RESEARCH PROJECT REPORT

on

“FINANCIAL PERFORMANCE ANALYSIS OF

BAJAJ AUTO LIMITED”

Submitted to

ASIAN BUSINESS SCHOOL, NOIDA

in partial fulfilment for the award of full time

Post Graduate Diploma in Management (PGDM)

Approved by AICTE, Ministry of Education, Govt. of India

SUBMITTED TO: SUBMITTED BY:

DR. ONKARNATH YASHIKA GARG
Assistant Professor ABS/PGDM/23/238
Asian Business School

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 ASIAN BUSINESS SCHOOL
PLOT A-2, SECTOR 125, NOIDA - 201303

CERTIFICATE

This is to certify that the project report titled FINANCIAL PERFORMANCE ANALYSIS

OF BAJAJ AUTO LIMITED is submitted to Asian Business School, in partial fulfillment

of the requirements for the award of the Post Graduate Diploma in Management, and is an

original work by Yashika Garg, ABS/PGDM/23/238 of Asian Business School.

The project has been done under my supervision & guidance and the project has not

formed the basis for the award of any degree / diploma or other similar title to any candidate.

Internal Examiner (Project Supervisor) External Examiner (Viva Expert)

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 DECLARATION

I hereby declare that the project entitled FINANCIAL PERFORMANCE ANALYSIS OF

BAJAJ AUTO LIMITED is an original piece of research work carried out by me under the

guidance and supervision of Dr. Onkarnath. The information has been collected from genuine &

authentic sources. The work has been submitted in partial fulfilment of Post Graduate Diploma in

Management of Asian Business School.

Yashika Garg

Date:

Place: Asian Business School, Noida

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 Abstract

This research paper presents a comprehensive analysis of the financial performance of Bajaj

Auto Limited, a key player in the Indian automotive sector. Known for its diverse product

lineup that includes motorcycles, three-wheelers, and electric vehicles, Bajaj Auto offers an

ideal subject for assessing financial strength and operational efficiency in a rapidly evolving

market. The study evaluates essential financial indicators such as liquidity, profitability,

solvency, turnover, and earnings ratios to deliver a well-rounded view of the company’s

financial standing. Using a multidimensional framework, the paper illustrates Bajaj Auto’s

resilience in tackling economic complexities while consistently creating value for shareholders

and sustaining a strong competitive edge.

The analysis further investigates Bajaj Auto’s strategic approaches in both domestic and

international markets, focusing on its performance across key business areas. Domestically, the

company has effectively tapped into consumer preferences with standout offerings in the

motorcycle and premium bike segments, particularly through its Pulsar and Dominar brands. It

has also gained a competitive foothold in the commercial vehicle market through strategic

pricing and an expansive distribution network. On the global stage, the research highlights

Bajaj Auto’s strong export performance, emphasizing its ability to maintain growth despite

geopolitical and economic fluctuations. The company has built a significant presence in

markets like Latin America, Africa, and the Middle East.

A notable part of the study is Bajaj Auto’s entrance into the electric vehicle space, marked by

the revival of the iconic Chetak in a modern electric form. The Chetak EV symbolizes the

company’s dedication to innovation and eco-friendly mobility, reflecting its pivot toward

sustainable transportation solutions. This segment has seen rapid expansion, establishing Bajaj

Auto as a prominent player in India's growing EV market. Additionally, the research

underscores the company’s focus on achieving operational efficiency through strategic asset

utilization, effective cost control, and investment in advanced technologies.

The paper also examines historical financial data to assess how both external elements—such as

inflation, currency fluctuations, and consumer behavior—and internal factors—like production

efficiency and strategic planning—have influenced performance. This longitudinal perspective

reveals the company’s adaptability and capacity to remain profitable even in challenging

economic conditions. Moreover, the study discusses the significance of sound corporate

governance, ethical conduct, and stakeholder relations in driving long-term financial

performance, aligning Bajaj Auto’s practices with broader industry benchmarks.

In summary, the paper positions Bajaj Auto Limited as a model of financial robustness, market

agility, and innovation in the automotive industry. The findings offer valuable insights for a

wide range of stakeholders, including investors, regulators, and industry observers, and

contribute meaningfully to the academic dialogue on corporate financial health and

sustainability. Bajaj Auto’s growth journey highlights its strategic foresight and commitment to

excellence, setting a benchmark for future success in the global marketplace.

 INDEX

Page No.
Chapter No. Name of Chapter

I Introduction 01

II Company Profile 13

III Literature Review 22

Research Methodology 26
 Problem Statement
 Need of the Study
IV
 Objectives of Study
 Hypotheses of Study
 Limitations of Study

V Data Analysis & Interpretation 36

VI Findings & Suggestions 46

VII Conclusion 49

VIII References 51

IX Annexure 53
 CHAPTER 1
INTRODUCTION

1
 INTRODUCTION

WHAT IS FINANCE?

Finance involves borrowing & lending, investing, raising capital, and selling & trading

securities. The purpose of these pursuits is to allow companies and individuals to fund certain

activities or projects today, to be repaid in the future based on income streams generated from

those activities. Finance is defined as the management of money and includes activities such

as investing, borrowing, lending, budgeting, saving, and forecasting.

