state-of-
the-art facilities in India and overseas.
Mahindra & Mahindra has comprehensive manufacturing facilities with high level of
vertical integration. Catering to the Sector's diverse customer base spanning rural
and semi urban customers, defence requirements and luxurious urban utility
vehicles or SUVs. These manufacturing plants keep abreast with the latest
technology to meet the growing market expectations. These manufacturing facilities
have some of the best technologies and equipment in India and provide for a very
challenging and satisfying work environment. Its plants in Mumbai and Nasik
manufacture multi-utility vehicles and engines are produced at the Igatpuri plant.
Utility Vehicles, Light commercial vehicles and 3 wheelers are manufactured at the
Zaheerabad plant in Andhra Pradesh and three-wheelers at the Haridwar plant.
The business area of the company spreads to:
Automotive sector
The company manufactures & markets utility vechicles, light commercial vechicles
that includes three wheeler vechicles,namely; Scorpio, Bolero, Champion and many
more. The company also exports its products to several countries in Europe, Africa,
South America, South Asia and the Middle East. M&M has a tie up with Renault for
production & marketing of Logan. Mahindra International is into producing trucks
and buses.The company has entered into a joint venture with Navistar for
production of disel engines & trucks.
Farm equipment
M&M's farm equipment segment has presence in six continents and has a
worldwide network of 800 dealers .Its total combined production capacity is
1,50,000 tractors a year from countries like India, USA, China and Australia. The
company is also into agri business.
Trade, Retail & Finance
Mahindra’s Intertrade Division provides steel & steel related services. It offers steel
raw materials, metals, ferro alloys, etc. It also processes Cold Rolled Grain
Oriented (CRGO) and Cold Rolled Non Grain Oriented (CRNGO) steels that are
required for transformers & compressors.Mahindra Retails is into distribution
business and has tie up with big names like Lego, Disney, Mattel and others.
Mahindra Finance is into financing of tractors and other vehicles and is also into
Insurance broking.

Infrastructure

M&M has also entered Infrastructure development that operates in real estates,
SEZs, hospitality, project engineering and design.Under this it has created
Mahindra Holiday & Resorts, Mahindra Lifespaces & Mahindra World City.

Information Technology

Tech Mahindra provides solutions & services to telecommucation majors namely
Alcatel, AT&T, BT, Convergys, Ericsson and O2, among others. It is also into
business process and technology consulting services through Bristle.

Systech

It is into supply of automotive components.It produces forged and forged /
machined components, gears and composities.

Speciality Business

Under this division it has companies like Mahindra Defence,engaged in
manufacturing defence related vehicles & Mahindra Ashtech.

Products and services offered by the company:-

Automotive

      Scorpio
      Xylo
      Bolero
      Maxx Range
      Naya Commander
      Savari
      Major
CHAPTER-3
 Owners profile
              Anand G. Mahindra
              Managing Director, Director, Member of Share Transfer & Shareholders/Investors Grievance Committee, Member
of Loans & Investment Committee and Member of Research & Development Committee, Mahindra & Mahindra Ltd.




                              Anand G. Mahindra
                              Vice Chairman and Managing Director,
                              Mahindra & Mahindra Ltd


                              Professional Profile:

                                     Joined Mahindra Ugine Steel Company (MUSCO) as Executive
                                      Assistant to the Finance Director in 1981.
                                     Appointed as President and Managing Director of MUSCO in
                                      1989.
                                     Appointed as Deputy MD of Mahindra and Mahindra Ltd. In 1991.
                                     Became MD of Mahindra and Mahindra Ltd. in April 1997.
                                     In January 2003, he was given additional responsibility of Vice
                                      Chairman
                                     He is co-chair at the World Economic Forum at Davos.
                                     Past President (2003-04) of the Confederation of Indian Industry
                                      (CII), an industry association representing more than 90,000
                                      members across wide spectrum of industries.

