Presentation - Working Capital Management
-
Upload
sharad-srivastava -
Category
Business
-
view
1.068 -
download
4
Transcript of Presentation - Working Capital Management
![Page 1: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/1.jpg)
Working Capital
Management
Under the kind guidance of
Dr. A. K. Sharma
Team:
Sharad Srivastava 12810076
Vikas Kumar Singhal
12810086
![Page 2: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/2.jpg)
AGENDA
Vertical Analysis
Net Working Capital Analysis
Financial Performance
Operating Management
![Page 3: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/3.jpg)
COMPANY CHOSEN
Company
1
Company
2
Company
3
Company
4
Steel
Industry
Tata Steel
Ltd.
Essar Steel
Ltd.
Steel
Authority of
India Ltd.
JSW Steel
Ltd.
Sugar
Industry
Shree
Renuka
Sugars Ltd.
Balrampur
Chini Mills
Ltd.
Dhampur
Sugar Mills
Ltd.
The Andhra
Sugars Ltd.
Automobil
e Industry
Mahindra &
Mahindra
Ltd.
Maruti
Suzuki India
Ltd.
Tata Motors
Ltd.
Hyundai
Motor India
Ltd.
![Page 4: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/4.jpg)
STEEL INDUSTRY
Tata Steel Ltd.
Essar Steel Ltd.
Steel Authority of India Ltd.
JSW Steel Ltd.
![Page 5: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/5.jpg)
INTRODUCTION
India's steel production rose to 77.62 mn tons in 2012-13when compared to 75.70 mn tons recorded in the previousyear, according to the data released by the Ministry of Steel.It is growing at 8% CAGR for last 7 years.
India is currently the fourth largest producer of crudesteel after China, Japan and USA. It is also the largestproducer of sponge iron.
Share of public sector has reduced from 32% in 2008-09to 21% in 2012-13.
Iron and Steel industry contributes around 3% of theGDP.
![Page 6: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/6.jpg)
CURRENT ASSETS ANALYSIS
![Page 7: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/7.jpg)
Tata Steel Ltd.
2,604.98
3,480.473,077.75 3,953.76
4,858.99 5,257.94
543.48
635.98
434.83 424.02
904.08796.92
465.04
1,590.603,234.14 4,138.78
3,946.99 2,218.11
33,348.94
5,032.70 5,503.89 6,596.67
1,905.342,823.63
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 8: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/8.jpg)
Essar Steel Ltd.
2,108.112,157.52
2,633.23
5,222.50 4,044.64 3,847.52
360.40407.47
471.24
514.76589.66
681.27
399.49508.16
1,771.25
902.95650.96
623.11
1,074.22 1,544.27 3,094.802,970.44 2,868.36 3,342.00
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 9: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/9.jpg)
Steel Authority of India Ltd.
7,018.10 10,320.31 9,192.6711,470.72
13,917.1616,192.023,048.12 3,027.77
3,493.90
4,130.27
4,748.774,424.1813,759.4418,264.67
22,436.3717,480.09
6,415.70 3,850.35
2,652.83 3,222.14 4,196.43 3,630.50 2,845.39 3,333.24
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 10: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/10.jpg)
JSW Steel Ltd.
1,549.16 2,051.42 2,585.77 4,138.415,179.08 4,799.10
337.39398.14 563.25 838.65
1,284.62 1,862.20
339.22
419.96 287.11
1,886.80
2,956.021,401.79
860.231,762.12 2,123.39
1,803.414,440.76
6,118.80
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 11: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/11.jpg)
NET WORKING CAPITAL ANALYSIS
![Page 12: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/12.jpg)
Tata Steel Ltd.
36,962.44
10,739.7512,250.61
15,113.23
11,615.4011,096.60
7,834.43 9,990.41 9,003.39 9,293.2112,019.2712,546.27
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 13: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/13.jpg)
Essar Steel Ltd.
3,942.224,617.42
7,970.52
9,610.65
8,153.62 8,493.90
3,387.32 2,721.36
4,779.22 4,396.496,309.04
10,216.08
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 14: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/14.jpg)
Steel Authority of India Ltd.
26,478.49
34,834.89
39,319.3736,711.58
27,927.0227,799.79
13,359.6217,298.4317,313.74
14,027.4813,865.3214,576.87
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 15: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/15.jpg)
JSW Steel Ltd.