Finance is a term for matters regarding the management, creation, and study of money and

investments. It involves the use of credit and debt, securities, and investment to finance

current projects using future income flows. Because of this temporal aspect, finance is closely

linked to the time value of money, interest rates, and other related topics.

Finance can be broadly divided into three categories:

 Public finance

 Corporate finance

 Personal finance

There are many other specific categories, such as behavioral finance, which seeks to identify

the cognitive (e.g., emotional, social, and psychological) reasons behind financial decisions.

KEY TAKEAWAYS

 Finance is a term broadly describing the study and system of money, investments, and other

financial instruments.

 Finance can be divided broadly into three distinct categories: public finance, corporate finance,

and personal finance.

 More recent subcategories of finance include social finance and behavioral finance.

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 The history of finance and financial activities dates back to the dawn of civilization.

 While it has roots in scientific fields, such as statistics, economics, and mathematics, finance

also includes nonscientific elements that liken it to an art.

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 WHAT IS FINANCIAL ANALYSIS ?

Financial analysis is the process of evaluating businesses, projects, budgets, and other

finance- related transactions to determine their performance and suitability. Typically,

financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable

enough to warrant a monetary investment.

KEY TAKEAWAYS

 If conducted internally, financial analysis can help fund managers make future business

decisions or review historical trends for past successes.

 If conducted externally, financial analysis can help investors choose the best possible

investment opportunities.

 Fundamental analysis and technical analysis are the two main types of financial analysis.

 Fundamental analysis uses ratios and financial statement data to determine the intrinsic value

of a security.

 Technical analysis assumes a security's value is already determined by its price, and it focuses

instead on trends in value over time.

Financial analysis is used to evaluate economic trends, set financial policy, build long-term

plans for business activity, and identify projects or companies for investment. This is done

through the synthesis of financial numbers and data. A financial analyst will thoroughly

examine a company's financial statements—the income statement, balance sheet, and cash

flow statement. Financial analysis can be conducted in both corporate finance and investment

finance settings.

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One of the most common ways to analyze financial data is to calculate ratios from the data in

the financial statements to compare against those of other companies or against the company's

own historical performance.

For example, return on assets (ROA) is a common ratio used to determine how efficient a

company is at using its assets and as a measure of profitability. This ratio could be calculated

for several companies in the same industry and compared to one another as part of a larger

analysis.

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 WHAT IS FUNDAMENTALS ANALYSIS ?

In accounting and finance, fundamental analysis is a method of assessing the intrinsic value of

a security by analyzing various macroeconomic and microeconomic factors. The ultimate

goal of fundamental analysis is to quantify the intrinsic value of a security. The security’s

intrinsic value can then be compared to its current market price to help with investment

decisions.

Unlike technical analysis that concentrates on forecasting a security’s price movements,

fundamental analysis aims to determine the “correct price” (true value) of a security. By

knowing the right price, an investor can make an informed investment decision. A security

can be overvalued, undervalued, or fairly valued.

Components of Fundamental Analysis

Fundamental analysis consists of three main parts:

1. Economic analysis

2. Industry analysis

3. Company analysis

Fundamental analysis is an extremely comprehensive approach that requires a deep

knowledge of accounting, finance, and economics. For instance, fundamental analysis requires

the ability to read financial statements, an understanding of macroeconomic factors, and

knowledge of valuation techniques. It primarily relies on public data, such as a company’s

historical earnings and profit margins, to project future growth.

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 TYPES OF FUNDAMENTAL ANALYSIS

Quantitative and Qualitative Fundamental Analysis

The problem with defining the word fundamentals is that it can cover anything related to the

economic well-being of a company. They include numbers like revenue and profit, but they

can also include anything from a company's market share to the quality of its management.

The various fundamental factors can be grouped into two categories: quantitative and

qualitative. The financial meaning of these terms isn't much different from well-known

definitions:

 Quantitative: information that can be shown using numbers, figures, ratios, or formulas

 Qualitative: rather than a quantity of something, it is its quality, standard, or nature

In this context, quantitative fundamentals are hard numbers. They are the measurable

characteristics of a business. That's why the biggest source of quantitative data is financial

statements. Revenue, profit, assets, and more can be accurately measured.

The qualitative fundamentals are less tangible. They might include the quality of a company's

key

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+-executives, brand-name recognition, patents, and proprietary technology.

Neither qualitative nor quantitative analysis is inherently better. Many analysts consider them

together.

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WHAT IS RATIO ANALYSIS ?

Ratio analysis is a quantitative procedure of obtaining a look into a firm's functional

efficiency, liquidity, revenues, and profitability by analysing its financial records and

statements. Ratio analysis is a very important factor that will help in doing an analysis of the

fundamentals of equity. Ratio analysis helps people analyze financial factors like profitability,

liquidity and efficiency. Ratio analysis helps financial professionals understand company

trends and perform competitive analysis. Common ratio analysis includes liquidity, leverage,

market value and efficiency ratio.