                              Awards:

                                     CNBC Asia Business Leader Award for the year 2006, the
                                      instituted by CNBC, the leading business news channel.
                                     The Most Inspiring Corporate Leader of the Year 2007 award
                                      from NDTV Profit, business channel of New Delhi Television
                                      Limited, India's largest private television broadcasting &
                                      production house..
                                     Business Man of the Year 2007 award from Business India, one
                                      of the three leading business magazines of India
                                     He has been awarded 'Knight of the Order of Merit' by the
                                      President of the French Republic

                              Academic Profile:

                                     Undergraduate Major in Film-making and Photography
                                     Graduated from Harvard College, Cambridge, Massachusetts
                                     Masters in Business Administration from Harvard Business
                                      School, Boston, Massachusetts in 1981

                              Personal Profile:

                                     Born on May 1, 1955 in Mumbai
                                     Resides in Mumbai
                                     Married Anuradha in 1978
                                     Has two daughters - Aalika and Divya
  CHAPTER-4
Products of the organisation
                                            Sales            Sales
Product Name              Year   Month
                                          Quantity Value(Rs.Million)
                                                                       % of STO

On Road Automobiles
having four or more
Wheels such as Light,
Medium and Heavy          2010      03   161189.00        76467.20        51.97
Commercial Vehicles,
Jeep type Vehicles and
Passenger Cars

Agriculture Tractor       2010      03   118565.00        43335.60        29.45

Manufactured and
Purchased Parts and       2010      03        0.00         6202.60         4.22
Accessories

D.G.Sets                  2010      03    26183.00         5921.50         4.02

Three Wheelers            2010      03    44806.00         5176.80         3.52

Engines                   2010      03    25958.00         2484.10         1.69

Internal Conbustion
                          2010      03     9034.00           892.50        0.61
Piston Engines

Tractor Skids             2010      03     1386.00           653.50        0.44

Agricultural Implements
                          2010      03     7972.00           503.20        0.34
-Traded

Light Commercial
                          2010      03      693.00           312.00        0.21
Vehicles -Traded

Export Benifit            2010      03        0.00           269.90        0.18

Harvester Combines        2010      03      137.00           164.70        0.11

Others -Traded            2010      03        0.00            92.30        0.06

Tractor -Traded           2010      03      251.00            89.00        0.06

Circuit Breakers          2010      03     5161.00            37.90        0.03

Forklifts                 2010      03       46.00            35.20        0.02

Genset Engines -
                          2010      03      207.00            30.40        0.02
Traded

Parts and Accessories
                          2010      03      517.00             7.60        0.01
of Motor Vehicle

Casting                   2010      03      117.00             6.30        0.00
        Chapter-5
           Profitability



