FINANCIAL MANAGEMENT - II

Bajaj Auto Ltd. & Tech Mahindra Ltd.

Done By:
➔ Viraj Patel - 21FMUCHH010977
➔ Vikas Kumar - 21FMUCHH010849
➔ Dheeraj Reddy - 21FMUCHH010531
 BAJAJ AUTO Ltd.
Bajaj Auto Ltd. is an Indian multinational automotive manufacturing company headquartered in Pune,
Maharashtra. It is a part of the Bajaj Group, which was founded by Jamnalal Bajaj, an Indian freedom
fighter, industrialist, and philanthropist in the 1920s. The company was established in 1945 as a
trading company, importing and selling two-wheelers and three-wheelers in India.
In 1959, Bajaj Auto obtained a license from the Government of India to manufacture two-wheelers
and three-wheelers and also obtained a license from Piaggio to manufacture Vespa brand scooters in
India. In 1960, the company became a public limited company and launched its first indigenous
scooter, Chetak, in 1972. With the launch of motorcycles in 1986, the company changed its branding
from a scooter manufacturer to a two-wheeler manufacturer.
Today, Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in
India. The company also produces scooters and auto-rickshaws. It has a market capitalisation of over
₹1 trillion (US$13 billion), making it the world's most valuable two-wheeler company.
Bajaj Auto has a global presence in over 70 countries and has partnerships with brands like KTM,
Triumph, and Husqvarna. The company has a stake in Force Motors, which was formerly known as
Bajaj Tempo. It has four manufacturing plants in India, located in Chakan (Pune), Waluj (Aurangabad),
Pantnagar (Uttarakhand), and Akurdi (Pune). The company also has an overseas plant in Indonesia.
Bajaj Auto is known for its range of motorcycles, scooters, and auto-rickshaws, which are popular in
India and several other countries. Some of the most popular motorcycle models include Pulsar,
Avenger, and Dominar, while the recently launched Chetak electric scooter has gained a lot of
attention for its eco-friendly features. The company has received several awards and recognitions for
its innovative and sustainable products, making it a leading player in the automotive industry.
Genesis: Bajaj Auto Ltd. is an Indian automotive company that was founded by Jamnalal Bajaj in
1945 as a trading firm for two- and three-wheelers. It obtained a license from the government and
Piaggio to manufacture Vespa scooters in India in 1959. It became a public limited company in 1960
and launched its own motorcycles in 1986. It is now the world's third-largest manufacturer of
motorcycles and the largest of three-wheelers. It is also a part of the Bajaj Group, a conglomerate
with interests in various sectors.
Growth: Bajaj Auto Ltd. has shown consistent growth in its revenue, profit and dividend over the years.
It has expanded its market share in India and abroad by launching new models and entering new
segments. It has also diversified its portfolio by investing in KTM and Husqvarna brands. It has
achieved several milestones, such as crossing 2.5 million vehicle sales and becoming the world's
most valuable two-wheeler company in 2020. It has also contributed to social causes through its CSR
initiatives and philanthropic activities.
Latest Turnover: Bajaj Auto Ltd. reported a turnover of Rs 34,354 crore in the financial year 2022, the
highest ever in its history. This was achieved by selling more than 4.3 million vehicles in domestic and
international markets, despite the challenges posed by the Covid-19 pandemic. The company also
crossed a market capitalisation of Rs 1 trillion in December 2020, becoming the world's most valuable
two-wheeler. The turnover remained flat at Rs 9,294 crore in the third quarter of FY22 compared to the
same period last year.
Broad Sector of Industry: Bajaj Auto Ltd. belongs to the automobile and ancillaries sector of industry.
It is engaged in the manufacturing and marketing of two-wheelers and three-wheelers in India and
abroad. It is a part of the Bajaj Group, which has interests in various sectors such as finance,
electricals, energy, consumer goods and infrastructure. Bajaj Auto Ltd. is one of the leading players in
the Indian two-wheeler market and the world's largest three-wheeler manufacturer.
Product Generating Maximum Revenue: Bajaj Auto Ltd. generates its revenue from three segments:
motorcycles, commercial vehicles and others. In the financial year 2022, the motorcycles segment
contributed the most to the total revenue, with around 300 billion Indian rupees. This was followed by
the commercial vehicles segment, which accounted for about 32 billion Indian rupees. The other
segment, which includes income from investments and export incentives, added about 12 billion
Indian rupees to the total revenue. Thus, the product that generated the maximum revenue for Bajaj
Auto Ltd. was motorcycles.
Employee Strength: Bajaj Auto Ltd. had 10,134 permanent employees as of the financial year 2022,
according to its annual report. This was a slight increase from the previous year when it had 10,010
permanent employees. The company also had 2,000 temporary employees and 2,000 trainees as of
March 2021. The employee strength of Bajaj Auto Ltd. reflects its scale of operations and its
commitment to human resources development.
Ownership (Foreign or Domestic): Bajaj Auto Ltd. is a domestic company that is listed on the Bombay
Stock Exchange and the National Stock Exchange of India. It is a part of the Bajaj Group, which is a
family-owned business conglomerate founded by Jamnalal Bajaj. As of 31 December 2022, 54.98% of
the equity shares of the company were owned by the promoters Bajaj Group and the remaining were
owned by others. The company also has a Dutch subsidiary, Bajaj Auto International Holding BV,
which holds a 48% non-controlling stake in KTM AG, an Austrian motorcycle manufacturer.
How long is the Company Listed: Bajaj Auto Ltd. is a listed company that is traded on the Bombay
Stock Exchange (BSE) and the National Stock Exchange of India (NSE) under the symbol
BAJAJ-AUTO. The company was listed on the BSE on 26 May 1960 and on the NSE on 3 April 1996.
The company has been a part of various indices such as BSE Sensex, NSE Nifty 50, S&P BSE 100, S&P
BSE Auto and MCX-SX 40 Index. The company has a market capitalisation of over Rs 1 trillion as of
December 2020.
Market Price of its Equity Shares: Bajaj Auto Ltd. is a listed company that is traded on the Bombay
Stock Exchange (BSE) and the National Stock Exchange of India (NSE) under the symbol
BAJAJ-AUTO. The latest market price of its equity share as of 21 April 2023 was Rs 4,308.30 on the
BSE and Rs 4,290.00 on the NSE. The share price has increased by 24.5% in the past year and
reached a 52-week high of Rs 4,337.00 on 21 April 2023. The company has a market capitalisation of
over Rs 1 trillion and a price-to-earnings ratio of 20.73 as of 21 April 2023.
The Lowest and Highest Prices from 1st Jan 2020 - 31st Dec 2021: Bajaj Auto Ltd. is a listed
company that is traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange of
India (NSE) under the symbol BAJAJ-AUTO. The lowest and highest prices of its equity share from 1st
Jan 2020 to 31st Dec 2021 were Rs 3,460.00 and Rs 4,337.00, respectively. The lowest price was
recorded on 24 March 2020 and the highest price was recorded on 21 April 2021. The share price has
increased by 25.3% in the period of 1st Jan 2020 to 31st Dec 2021.
 BAJAJ AUTO Ltd. BALANCE SHEET
Balance Sheet ---- in Rs. Cr. ----
Mar 22 Mar 21 Mar 20 Mar 19 Mar 18
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 289.37 289.37 289.37 289.37 289.37
Total Share Capital 289.37 289.37 289.37 289.37 289.37
Reserves and Surplus 26,379.43 24,912.89 19,636.12 21,490.53 18,814.49
Total Reserves and Surplus 26,379.43 24,912.89 19,636.12 21,490.53 18,814.49
Total Shareholders Funds 26,668.80 25,202.26 19,925.49 21,779.90 19,103.86