3,086.00
4,631.645,559.52
8,667.27
13,860.4814,181.89
4,101.83
7,557.21 7,621.899,593.01
12,966.0913,085.82
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 16: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/16.jpg)
FINANCIAL PERFORMANCE
![Page 17: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/17.jpg)
Current Ratio
2.88
2.30
1.11 1.130.85
0.650.91 0.94 0.86 0.73 0.62 0.61
1.601.72 1.77
1.591.39
1.24
0.620.50 0.51 0.57 0.64 0.71
1.501.37
1.06 1.010.88 0.80
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
JSW Steel Ltd. Industry Average
![Page 18: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/18.jpg)
Debt-Equity Ratio
0.67 0.78 0.78 0.64 0.55 0.50
1.47 1.461.85
2.062.51
3.49
0.18 0.210.39
0.51 0.46 0.47
0.88
1.20 1.29
0.87 0.78 0.880.800.91
1.08 1.02 1.08
1.34
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
JSW Steel Ltd. Industry Average
![Page 19: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/19.jpg)
Long Term Debt-Equity Ratio
0.66 0.78 0.780.59 0.46 0.42
1.17 1.141.45 1.34 1.47
2.44
0.15 0.180.34 0.33 0.27 0.31
0.85
1.101.19
0.740.57
0.700.710.80
0.940.75 0.69
0.97
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
JSW Steel Ltd. Industry Average
![Page 20: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/20.jpg)
Interest Coverage Ratio
8.61 5.91 4.42 6.63 6.12 5.182.00 1.59 0.99 0.41 0.36 0.08
46.70
37.23
26.20
16.15
6.23 5.336.022.76 4.13 4.25 3.43 2.65
15.83
11.878.94
6.864.04 3.31
0
5
10
15
20
25
30
35
40
45
50
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
JSW Steel Ltd. Industry Average
![Page 21: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/21.jpg)
OPERATING MANAGEMENT
![Page 22: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/22.jpg)
0
2
4
6
8
10
12
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13Tata Steel Ltd. Essar Steel Ltd. SAIL
JSW Steel Ltd. Industry Average
Inventory Turnover Ratio
No. of times
![Page 23: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/23.jpg)
0
5
10
15
20
25
30
35
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
Debtor Payment Cycle
In no. of days
![Page 24: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/24.jpg)
0
20
40
60
80
100
120
140
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
Creditor Payment Cycle
In no. of days
![Page 25: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/25.jpg)
-30
-20
-10
0
10
20
30
40
50
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
Gross Profit Ratio
In %age
![Page 26: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/26.jpg)
OVERALL PERFORMANCE
![Page 27: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/27.jpg)
Return on Capital Employed (%)
23.2717.23
13.57 16.14 14.53 11.4114.7810.87
4.54 1.60 2.25 0.00
49.44
31.28
24.63
13.8710.08
6.18
24.05
13.43
18.3614.26 12.68 12.57
27.89
18.2015.28
11.47 9.897.54
0
10
20
30
40
50
60
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
JSW Steel Ltd. Industry Average
![Page 28: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/28.jpg)
Return on Net Worth (%)
25.9721.88
14.19 16.36 13.519.439.47
6.31
-0.32 -5.40
-14.39
0.00
37.33
24.1021.98
13.94
9.225.37
26.80
12.34
23.32
15.04
11.01 10.43
24.89
16.16 14.79
9.99
4.84 6.31
-20
-10
0
10
20
30
40
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Tata Steel Ltd. Essar Steel Ltd. SAIL
JSW Steel Ltd. Industry Average
![Page 29: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/29.jpg)
SUMMARY
Indian steel industry is still operating at 85% capacityutilization, compared to global steel majors, who operateat around 50% capacities with piling inventories.
Steel industry in today's world can well be termed asthe backbone of the economy, given its varied usage, be itin construction, transport, electrical appliances, foodpackaging, etc.
A setback came due to the recession in 2008.However, the industry witnessed a turnaround turnedaround in late 2009 and continued to grow thereafter.
![Page 30: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/30.jpg)
SUMMARY
Company Operating
Management
Financial
Management
Tata Steel Ltd. Strong Strong
Essar Steel Ltd. Weak Weak
Steel Authority of India
Ltd.