Income statements & Ratio Analysis
Profitability
    Part-1

Mahindra’s stand-alone profit down by
99.7% in Q3
Company’s profits for this period were mainly driven by one-time exceptional gain of
Rs157.1 crore arising from certain changes in the holding structure of the company’s
forging business
Mumbai: High cost of retail finance coupled with losses on account of rupee depreciation
dented the stand-alone profits of tractor and utility vehicle maker Mahindra and Mahindra
Ltd (M&M) by as much as 99.7% to Rs1.2 crore in the quarter ended December against the
same quarter the previous year.
The company’s earnings for the third quarter of fiscal 2008-09, announced on 31 January,
brought curtains down on months marked by steep decline in volumes and severely dented
profits—a result of depressed demand in the domestic market and colossal foreign exchange
losses overseas for all the auto makers.
M&M’s profits for this period, however, were mainly driven by one-time exceptional gain
of Rs157.1 crore arising from certain changes in the holding structure of the company’s
forging business, said a press release issued by the company. The firm also reported a
decline of 14.4% in its gross revenue and other incomes to Rs2,885.9 crore against
Rs3,371.1 crore in the same quarter the previous year. Mahantesh Sabarad, an analyst with
Centrum Broking Pvt. Ltd said, “We were looking at a net profit of Rs147 crore. The
forex losses have come as a surprise.”
Depressed buying sentiments led to the share of automotive segment in the company’s
aggregate revenue contract by 23% to Rs1,370 crore in the said quarter. The segment
reported a loss of Rs10 crore against a profit of Rs168 crore in the previous quarter. This
was partly because of the apportioning of the losses to the segment incurred as a result of
cancellation of forward covers. The company’s sales of utility vehicles in the domestic
market, the mainstay of the automotive segment, declined by 25.7% to 29,184 units.
Also Read Uday Phadke, president, finance, legal and financial services sector, M&M, said,
the results are attributable to three factors—low volumes, losses on account of foreign
exchange and pressure on margins due to raw material prices, which could not have been
passed on to the end-customers.
On whether the company will be able to recoup the losses incurred in the quarter gone by,
he said, “It would be governed by the relative strength of the rupee versus the dollar. If the
rupee continues to depreciate, it will impact the company’s profitability.”
Analysts said the industry is going through a tough phase and the prevalent exchange
environment has made it even more difficult. “Only in the event of rupee appreciation
happening fast, recovery will happen. If the rupee to the dollar continues to be at 49-50
levels even for the next quarter, there is no question of these forex losses being recouped,”
said Sabarad.
The unit sales of the farm equipment segment, which contributed 54.7% to the company’s
total revenue in the December quarter, also declined by 14.7% to 20,686 units. Exports also
witnessed a sharp fall of 54.3% and 26.6% in vehicle sales and tractors, respectively, over
the same quarter the previous year.
Global recessionary pressures primarily led to the decline, said the release. In the nine-
month period ended 31 December, the firm reported a growth of 7% in its revenue to
Rs10,253.5 crore. The net profit, however, slumped 59.6% to Rs356.4 crore.
With the exception of the market leader in the two-wheeler segment, Hero Honda, which
reported a 9.1% increase in quarterly profits on the back of a better realization of its
products, all the auto makers either reported an unprecedented decline in profits or barely
missed slipping into the red. Those with the largest stake in the market bore the maximum
brunt. For instance, car market leader Maruti Suzuki India Ltd’s net halved to 54.3% in
the stipulated period.
Tata Motors, the country’s largest commercial vehicle manufacturer, reported its first
decline in seven years. Ravi Kant, managing director, Tata Motors, said the worst is over for
the company.
Income Statement
                            31-Mar-             31-Mar-           31-Mar-
                             10 (12)             09(12)            08(12)
Profit / Loss A/C            Rs mn      %OI      Rs mn     %OI     Rs mn     %OI
 Net Sales (OI)            130936.8     100    115412.7    100    98952.1    100
 Material Cost              88625.6    67.69    76446.3   66.24   66633.6   67.34
  Increase Decrease
Inventories                  5024.4     3.84     1700.8    1.47    2412.6    2.44
 Personnel Expenses         10246.1     7.83     8681.4    7.52    6661.5    6.73
 Manufacturing
Expenses                     2191.3     1.67     2550.2    2.21    1819.9    1.84
Gross Profit                24849.4    18.98     26034    22.56   21424.5   21.65


 Administration
Selling and Distribution
Expenses                    13923.1    10.63    12368.3   10.72   10106.5   10.21
EBITDA                      10926.3     8.34    13665.7   11.84    11318    11.44
 Depreciation
Depletion and
Amortisation                 2915.1     2.23     2386.6    2.07    2095.9    2.12
EBIT                         8011.2     6.12    11279.1    9.77    9222.1    9.32
 Interest Expense            1341.2     1.02      875.9    0.76      198      0.2
 Other Income                  3592     2.74     1937.2    1.68    4132.8    4.18
Pretax Income                10262      7.84    12340.4   10.69   13156.9    13.3
 Provision for Tax           1996.9     1.53      3034     2.63     3501     3.54

 Extra Ordinary and
Prior Period Items Net        102.7     0.08     1727.3     1.5     1028     1.04
Net Profit                   8675.1     6.63    11033.7    9.56   10683.9    10.8
Adjusted Net Profit          8572.4     6.55     9306.4    8.06     9464     9.56

Dividend - Preference             0       0          0       0         0       0
Dividend - Equity            2788.3     2.13     2826.1    2.45    2822.3    2.85
Ratio Analysis PART:3
As on                            31.03.2010   31.03.2009   31.03.2008




Return on Total Assets (%)             8.6         13.2         17.7

Return on Net worth (%)               15.7         21.6         27.2
Return on Capital Employed
(%)                                   13.3         17.6         24.2



Profitability
Gross Margin (%)                       19          21.2         21.7
Operating Margin (%)                   6.1          8.1          9.3
Net Profit Margin (%)                  6.6          9.7         10.8
Adjusted Net Profit Margin
(%)                                    6.5          8.3          9.8
Asset Turnover(x)                      1.6          1.9          2.2


