IPER - PGDM

REPORT ON

Analysis of sales and Pat of Maruti

suzuki and Hyundai

SUBMITTED BY- KUNAL MATANI

Date- 4 November, 2009

 CONTEXT
S.no PARTICULARS PAGE NO.
1 Introduction of MARUTI 4
2 Material 4
3 Method 5
4 Appendices 6-8
5 Result 9
6 Recommendation 10
7 Refrence 11
8 Introduction of HYUNADAI 12
9 Material 12
10 Method 13
11 Appendices 14-15
12 Result 16
13 Recommendation 17
14 Refrence 18
 SYNOPSIS

Title: “Analysis of sales and Pat of Maruti

suzuki and Hyundai”

Objectives:
Development of a predictive model using PAT and sales
of Maruti Suzuki and Hyundai.

Technique:
Simple Linear Regression

Research methodology:

a) Data requirement: Annual reports, quarterly reports and Profit &

loss A/C of both the companies of last five year.

b) Data collection: Browsing websites related with Maruti Suzuki

and Hyundai AND Moneycontrol
 REPORT

MARUTI SUZUKI

INTRODUCTION

Maruti Suzuki is automobile company with high turnover of sales

but with low profit. Success of business is not totally dependent
on the profit. For successful manager or decision maker one
should know factors effecting the business. In this we are
predicting how sales help in the profit and also other independent
variable affecting the profit.

MATERIAL

The data related to Maruti Suzuki sales and profit after tax(pat)
from year 2005 to 2009 on the quater to quater basis using 2007
excel software to regression analysis.

METHOD
Simple linear regression
The data obtained is used to predict relationship between sales
(independent) with profit (dependent).
Y=a+bx
Y=profit
X=sales
A =intercept coefficant
B =x coefficant

Procedure to be followed
The relation between dependent variable (y) and independent
variable (x) inspected in excel. It was observed that the relation
between (Y) and (X) is not linear. There some other independent
variable which affect the profit of the company.
Independent factors affecting the profit of the company like in
export of cars change in currency,new cars are coming changes
in royalty. The regression equation was estimated by applying a
stepwise regression procedure in the excel 2007 software. In the
stepwise regression procedure, the R square is 0.11 so we
cannot move further for the prediction.

Note- If Rsquare is not near about 1 then there are some

independent factors which affect the dependent.

APPENDICES
2005 Y(PROFIT) X(SALES) YHAT
Q1 259 3045 335.09
Q2 259 2627 322.55
Q3 262 3149 338.21
Q4 339 3114 337.16
2006
Q1 360 3277 342.05
Q2 369 3125 337.49
Q3 367 3419 346.31
Q4 376 3679 354.11
2007
Q1 448 4429 376.61
Q2 499 3931 361.67
Q3 466 4547 380.15
Q4 467 4674 383.96
2008
Q1 306 4762 386.6
Q2 465 4753 386.33
Q3 296 4993 393.53
Q4 213 4625 382.49
2009
Q1 243 6432 436.7
Q2 583 6493 438.53

SUMMARY OUTPUT:- MARUTI SUZUKI

TABLE NO1

REGRESSION STATISTICS

Multiple R 0.331839
R square 0.110117
Adjusted R square 0.054499
Standard Error 103.1149
Observations 18

ANOVA
 df ss ms F Significa
nce f
Regressi 1 21051. 21051. 1.9798 0.17853
on 58 58 95
Residual 16 17012 10632.
2.9 68
Total 17 19117
4.4