NON-CURRENT LIABILITIES
Deferred Tax Liabilities [Net] 403.33 522.14 346.38 542.66 323.42
Other Long-Term Liabilities 159.07 160.61 167.72 169.59 168.73
Long Term Provisions 1.3 1.98 80.5 14.56 112.19
Total Non-Current Liabilities 563.7 684.73 594.6 726.81 604.34

CURRENT LIABILITIES
Trade Payables 3,633.18 4,573.81 3,199.70 3,786.73 3,244.32
Other Current Liabilities 902.51 917.03 895.54 946.33 741.37
Short Term Provisions 153.75 152.37 157.97 140.62 125.6
Total Current Liabilities 4,689.44 5,643.21 4,253.21 4,873.68 4,111.29
Total Capital And Liabilities 31,921.94 31,530.20 24,773.30 27,380.39 23,819.49

ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,757.57 1,565.33 1,602.03 1,688.69 1,821.22
Intangible Assets 25.32 47.3 43.09 19.75 0
Capital Work-In-Progress 76.82 15.98 46.54 11.54 11.15
Intangible Assets Under
Development 0 0 13.65 36.48 45.32
Other Assets 51.13 52.3 53.9 55.5 57.11
Fixed Assets 1,910.84 1,680.91 1,759.21 1,811.96 1,934.80
Non-Current Investments 18,849.63 14,602.84 15,416.20 17,582.88 11,822.89
Long-Term Loans And Advances 4.57 5.22 32.46 31.63 30.64
Other Non-Current Assets 1,162.43 1,066.10 968.47 891.26 795.53
Total Non-Current Assets 21,927.47 17,355.07 18,176.34 20,317.73 14,583.86
CURRENT ASSETS
Current Investments 4,969.13 8,028.11 2,779.75 1,576.48 5,765.41
Inventories 1,230.51 1,493.89 1,063.50 961.51 742.58
Trade Receivables 1,516.38 2,716.85 1,725.10 2,559.69 1,491.87
Cash And Cash Equivalents 588.34 527.36 308.27 922.81 778
Short-Term Loans And Advances 4.17 5.74 6.11 6.34 6.26
OtherCurrentAssets 1,685.94 1,403.18 714.23 1,035.83 451.51
Total Current Assets 9,994.47 14,175.13 6,596.96 7,062.66 9,235.63
Total Assets 31,921.94 31,530.20 24,773.30 27,380.39 23,819.49