Leverage
Debt/Equity ratio (x)                  0.8          0.6          0.5

Total Debt/Total Assets (x)            0.4          0.4          0.3

Long term Debt/Networth (x)            0.8          0.6          0.4
Interest Coverage (x)                  8.1         13.3         57.2


Liquidity
Current Ratio (x)                      0.8          0.9          1.1
Quick Ratio (x)                        0.7          0.8            1
Cash Ratio (x)                         0.4          0.4          0.7


Working Capital
Working Capital to Sales (x)             --         0.1          0.1
Working Capital Days (days
gross sales)                             4         18.6         31.2

Receivables (days gross sales)        25.9         28.4         22.8

Creditors (days cost of sales)      110.5          85.5           84
Part-4
Balance sheet of Mahindra for 4 years
                             Mar '07    Mar '08    Mar '09    Mar '10
                             12 mths    12 mths    12 mths    12 mths
Sources Of Funds
Total Share Capital            116.01     233.40     238.03     239.07
Equity Share Capital           116.01     233.40     238.03     239.07
Share Application Money          0.00       0.00       0.00       0.00
Preference Share Capital         0.00       0.00       0.00       0.00
Reserves                     1,881.93   2,662.14   3,302.01   4,098.53
Revaluation Reserves            14.32      13.33      12.86      12.47
Networth                     2,012.26   2,908.87   3,552.90   4,350.07
Secured Loans                  336.82     216.68     106.65     617.26
Unsecured Loans                715.80     666.71   1,529.35   1,969.80
Total Debt                   1,052.62     883.39   1,636.00   2,587.06
Total Liabilities            3,064.88   3,792.26   5,188.90   6,937.13
                              Mar '05    Mar '06    Mar '07    Mar '08
                              12 mths    12 mths    12 mths    12 mths
Application Of Funds
Gross Block                  2,676.51   2,859.25   3,180.57   3,552.64
Less: Accum. Depreciation    1,335.56   1,510.27   1,639.12   1,841.68
Net Block                    1,340.95   1,348.98   1,541.45   1,710.96
Capital Work in Progress       133.93     205.46     329.72     649.94
Investments                  1,189.79   1,669.09   2,237.46   4,215.06
Inventories                    759.83     878.74     878.48   1,084.11
Sundry Debtors                 511.53     637.97     700.89   1,004.88
Cash and Bank Balance          198.07     258.39     415.89     310.58
Total Current Assets         1,469.43   1,775.10   1,995.26   2,399.57
Loans and Advances             461.07     558.02   1,011.50     866.19
Fixed Deposits                 425.91     471.92     910.18     550.65
Total CA, Loans & Advances   2,356.41   2,805.04   3,916.94   3,816.41
Deffered Credit                  0.00       0.00       0.00       0.00
Current Liabilities          1,480.87   1,711.23   2,138.77   2,525.31
Provisions                     499.71     543.14     715.43     943.46
Total CL & Provisions        1,980.58   2,254.37   2,854.20   3,468.77
Net Current Assets             375.83     550.67   1,062.74     347.64
Miscellaneous Expenses          24.38      18.05      17.55      13.53
Total Assets                 3,064.88   3,792.25   5,188.92   6,937.13
Contingent Liabilities         758.14     946.36   1,008.27     985.35
Book Value (Rs)                178.95     124.06     148.72     181.43
Part-5
TECH MAHINDRA FY 2010 revenues up by 19%
                                 th
HYDERABAD, April 27, 2010:

Annual highlights:
   • Revenue at Rs. 4464.7 crores. YoY growth of 19%
   • Net profit after tax at Rs 1014.5 crores. YoY growth of 32%


Quarter highlights:
   • Revenue at Rs. 1051.3 crores
   • Net profit after tax at Rs 230.4 crores


Financial Summary

Tech Mahindra Limited, one of the largest solution providers in the telecom
space, announced a 19% growth in the consolidated revenues and a 32%
growth in the consolidated net profit for the full year ending Mar 09.

The Company reported a consolidated revenue of Rs 4464.7 crores from Rs
3766.1 crores in the previous year. Consolidated net profit grew to Rs 1014.5
crores from Rs 770 crores (before exceptional items).

For the quarter, the company reported a 5% growth in net profit after tax and
3% increase in revenue for Q4 FY09 over the corresponding quarter in the
previous year. The company reported consolidated net profit after tax of Rs
230.4 crores for Q4 FY09 as against Rs 218.7 crores (before exceptional
items) in Q4 FY08. The company reported a revenue of Rs 1051.3 crores for
Q4 FY09 as against Rs. 1021.8 crores in Q4 FY08.