HOW TO CALCULATE RATIO ANALYSIS ?

It helps in determining how efficiently a firm or an organisation is operating. It provides

significant information to users of accounting information regarding the performance of the

business. It helps in comparison of two or more firms. It helps in determining both liquidity and

long term solvency of the firm.

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HOW MANY TYPE OF RATIO ANALYSIS ?

Profitability ratios, solvency ratios, liquidity ratios, turnover ratios, and earning ratios are five

types of ratio analysis. Financial analysis in companies can benefit from various types of ratio

analysis. Top management can use it as a crucial tool for strategic business planning.

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 TYPES OF RATIO ANALYSIS

Liquidity Ratios

Liquidity ratios measure a company's ability to pay off its short-term debts as they become

due, using the company's current or quick assets. Liquidity ratios include the current ratio,

quick ratio, and working capital ratio.

 Current Ratio:

The current ratio is one of the important ratios to measure liquidity position. The ideal ratio of

the current ratio. The result will come to two and more than two means it short term liquidity

position is strong.

The formula for calculating the current ratio was = Current Assets / Current Liabilities Current

Assets included cash balance in hand, bank account balance, bills receivable, inventories, and

prepaid expenses.

Current liabilities included bills payable, outstanding expenses, and other short-term

obligations.

 Quick Ratio

The quick ratio helps to measure the Company‟s ability to pay its immediate liabilities

without the sale of its stocks. It is a more conservative measure when compared to the current

ratio. The ideal norm of the quick ratio.

The formula for calculating the quick ratio was = Quick Assets/ Quick Liabilities

Quick assets include all current assets except inventories and prepaid expenses, Quick

liabilities include all current liabilities except bank over draft

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 Cash Ratio

The cash ratio indicates to creditors, analysts, and investors the percentage of a company's

current liabilities that cash and cash equivalents will cover. A ratio above 1 means that a

company will be able to pay off its current liabilities with cash and cash equivalents, and have

funds left over.

 Solvency Ratios

Also called financial leverage ratios, solvency ratios compare a company's debt levels with its

assets, equity, and earnings, to evaluate the likelihood of a company staying afloat over the

long haul, by paying off its long-term debt as well as the interest on its debt. Examples of

solvency ratios include: debt-equity ratios, debt-assets ratios, and interest coverage ratios.

 Debt Equity Ratio

The debt-to-equity ratio (D/E ratio) depicts how much debt a company has compared to its

assets. It is calculated by dividing a company's total debt by total shareholder equity. Note a

higher debt-to- equity ratio states the company may have a more difficult time covering its

liabilities.

 Debt Assets Ratio

The total debt-to-total assets ratio is calculated by dividing a company's total debt by its total

assets. This ratio shows the degree to which a company has used debt to finance its assets. The

calculation considers all of the company's debt, not just loans and bonds payable, and all

assets, including intangibles.

 Debt Service Coverage ratio

The debt-service coverage ratio (DSCR) measures a firm's available cash flow to pay current

debt obligations. The DSCR shows investors and lenders whether a company has enough

income to pay its debts. The ratio is calculated by dividing net operating income by debt

service, including principal and interest.

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 Profitability Ratios

These ratios convey how well a company can generate profits from its operations. Profit

margin, return on assets, return on equity, return on capital employed, and gross margin ratios

are all examples of profitability ratios.

 Gross Profit Ratio

The gross profit ratio (GP ratio) is a financial ratio that measures the profitability of a

company by dividing its gross profit by net sales. The gross profit ratio is a percentage-based

metric that shows how efficiently a company generates profit from its core business

operations.

 Net Profit Ratio

The net profit ratio is a measure of profitability where the post-tax net earnings of a company

are expressed as a proportion of its total revenue. The profitability ratio is frequently used

interchangeably with the term “net profit margin” or “net margin” for short.

 Operating Profit Ratio

Operating Profit Ratio is referred to as the ratio that is used to define a relationship between

the operating profit and the net sales. Operating profit is also known as Earnings before

interest and taxes (EBIT) and net sales can also be defined as the revenue that is earned from

the operations.

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 Turnover Ratio

.A turnover ratio in business is a measurement of the firm's efficiency. It is calculated by

dividing annual income by annual liability. It can be applied to the cost of inventory or any

other business cost. Unlike in investing, a high turnover ratio in business is almost always a

good sign.

 Fixed Assets Turnover Ratio

The fixed asset turnover ratio reveals how efficient a company is at generating sales from its

existing fixed assets. The fixed asset turnover ratio is calculated by dividing net sales by the

average balance in fixed assets. A higher ratio implies that management is using its fixed

assets more effectively.

 Working Capital Turnover Ratio

The working capital turnover ratio is a financial ratio that helps companies understand their

efficiency in using their working capital to generate sales. It is calculated by dividing net sales

by average working capital.