Moderate Strong
JSW Steel Ltd. Strong Strong
![Page 31: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/31.jpg)
SUGAR INDUSTRY
Shree Renuka Sugars Ltd.
Balrampur Chini Mills Ltd.
Dhampur Sugar Mills Ltd.
Andhra Sugars Ltd.
![Page 32: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/32.jpg)
INTRODUCTION
India's sugar production was around 26342 th. tons in2011-12 in 529 factories, according to Indian Sugar MillsAssociation.
It is also the largest consumer of sugar in world with totalconsumption of 23 mn. tons in 2011-12.
India holds the second rank in sugar production afterBrazil. It is also the fourth largest exporter after Brazil,Thailand and Australia, with around 5% of total world sugarexports.
Total size of the sugar industry in India is Rs. 80000crores, growing at rate of 15-20% CAGR.
![Page 33: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/33.jpg)
CURRENT ASSETS ANALYSIS
![Page 34: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/34.jpg)
Shree Renuka Sugars Ltd.
100.17 186.911,002.32
1,135.951,719.16 2,058.8438.69
48.64
104.27
315.94
176.51 173.50
30.67 13.39
210.28
23.4710.39 91.47
165.72 284.70
670.06512.14 475.78 481.70
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 35: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/35.jpg)
Balrampur Chini Mills Ltd.
432.99556.39
343.43
1,491.311,997.79 1,886.57
45.56
48.99
17.10
89.88146.96 181.38
16.52
35.13
32.97
156.1611.47 191.19
301.71236.10
311.39
292.82 332.23160.33
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 36: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/36.jpg)
Dhampur Sugar Mills Ltd.
180.04280.93 419.58
666.85710.23
1,311.26
48.45
79.6689.30
85.22 216.27
144.06
11.51
19.5537.04
22.7713.21 12.87
108.4590.35 94.36 88.39 63.83 59.49
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 37: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/37.jpg)
Andhra Sugars Ltd.
243.45195.87
131.16250.25 301.41 289.06
33.8457.56
44.20
52.43 90.52 90.94
13.23 9.74
13.87
22.80 22.27 25.89
94.80 95.41103.15
86.82 109.57 114.28
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 38: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/38.jpg)
NET WORKING CAPITAL ANALYSIS
![Page 39: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/39.jpg)
Shree Renuka Sugars Ltd.
335.25533.64
1,986.93 1,987.50
2,381.84
2,805.51
127.46 217.53943.94
1,982.49
1,177.37
3,332.65
0
500
1000
1500
2000
2500
3000
3500
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 40: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/40.jpg)
Balrampur Chini Mills Ltd.
796.78 876.61704.89
2,030.17
2,488.45 2,419.47
450.34 249.38 257.58 262.50767.59 898.96
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 41: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/41.jpg)
Dhampur Sugar Mills Ltd.
348.45470.49
640.28
863.231,003.54
1,527.68
284.43 147.60454.20 499.19 543.78
701.51
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
1,800.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 42: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/42.jpg)
Andhra Sugars Ltd.
385.32358.58
292.38
412.30
523.77 520.17
211.37 203.40 186.68 151.46 187.93 185.50
0.00
100.00
200.00
300.00
400.00
500.00
600.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 43: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/43.jpg)
FINANCIAL PERFORMANCE
![Page 44: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/44.jpg)
Current Ratio
1.11 1.05
1.32
1.02
0.72 0.65
1.011.14
1.40
1.05 0.98 0.95
1.080.96
1.09
0.960.89 0.890.89 0.89
0.951.02
1.11
1.27
1.02 1.01
1.19
1.010.93 0.94
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Shree Renuka Sugars Lrd. Balrampur Chini Mills Ltd.
Dhampur Sugar Mills Ltd. Andhra Sugars Ltd.
Industry Average
![Page 45: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/45.jpg)
Debt-Equity Ratio
1.84 1.69
1.200.99
1.701.94
1.041.40
1.06 1.211.59 1.47
1.11
1.871.75
1.61
1.90
2.50
1.14 1.06
0.74 0.67 0.710.56
1.281.51
1.19 1.12
1.481.62
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Shree Renuka Sugars Ltd. Balrampur Chini Mills Ltd.