During the quarter, the Company derived 25%, 67% and 8% of its revenues
from the US, Europe and ROW respectively.

Tech Mahindra consolidated head count was 24,972 in Mar 2010.
Part-6
Profitability Ratios
                                            Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Per share ratios
Adjusted EPS (Rs)                           28.35    37.29    40.38    25.61    43.83
Adjusted cash EPS (Rs)                      39.04    47.30    49.20    34.19    60.33
Reported EPS (Rs)                           30.69    46.15    44.88    36.72    45.92
Reported cash EPS (Rs)                      41.39    56.16    53.70    45.30    62.42
Dividend per share                          10.00    11.50    11.50    10.00    13.00
Operating profit per share (Rs)             40.07    48.42    47.73    37.34    64.39
Book value (excl rev res) per share (Rs)    41.28    180.87   147.98   123.29   176.77
Book value (incl rev res) per share (Rs.)   10.23    181.39   148.52   123.86   178.05
Net operating income per share (Rs)         481.48   473.09   416.81   348.61   590.67
Free reserves per share (Rs)                170.32   168.36   135.66   109.86   158.02
Profitability ratios
Operating margin (%)                        8.32     10.23    11.45    10.71    10.90
Gross profit margin (%)                     6.10     8.12     9.33     8.25     8.10
Net profit margin (%)                       6.22     9.45     10.34    10.28    7.56
Adjusted cash margin (%)                    7.92     9.68     11.34    9.57     9.93
Adjusted return on net worth (%)            14.80    20.61    27.28    20.77    24.79
Reported return on net worth (%)            16.03    25.51    30.33    29.78    25.97
Return on long term funds (%)               12.36    19.64    26.09    23.17    24.32
Leverage ratios
Long term debt / Equity                     0.83     0.62     0.53     0.40     0.60
Total debt/equity                           0.77     0.59     0.46     0.30     0.52
Owners fund as % of total source            56.34    62.63    68.39    76.62    65.49
Fixed assets turnover ratio                 2.85     3.22     3.14     2.85     2.47
Liquidity ratios
Current ratio                               1.06     1.10     1.37     1.24     1.19
Current ratio (inc. st loans)               0.90     0.86     1.31     1.21     1.10
Quick ratio                                 0.83     0.74     1.01     0.83     0.78
Inventory turnover ratio                    14.60    12.49    13.42    11.13    10.66
Payout ratios
Dividend payout ratio (net profit)          37.29    29.10    30.39    32.45    33.54
Dividend payout ratio (cash profit)         27.65    23.91    25.40    26.30    24.67
Earning retention ratio                     59.63    63.99    66.22    53.46    64.87
Cash earnings retention ratio               70.69    71.61    72.28    65.14    74.48
Part-7
Mahindra & Mahindra Ltd. - Research Centre
Profitability Ratios
                                         Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Per share ratios
Adjusted EPS (Rs)                         28.35    37.29    40.38    25.61    43.83
Adjusted cash EPS (Rs)                    39.04    47.30    49.20    34.19    60.33
Reported EPS (Rs)                         30.69    46.15    44.88    36.72    45.92
Reported cash EPS (Rs)                    41.39    56.16    53.70    45.30    62.42
Dividend per share                        10.00    11.50    11.50    10.00    13.00
Operating profit per share (Rs)           40.07    48.42    47.73    37.34    64.39
Book value (excl rev res) per share (Rs) 41.28     180.87   147.98   123.29   176.77
Book value (incl rev res) per share (Rs.) 10.23    181.39   148.52   123.86   178.05
Net operating income per share (Rs)       481.48   473.09   416.81   348.61   590.67
Free reserves per share (Rs)              170.32   168.36   135.66   109.86   158.02
Profitability ratios
Operating margin (%)                     8.32      10.23    11.45    10.71    10.90
Gross profit margin (%)                  6.10      8.12     9.33     8.25     8.10
Net profit margin (%)                    6.22      9.45     10.34    10.28    7.56
Adjusted cash margin (%)                 7.92      9.68     11.34    9.57     9.93
Adjusted return on net worth (%)         14.80     20.61    27.28    20.77    24.79
Reported return on net worth (%)         16.03     25.51    30.33    29.78    25.97
Return on long term funds (%)            12.36     19.64    26.09    23.17    24.32
Leverage ratios
Long term debt / Equity                  0.83      0.62     0.53     0.40     0.60
Total debt/equity                        0.77      0.59     0.46     0.30     0.52
Owners fund as % of total source         56.34     62.63    68.39    76.62    65.49
Fixed assets turnover ratio              2.85      3.22     3.14     2.85     2.47
Liquidity ratios
Current ratio                            1.06      1.10     1.37     1.24     1.19
Current ratio (inc. st loans)            0.90      0.86     1.31     1.21     1.10
Quick ratio                              0.83      0.74     1.01     0.83     0.78
Payout ratios