 Payable Turnover Ratio

Accounting professionals calculate accounts payable turnover ratios by dividing a business'

total purchases by its average accounts payable balance during the same period. The AP

Turnover Ratio measures the frequency with which a business settles its debts to suppliers

within a defined timeframe.1

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 Earning Ratio

Price to Earnings Ratio or Price to Earnings Multiple is the ratio of share price of a stock to

its earnings per share (EPS). PE ratio is one of the most popular valuation metric of stocks. It

provides indication whether a stock at its current market price is expensive or cheap.

 Dividend Payout Ratio

Dividend payout ratio refers to a financial metric that measures the percentage of a company's

earnings paid out to shareholders as dividend. This ratio is calculated by dividing the total

amount of dividends paid by the company by its net income for a given period.

 Dividend Yield Ratio

The dividend yield ratio is calculated using the following formula: Dividend Yield Ratio =

Dividend Per Share/Market Value Per Share. In the simplest form of calculation, you can take

the amount of dividend per share and divide it with the market value per share to get the

dividend yield ratio.

 Earnings Per Share

Earnings per share (EPS) is a company's net income subtracted by preferred dividends and

then divided by the number of common shares it has outstanding. EPS indicates how much

money a company makes for each share of its stock and is a widely used metric for estimating

corporate value.

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 CHAPTER 2
COMPANY PROFILE

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COMPANY PROFILE

BAJAJ Auto Limited, a flagship company of the Bajaj Group, was incorporated under the

Companies Act, 1956, with registered office at Mumbai – Pune Road, Akurdi, Pune – 411 035.

Manufacturing facilities are located at Chakan near Pune, Waluj near Aurangabad, and at

Pant Nagar in Uttarakhand. In the fiscal 2022-2023, the Company recorded landmark sales of

over five million vehicles clocking the highest ever (1) turnover of Rs. 37,609 crores and (2)

consolidated profit after tax of Rs.6,060 crores. The Company is India’s largest exporter of

motorcycles, three wheelers and quadricycles, with over two million unit sales to 79 countries

in 2018-2019.

The Company presently holds 47.99% of KTM AG of Austria, through its 100% subsidiary

Bajaj Auto International Holdings BV Netherlands. KTM AG achieved highest ever sales of

261,529 units in the last fiscal (CY18) out of which 100,000 motorcycles were manufactured

at Chakan Plant. The Company with an in-house, Govt. recognized R & D Centre has

introduced Dominar, Pulsar, Discover, Boxer, Platina motorcycles, RE, Maxima three

wheelers, Qute quadricycles and patented technologies – DTS-i and ExhausTEC.

The Economic Times has conferred “Company of the Year” award to the Company in the

year(2010-11).

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ABOUT BAJAJ ATUO

Bajaj auto ltd is one of the foremost automobile companies in the automobile industry in

India. It produced more two-wheelers and three-wheelers in a year and also had tremendous

goodwill among the Customers. And another investor’s point of view it had a strong and

positive mindset. And therefore, a New study about its financial performance is necessary to

attract new investors and easy to make Additional on Bajaj Auto ltd by existing investors. The

present study will be focused on the analysis of The financial performance of Bajaj auto ltd

from 2020-2022. In this regard liquidity ratio, Profitability Ratio, Solvency ratio, Turnover

ratio, and Earning ratio were used in the study for accurate results and to Make a decision

based upon these results.

Keywords: Automobile Industry, Investment, Financial Performance, Bajaj Auto and

Ratio Analysis.

The contribution of the automobile industry to Indian economic development is very high. In

India’s GDP, automobile industry involvement is prominent. And also India is a developing

country and Its nature and environment are more suitable for starting a new business. So, that

year by year the Number of manufacturing and other industries increased. Bajaj Auto

Limited, Maruthi Suzuki, Hyundai, Tata Motors, Mahindra and Mahindra, Honda Motor

Company, and Ashok Leyland are the leading Automobile companies doing automobile

business in India.

Our study is conducted on Bajaj Auto Limited Over a century ago; a philanthropist

instinctively took the unprecedented step of using business to serve society. Shri Jamnalal

Bajaj was the founder of the Bajaj Group. He strongly believed that, “common good was

16
more important than individual gain”. His philosophy which has stood the test of time, Bajaj

Auto is one of the largest motorcycles company in the world and is the global leader within

the tuk-tuk segment.

During the 2023 an amazing domestic performance boomed the global sales at the new

record consolidating the Bajaj rule of fourth largest manufacturer, after Honda, Hero and

Yamaha However, not all is perfect and this giant in India is not able to compete outside,

apart the African continent, were the demand is for cheap vehicles and consumers are

considering Hero as an alternative to Chinese manufactured products.

In the last decade years, Bajaj global 2-wheeler sales did not improved substantially.

Starting from 3.4 million sales in 2012, the company lost terrain in the domestic market

when Hero and Honda divorced increasing the domestic competition. and Bajaj peaked a

minimum of 2.8 million in 2015.

Following the Indian market growth, Bajaj recovered and in 2018 hit the record sales at

3.5 million. When in 2019 Indian market fell down, Bajaj followed the trend and the arrival of

Covid 19 in the following year, further reduced

15 the global volume, declined at 3.0 million in

2020.