Dhampur Sugar Mills Ltd. Andhra Sugars Ltd.
Industry Average
![Page 46: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/46.jpg)
Long Term Debt-Equity Ratio
1.371.26
0.900.75
0.961.10
0.85
1.140.95
0.540.34 0.28
0.89
1.33 1.30
0.97
0.81 0.84
0.62 0.590.53
0.410.32 0.27
0.93
1.08
0.92
0.670.61 0.62
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Shree Renuka Sugars Ltd. Balrampur Chini Mills Ltd.
Dhampur Sugar Mills Ltd. Andhra Sugars Ltd.
Industry Average
![Page 47: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/47.jpg)
Interest Coverage Ratio
5.34
2.683.46
7.80
1.61 1.210.44
2.213.30
2.52
1.05
2.460.621.16
1.75
1.081.46 1.35
2.20
3.11
5.62
3.62
7.54 7.80
2.15 2.29
3.53 3.76
2.923.21
0
1
2
3
4
5
6
7
8
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Shree Renuka Sugas Ltd. Balrampur Chini Mills Ltd.
Dhampur Sugar Mills Ltd. Andhra Suhars Ltd.
Industry Average
![Page 48: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/48.jpg)
OPERATING MANAGEMENT
![Page 49: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/49.jpg)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Shree Renuka Sugars Ltd. Balrampur Chini Mills Ltd.
Dhampur Sugar Mills Ltd. JSW Steel Ltd.
Inventory Turnover Ratio
No. of times
![Page 50: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/50.jpg)
0
5
10
15
20
25
30
35
40
45
50
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13Shree Renuka Sugars Ltd. Balrampur Chini Mills Ltd.Dhampur Sugar Mills Ltd. Andhra Sugars Ltd.
Debtor Payment Cycle
In no. of days
![Page 51: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/51.jpg)
0
20
40
60
80
100
120
140
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13Shree Renuka Sugars Ltd. Balrampur Chini Mills Ltd.Dhampur Sugar Mills Ltd. Andhra Sugars Ltd.
Creditor Payment Cycle
In no. of days
![Page 52: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/52.jpg)
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Shree Renuka Sugars Ltd. Balrampur Chini Mills Ltd.Dhampur Sugar Mills Ltd. Andhra Sugars Ltd.
Gross Profit Ratio
In %age
![Page 53: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/53.jpg)
OVERALL PERFORMANCE
![Page 54: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/54.jpg)
Return on Capital Employed (%)
12.30 13.98 14.62
21.26
8.24 8.40
0.00
9.88
15.82
9.12
4.75
11.23
-3.23
7.32
11.13
6.91
9.50 8.8110.29
15.60
19.80
10.63
20.0218.73
4.84
11.70
15.34
11.9810.63
11.79
-5
0
5
10
15
20
25
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Shree Renuka sugars Ltd. Balrampur Chini Mills Ltd.
Dhampur Sugar Mills Ltd. Andhra Sugars Ltd.
Industry Average
![Page 55: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/55.jpg)
Return on Net Worth (%)
18.44 16.53 15.07
26.94
4.81 2.900.0010.28
20.60
8.900.53
12.75
-14.56
5.14
12.03
1.11
5.78 4.50
9.03
14.48
18.98
9.36
21.61
17.26
3.23
11.61
16.67
11.588.18 9.35
-20
-15
-10
-5
0
5
10
15
20
25
30
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Shree Renuka sugars Ltd. Balrampur Chini Mills Ltd.
Dhampur Sugar Mills Ltd. Andhra Sugars Ltd.
Industry Average
![Page 56: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/56.jpg)
SUMMARY
Indian sugar industry is still operating at 10.11% sugarrecovery rate. In future, the sugar import is expected todecrease.
Sugar production in India typically follows a 5-6 yearscycle wherein 2-3 years of higher production are followedby 2-3 years of lower production.
Indian sugar industry also produce a number of byproducts such as bagasse and molasses. They are furtherused in power generation and alcohol production.
Sugar industry in India is highly controlled by bothcentral and state governments. Recently it is deregulatedto certain extent which is believed to boost the profits.
