This presentation contains the Financial Statement Analysis of Ambja cements, Ultra Tech Cements, JM fianancials, Reliance Capital Ltd. Analysis includes calculation of various financial ratios and their explation.

1. Financial Statement Analysis
Submitted to: Dr. Kumar Bijoy
Academic year: 2013-2014
Submitted by:
-Pratyush Kumar 75244

2. Sector and Companies
Cement
Ambuja
Cements
Ultra Tech
Cements
Finance
Reliance
Capital Ltd.
JM
Financial
2

3. Finance-Investment
• 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.
3

4. Cement
• 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

5. Ambuja Cements
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
5

6. Ambuja cements volume market share in 2008 is 10% which has seen a dip
from 11% in 2007
The four companies--ACC, Ambuja Cement, Grasim and UltraTech-together hold about 39.80% market share.
The reason for this dip is
Fall in demand
Aggressive capacity expansion by competitors
Market share
1%
Ambuja, ACC, Grasim,
Ultra
24%
36%
39%
Mid
players(Shree, Madras, I
ndia)
Small
players(Home, Orient, Bi
nani)
6

7. Current ratio
Ambuja Cements
1.8
amt in fixed deposits
earlier.
Later with deposits
having a maturity less
than 3 months.
1.6
1.4
1.2
1
Current ratio
0.8
0.6
0.4
0.2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
7

8. Quick ratio
Ambuja Cements
1.4
1.2
1
0.8
0.6
Quick ratio
0.4
0.2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
8

9. Total debt to assets ratio
Ambuja Cements
Debt Includes
secured and
unsecured
loans
0.5
0.45
0.4
0.35
0.3
0.25
Total debt to assets ratio
0.2
0.15
0.1
0.05
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
9

10. working capital turnover ratio
Ambuja Cements
20
10
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
-10
-20
working capital turnover
ratio
-30
-40
-50
Current assets
have inc.
-60
10

11. proprietary ratio
Ambuja Cements
0.8
0.7
0.6
0.5
0.4
proprietary ratio
0.3
0.2
0.1
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
11

12. Debt equity ratio
Ambuja Cements
1.2
1
0.8
Debt equity ratio
0.6
0.4
0.2
0
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
12

13. fixed asset turnover ratio
Ambuja Cements
1.6
1.4
1.2
1
0.8
0.6
fixed asset turnover
ratio
0.4
0.2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
13

14. operating ratio
Ambuja Cements
0.4
0.35
0.3
0.25
0.2
operating ratio
0.15
0.1
0.05
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
14

15. Net profit ratio
Ambuja Cements
0.35
0.3
0.25
0.2
Net profit ratio
0.15
0.1
0.05
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
15

16. Gross profit ratio
Ambuja Cements
0.6
0.5
0.4
0.3
Gross profit ratio
0.2
0.1
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
16

17. debtors turnover ratio
Ambuja Cements
100
90
80
70
60
50
debtors turnover
ratio
40
30
20
10
0
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
17

18. stock turnover ratio
Ambuja Cements
12
10
8
6
stock turnover
ratio
4
2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
18

19. PE Ratio
30
25
20
PE Ratio
15
10
5
0
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
19

20. BV to MV Ratio
3
2.5
2
1.5
BV to MV Ratio
1
0.5
0
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
20

21. Ultra Tech Cements
21

22. Current Ratio
0.6
0.5
0.4
0.3
0.2
0.1
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2007
2006
2005
2004
2003
Quick Ratio
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2013
2012
2011
2010
2009
2008
22

23. From Annual Report 2011
23

24. Proprietory Ratio
1.2
1
0.8
0.6
0.4
0.2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2006
2005
2004
2003
Working Capital Turnover ratio
0
-1
2013
2012
2011
2010
2009
2008
2007
-2
-3
-4
-5
-6
-7
-8
-9
24

25. Fixed Assets Turnover Ratio
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Operating Ratio
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
25

26. Net Profit Ratio
0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2007
2006
2005
2004
2003
Gross Profit Ratio
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2013
2012
2011
2010
2009
2008
26

27. JM Financial
27

28. Current ratio
JM Financials
amt with fixed
deposits put into
deposit a/c (less
than 3 yrs
1.4
1.2
1
Current liabilities
increased(other
liabilities).
0.8
Current ratio
0.6
Similar trend in
CL, with inc. in
unclaimed dividend.
0.4
0.2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
28

29. Quick ratio
JM Financials
1.4
1.2
1
0.8
Quick ratio
0.6
0.4
0.2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
29

30. Total debt to assets ratio
JM Financials
0.00018
0.00016
Company took
some secured and
unsecured loans.
0.00014
0.00012
0.00010
Total debt to assets
ratio
0.00008
0.00006
0.00004
0.00002
0.00000
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
30

31. proprietary ratio
JM Financials
0.96
0.94
0.92
0.9
proprietary ratio
0.88
0.86
0.84
0.82
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
31

32. working capital turnover ratio
JM Financials
5
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
-5
-10
-15
working capital turnover
ratio
-20
-25
32

33. fixed asset turnover ratio
JM Financials
0.45
0.4
0.35
0.3
fixed asset turnover
ratio
0.25
0.2
0.15
0.1
0.05
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
33

34. Operating ratio
JM Financials
1.2
1
0.8
0.6
0.4
operating ratio
0.2
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
-0.2
-0.4
34

35. Net profit ratio
JM Financials
45
40
35
30
25
Net profit ratio
20
15
10
5
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
35

36. Gross profit ratio
JM Financials
5
4.5
4
3.5
3
2.5
Gross profit ratio
2
1.5
1
0.5
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
36

37. PE Ratio
450
400
350
300
250
200
PE Ratio
150
100
50
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
37

38. BV to MV Ratio
25
20
15
10
BV to MV
Ratio
5
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
38

39. THANK YOU
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