Since early 2021 a recovery is in place and in 2023 the company accelerated in the hitting the

new all time record with 3.6 million sales (+11.8%), driven by a domestic +23.8% impressive

performance.

However, outside of India sales are not improving or are declining. Preliminary data on

Africa is negative (-1.3%) and sales declined in LATAM by 5.8%.

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BAJAJ AUTO HERITAGE

Bajaj Auto is an Indian brand specialized on manufacturing two-wheeler and three-wheeler,

headquartered in Pune, India, world leader in the three-wheeler segment. The company name

is Bajaj Auto Limited and is one of the 25 companies of the Bajaj Group.

Bajaj Auto Limited is one of the 25 companies of the Bajaj Group (founded in 1944 by

Jamnala Bajaj) which actually has a presence in diverse businesses such as Electronics, Life

Insurance, General Insurance, financial services and other.

The company is well-known for its R&D product development process engineering and low-

cost manufacturing skills. The company is the largest exporter of two and three-wheelers in

the country.

In 1959 Bajaj Auto Ltd. obtained from the Government of India the license to manufacture

two- wheelers and three-wheelers. Thanks to a partnership with the Italian Piaggio, they

obtained the licensee to manufacture in India the already famous Piaggio Vespa and started to

produce the Bajaj Vespa 150 scooter.

In 1960 Bajaj became a public limited company and the plant produced the

100.00 vehicles ten years later, in the 1970, while the record of 100.000 units sold in a single

financial year was hit in the 1977. In the 1984 the company joined a partnership with the

Japanese Kawasaki (which ended only in the 2017) to develop, produce sell and assist two-

wheels in the Indian market.

In the 1985 it was opened a second plant (in Waluj near Aurangabad) to support the strong

demand and already in the

following year it was hit the milestone of half a million sales in a single financial year,

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becoming the biggest 100% Indian company in the sector. That year at the scooter and

rickshaw production it was added the motorcycles line up.

In November 2007 Bajaj Auto International Holdings BV a wholly owned subsidiary

company acquired 14.51% equity stake in KTM Power Sports AG of Austria Europe’s second

largest sport motorcycle manufacturer for Rs 345 crore. In 2012 Bajaj Auto tied up with

Japan’s Kawasaki in Indonesia, lately extended to the Philippines.

On 8 August 2017 Bajaj Auto and Triumph Motorcycles UK announced global partnership

whereby Bajaj will gain access to the iconic Triumph brand and its great motorcycles

enabling it to offer a wider range of motorcycles within its domestic market and other

international markets.

Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and cars. As of 2004,

Bajaj Auto was India's largest exporter of motorcycles.

Bajaj is the first Indian two-wheeler manufacturer to deliver 4-stroke commuter motorcycles

with sporty performance for the Indian market. Bajaj achieved this with the 150cc and 180cc

Pulsar. Motorcycles produced by Bajaj include the CT 100 Platina, Discover, Pulsar,

Avenger, and Dominar. In FY 2012–13, it sold approximately 37.6 lakh (3.76 million)

motorcycles which accounted for 31% of the market share in India. Of these, approximately

24.6 lakh (2.46 million) motorcycles (66%) were sold in India, and the remaining 34% were

exported.

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CURRENT VALUATIONS OF BAJAJ AUTO

Bajaj Auto Limited reported earnings results for the second quarter and six months ended

September 30, 2023. For the second quarter, the company reported sales was INR 105,846.7

million compared to INR 99,110.6 million a year ago. Revenue was INR 112,068.4 million

compared to INR 105,365.6 million a year ago. Net income was INR 20,200.5 million

compared to INR 17,194.4 million a year ago. Basic earnings per share from continuing

operations was INR 71.4 compared to INR 60.1 a year ago.For the six months, sales was INR

206,401.8 million compared to INR 176,799.5 million a year ago. Revenue was INR

218,698.5 million compared to INR 188,611 million a year ago. Net income was INR

36,641.9 million compared to INR 28,827.7 million a year ago. Basic earnings per share from

continuing operations was INR 129.6 compared to INR 100.2 a year ago.

The trailing twelve-month earnings per share (EPS) of the company stands at Rs 193.1, an

improvement from the EPS of Rs 157.3 recorded last year. The price to earnings (P/E) ratio,

at the current price of Rs 3,823.3, stands at 19.8 times its trailing twelve months earnings.

The table indicates that the year 2018 net profit ratio was 15.59% then ratio decreased in the

year 2019 to 15.08%. The net profit ratio has gradually increased in 2020, 2021 and 2022 as

16.35%, 16.40% and 16.85% respectively. The company is maintaining a good position in the

net profit. Bajaj Auto Limited reported earnings results for the second quarter and six months

ended September 30, 2023. For the second quarter, the company reported sales was INR

105,846.7 million compared to INR 99,110.6 million a year ago. Revenue was INR 112,068.4

million compared to INR 105,365.6 million a year ago.