![Page 57: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/57.jpg)
SUMMARY
Company Operating
Management
Financial
Management
Shree Renuka Sugars Ltd. Strong Weak
Balrampur Chini Mills Ltd. Moderate Moderate
Dhampur Sugar Mills Ltd. Moderate Weak
Andhra Sugars Ltd. Weak Strong
![Page 58: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/58.jpg)
AUTOMOBILE INDUSTRY
Mahindra & Mahindra Ltd.
Maruti Suzuki India Ltd.
Tata Motors Ltd.
Hyundai Motor India Ltd.
![Page 59: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/59.jpg)
INTRODUCTION
The automotive industry is one of the key drivers ofIndia’s economy, accounting for around 7% of India’s GDPand over 200,000 jobs, as per KPMG. It is growing at the15% rate.
The automobile market of India is the seventh largest inthe world annually producing 17.5 million vehicles, out ofwhich approximately 2.3 million automobiles are exported.
Of the total market size, two and three wheeler vehiclesoccupy around 80%. Rest is divided between PassengerVehicles (16%) and Commercial Vehicles (4%).
![Page 60: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/60.jpg)
CURRENT ASSETS ANALYSIS
![Page 61: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/61.jpg)
Mahindra & Mahindra Ltd.
1,084.111,060.67 1,188.78
1,694.21 2,358.39 2,419.77
1,004.88
1,043.65 1,258.08
1,260.31 1,928.53 2,208.35
861.23
1,574.43 1,743.23
614.64 1,188.43 1,781.41
694.151,402.29 1,856.42 1,153.25 1,396.05 1,271.94
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 62: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/62.jpg)
Maruti Suzuki India Ltd.
1038.00
902.301208.80
1415.00 1796.50 1840.70
655.50
937.80
809.90
824.50937.60
1423.70
330.50
1939.0098.20
2508.50 2436.10 775.00
1073.90 1730.901655.50
876.60 1154.701655.60
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 63: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/63.jpg)
Tata Motors Ltd.
2421.83 2229.81 2935.593891.39 4588.23
4455.031130.73 1205.522391.92
2602.882708.32
1818.04
2397.31
1141.82
1753.26
2428.92 1840.96462.864410.38
4963.104425.84
1962.47 1985.15 1636.35
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 64: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/64.jpg)
Hyundai Motor India Ltd.
1280.59 1532.24 2126.471264.66 1203.73 1586.54
431.06842.99
1915.042064.80
815.30 928.38
240.29661.60
561.94450.42
1811.27 1906.00
1287.99
862.67 1141.31 1179.78 1550.80 1947.98
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Current Asset Analysis (In Crore Rs.)
Inventories Sundry Debtors
Cash and Bank Loans and Advances
![Page 65: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/65.jpg)
NET WORKING CAPITAL ANALYSIS
![Page 66: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/66.jpg)
Mahindra & Mahindra Ltd.
3,644.37
5,081.04
6,046.51
4,722.41
6,871.40
7,681.47
3,240.01
4,797.76 5,200.005,858.91
6,919.127,834.24
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 67: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/67.jpg)
Maruti Suzuki India Ltd.
3,097.90
5,510.00
3,772.40
5,624.60
6,324.90
5,695.00
2,825.703,416.50 3,567.80 3,848.50
5,309.705,981.70
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 68: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/68.jpg)
Tata Motors Ltd.
10,360.259,540.25
11,506.6110,885.6611,122.66
8,372.28
10,633.1010,841.04
17,372.59
12,688.9614,262.10
12,357.44
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
20,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 69: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/69.jpg)
Hyundai Motor India Ltd.
3,239.93
3,899.50
5,744.76
4,959.665,381.10
6,368.90
2,248.35 2,263.713,208.55 3,516.18
2,748.383,776.20
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Net Working Capital (In Crore Rs.)
Total Current Assets Total Current Liabilities
![Page 70: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/70.jpg)
FINANCIAL PERFORMANCE
![Page 71: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/71.jpg)
Current Ratio
1.19
1.05 1.08
0.920.82
0.88
1.13 1.22 1.19 1.13 1.080.85
0.86
0.630.52 0.51 0.50
0.44
1.36
0.99
1.16
1.481.42 1.45
1.14
0.97 0.99 1.010.96 0.91
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.