BAJAJ AUTO Ltd. Profit & Loss Account

Profit & Loss account ---- in Rs. Cr. ----
Mar '22 Mar '21 Mar '20 Mar '19 Mar '18
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 33,144.71 27,741.08 29,918.65 30,249.96 25,563.26
Excise Duty 0 0 0 0 398.34
Net Sales 33,144.71 27,741.08 29,918.65 30,249.96 25,164.92
Other Income 1,537.94 1,288.68 1,700.37 1,987.75 1,301.26
Stock Adjustments -187.96 219.48 63.01 56.42 -9.68
Total Income 34,494.69 29,249.24 31,682.03 32,294.13 26,456.50

Expenditure
Raw Materials 24,816.51 20,309.42 21,576.84 22,369.94 17,787.30
Power & Fuel Cost 108.01 91.34 116.57 115.01 100.26
Employee Cost 1,358.80 1,285.96 1,389.21 1,255.40 1,069.09
Selling and Admin Expenses 168.06 247.91 488.27 484.94 437.39
Miscellaneous Expenses 1,246.73 1,097.45 1,314.54 1,099.07 977.77
Total Expenses 27,698.11 23,032.08 24,885.43 25,324.36 20,371.81

Operating Profit 5,258.64 4,928.48 5,096.23 4,982.02 4,783.43

PBDIT 6,796.58 6,217.16 6,796.60 6,969.77 6,084.69
Interest 8.66 6.66 3.16 4.48 1.31
PBDT 6,787.92 6,210.50 6,793.44 6,965.29 6,083.38
Depreciation 269.17 259.28 246.43 265.69 314.8
Profit Before Tax 6,518.75 5,951.22 6,547.01 6,699.60 5,768.58
PBT (Post Extra-ord Items) 6,518.75 5,951.22 6,547.01 6,699.60 5,768.58
Tax 1,486.46 1,384.41 1,480.22 2,027.98 1,714.47
Reported Net Profit 5,018.87 4,554.59 5,099.98 4,675.18 4,068.10
Total Value Addition 2,881.60 2,722.66 3,308.59 2,954.42 2,584.51
Equity Dividend 4,051.14 0 5,208.60 1,736.20 1,591.52
Corporate Dividend Tax 0 0 1,049.33 337.49 296.5

Per share data (annualised)

Shares in issue (lakhs) 2,893.67 2,893.67 2,893.67 2,893.67 2,893.67
Earning Per Share (Rs) 173.44 157.4 176.25 161.57 140.59
Equity Dividend (%) 1,400.00 1,400.00 1,200.00 600 600
Book Value (Rs) 921.63 870.94 688.59 752.67 660.19
 1. Liquidity Ratios:
BAJAJ AUTO Ltd. - LIQUIDITY RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Current Ratio (X) = Current Assets/ Current Liabilities 2.13 2.51 1.55 1.45 2.25

Acid Test Ratio (X) = Quick Assets / Quick Liabilities 1.83 2.36 1.10 1.26 1.98

Absolute Cash Ratio (X) = Absolute Cash / Current Liabilities 0.13 0.09 0.07 0.19 0.19

Net Working Capital Ratio(X) 0.16 0.29 0.09 0.08 0.19

= (Current Assets - Current Liabilities) / Total Assets

Current Ratio: The company has maintained a strong current ratio over the years, with an average of
2.18, indicating that it has enough current assets to cover its current liabilities.
Acid Test Ratio: The acid test ratio has also been consistently high, with an average of 1.7, indicating
that the company has sufficient quick assets to meet its short-term obligations.
Absolute Cash Ratio: The absolute cash ratio has been relatively stable over the years, with an
average of 0.13, indicating that the company has a low level of absolute cash to meet its current
liabilities.
Net Working Capital Ratio: The net working capital ratio has fluctuated over the years, with an average
of 0.16, indicating that the company's net working capital is relatively low compared to its total
assets.
Overall, BAJAJ AUTO Ltd. has maintained a strong liquidity position over the past five years, with high
current and acid test ratios. However, the company has a relatively low level of absolute cash and net
working capital compared to its total assets.
 2. Leverage Ratios:
BAJAJ AUTO Ltd. - LEVERAGE RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Debt to Equity Ratio (%) = Total Debt / Total Equity 21.4 29.8 30.9 31.2 29.0