20
BAJAJ AUTO LIMITED

Bajaj Auto limited is one of the largest two-wheeler manufacturing company in India apart

From producing two wheelers they also manufacture three wheelers. The company had started

Way back in 1945. Initially it used to import the two wheelers from outside, but from 1959 it

Started manufacturing of two wheelers in the country. By the year 1970 Bajaj Auto had rolled

Out their 100,000th vehicle. Bajaj scooters and motor cycles have become an integral part of

The Indian milieu and over the years have come to represent the aspirations of modern India.

Bajaj Auto also has a technical tie up with Kawasaki heavy industries of Japan to produce the

Latest motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator

has Emerged straight out of the drawing board of Kawasaki heavy industries. The core brand

values Of Bajaj Auto limited includes Learning, Innovation, Perfection, Speed and

Transparency. Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and

Chakan in Maharashtra, western India, which produced 2,314,787 vehicles in 2005-06.

The sales are Backed by a network of after sales service and maintenance work shops all over

the country. Bajaj Auto has products which cater to every segment of the Indian two-wheeler

market Bajaj CT 100 Dlx offers a great value for money at the entry level. Similarly, Bajaj

Discover 125 Offers the consumer a great performance without making a big hole in the

pocket.

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COMAPANY HISTORY

Bajaj Auto is a major Indian automobile manufacturer. It is Indian’s 4th largest two and three

wheeler maker. It is based in Pune, Maharashtra, with plants in Waluj near Auranga Akurdin

and Chakan, near Pune. Bajaj Auto makes motor scooters, motorcycles and the auto rickshaw.

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation

Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it

Obtained license from the Government of India to manufacture two-and three-wheelers and it

Went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to

produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at

Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single

financial Year. In 1995, it rolled out its ten millionth vehicles and produced and sold 1 million

vehicles in a year 13.

LOGO

Earlier Bajaj used “B” logo in a hexagon that was known for” Hamara Bajaj” was replaced

with a more attracting, stylish, vibrant, dynamic look moving from the lower caps to upper

caps which symbolize the rejuvenated Bajaj auto ltd. The change in the logo was the ongoing

change Bajaj has transformed its facilities like manufacturing process, service and distribution

network, created its benchmark in research and development activities. When customer has

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changed in terms of quality and style then change in the identity became the necessary change

for the Bajaj to invite the paradigm shift in the consumer‟s perception regarding the company.

Bajaj pulsar joined hands with MTV India in the year 2009 in order to launch pulsar MTV

stunt mania which was India‟s first ever bike stunt reality show. The main intention of the

Bajaj to target the youth of the India and MTV .

VISION

To attain a world-class excellence by demonstrating the value-added products to customers.

MISSION

To create value by enabling innovation, creativity, integrity and service to community in

everything we do.

ACHIEVEMENT

Born in India. Loved by the World The World’s favourite With more than 18 million

motorcycles sold in over 70 countries, the Bajaj brand is truly, The World’s Favourite Indian.

It is India’s No.1 motorcycle exporter with two out of three bikes sold internationally carrying

a Bajaj badge. The company is also the world’s largest manufacturer of three-wheelers. Bajaj

Auto is the first two-wheeler and three-wheeler company in the world to have reached a

market capitalisation of INR one trillion and continues to be the world’s most valuable two

and three-wheeler company.

Bajaj is loved not only in India but 70 countries around the world.

From motorcycles to three-wheelers and now quadricycles, from Mumbai to Mexico city and

Bogota to Bengaluru, there’s a Bajaj.

23
 PRODUCT AND SERVICES

 Dominar

A dynamic sports touring motorcycle, the Dominar is equipped with advanced features such

as triple-spark liquid-cooled DTS-i engine, USD front forks, a slipper clutch, integrated

bungee straps, and a dual LCD display. It’s designed for those who push their boundaries and

pursue the thrill of long-distance travel.

 Pulsar

For over 18 years, Pulsar has held the title of India’s top sports motorcycle. Known for its

aggressive styling and performance, it features the refined DTS-i technology that ensures

smooth power delivery and unmatched excitement on the road.

 Avenger

The Avenger is the highest-selling cruiser bike in India, celebrated for its signature design and

unmatched comfort. Popular across 10 countries, it embodies the spirit of freedom, offering

riders an experience that truly makes them "Feel Like God."

 Platina

Recognized as the most comfortable commuter bike in its category, the Platina comes with

ComforTec technology that significantly reduces shock impact. Its reliability has earned the

trust of over 1.4 million users in the past three years alone.

 CT

Branded as “Kushiyon ka Jackpot,” the CT series is ideal for families looking for their first

motorcycle. With unbeatable pricing, excellent mileage, and long-lasting durability, it has

brought joy to more than five million customers.

 Discover

Designed for vibrant everyday riding, the Discover motorcycle offers excitement with its
 LED daytime running lights, a powerful engine, and an enduring sense of joy. Its tagline

“Bano Zindadil” reflects the bike’s spirited nature.

 RE

A widely popular three-wheeler brand, the RE runs on petrol, CNG, and LPG. Known for its

cost efficiency and wide appeal, it has built a loyal customer base across 38 countries.

 Maxima

This three-wheeler combines strength and economy, offering a spacious and comfortable ride.

It's built for both performance and practicality.