Coeff Sta t- P- Low Upp Low Uppe

icient nda stat valu er er er r95.0
s rd e %
95 95 95.
Erro
% % 0%
r
Inte 231. 96. 2.3 0.0 26. 436 26. 436.8
rce 8361 715 971 290 809 .86 809 629
pt 1 03 86 21 29 21
X 0.03 0.0 1.4 0.1 - 0.0 - 0.079
1582 224 070 785 0.0 791 0.0 162
45 87 3 16 62 16
RESIDUAL OUTPUT
PROBABILITY OUTPUT
OBSERVATI PREDICTE RESIDUA PERCENT Y
ON DY LS ILE
1 328.0018 - 2.777778 21
69.0018 3
2 314.8007 - 8.333333 24
88.8007 3
3 331.2863 - 13.88889 25
69.2863 9
4 330.1809 8.81909 19.44444 25
2 9
5 335.3287 24.6713 25 26
2
6 330.5283 34.4717 30.55556 29
6
7 339.8133 27.1867 36.11111 30
3 6
8 348.0245 27.9755 41.66667 33
3 9
9 371.7106 75.2893 47.22222 36
9 0
10 355.983 143.017 52.77778 36
7
11 375.4372 90.5627 58.33333 36
8 9
12 379.4481 87.5519 63.88889 37
2 6
13 382.2273 - 69.44444 44
76.2273 8
14 381.943 83.0569 75 46
8 5
15 389.5226 - 80.55556 46
93.5226 6
16 377.9006 - 86.11111 46
164.901 7
17 434.9684 - 91.66667 49
191.964 9
18 436.8949 146.105 97.22222 58
1 3
Result

The result of regession is presennted in the table 1. As we seen

from table that Rsquare is 0.11 and we can the form equation that
Y=231.83+0.03X . This equation is not linear because we cannot
predict the value of Y by putting X in this equation. As there are
some independent variable which also needed to predict the
value of dependent variable(X). Each coefficient does not
demonstrate relation between variable. However from sales we
cannot predict profit exactly. There some external factors and
internal factors which affect the profit of the company .Sales is
also the part of the independent factor.

Recommendation

This model is not appropriate model for the business use . As we

recommend that profit is not dependent on sales . There are
some other independent factors which predict profit of the
company, so if individual want to predict the profit of the company
then he must take independent variable like cost of good, the
changes in the marketing policy, Other costs including building
and machinery depreciation, repairs and maintenance and
miscellaneous . External factors or independent related to export
like adverse currency movement (depreciation of INR Vs USD
and appreciation of yen Vs USD) could lead to higher input costs
and higher other expenses (on account of forex loss) and affect
profit . However, appreciation of Euro vs USD could bring in
higher export revenues and offset part of the loss incurred.
Royalty costs could continue to rise with new launches.

REFRENCES

Book Reference – Statistical Techniques in business and

economics
By – Douglas A Lind
William G Marchal Samuel A Wathen

Web refrences – www.marutisuzuki.com

www.moneycontrol.com

http://www.articlesnatch.com/topic/SAP+
experts
www.economictimes.com
www.hdfcsecurities.com
 HYUNDAI MOTOR

INTRODUCTION

Hyundai Motor is automobile company with high turnover of sales

but with low profit. Success of business is not totally dependent
on the profit. For successful manager or decision maker one
should know factors effecting the business. In this we are
predicting how sales help in the profit and also other independent
variable affecting the profit.

MATRIAL

The data related to Hyundai Motor sales and profit after tax(pat)
from year 2005 to 2009 on the quater to quater basis using 2007
excel software to regression analysis.
METHOD
Simple linear regression
The data obtained is used to predict relationship between sales
(independent) with profit (dependent).
Y=a+bx
Y=profit
X=sales
A =intercept coefficant
B =x coefficant

Procedure to be followed
The relation between dependent variable (y) and independent
variable (x) inspected in excel. It was observed that the relation
between (Y) and (X) is not linear. There some other independent
variable which affect the profit of the company.
Independent factors affecting the profit of the company like in
export of cars change in currency,new cars are coming changes
in royalty. The regression equation was estimated by applying a
stepwise regression procedure in the excel 2007 software. In the
stepwise regression procedure, the R square is 0.09 so we
cannot move further for the prediction.
Note- If Rsquare is not near about 1 then there are some
independent factors which affect the dependent.