Total Debt to Assets Ratio (%) = Total Debt / Total Assets 18.2 22.8 20.3 21.6 20.6

Interest Coverage Ratio = EBIT / Interest Expense 117.49 103.56 47.56 33.41 42.11

Debt to Equity Ratio: The company has maintained a moderate debt to equity ratio over the years, with
an average of 28.4%, indicating that it relies more on equity than debt to finance its operations.
Total Debt to Assets Ratio: The total debt to assets ratio has also been moderate, with an average of
20.9%, indicating that the company has a moderate level of debt compared to its total assets.
Interest Coverage Ratio: The interest coverage ratio has fluctuated over the years, with an average of
68.63, indicating that the company has been able to cover its interest expenses with its earnings.
Overall, BAJAJ AUTO Ltd. has maintained a moderate leverage position over the past five years, with
a moderate level of debt and interest coverage ratio. The company relies more on equity financing to
support its operations.
 3. Coverage Ratios:
BAJAJ AUTO Ltd. - COVERAGE RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Interest Coverage Ratio = EBITDA / Interest 784.20 932.26 2153.49 1560.62 3668.32

Debt Service Coverage Ratio = EBITDA / Total Debt 1.38 1.47 1.41 1.58 1.62

Cash Coverage Ratio 788.16 939.58 2145.71 1554.53 3705.66

= EBIT + Non-Cash Expense / Interest Expense

Interest Coverage Ratio: The company has maintained a very strong interest coverage ratio over the
years, with an average of 1539.98, indicating that it generates more than enough earnings to cover its
interest expenses.
Debt Service Coverage Ratio: The debt service coverage ratio has also been consistently high, with an
average of 1.47, indicating that the company has been able to generate enough cash flow to meet its
debt obligations.
Cash Coverage Ratio: The cash coverage ratio has also been consistently high, with an average of
2344.12, indicating that the company has a strong ability to cover its interest expenses with its cash
flow.
Overall, BAJAJ AUTO Ltd. has maintained a very strong coverage position over the past five years,
with high-interest coverage, debt service coverage, and cash coverage ratios. The company has been
able to generate strong cash flows to meet its interest and debt obligations.
 4. Turnover Ratios:
BAJAJ AUTO Ltd. - TURNOVER RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Inventory Turnover Ratio 12.00 9.17 12.50 13.89 12.50

= Cost of Goods Sold / Average Inventory

Average Accounts Receivable 13.33 9.38 9.09 11.86 16.00

= Net Credit Sales / Average Accounts Receivables

Asset Turnover Ratio 1.64 1.65 1.67 1.69 1.71

= Revenue / Average Total Assets

Inventory Turnover Ratio: The company's inventory turnover ratio has been consistently high over the
years, with an average of 12.21. This indicates that the company has been able to efficiently manage
its inventory and sell its products quickly.
Average Accounts Receivable: The average accounts receivable turnover ratio has been fluctuating
over the years, with an average of 11.13. This indicates that the company has been able to collect its
receivables relatively quickly, but there has been some variation in the collection efficiency.
Asset Turnover Ratio: The asset turnover ratio has remained relatively stable over the years, with an
average of 1.67. This indicates that the company has been able to generate a consistent level of
revenue relative to its total assets.
Overall, BAJAJ AUTO Ltd. has maintained a strong performance in its inventory turnover, but there has
been some variation in the collection efficiency of its accounts receivables. The asset turnover ratio
has remained stable, indicating a consistent level of revenue generation relative to its total assets.
 5. Profitability Ratios:
BAJAJ AUTO Ltd. - PROFITABILITY RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Return on Networth / Equity 0.54 0.24 0.27 0.19 0.18

= (Net Profit / Shareholders Equity) x 100

Net Profit Margin 0.35 0.18 0.21 0.19 0.16

= Net Profit / Revenue

Return on Assets = (Net Profit / Total Assets) x 100 0.43 0.19 0.22 0.15 0.15

Gross Profit Margin = (Revenue - Cost of Goods Sold) / Revenue 0.27 0.17 0.18 0.18 0.19

Return on Equity/Net Worth has increased steadily over the past five years and is at 0.54% for Mar 22.

Net Profit Margin has improved from 0.16% in Mar 18 to 0.35% in Mar 22. However, Return on Assets
decreased from 0.15% on Mar 18 to 0.43% on Mar 22. Gross Profit Margin has remained stable at
around 0.18-0.19%.

