BAJAJ AUTO

AUTOMOTIVE (532977)

Group members

Karishma sharma (82)

Tarun gehani (110)

Jignesh kothari (124)

Sharan shetty (125)

INTODUCTION TO BAJAJ

• Bajaj Auto makes and exports automobiles, scooters, motorcycles and auto rickshaws.

• Bajaj has operations in 50 countries by creating a line of bikes targeted to the preferences of entry-level buyers

• It is based in Pune, Mumbai, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand.

• The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead.

• Bajaj Auto makes and exports automobiles,scooters, motorcycles and auto rickshaws.

FOUNDER OF THE COMPANY

• Bajaj Auto Limited is an Indian motorised vehicle-producing company.

• Bajaj Auto is a part of Bajaj Group. It was founded by Jamnalal Bajaj at Rajasthan in the 1930s.

• The company is headed by Rahul Bajaj who is worth around US$3.4 billion

HISTORY OF BAJAJ

• Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation Private Limited.

• It started off by selling imported two- and three-wheelers in India. In 1959, it obtained a licence from the government of India to manufacture two- and three-wheelers

• It went public in 1960 with BSE Code: 532977 and NSE Symbol: BAJAJ-AUTO

GROUP OF COMPANIES

PRODUCTS OFFERED

• Bajaj has made motorcycles, scooters, auto-rickshaws and most recently, cars.

• Bajaj Auto has the capacity to manufacture 400,000 three-wheelers per year and it exports a major part of it.

PRODUCT LIST

• MOTORCYCLES in production are the XCD, Platina Discover Pulsar Avenger• Bajaj also distributes motorcycles in India for other

manufacturers, such as theKawasaki Ninja 250R the Ninja 650 the KTM Duke 200 Cars include the Bajaj ULC ultra-low-cost car.

PROFIT AND LOSS A/C

FOR THE YEAR ENDED 31ST

MARCH

Rs, in crores.

FY2012 FY2013

Operations

Sales 19,827 20,618

Less : Excise duty 947 1129

Net Sales 18,880 19,489

Other operating income 924 862

Total operating income 19,804 20,351Cost of materials consumed, net of expenses capitalised 14,053 14,344

Stores and tools 110 124

Employee cost 539 639Factory and administrative expenses 459 588Sales and after sales expenses 641 666

Total expenses 15,802 16,361Earnings before interest, tax, depreciation and amortisation 4,002 3,990

PROFIT AND LOSS (A/C

CONTD..)Interest 22 1

Depreciation 146 164

Operating profit 3,834 3,825

Non-operating income 333 373Less : Non-operating expenses 7 1

Non-operating income, net 326 372Surplus on pre-payment of sales tax deferral liability/loan 69Profit before tax and exceptional item 4,160 4,266

Exceptional item :

MTM loss -134

Profit before tax 4,026 4,266

Tax expense 1,022 1,222

Profit after tax 3,004 3,044

BALANCE SHEET AS AT 31ST MARCH

2013(Rs. In crores)

Particulars 2012 2013

EQUITY AND LIABILITIES

Shareholders’ funds

Share capital 289.37 289.37

Reserves and surplus 7,612.58 5,751.70

7,901.95 6041.07

Non-current liabilities

Long-term borrowings 71.27 97.48

Deferred tax liabilities (net) 115.1 48.44

Other long-term liabilities 122.06 157.07

Long-term provisions 134.61 111.85

443.04 414.84

BALANCE SHEET (CONTD..)Current liabilities

Trade payables 1,979.61 1957.79

Other current liabilities 546.16 604.33

Short-term provisions 1,607.86 2066.05

4,133.63 4628.47

Total 12,478.62 11,084.08

ASSETS

Non-current assets

Fixed assets

Tangible assets 1,804.43 1,479.59

Intangible asset 2.14

Capital work-in-progress 223.29 11.77Intangible assets under development 70.26 29.88

2,097.98 1,523.38

BALANCE SHEET (CONTD..)

