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BAJAJ AUTO LTD

Presented by:

Hitesh

Ramesh

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Introduction

Bajaj Auto is a major Indian automobile manufacturer.

It is India's largest and the world's 4th largest two- and

three-wheeler maker. Bajaj Auto makes and exports

motor scooters, motorcycles and the auto rickshaw.

Over the last decade, the company has

successfully changed its image from a scooter

manufacturer to a two wheeler manufacturer. Its real

growth in numbers has come in the last four years aftersuccessful introduction of a few models in the

motorcycle segment

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Quick facts

Founder - Jamnalal Bajaj

Year of Establishment -1926

Industry Automotive - Two & Three Wheelers Business

Group -The Bajaj Group

Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO

Presence: Distribution network covers 50 countries.

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Net sales (net of excise duty) decreased by 6.8% to Rs.86.63 billion.

Exports increased by 20.8% toRs.20.48 billion.

Motorcycle sales by volume was 2.14 million in 2007-08a fall of10% over the previous year, versus overall market decline of 7.8%.

Thus, Bajaj Autos market share in motorcycles fell marginally from

33.5% in 2006-07 to 32.7% in 2007-08

.

Operating EBITDA (earnings before interest, taxes, depreciation and

amortization) fell by 9.6%, from Rs.14.31 billion in 2006-07 to

Rs.12.94 billion in 2007-08. This translates to an operating EBITDA

margin of 14.3% of operating income.

Operating profit before tax (PBT) fell by 16.7% from Rs.12.15

billion in 2006-07 to Rs.10.12 billion in 2007-08.

Highlights for 2007-08: Bajaj Auto

stand-alone

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Capital structure

From

year

To

year

Class of

shares

Authori

zed

capital

Issued

capital

Paid up

shares

Paid up

face

value

Paid up

capital

2007 2008 Equityshare

150 144.68 144683510

10 144.7cr

2006 2007 Equity

share

150 101.18 101183

510

10 101.2cr

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Leverage ratios 2008 2007 2006

Long term debt / Equity 0.84 0.28 0.30

Total debt/equity 0.84 0.29 0.30

Owners fund as % of total source 54.33 77.29 76.47

Fixed assets turnover ratio 2.95 2.96 2.62

Liquidity ratiosCurrent ratio 0.88 0.85 0.78

Current ratio (inc. st loans) 0.88 0.84 0.78

Quick ratio 0.64 0.75 0.68

Inventory turnover ratio 29.33 36.88 34.14

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Payout ratios 2008 2007 2006

Dividend payout ratio (net profit) 44.78 38.24 41.89

Dividend payout ratio (cash profit) 36.36 33.14 35.60

Earning retention ratio 56.41 52.71 52.71

Cash earnings retention ratio 64.43 60.28 60.57

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Abridged Profit and Loss Statement

Rs. In Million 2007-08

Operations

Sales 96,900

Less: excise duty 10,267

Net sales 86,633

Other operating income 3,829Total operating income 90,462

Cost of materials consumed, net of expenditures capitalised 65,973

Share of material cost 72.9%

Stores and tools 747

Share of stores and tools 0.8%

Labour cost 3,416Share of labour cost 3.8%

Factory and administrative expenses 3,031

Share of factory and administrative expenses 3.4%

Sales and after sales expenses 4,359

Share of sales and after sales expenses 4.8%

Total expenditure 77,526

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Total expenditure 77,526

Operating profit 12,936

O perating profit as a share of total operating income 1 4.3%Voluntary Retirement Scheme 1,024

Revised operating profit 11,912

Revised operating profit as a share of total income 13.2%

Interest 52

Depreciation 1,740

Net operating profit 10,120Non-operating income

Income 1 ,226

Expenses -

Non-operating income, net 1,226

Profit before taxation 11,346

Provision for taxation 3,788Profit after taxation 7,558

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Operating working capital

Bajaj Auto enjoys negative working capital. This is even after monies beinglocked up on account of refunds of VAT and excise duty, amounting toRs. 1,710 million.

Rs. In Million As at 31st

March 2008

Current assets

Inventories 3,496

Sundry debtors 2,753

Cash and bank balances 561

Other current assets 4,438

Sub-total 11,248Less: Current liabilities

Sundry creditors 9,445

Advance against orders 948

O ther current liabilities 1,032

S ub-total 11,425

Working capital -177

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Return on operating capital

employed

Rs. In Million As at 31stMarch 2008

Fixed assets 12,928Capital Advances 831

Technical know-how 105Working capital -177Total 13,687Operating profit beforeinterest and taxation 10,172Pre-tax return on operatingcapital employed 74%

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Dividends

The board of directors of Bajaj Auto has proposed a dividend of

Rs.20 per equity share (200 per cent) for the financial year

2007-08, subject to approval by the shareholders at the annual

general meeting. As the company was incorporated on 30

April, 2007, there was no dividend paid in the previous year.

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Balance sheetI. Sources of Funds

1 . Shareholders Fundsa) Share Capital 1,446.8

b) Reserves & Surplus 14,429.115,875.92. Loan Fundsa) Secured Loans 69.5b) Unsecured Loans 13,273.9

13,343.43. Deferred Tax Adjustmentsa) Deferred Tax Liabilities 1,419.4b) Deferred Tax Assets

109.8Total 29,329.1

II. Application of Funds1 . Fixed Assetsa) Gross Block 29,841.5b) Less: Depreciation and write downs 17,260.7c) N et Block 12,580.8d) Capital Work in progress, expenditure to date 347.4

12,928.22. T ekchnical Know-how 105.3

3. Investments 18,571.4

4. C urrent Assets, Loans and Advances

a) Inventories 3,496.1b) Sundry Debtors 2,753.1

c) C ash and Bank Balances 560.7

d) Other Current Assets 799.5

e) Loans and Advances 8,887.7

16,497.1

Less: Current Liabilities and Provisions

a) Liabilities 10,432.5

b) Provisions 8,340.4

18,772.9

N et Current Assets (2,275.8)

Total 29,329.1

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Facts

CEO RAHUL BAJAJ

M D RAJIV BAJAJ

TURNOVER 86,659.2

STOCK PRICE 686.85