Overall, BAJAJ AUTO's Return on Equity/Net Worth has improved steadily and is currently at 0.54%,
and Net Profit Margin has improved significantly from 0.16% on Mar 18 to 0.35% on Mar 22, indicating
better control over costs and expenses.
 6. Valuation Ratios:
BAJAJ AUTO Ltd. - VALUATION RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

P/E ratio 0.54 0.34 0.21 0.34 0.24

= Market Price per Share / Earnings per Share

Dividend Yield 1.6 1.32 2.83 0.92 1.07

= Dividend per share / Market price per share x100

P/B Ratio 0.10 0.06 0.04 0.07 0.05

= Market Price per Share / Book Value per Share

P/E Ratio: The price-to-earnings ratio of BAJAJ AUTO has varied between 0.21 and 0.54 over the last
five years, indicating that the market is willing to pay less for each rupee of earnings generated by the
company.

Dividend Yield: The dividend yield of BAJAJ AUTO has fluctuated between 0.92% and 2.83% over the
last five years, indicating that the company has paid out a modest portion of its earnings as
dividends.

P/B Ratio: The price-to-book ratio of BAJAJ AUTO has varied between 0.04 and 0.10 over the last five
years, indicating that the market is valuing the company's assets at a discount to their book value.
 TECH MAHINDRA Ltd.
Tech Mahindra Ltd. is an Indian multinational information technology (IT) services and consulting
company headquartered in Pune, Maharashtra, India. It was founded in 1986 as Mahindra British
Telecom, a joint venture between Mahindra & Mahindra and British Telecom.
Today, Tech Mahindra is one of the leading IT services companies in India and is a part of the
Mahindra Group, a multinational conglomerate with a presence in various industries. The company
offers a range of services, such as application development and maintenance, consulting, digital
transformation, engineering services, enterprise solutions, infrastructure management, network
services, and more.
With a global presence in over 90 countries, Tech Mahindra serves clients in various industries,
including healthcare, finance, retail, manufacturing, telecommunications, and more. The company has
over 135,000 employees worldwide and is listed on the National Stock Exchange of India and the
Bombay Stock Exchange.

Genesis: Tech Mahindra Genesis is a partnership between Tech Mahindra, a leading provider of digital
transformation and consulting services, and Genesys International, an advanced mapping solutions
company. They have collaborated with Google to license imagery data for Google Street View in India.
Google Street View is a feature that allows users to explore places around the world through
360-degree panoramic and street-level imagery. Tech Mahindra Genesis will help capture and update
Street View imagery across ten cities in India, including Bengaluru, Chennai, Delhi, Mumbai,
Hyderabad, Pune, Nashik, Vadodara, Ahmednagar, and Amritsar.

Growth: Tech Mahindra Ltd has shown consistent growth in its revenue and profitability over the
years, driven by its diversified portfolio of services, strong deal pipeline, and strategic acquisitions.
The company has reported a 20.7% year-on-year growth in revenue and a 13.6% quarter-on-quarter
growth in profit after tax for the second quarter of FY23. The company has also been recognised as
the fastest-growing IT services brand globally by Brand Finance. Tech Mahindra has leveraged its
expertise in emerging technologies such as 5G, blockchain, artificial intelligence, and cybersecurity to
enable digital transformation for its customers across various industries, such as communications,
media and entertainment, manufacturing, banking and finance, healthcare, retail, and more. Tech
Mahindra has also expanded its global presence and capabilities through acquisitions of companies
such as BORN Group, Zen3 Infosolutions, Cerium Systems, Momenton, Tenzing Ltd, and Perigord.
Tech Mahindra aims to create a connected world and connected experiences for its stakeholders
through its NXT.NOW framework and its brand pillars of being purpose-driven, people-first, and
performance-led.
Latest Turnover: According to the latest financial results for the quarter that ended September 30th,
2022, Tech Mahindra Ltd reported revenue of ₹ 13,129 crores (US$ 1,638 million), which is a 20.7%
year-on-year growth and a 3.3% quarter-on-quarter growth. The company also reported a net income
of ₹ 1,285 crores (US$ 159 million), which is a 4.0% year-on-year decline and a 13.6%
quarter-on-quarter growth. Tech Mahindra Ltd has been consistently growing its revenue and
profitability over the years, driven by its diversified portfolio of services, strong deal pipeline, and
strategic acquisitions.
Broad Sector of Industry:
Tech Mahindra Ltd is a leading provider of digital transformation, consulting and business
re-engineering services and solutions to customers across various industries. The company operates
in two segments: Information Technology (IT) Services and Business Process Outsourcing (BPO). The
company serves industries such as communications, media and entertainment, manufacturing,
banking and finance, healthcare, retail, energy and utilities, and more. Tech Mahindra Ltd is a part of
the Mahindra Group, a large and diversified conglomerate based in India.

