Financial Statement Analysis

Submitted by:

-Pratyush Kumar 75244

Submitted to: Dr. Kumar Bijoy

Academic year: 2013-2014

2

Sector and Companies

Cement

Ambuja

Cements

Ultra Tech

Cements

Finance

Reliance Capital Ltd.

JM Financial

• A non-banking financial company (NBFC) is a company registered under the Companies Act, 1956 which is primarily engaged in the business activities like loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business. It bars any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. Sundaram Finance is a strong player in the commercial vehicle and car finance segments. Housing finance sector benefited from realty boom since 2002-03.

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Finance-Investment

• India is the second largest cement producer in the world. However, it is way behind China, where the capacity is more than five times larger. Cement is a low-value and high-volume commodity and is mainly concentrated near limestone deposits available in few States. It has a high rate of excise duty and accounts for 5% of total excise duty collection. During the Tenth Plan, cement production grew at a healthy CAGR of 8.67% while the installed capacity showed modest CAGR of 3.69%. Exports too showed an upward trend. Cement consumption has generally grown at 2% 3% higher than growth of GDP. Keeping the past trends in view and taking into consideration the renewed emphasis on infrastructure, the cement industry can be expected to grow at about 11.5% corresponding to the GDP growth of 9%.

4

Cement

Type Public, (BSE: 500425), (NSE: AMBUJACEM)

Industry Cement

Founded 1986

Headquarters Mumbai, Maharashtra, India

Key people Suresh Neotia, Founder, Chairman Emeritus

N. S. Sekhsaria,Co-Founder, Chairman

Onne van der Weijde, Managing Director

Products Cement

Revenue 7637.81 crore(US$1.2 billion)2010

Website www.ambujacement.com

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Ambuja Cements

Ambuja cements volume market share in 2008 is 10% which has seen a dip from 11% in 2007The four companies--ACC, Ambuja Cement, Grasim and UltraTech--together hold about 39.80% market share.The reason for this dip is

Fall in demandAggressive capacity expansion by competitors

6

39%

36%

24%

1%Market share

Ambuja, ACC, Grasim, UltraMid players(Shree, Madras, India)Small players(Home, Orient, Binani)New players(Reliance, murli Agro, JSW)

7

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Current ratioAmbuja Cements

Current ratio

amt in fixed deposits earlier.Later with deposits hav-ing a maturity less than 3 months.

8

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.2

0.4

0.6

0.8

1

1.2

1.4

Quick ratioAmbuja Cements

Quick ratio

9

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

Total debt to assets ratioAmbuja Cements

Total debt to assets ratio

Debt Includes secured and unsecured

loans

10

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

-60

-50

-40

-30

-20

-10

0

10

20

working capital turnover ratioAmbuja Cements

working capital turnover ratio

Current assets have inc.

11

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

proprietary ratioAmbuja Cements

proprietary ratio

12

2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.2

0.4

0.6

0.8

1

1.2

Debt equity ratioAmbuja Cements

Debt equity ratio

13

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

fixed asset turnover ratioAmbuja Cements

fixed asset turnover ra-tio

14

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

operating ratioAmbuja Cements

operating ratio

15

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Net profit ratioAmbuja Cements

Net profit ratio

16

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.1

0.2

0.3

0.4

0.5

0.6

Gross profit ratioAmbuja Cements

Gross profit ratio

17

2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

10

20

30

40

50

60

70

80

90

100

debtors turnover ratioAmbuja Cements

debtors turnover ra-tio

18

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

2

4

6

8

10

12

stock turnover ratioAmbuja Cements

stock turnover ra-tio

19

2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

5

10

15

20

25

30

PE Ratio

PE Ratio

20

2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.5

1

1.5

2

2.5

3BV to MV Ratio

BV to MV Ratio

21

Ultra Tech Cements

22

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.1

0.2

0.3

0.4

0.5

0.6

Current Ratio

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Quick Ratio

23

From Annual Report 2011

24

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.2

0.4

0.6

0.8

1

1.2

Proprietory Ratio

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

-9

-8

-7

-6

-5

-4

-3

-2

-1

0

Working Capital Turnover ratio

25

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Fixed Assets Turnover Ratio

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.05

0.1

0.15

0.2

0.25

0.3

0.35Operating Ratio

26

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

Net Profit Ratio

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Gross Profit Ratio

27

JM Financial

28

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.2

0.4

0.6

0.8

1

1.2

1.4

Current ratioJM Financials

Current ratio

Current liabilities increased(other liabilities).

Similar trend in CL, with inc. in unclaimed divi-dend.

amt with fixed deposits put into deposit a/c (less than 3 yrs maturity.)

29

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.2

0.4

0.6

0.8

1

1.2

1.4

Quick ratioJM Financials

Quick ratio

30

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030.00000

0.00002

0.00004

0.00006

0.00008

0.00010

0.00012

0.00014

0.00016

0.00018

Total debt to assets ratioJM Financials

Total debt to assets ratio

Company took some secured and unsecured loans.

31

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030.82

0.84

0.86

0.88

0.9

0.92

0.94

0.96

proprietary ratioJM Financials

proprietary ratio

32

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

-25

-20

-15

-10

-5

0

5

working capital turnover ratioJM Financials

working capital turnover ra-tio

33

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

fixed asset turnover ratioJM Financials

fixed asset turnover ra-tio

34

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

Operating ratioJM Financials

operating ratio

35

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

5

10

15

20

25

30

35

40

45

Net profit ratioJM Financials

Net profit ratio

36

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Gross profit ratioJM Financials

Gross profit ratio

37

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

50

100

150

200

250

300

350

400

450PE Ratio

PE Ratio

38

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 20030

5

10

15

20

25BV to MV Ratio

BV to MV Ra-tio

THANK YOU

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