Financial Analysis Of Tata Motors

Description
This is a spreadsheet on financial analysis of Tata Motors.

Balance Sheet of Tata Motors (In Cr. INR)
Mar '08
1

Mar '09
514.05 11,716.10

Sources Of Funds
Total Share Capital Reserves & surplus 385.54 7,453.96 7,839.50

12,230.15 5,251.65 7,913.91

2

Loan Funds
Secured Loans Unsecured Loans Total Debt 2,461.99 3,818.53 6,280.52

13,165.56

3 4 5

Deferred Tax Liability Foreign Currency Monetary Item Total Funds employed
Application Of funds

975.72
-----15,095.74

865.81
164.12 26,425.64

6

Fixed Assets
Gross Block Less: Depreciation Net Block Capital Work in Progress 10,830.83 5,443.52 5,387.31 5,064.96 10,452.27 4,910.27 13,905.17 6,259.90 7,645.27 6,954.04 14,599.31 12968.13

7 8

Investments Current Assets, Loan & advances
Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Total CA, Loans & Advances 2,421.83 1,130.73 2397.31

2,229.81 1,555.20 1141.82 5,949.87 4,926.83 4,764.75 9,691.58

4,409.52 10,359.39

9

Current Liabilities and Provision
Current Liabilities Provisions Total CL & Provisions 8,643.67 1,989.43 10,633.10 -1,248.57 -273.71 6.05 15,095.74 8,958.25 1,877.26 10,835.51 -1,143.93 2.02 26,425.64

10 11 12

Net Current Assets Miscellaneous Expenses Total Assets

0.480681

Profit & Loss account of Tata Motors (In Cr. INR)
Mar '08
Income
1 2
From Operation Excise Duty Dividend Net Sales 33,093.93 4,354.52 483.18 29,222.59 28,599.27 2,938.48 925.97 26,586.76

Mar '09

Expenditure
3 4
Manufacturing & other Expenses Exp. Transferred to capital and other account 26552.05 24,824.37

-744.23 25,807.82 3,414.77 64.35 652.31 282.37 2,415.74 160.73 2,576.47 -547.55 2,028.92 1013.83 3,042.75 578.43 81.25 0 1,000.00 1,383.07 3042.75

-916.02 23,908.35 2,678.41 51.17 874.54 673.68 1,079.02 -65.26 1,013.76 -12.5 1,001.26 1398.36 2,399.62 311.61 34.09 267.8 100.13 1,685.99 2399.62

PBDIT
5 6 7
Prd. Dev. Expenses Depreciation Int. and disc. Charges

PBEIT
8 9
Notional Exchange loss/Gain

PBT
Tax Expense

PAT
10
Balance brought from previous year

11

Amount available for appropriation Appropriation
Proposed dividend Tax on proposed dividend Debenture redemption fund General Reserve Balance carried to balance sheet

12

Earning per share
1. Ordinary Shares Basic Diluted 52.64 48.04 3855 22.7 20.83 5140

13

No. Of Shares (Lakhs)

Liquidity Ratio

Current Ratio Quick Ratio

Mar'08 Mar'09 0.69 0.55 0.41 0.30

Asset Mgmt. Ratio

Profitability Ratio

Profit Margin BEP ROA ROE

Mar'08 Mar'09 0.06 0.04 0.18 0.07 0.13 0.04 0.26 0.08

Market Value Ratio

Note:

ForAnalysis, Please refer to corresponding sheets.

Inventory turnover ratio Fixed asset turnover Total Asset Turnover

Mar'08 Mar'09 13.66 12.83 3.17 1.96 2.19 1.08 Mar'08 Mar'09 0.29 0.31

Debt mgmt Ratio

Debt Ratio Times Interest ratio

Dividend payout Ratio

Mar'08 Mar'09 0.48 0.54 9.56 2.60

Current Ratio Quick Ratio

Mar'08 Mar'09 0.69 0.55 0.41 0.30

Analysis

AS current as well as quick ratio is well below the safe limit i.e. 2 and 1 for curr and quick ratio. Company is facing liquidity crunch which was result of contino losses, recession and investment in the projects like jaguar, Nano etc. So comp has to invest wisely and finance it projects accordingly.

t i.e. 2 and 1 for current was result of continous r, Nano etc. So company

Inventory turnover ratio Fixed asset turnover Total Asset Turnover

Mar'08 Mar'09 13.66 12.83 3.17 1.96 2.19 1.08

Analysis

Company's inventory management was almost same over asset management become bad with time. That was due t which overall production dropped very rapidly and thus us

ment was almost same over the year, but fixed asset and total d with time. That was due to the recession in the market due to ped very rapidly and thus usage of fixed assets.

D

Debt Ratio Times Interest ratio

Mar'08 Mar'09 0.480681 0.537186 9.555229 2.60168

Analysis

In both years, almost halt of the financing is done by creditors company, inventory levels are usually high so high level of cap the reason for high debt ratio. Also, profits decreased over the decrease in the times interest ratio. So company has to took st if it 'll decrease further it can result in bad credit rating.

ancing is done by creditors. As in manufacturing ly high so high level of capital stuck in it, that can be profits decreased over the time, which results in So company has to took steps to increase this ratio as in bad credit rating.

Profit Margin BEP ROA ROE

Mar'08 Mar'09 0.06 0.04 0.18 0.07 0.13 0.04 0.26 0.08

Analysis

Profitability almost decresed by 25%, which was result of recession w affected the overall productivity and hence the sales and profits..The further decreased the BEP, ROA and ROE.

esult of recession which ales and profits..These

Dividend payout Ratio Analysis

Mar'08 Mar'09 0.29 0.31

As market price was not given in the statements, so it was n possible to calculate all the ratios. But these ratios affects th investors interest in the company. As company paid 30%div over the year which shows the company's interest in investo even during the recession.

tements, so it was not hese ratios affects the mpany paid 30%dividend 's interest in investors



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