Non-current investments 3,719.15 3,786.21

Long-term loans and advances 462.39 600.87

Other non-current assets 1.02 1.43

6,280.54 5,911.89

Current assets

Current investments 2,711.33 1096.6

Inventories 636.28 678.53

Trade receivables 767.58 422.79

Cash and bank balances 558.85 1,653.83

Short-term loans and advance 1,311.72 1024.85

Other current assets 212.32 295.59

6,198.08 5172.19

Total 12,478.62 11,084.08

EARNING PER SHARE (EPS)

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The numbers used in calculating basic and diluted earnings are stated below

As at 31ST MARCH 2013

31ST MARCH 2012

a) Profit after tax (` in crore) 3,043.57 3,004.05

Weighted average number of shares outstanding during the year

289,367,020 289,367,020

b) Earnings per sha re (Basic and Diluted) 105.2 103.8

Face value per share 10.00 10.00

SHARE CAPITAL OF BAJAJ

Share capital(In Crore)

2 013 2012

Authorised: 300,000,000 equity shares of ` 10 each

300.00 300.00

Issued, subscribed and fully paid-up shares:289,367,020 equity shares of ` 10 each

289.37 289.37

289.37 289.37

DIVIDEND

• 31 March 2013. The amount of dividend and the tax thereon aggregate to 1,523.45 crore i.e 45 per share.

• Dividend paid for the year ended 31 March 2012 was also 45 per share (450 per cent).

• The amount of dividend and the tax thereon aggregated to 1,513.39 crore

SHARE HOLDING PATTERN Categories No. of shares

(2013)% to total capital

No. of shares(2012)

% to total capital

Promoters 144,733,132 50.02 144,733,332 50.02

Friends and associates of

28,894,158 9.99 30,641,279 10.59

promotersGDRs*

66,196 0.02 169,088 0.06

Foreign Institutional Investors

52,671,870 18.20 47,516,700 16.42

Public Financial Institutions

9,850,458 3.40 9,290,035 3.21

Mutual FundsNationalised and

4,033,153 1.39 7,278,439 2.52

Other banks 222,080 0.08 122,508 0.04

NRIs and OCBs 992,342 0.34 1,189,892 0.41

CATEGORY OF SHAREHOLDER Total Number of Shares Percentage ShareHolding (%)

Promoter

Indian Promoter 14,47,32,992 50.02

Foreign Promoter 0 0.00

Total Promoter 14,47,32,992 50.02

Non Promoter

Institutions

Mutual Funds / UTI 51,29,580 1.77

FI/Bank/Insurance 1,88,90,035 6.52

Govt 0 0.00

FII 4,92,97,500 17.04

Other 0 0.01

Total Institutions 7,33,17,104 25.34

SHARE HOLDING PATTERN

SHARE HOLDING PATTERN

(CONTD..)Non-Institution

Bodies Corporate 2,45,06,600 8.47

Individuals (upto Rs. 1 lakh) 1,46,29,800 5.06

Individuals (in excess of Rs. 1

lakh)3,10,80,100 10.74

NRIs/OCBs 10,11,320 0.35

Others 4,57,09,882 15.80

Total Non-Institution 7,12,27,800 24.62

Total Non Promoter 14,45,44,992 49.95

Depository Receipts 88,796 0.03

Total 28,93,67,008 100.00

MAJOR SHAREHOLDERS

MAJOR SHARE HOLDERS

Shares held by non-executive directorsheld as on 31 March 2013

Name of director Number of shares

Shekhar Bajaj 503,880

Niraj Bajaj 2,189,476

Sanjiv Bajaj 800,448

Manish Kejriwal 200

D S Mehta 20,180

HOLDING BY MUTUAL FUNDS

SCHEME Scheme Holding(%)

