Financial Statement Analysis: Submitted by

Financial Statement Analysis
Submitted to: Dr. Kumar Bijoy

Academic year: 2013-2014
Submitted by:
-Pratyush Kumar 75244
Sector and Companies

Cement
Ambuja
Cements
Ultra Tech
Cements
Finance
Reliance
Capital Ltd.
JM
Financial
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.
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%.
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
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%
24%
36%
39%
Ambuja, ACC, Grasim,

Ultra
Mid players(Shree,
Madras, India)
Small players(Home,
Orient, Binani)
New players(Reliance,
murli Agro, JSW)
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
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
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
0.2
0.15
0.1
0.05
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
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
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
Debt equity ratio

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

Ambuja Cements
12
10
6
stock turnover
ratio
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
18
PE Ratio
30
25
20
PE Ratio
15
10
0
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
19
BV to MV Ratio
3
2.5
1.5
BV to MV Ratio
0.5
0
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
20
Ultra Tech Cements
21
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
From Annual Report 2011
23
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
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
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
2005
2004
2003
25
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
JM Financial
27
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
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

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
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
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
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
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
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
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
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
BV to MV Ratio
25
20
15
10
BV to MV
Ratio
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
38
THANK YOU
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Financial Statement Analysis: Submitted by

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Financial Statement Analysis

Submitted to: Dr. Kumar Bijoy

Sector and Companies

Public, (BSE: 500425),

Mumbai, Maharashtra, India

Suresh Neotia, Founder, Chairman

7637.81 crore(US$1.2 billion)2010

Ambuja, ACC, Grasim,

amt in fixed deposits

Total debt to assets ratio

Total debt to assets ratio

working capital turnover ratio

working capital turnover

Debt equity ratio

fixed asset turnover ratio

fixed asset turnover

Net profit ratio

Gross profit ratio

Gross profit ratio

debtors turnover ratio

stock turnover ratio

Ultra Tech Cements

From Annual Report 2011

Working Capital Turnover ratio

Fixed Assets Turnover Ratio

Net Profit Ratio

Gross Profit Ratio

Similar trend in CL,

Total debt to assets ratio

Total debt to assets

working capital turnover ratio

working capital turnover

fixed asset turnover ratio

Net profit ratio

Gross profit ratio

Gross profit ratio

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