 Qute

India’s first quadricycle, the Qute is designed as a cost-effective urban transport solution.

Compact and efficient, it addresses the mobility needs of densely populated cities.

 Chetak(Electric)

Blending modern technology with timeless style, the electric Chetak is Bajaj’s vision for

future mobility. With its flowing curves and smooth finish, it sets a benchmark for elegance

and innovation in the electric scooter segment.

 CORPORATE SOCIAL RESPONSIBILITY (CSR)

“For us, CSR stands for Creating Skilled Resources,”

– Rajiv Bajaj, Managing Director, Bajaj Auto Ltd., March 22, 2024 (Bajaj Beyond launch)

At Bajaj Auto, our responsibility to society extends far beyond our business operations. Our

CSR philosophy focuses on fostering inclusive growth and development by equipping India’s

youth with the skills necessary to thrive in an evolving industrial landscape. Through targeted

initiatives, we strive to make a lasting impact on people’s lives and the environment.

Key CSR Initiatives

 Bajaj Engineering Skills Training (BEST)

BEST is Bajaj Auto’s flagship initiative dedicated to enhancing the employability of young

engineers. Delivered in collaboration with premier educational institutions, it involves the

setup of state-of-the-art training labs equipped with globally sourced technology. BEST

provides hands-on training in current and emerging fields to students from economically

disadvantaged backgrounds, especially from tier 2, 3, and 4 cities. With an investment of

₹350 crore planned over the next three years (₹20 crore per center), the initiative currently

operates four centers, with four more in development. The upcoming phase will expand to

include domains like Electronics Manufacturing Systems (EMS), Firmware Development

(FD), Systems Validation (SV), and E-Mobility (EM).

 Bajaj Manufacturing Systems (BMS)

BMS offers a self-paced, e-learning curriculum focused on manufacturing principles for ITI

and polytechnic students. Delivered via mobile and web platforms, it draws from Bajaj Auto’s

operational expertise. Initially piloted across three districts (in Maharashtra, Uttarakhand, and

Karnataka), the program certified over 4,000 students and covers modules based on Total
 Productive Maintenance (TPM). BMS aims to reach over 300,000 students annually and plans

to expand by incorporating soft skills and internship opportunities.

 Community Engagement and Social Development

Bajaj Auto remains committed to supporting marginalized communities around its

manufacturing facilities through projects in health, education, environmental sustainability,

animal welfare, and more. These efforts are largely implemented by Janki Devi Bajaj Gram

Vikas Sanstha (JBGVS), the company’s dedicated CSR arm.

Highlighted Programs:

 YOJAK – Offers academic support to students from underprivileged backgrounds pursuing

education in STEM.

 Rupa Rahul Bajaj Scholarship Scheme – Launched in 2023, this program provides

scholarships for higher education in STEM fields.

 Lighthouse – A comprehensive livelihood initiative for urban youth that builds inner

resilience, skills, and connects them with employment opportunities.

 Samaj Seva Kendra (Pune) – A program focused on empowering women through skill-

building and entrepreneurship, enabling them to become financially independent.

 PRANA – Supports research in homeopathy and promotes integrative healthcare through the

Integrative Wellness Program (IWP).

CSR Budget Allocation (FY 2024–25)

S. No Focus Area Budget Allocation (INR Lakhs) Percentage

1 Skilling 15,835 92%

2 Animal Welfare 628 3.5%

3 Education 501 3%

4 Health 155 1%

5 Environment 84 0.5%

Total 17,203 100%

Bajaj Auto’s social responsibility efforts are inspired by the legacy of Mahatma Gandhi and

Jamnalal Bajaj. Through thoughtful initiatives and impactful partnerships, the company

strives to drive sustainable development and foster a more equitable society.

FOUNDER

Jamnalal Bajaj (1889–1942)

Founded by the freedom fighter, philanthropist and close confidante of Mahatma Gandhi

Jamanalal Bajaj, the Bajaj Group is one of the most respected and renowned business houses

of India. Started around eighty years back with a sugar factory in Lakhimpur Kheri of Uttar

Pradesh, the group has since diversified into a wide variety of business areas. The group’s

first sugar plant was one among only 30 sugar mills that pioneered the establishment of the

sugar industry in India. Today, Bajaj Hindustan Sugar Ltd is Asia’s Number One Sugar

company and among the top four globally. In addition, the Group includes Bajaj Corp Ltd, a

recently setup, Bajaj Energy Limited, Lalitpur Power Generation Company Ltd. And Bajaj

Infrastructure Development Co. Ltd. The Bajaj Group is a leading presence with diversified

interest in the sugar and growing Infrastructure sector including Power, Coal mining and Real

Estate; FMCG, and Ethanol. Bajaj Hindustan Sugar Limited, the Group‟s flagship company,

was set up in November 1931.