Dividend payout ratio (net profit)    37.29 29.10 30.39 32.45 33.54

Dividend payout ratio (cash profit)   27.65 23.91 25.40 26.30 24.67

Earning retention ratio               59.63 63.99 66.22 53.46 64.87

Cash earnings retention ratio         70.69 71.61 72.28 65.14 74.48

Coverage ratios

Adjusted cash flow time total debt    3.81 2.29 1.40 1.11 1.56

Financial charges coverage ratio      10.43 17.37 77.85 39.60 29.94

Fin. charges cov.ratio (post tax)     9.41 16.33 65.57 40.23 24.04

Component ratios

Material cost component (% earnings) 70.15 70.41 69.92 72.33 73.22

Selling cost Component                4.38 7.11 6.40 5.63 5.60

Exports as percent of total sales     5.26 7.81 7.18 6.24 5.14

Import comp. in raw mat. consumed     1.39 1.59 1.97 1.86 2.41

Long term assets / total Assets       0.63 0.63 0.50 0.53 0.52

Bonus component in equity capital (%) 62.58 71.36 71.67 73.09 47.06
       Chapter-6
Graphical representation of profit
Graphical representation of profit
                                                                 FOUR
                                                                 WHEELER


                                                                      TWO
                                                                      WHEELER




     This is the graphical representation of growth of the selling of the
business in market.


                                                              Price
                                                               Year




     This above is the financial statement of kotak Mahindra
bank limited.
This above is the ranking charts of the two wheeler in
the market.
                                                % Of Selling.



                                                 Month




This above is the statement of selling of aliments of
Mahindra for some months.
This above is the function and services provide to
consumers .




This is the selling of the products of Mahindra in some
months for finance.
SUGGESTIONS:
        According to my suggestion the company’s earnings for the
third quarter of fiscal 2008-09, announced on 31 January, brought
curtains down on months marked by steep decline in volumes and
severely dented profits—a result of depressed demand in the
domestic market and colossal foreign exchange losses overseas for
all the auto makers. So Mahindra ltd was to make perfect decision
for the right time.

       When Tech Mahindra Ltd, the software company that took
control of fraud-hit Satyam Computer Services Ltd in a government-
backed rescue, has come under attack from analysts over an
accounting decision separate from the acquisition. So in my view it
is a good dissection to take up Satyam computer.

        When their was shared by investors as shares plunged
7.38% to Rs1,051.60 each on Monday, having fallen as much as
9.6% during the day. The benchmark equity index, the Bombay
Stock Exchange. It is very curtial movement for the company
to stand in the market for Mahindra and Mahindra.

        When Company’s profits for this period were mainly driven
by one-time exceptional gain of Rs157.1 crore arising from certain
changes in the holding structure of the company’s forging
business,that time the company must have paid good rate of the
shares.

         One time when the Company reported a consolidated
revenue of Rs 4464.7 crores from Rs 3766.1 crores in the previous
year. Consolidated net profit grew to Rs 1014.5 crores from Rs 770
crores (before exceptional items).
               REFERENCES
MAGAZINE & NEWS PAPERS
  BUSINESS WORLD

  BUSINESS TODAY

  ECONOMIC TIMES

  TIMES OF INDIA

  INDIA TODAY

BOOKS
  FINANCIAL MANAGEMENT

  PRINCIPLES OF FINANCE

WEB SITES
  www.google.com

  www.mahindraandMahindra.com

  www.rediff.com

  www.indiantimes.com

								
To top