Tata Motors Ltd. Hyundai Motor India Ltd.
Industry Average
![Page 72: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/72.jpg)
Debt-Equity Ratio
0.54
0.69
0.53
0.29 0.27 0.26
0.10 0.09 0.07 0.04 0.05 0.08
0.70
0.97
1.10
0.93
0.81 0.85
0.53
0.90
1.20
1.02
0.66 0.62
0.47
0.660.73
0.57
0.45 0.45
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.
Tata Motors Ltd. Hyundai Motor India Ltd.
Industry Average
![Page 73: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/73.jpg)
Long Term Debt-Equity Ratio
0.51
0.67
0.52
0.290.24 0.24
0.07 0.06 0.05 0.02 0.00 0.01
0.41
0.51
0.660.60
0.43 0.40
0.530.48
0.82
1.02
0.58
0.470.38
0.430.51 0.48
0.31 0.28
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.
Tata Motors Ltd. Hyundai Motor India Ltd.
Industry Average
![Page 74: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/74.jpg)
Interest Coverage Ratio
14.798.96
19.15
49.55
23.16 24.2643.00
29.91
108.24125.35
35.7414.77
6.231.67 2.56 2.59 2.56 1.40
51.84
5.47 2.356.82
27.71
13.69
28.97
11.50
33.08
46.08
22.2913.53
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.
Tata Motors Ltd. Hyundai Motor India Ltd.
Industry Average
![Page 75: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/75.jpg)
OPERATING MANAGEMENT
![Page 76: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/76.jpg)
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.Tata Motors Ltd. Hyundai Motor India Ltd.Industry Average
Inventory Turnover Ratio
No. of times
![Page 77: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/77.jpg)
0.00
5.00
10.00
15.00
20.00
25.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.Tata Motors Ltd. Hyundai Motor India Ltd.Industry Average
Debtor Payment Cycle
In no. of days
![Page 78: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/78.jpg)
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.Tata Motors Ltd. Hyundai Motor India Ltd.Industry Average
Creditor Payment Cycle
In no. of days
![Page 79: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/79.jpg)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.Tata Motors Ltd. Hyundai Motor India Ltd.Industry Average
Gross Profit Ratio
In %
![Page 80: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/80.jpg)
OVERALL PERFORMANCE
![Page 81: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/81.jpg)
Return on Capital Employed (%)
21.47
14.83
30.06 29.92
25.44 26.27
30.51
15.76
31.95
23.15
12.6915.16
21.28
6.8811.20 10.09 8.06
5.14
20.86
7.87 7.9410.33
20.55 19.66
23.53
11.34
20.2918.37
16.69 16.56
0
5
10
15
20
25
30
35
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.
Tata Motors Ltd. Hyundai Motor India Ltd.
Industry Average
![Page 82: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/82.jpg)
Return on Net Worth (%)
24.05
18.10
31.9629.39
25.71 25.0822.67
12.08
23.58
17.81
10.0612.48
23.91
5.34
11.32 10.37 8.323.56
20.40
8.636.43
11.85
21.9920.53
22.76
11.04
18.32 17.36 16.52 15.41
0
5
10
15
20
25
30
35
Mar '08 Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd.
Tata Motors Ltd. Hyundai Motor India Ltd.
Industry Average
![Page 83: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/83.jpg)
SUMMARY
Indian still has the lowest passenger car penetration per1000 population (13-15/1000) among BRIC countries.
As per SIAM estimates, passenger car segment ispegged to grow at a rate of 5-7% while commercial vehiclesegment is pegged to grow at 7-9% in 2013-14.
The 165000 Crore large industry (2010 figure) isexpected to grow threefold by 2016.
The growth of industry is directly linked with fuelprices, economic growth etc.
![Page 84: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/84.jpg)
SUMMARY
Company Operating
Management
Financial
Management
Mahindra & Mahindra Ltd. Strong Strong
Maruti Suzuki India Ltd. Strong Moderate
Tata Motors Ltd. Weak Moderate
Hyundai Motor India Ltd. Weak Weak
![Page 85: Presentation - Working Capital Management](https://reader034.fdocuments.us/reader034/viewer/2022051414/55a539121a28abcd4e8b45f1/html5/thumbnails/85.jpg)
THANK YOU