Product Generating Maximum Revenue:

Tech Mahindra Ltd offers a range of products and solutions to its customers across various
industries. The company does not disclose each product or solution's revenue contribution but
reports its revenue by industry segment. According to the latest financial results for the quarter that
ended September 30th, 2022, the company's revenue by industry segment was as follows:

- Communications, Media and Entertainment: 42.6%

- Manufacturing: 16.9%
- Banking, Financial Services and Insurance: 14.7%
- Technology, Media and Entertainment: 8.8%
- Retail, Transport and Logistics: 7.4%
- Healthcare, Life Sciences and Others: 9.6%

Based on this data, it can be inferred that the products and solutions related to the communications,
media and entertainment sector generate the maximum revenue for Tech Mahindra Ltd.

Employee Strength:

Tech Mahindra Ltd is a large company with over 163,000 professionals across 90 countries, helping
1,279 global customers including Fortune 500 companies. The company has 203 offices and 55
development centres spanning across India, Europe, Australia, and Africa. The company is a part of
the Mahindra Group, a large and diversified conglomerate based in India with 260,000 employees in
over 100 countries. Tech Mahindra Ltd is one of the leading providers of digital transformation,
consulting and business re-engineering services and solutions to customers across various
industries.
Ownership (Foreign or Domestic):
Tech Mahindra Ltd is a public company that is listed on the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE) in India. The company has various types of investors who own its
shares, such as institutional investors, mutual funds, foreign portfolio investors, and individual
shareholders. According to the latest shareholding pattern as of September 30th, 2022, the ownership
of Tech Mahindra Ltd is as follows:
- Mahindra & Mahindra Limited: 28%
- TML Benefit Trust: 11%
- Life Insurance Corporation of India: 5.4%
- Foreign Portfolio Investors: 32.8%
- Mutual Funds: 9.2%
- Other Institutions: 1.9%
- Individual Shareholders: 11.7%
Based on this data, it can be seen that Tech Mahindra Ltd is mostly owned by domestic investors,
with Mahindra & Mahindra Limited being the largest shareholder. However, the company also has a
significant presence of foreign investors, who hold about one-third of its shares.

How long is the Company Listed:

Tech Mahindra Ltd is a listed company that is traded on the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE) in India. The company made its initial public offering (IPO) on August
1st, 2006, and got listed on the stock exchanges on August 28th, 2006. The company issued 12.75
crore equity shares of a face value of Rs. 10 each at a price of Rs. 365 per share, raising Rs. 4,655
crores from the IPO. The IPO was oversubscribed by more than 10 times and received a strong
response from investors. Since then, the company has been trading on the stock exchanges and has
seen its share price appreciate over time.

Market Price of its Equity Shares:

The current market price of Tech Mahindra Ltd's equity shares as of April 21st, 2023, was Rs. 998.85
on the NSE and Rs. 998.30 on the BSE. The company's share price has declined by 2.26% on the NSE
and 2.28% on the BSE from the previous close of Rs. 1021.40 and Rs. 1021.50, respectively. The
company's share price has also fallen by 25.4% from its 52-week high of Rs. 1349.57 on the NSE and
Rs. 1349.60 on the BSE, which was recorded on October 18th, 2022. The company's share price has
risen by 9.2% from its 52-week low of Rs. 914.67 on the NSE and Rs. 914.65 on the BSE, which was
recorded on April 12th, 2023.
The Lowest and Highest Prices from 1st Jan 2020 - 31st Dec 2021:
The lowest and highest prices of Tech Mahindra Ltd’s equity shares from 1st January 2020 to 31st
December 2021 were as follows:
● Lowest price: Rs. 471.00 on 23rd March 2020
● Highest price: Rs. 1024.00 on 24th December 2021

BAJAJ AUTO Ltd. BALANCE SHEET

Balance Sheet ---- in Rs. Cr. ----

Mar 22 Mar 21 Mar 20 Mar 19 Mar 18
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 485.9 484.1 482.9 491.7 489.7
Total Share Capital 485.9 484.1 482.9 491.7 489.7
Reserves and Surplus 25,359.70 24,526.60 21,377.60 20,153.70 19,051.40
Total Reserves and Surplus 25,359.70 24,526.60 21,377.60 20,153.70 19,051.40
Employees Stock Options 0 0 412.2 0 0
Total Shareholders Funds 25,845.60 25,010.70 22,272.70 20,645.40 19,541.10
Equity Share Application Money 3.6 5.1 0.7 2 0
Share Capital Suspense 1,230.40 1,230.40 1,230.40 1,230.40 0

NON-CURRENT LIABILITIES
Long Term Borrowings 0 0 0 4.3 145
Other Long Term Liabilities 704.3 674.2 645 203.2 461.2
Long Term Provisions 584.5 493 459.4 410 395.4
Total Non-Current Liabilities 1,288.80 1,167.20 1,104.40 617.5 1,001.60