IIFL Dividend Opportunities Index Fund - Growth 8.42

Quantum Long-Term Equity Fund - Growth 6.74

Quantum Tax Saving Fund - Growth 6.41

IDBI India Top 100 Equity Fund - Growth 5.56

JM Basic Fund - Growth 4.88

IDBI Rajiv Gandhi Equity Saving Scheme - Series I - Plan A - Growth 4.56

Goldman Sachs CNX Nifty Shariah Index Exchange Traded Scheme 4.38

ING RetireInvest Fund - Series I - Growth 3.92

Birla Sun Life India Opportunities Fund - Growth 3.90

UTI Transportation and Logistics Fund - Income 3.88

SHARE PRICES FOR LAST 5

YEARS

RATIOS Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Per share ratios

Adjusted EPS (Rs) 105.18 100.20 87.26 124.54 55.70

Adjusted cash EPS

(Rs) 110.85 105.31 91.58 133.97 64.67

Reported EPS (Rs) 105.18 103.81 115.42 117.69 45.37

Reported cash EPS

(Rs) 110.85 108.92 119.73 127.12 54.34

Dividend per share 45.00 45.00 40.00 40.00 22.00

Operating profit per

share (Rs) 125.63 129.11 112.47 173.02 75.64

Book value (excl rev

res) per share EPS

(Rs) 273.08 208.77 169.69 202.40 116.56

Book value (incl rev

res) per share EPS

(Rs) 273.08 208.77 169.69 202.40 116.56

Net operating

income per share

EPS (Rs) 691.07 674.46 568.54 816.49 601.32

Free reserves per

share EPS (Rs) - 198.77 158.97 190.09 106.56

RATIOS (CONTD..)

Profitability ratios

Operating margin

(%) 18.17 19.14 19.78 21.19 12.57

Gross profit

margin (%) 17.35 18.39 19.03 20.03 11.08

Net profit margin

(%) 14.63 15.11 19.80 14.23 7.40

Adjusted cash

margin (%) 15.42 15.33 15.71 16.20 10.55

Adjusted return

on net worth (%) 38.51 47.99 51.42 61.53 47.78

Reported return

on net worth (%) 38.51 49.72 68.01 58.14 38.92

Return on long

term funds (%) 53.51 64.24 69.67 59.19 35.36

RATIOS (CONTD..)

Liquidity ratios

Current ratio 1.32 0.88 0.81 0.69 0.92

Current ratio

(inc. st loans) 1.32 0.88 0.79 0.69 0.84

Quick ratio 1.06 0.71 0.70 0.55 0.73

Inventory

turnover ratio 31.43 30.97 32.80 28.87 28.64

RATIOS ( CONTD..)

Payout ratios

Dividend

payout ratio

(net profit) 50.05 50.37 40.27 39.63 56.72

Dividend

payout ratio

(cash profit) 47.49 48.01 38.82 36.69 47.36

Earning

retention ratio 49.95 47.81 46.73 62.55 53.79

Cash earnings

retention ratio 52.51 50.34 49.24 65.19 60.20

BONUS HISTORY

CONCLUSION

• Net sales and other operating income grew by 2.8% to an all-time high of 20,351 crore.

• Sales in volume terms reduced marginally by 2.6%. Bajaj Auto sold 4.24 million units versus 4.35 million units in the previous year.

• This consisted of 3.76 million motorcycles and more than 480,000 three-wheelers.

CONCLUSION (CONTD..)

• Exports, too, were a bit lower than last year’s 1.55 million units in 2012-13 as compared to 1.58 million in the earlier year.

• In revenue terms, however, exports grew by 4.1% to 6,713 crore.

• Profit before tax (PBT) grew by 6% to 4,266 crore

• Profit after tax (PAT) was at 3,044 crore marginally higher than the previous year.

CONCLUSION (CONTD..)

• Operating EBITDA margin was at 19.6% of net sales and other operating income – by far the highest in the auto industry.

• Surplus cash and cash equivalents, as on 31 March 2013, was rs. 5,706 crs.

• Industry as a whole, total revenue grew by 3.3% to20,793 crore.

Thanking you…