APPENDICES

2005 Y(profit) X(sales) YHAT

Q1 509777 6170228 335020.12
Q2 613195 6946477 366070.08
Q3 534888 6149747 334200.88
Q4 690861 8117285 412902.4
2006
Q1 342387 6861517 362671.68
Q2 403147 7002803 368323.12
Q3 282794 5886935 323688.4
Q4 497735 7584113 391575.52
2007
Q1 307386 6684072 355573.88
Q2 611537 8026939 409288.56
Q3 425478 7083878 371566.12
Q4 338018 8774795 439202.8
2008
Q1 392652 8197811 416123.44
Q2 546931 9106761 452481.44
Q3 264772 6054569 330393.76
Q4 243549 8836645 441676.8
2009
Q1 224980 6031953 329489.12
Q2 811851 8079940 411408.6

SUMMARY OUTPUT – HYUNDAI MOTOR

REGRESSION STATISTICS

Multiple R 0.31246
R square 0.097631
Adjusted R square 0.041233
Standard Error 162811.9
Observations 18
ANOVA

df ss ms F Significa
nce f
Regressi 1 4.59E+ 4.59E+ 1.7311 0.206811
on 10 10 09
Residual 16 4.24E+ 2.65E+
11 10
Total 17 4.7E+1
1

Coeff Stan t- P- Lo Upp Lo Uppe

icient dar stat valu wer er wer r95.0
s d e %
95 95% 95.
Erro
% 0%
r
Inte 8821 275 0.32 0.75 - 671 - 6716
rcep 1.09 211. 052 272 495 634. 495 34.1
t 9 1 2 212 1 212
X 0.049 0.03 1.31 0.20 - 0.12 - 0.128
045 727 571 681 0.0 806 0.0 067
6 6 1 299 7 299
8 8

RESIDUAL OUTPUT
PROBABILITY OUTPUT
OBSERVATI PREDICTE RESIDUA PERCENT Y
ON DY LS ILE
1 390829.4 118947. 2.777778 21
6 3
2 428900.5 184294. 8.333333 24
5 3
3 389824.9 145063. 13.88889 25
1 9
4 486322.7 204538. 19.44444 25
3 9
5 424733.6 - 25 26
82346.6 2
6 431663 -28156 30.55556 29
 6
7 376935.4 - 36.11111 30
94141.4 6
8 460173.3 37561.6 41.66667 33
9 9
9 416030.9 -108645 47.22222 36
0
10 481891.7 129645. 52.77778 36
3 7
11 435639.3 - 58.33333 36
10161.3 9
12 518570.2 -180552 63.88889 37
6
13 490272.1 - 69.44444 44
97620.1 8
14 534851.5 12079.5 75 46
4 5
15 385156.9 -120385 80.55556 46
6
16 521603.6 -278055 86.11111 46
7
17 384047.7 -159068 91.66667 49
9
18 484491.1 327359. 97.22222 58
9 3

Result
The result of regession is presennted in the table 1. As we seen
from table that Rsquare is 0.090 and we can the form equation
that Y=88211.09+0.049X . This equation is not linear
because we cannot predict the value of Y by putting X in this
equation. As there are some independent variable which also
needed to predict the value of dependent variable(X). Each
coefficient does not demonstrate relation between variable.
However from sales we cannot predict profit exactly. There some
external factors and internal factors which affect the profit of the
company .Sales is also the part of the independent factor.

Recommendation
This model is not appropriate model for the business use . As we
recommend that profit is not dependent on sales . There are
some other independent factors which predict profit of the
company, so if individual want to predict the profit of the company
then he must take independent variable like cost of good, the
changes in the marketing policy, Other costs including building
and machinery depreciation, repairs and maintenance and
miscellaneous . Hyundai old contracts with supplier is ending so
new contracts charge more money this can directly affect profit
Royalty costs could continue to rise with new launches.

REFRENCES
Book Reference – Statistical Techniques in business and
economics
By – Douglas A Lind
William G Marchal
Samuel A WatheR

Web refrences – www.hyundaiworld.com

www.moneycontrol.com

http://www.articlesnatch.com/topic/SAP+
experts
www.economictimes.com
www.capitalmarket.com