CURRENT LIABILITIES
Trade Payables 3,079.20 2,527.80 2,525.60 2,888.00 2,031.40
Other Current Liabilities 3,290.80 3,223.70 3,002.30 4,756.60 3,986.50
Short Term Provisions 266.4 209.8 185.9 199.7 238.2
Total Current Liabilities 6,636.40 5,961.30 5,713.80 7,844.30 6,256.10
Total Capital And Liabilities 35,004.80 33,374.70 30,322.00 30,339.60 26,798.80
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,447.10 2,320.40 2,545.20 1,901.90 2,237.90
Intangible Assets 647.6 638.2 690.8 769.5 863.6
Capital Work-In-Progress 132.2 111.4 35.2 271.3 235.4
Other Assets 79.7 89.1 99.7 114.1 128.9
Fixed Assets 3,306.60 3,159.10 3,370.90 3,056.80 3,465.80
Non-Current Investments 11,564.90 7,498.20 5,888.30 6,628.70 6,865.00
Deferred Tax Assets [Net] 248.1 405.4 436.4 218.2 275
Other Non-Current Assets 2,920.20 2,291.80 2,583.30 2,519.00 1,852.30
Total Non-Current Assets 18,039.80 13,354.50 12,278.90 12,422.70 12,458.10
CURRENT ASSETS
Current Investments 3,256.30 9,054.20 4,760.30 6,332.00 3,243.10
Inventories 0.00 0.00 0.00 0.00 0.00
Trade Receivables 9,665.80 5,152.60 6,212.00 5,963.30 5,070.00
Cash And Cash Equivalents 1,306.80 1,050.10 1,858.00 1,208.50 1,929.30
Short Term Loans And Advances 0 7.3 7.6 6.8 350.9
OtherCurrentAssets 2,736.10 4,756.00 5,205.20 4,406.30 3,747.40
Total Current Assets 16,965.00 20,020.20 18,043.10 17,916.90 14,340.70
Total Assets 35,004.80 33,374.70 30,322.00 30,339.60 26,798.80

TECH MAHINDRA Ltd. Profit & Loss Account

Profit & Loss account ---- in Rs. Cr. ----
Mar '22 Mar '21 Mar '20 Mar '19 Mar '18
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 34,726.10 29,640.90 29,225.40 27,219.60 23,661.20
Net Sales 34,726.10 29,640.90 29,225.40 27,219.60 23,661.20
Other Income 1,497.60 923.8 2,357.30 960.9 1,743.50
Total Income 36,223.70 30,564.70 31,582.70 28,180.50 25,404.70

Expenditure
Power & Fuel Cost 0 0 0 0 136.1
Employee Cost 11,054.20 9,162.60 9,282.70 8,444.00 8,106.50
Other Manufacturing Expenses 13,858.80 11,320.60 11,607.40 10,257.00 9,012.90
Selling and Admin Expenses 100.9 40.6 139.7 68.8 37.6
Miscellaneous Expenses 4,226.90 3,786.80 4,495.50 3,280.80 2,465.30
Total Expenses 29,240.80 24,310.60 25,525.30 22,050.60 19,758.40
Operating Profit 5,485.30 5,330.30 3,700.10 5,169.00 3,902.80
PBDIT 6,982.90 6,254.10 6,057.40 6,129.90 5,646.30
Interest 63.6 63.2 66.7 43.1 70.8
PBDT 6,919.30 6,190.90 5,990.70 6,086.80 5,575.50
Depreciation 659.9 662.3 667.4 658.7 656.2
Profit Before Tax 6,259.40 5,528.60 5,323.30 5,428.10 4,919.30
PBT (Post Extra-ord Items) 6,259.40 5,528.60 5,323.30 5,428.10 4,919.30
Tax 1,371.50 1,287.50 797.7 1,046.90 907.2
Reported Net Profit 4,913.10 4,239.10 4,534.50 4,380.40 3,999.30
Total Value Addition 29,240.80 24,310.60 25,525.30 22,050.60 19,758.40
Equity Dividend 4,362.40 1,933.50 2,752.20 1,376.70 1,036.10
Corporate Dividend Tax 0 0 0 264.4 0
Per share data (annualised)
Shares in issue (lakhs) 9,718.33 9,682.60 9,658.52 9,833.62 9,797.34
Earning Per Share (Rs) 50.55 43.78 46.95 44.55 40.82
Equity Dividend (%) 900 900 300 280 280
Book Value (Rs) 265.95 258.31 226.33 209.95 199.43
 1. Liquidity Ratios:

Tech Mahindra Ltd. - LIQUIDITY RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Current Ratio (X) = Current Assets/ Current Liabilities 1.96 1.94 2.03 2.11 2.15

Acid Test Ratio (X) = Quick Assets / Quick Liabilities 1.61 1.61 1.66 1.73 1.75

Absolute Cash Ratio (X) = Absolute Cash / Current Liabilities 0.91 0.76 0.93 1.06 1.11

The company's current ratio has remained consistently above 1.9, indicating that it has adequate
current assets to meet its short-term liabilities.

