bajaj- hero honda comparison
TRANSCRIPT
Financial Analysis of
Bajaj Auto Ltd. &
Hero Honda Motors Ltd.
30 % market share in motorcycle division Record Sale of 2.85 million in year 2009-10 PAT grew by 160 % In the year 2009-10 Got most popular 2 wheeler among youth award.Having its manufacturing units in Waluj(Aurangabad), Chakan(Pune), Patnagar.
Company Profile- Bajaj Auto Limited
59 % market share in domestic motorcycle division A wide spread reach in rural India around 100000 villages PAT grew by 160 % In the year 2009-10 World’s No. 1 two wheeler company for the ninth consecutive year.NDTV Profit Business Leadership lifetime achievement award 2009.
Company Profile- Hero Honda
Horizontal AnalysisBajaj Auto Limited
Item Mar '08 Mar '09 Mar '10 % increase 8-9
% increase 9-10
Reserves 1,442.91 1,725.01 2,783.66 19.55 61.37
Networth 1,587.59 1,869.69 2,928.34 17.76907 56.62169
Gross Block 2,994.68 3,350.20 3,379.25 11.87172 0.867112
Capital Work in Progress 34.74 22 41.5 -36.6724 88.63636
Inventories 349.61 338.84 446.21 -3.08058 31.68752
Sundry Debtors 275.31 358.65 272.84 30.27133 -23.9258
Cash and Bank Balance 56.07 136.8 104.2 143.9807 -23.8304
Current Liabilities 1,043.20 1,213.40 2,218.06 16.31518 82.7971
Provisions 834.04 1,224.15 2,248.72 46.77354 83.69644
•2008-09 : Reserves have increased due to Trasnfer from profit, Net worth has increased because of increase in the reserves,gross block increased due to buying air craft, Capital WIP & inventories decraesed due to trimmed operation, rise in sundry debtor due to export debtors, Current Liabilities increased due to VRS scheme,last year this expense was put to P & L but this year they accured it as per the acc std.15.•2009-10 : Reserves have increased due to Trasnfer From profit, balance of p& L and hedge gain..they accounted for last year loss , Net worth has increased because of increase in the reserves,gross block increased due to smaller buys, Capital WIP & inventories increased due to Raw material and finished good , decrease in sundry debtor due to tightening of debt policy , Current Liabilities increased due to credit from micro and sme, basis is removal of interest accrued due 45 day credit limit and timely payment, but must have increased the creditor.
Horizontal AnalysisHero Honda
Item Mar '08 Mar '09 Mar '10 % increase 8-9 % increase 9-10
Reserves 2,946.30 3,760.81 3,425.08 27.65 -8.93
Net Block 1,156.26 1,573.71 1,658.78 36.1 5.41
Capital Work in Progress 408.49 120.54 48.14 -70.49 -60.06
Cash and Bank Balance 130.58 217.49 1,907.21 66.56 776.92
Total Current Assets 751.3 694.26 2,452.00 -7.59 253.18
Current Liabilities 1,324.98 1,678.93 3,965.69 26.71 136.2
Provisions 499.76 526.97 1,026.35 5.44 94.76
•2008-09 : Reserves have increased due to Good Profit & increase in general reserve , Net block has increased due to New plant -Increase in new buildings, machines and vehicles gross block increased due to buying air craft, Capital WIP decreased due to plant commissioned, cash and bank balances increased due to dividend was transferred to dividend current account, Current Liabilities increased due to dividend and dividiend tax.•2009-10 : Capital WIP & inventories decreased because no new commission happens. due to Raw material and finished good , cash and bank balances increased due to c, ash balance has interim dividend, Total current asset increased due to cash component, Current Liabilities increased due to interim dividend, Provisions increased Due to dividend increase and dividend tax
Liquidity Ratios
Ratio Analysis Bajaj & Hero Honda
Current Ratio Quick Ratio
0.8
0.41
0.68
0.17
Bajaj Auto Ltd Liquidity Ratios2008 2009
Current Ratio Quick Ratio
0.41
0.22
0.62
0.51
Hero Honda Motors Ltd Liquidity Ratios
2009 2010
Liquidity Ratio
Ratio Analysis Bajaj & Hero Honda
Inventory turnover Ratio Debtors Turnover Ratio
33.03
55.07
34.317
122
Bajaj Auto Ltd Liqidity ratio2008 2009
Inventory turnover Ratio Debtors Turnover Ratio
27.15
82.2
28.13
145.55
Hero Honda Motors LtdLiquidity Ratios
2009 2010
Turnover Ratio
Ratio Analysis Bajaj & Hero Honda
Collection Period Inventory Holding Period
17.437
10.9
13.43
10.49
Bajaj Auto Ltd Turnover Ratio2009 2010
Collection Period Inventory Holding Period
0.15
0.44
0.08
0.43
Hero Honda Motors Ltd Turnover Ratios
2009 2010
Turnover Ratio
Ratio Analysis Bajaj & Hero Honda
Fixed Assets turnover Ratio Total Assets Turnover Ratio
14.79
3.58
19.25
3.69
Bajaj Auto Ltd Turnover Ratio2009 2010
Fixed Assets turnover Ratio Total Assets Turnover Ratio
7.83
5.43
9.51
3.84
Hero Honda Motors Ltd Turnover Ratios
2009 2010
Profitability & Solvency Ratios
Ratio Analysis Bajaj & Hero Honda
profitmargin return on assets
return on equity
debt to equity
0.095
0.61
0.377
0.021
0.133
1.164
0.614
0.019
Bajaj Auto Ltd Financial Ratios2009 2010
profitmargin return on assets return on equity debt to equity
0.07
0.372 0.38
0.84
0.14
0.794
0.71
0.457
Hero Honda Motors Ltd Financial Ratios
2009 2010
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