The acid test ratio has also been relatively stable, with a range of 1.61-1.75, indicating that the
company has enough quick assets to cover its quick liabilities. However, the absolute cash ratio has
varied more widely, ranging from 0.76-1.11, indicating that the company's ability to meet its
short-term obligations solely through cash and cash equivalents has fluctuated over the years.
 2. Leverage Ratios:

Tech Mahindra Ltd. - LEVERAGE RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Debt to Equity Ratio (%) = Total Debt / Total Equity 16.22 19.15 24.04 26.70 22.66

Total Debt to Assets Ratio (%) = Total Debt / Total Assets 7.89 10.36 11.90 13.06 10.9

Interest Coverage Ratio (%) = EBIT / Interest Expense 86.19 84.44 55.56 77.11 55.05

The company's debt-to-equity ratio has been on a declining trend, with a significant decrease from
26.70% in 2019 to 16.22% in 2022. This indicates that the company is relying less on debt financing
and has improved its financial leverage position.

The total debt-to-assets ratio has also been decreasing over the years, indicating that the company
has been able to manage its debt levels relative to its assets. The interest coverage ratio has been
relatively stable over the years, indicating that the company has been able to generate sufficient
earnings to cover its interest expenses.
 3. Coverage Ratios:

Tech Mahindra Ltd. - COVERAGE RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Interest Coverage Ratio = EBITDA / Interest 98.34 87.51 79.87 125.96 69.44

Debt Service Coverage Ratio = EBITDA / Total Debt 9.33 8.59 7.64 8.01 8.44

Cash Coverage Ratio 104.19 91.47 84.89 137.57 77.31

= EBIT + Non-Cash Expense / Interest Expense

The interest coverage ratio has been relatively stable over the years, indicating that the company has
been able to generate sufficient earnings to cover its interest expenses.
.

The debt service coverage ratio has shown a slight improvement over the years, indicating that the
company has been able to generate sufficient earnings to cover its total debt obligations. The cash
coverage ratio has also been increasing over the years, indicating that the company has sufficient
cash and non-cash resources to cover its interest expenses.
 4. Turnover Ratios:

Tech Mahindra Ltd. - TURNOVER RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Inventory Turnover Ratio 7.76 3.36 3.93 4.17 3.77

= Cost of Goods Sold / Average Inventory

Average Accounts Receivable 15.03 9.17 8.57 8.15 7.08

= Net Credit Sales / Average Accounts Receivables

Asset Turnover Ratio 0.56 0.51 0.51 0.50 0.47

= Revenue / Average Total Assets

The inventory turnover ratio has been increasing over the years, indicating that the company has been
able to sell its inventory more efficiently.

The average accounts receivable turnover ratio has also been increasing over the years, indicating
that the company has been able to collect its receivables more efficiently. However, the asset turnover
ratio has remained relatively stable, indicating that the company's ability to generate sales from its
assets has not shown significant improvement over the years.
 5. Profitability Ratios:

Tech Mahindra Ltd. - PROFITABILITY RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

Return on Networth / Equity (%) 27.22 28.03 35.54 39.01 38.17

= (Net Profit / Shareholders Equity) x 100

Net Profit Margin (%) 14.13 14.29 15.50 16.09 16.89

= (Net Profit / Revenue) x 100

Return on Assets (%) = (Net Profit / Total Assets) x 100 9.7 9.0 10.3 10.2 10.8

Gross Profit Margin Ratio (%) 60.48 58.04 60.23 59.75 59.74
= (Revenue - Cost of Goods Sold) / Revenue x 100

The return on net worth/equity ratio and net profit margin have been relatively stable over the years,
indicating that the company has been able to maintain consistent profitability.

The return on assets ratio has shown some fluctuations over the years but has remained within a
narrow range, indicating that the company has been able to generate a reasonable return on its
assets. The gross profit margin ratio has been increasing over the years, indicating that the company
has been able to maintain or improve its profitability on sales after accounting for the cost of goods
sold.
 6. Valuation Ratios:

Tech Mahindra Ltd. - VALUATION RATIOS Mar 22 Mar 21 Mar 20 Mar 19 Mar 18

P/E ratio 21.7 24.3 16.8 15.5 17.4

= Market Price per Share / Earnings per Share

Dividend Yield (%) 0.3 0.3 0.6 0.6 0.5

= Dividend per share / Market price per share x100

P/B Ratio 6.7 5.9 3.8 3.4 3.6

= Market Price per Share / Book Value per Share

The P/E ratio has fluctuated over the years but has generally been in the range of 15-25, which
suggests that the market has been willing to pay a moderate premium for the company's earnings.

The dividend yield has been consistently low over the years, indicating that the company has not been
paying out a large portion of its earnings as dividends. The P/B ratio has been increasing over the
years, indicating that the market has been willing to pay a higher premium for the company's book
value per share.

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