Kamalnayan Bajaj (1915–1972)

Kamalnayan Bajaj the eldest son of Jamanalal Bajaj, after completing his education from

University of Cambridge, England, returned to India to assist his father both in business and

in social service. Kamalnayan Bajaj also a man of strict principles, earmarked a large portion

of the income from his family business for public causes and social service programs. He

always had a sense of a larger social mission, transcending the dictates of business and the

bottom line. Every new business venture that Kamalnayan got into, testified to his business

acumen. With foresight and a spirit of zestful enterprise, Kamalnayan acquired ailing

industrial units and then turned them around. He went on to expand the business by branching
into manufacture of scooter, three-wheeler, cement, alloy casting and electricals. In 1954,

Kamalnayan took over active management of the Bajaj Group companies.

Ramakrishna Bajaj (1924–1994)

Ramkrishna Bajaj, the younger son of Jamanalal, took over after the death of his elder brother

Kamalnayan Bajaj in 1972. In addition to shouldering business responsibilities, Ramkrishna’s

energies were largely directed towards the social service and social welfare programs of the

Bajaj Group. He was of the firm conviction that he could make an impactful and meaningful

contribution to the community through social work.Ramakrishna had a flair and panache for

working with youth. He was elected as the Chairman of World Assembly for Youth (India) in

1961. He also held the office of the Managing Trustee of the Indian Youth Centres Trust,

which conceived and created the Vishwa Yuvak Kendra in 1968, a youth development

organization.

Rahul Bajaj(1938 – 2022)

Rahul Bajaj, the chairman and managing director of the Bajaj group is the grandson of

Jamnalal Bajaj. He completed his schooling from Cathedral, a school in Bombay. Then he

further pursued his studies from St Stephen’s College, Delhi, Government Law College,

Mumbai and Harvard University, USA. He took over control of the Bajaj Group in 1965 and

successfully established one of India’s largest conglomerates.

Niraj Bajaj(2022 – present)

One of the richest men in Asia, is leading the Bajaj Group after Rahul Bajaj’s death. In 2021,

he took over as the chairman of the group. He is also a board member of Bajaj Auto which
makes many popular two-wheelers. That’s not all, Niraj Bajaj had been on the board of

directors at Bajaj Allianz and General Insurance.

 CHAPTER 3
LITERTURE REVIEW

32
 LITERTURE REVIEW

 Evaluating profitability performance of Bajaj Auto Ltd & Hero MotoCorp by using

DuPont model.

Authors Name: Mahamuni, P. N., & Poma, A.A.

Year: 2019

Conclusion

They gathering to conducted a comprehensive study using DuPont analysis to evaluate the

profitability of Bajaj Auto and Hero MotoCorp. The study highlights that Bajaj Auto's strong

profit margins are attributed to efficient cost management and significant export revenues,

which generally offer higher margin compared to domestic sales.

Financial Performance Analysis of Selected Automobile Companies. SSRN Electronic

Journal.

Authors Name:Kumar, R.

Year: 2018

Conclusion

They gathering to conducted a examined the profit margins and Return on Assets (ROA) of

Bajaj Auto, noting the company's consistent profitability driven by its strategic focus on high-

margin products and markets. The study underscores the importance of Bajaj Auto's global

market strategy in maintaining robust profit levels.

 A Study on Liquidity Analysis of Bajaj Auto Limited. Indian Journal of Finance and

Economics.

Authors Name : Singh, A., & Sharma, N.

Year: 2020

33
 Conclusion

analyzed the liquidity ratios of Bajaj Auto, such as the current ratio and quick ratio, and found

that the company maintains a healthy liquidity position above the industry average. This strong

liquidity is credited to effective working capital management and a conservative debt approach,

ensuring the company's ability to meet short-term obligations.

 Debt and Interest Coverage Ratios. International Journal of Financial Management.

Authors Name Patel, Sneha

Year: 2017

Conclusion

investigated Bajaj Auto's solvency ratios, including the debt-to-equity ratio and interest

coverage ratio. The study revealed that Bajaj Auto has a low debt-to-equity ratio, indicating a

prudent capital structure with minimal reliance on debt financing. The high interest coverage

ratio further demonstrates the company's strong earnings capacity to cover its interest

obligations.

 Long-term Financial Stability of Bajaj Auto. Journal of Economic Studies.

Authors Name :Reddy, S.

Year: 2019

Conclusion

explored the long-term financial stability of Bajaj Auto, emphasizing its conservative use of

leverage and high interest coverage ratio. This approach has positioned the company as a

financially stable entity with a strong ability to withstand economic downturns.

34
 Operational Efficiency in Bajaj Auto. Journal of Operations Management.

Authors Name :Jain, Rakesh and

Mehta, Vikram

Year: 2018

Conclusion

analyzed operational efficiency metrics such as the inventory turnover ratio and asset turnover

ratio. Their study highlighted Bajaj Auto's optimized inventory management practices, leading

to high inventory turnover rates and efficient asset utilization to generate revenue.

 Asset Utilization Efficiency of Bajaj Auto. Journal of Business and Economics.

Authors Name :Chatterjee, Anil

Year: 2019

Conclusion

examined Bajaj Auto's asset turnover ratio and noted the company's ability to effectively use

its assets to produce revenue. The study attributed this efficiency to continuous improvements

in operational processes and strategic investments in technology and innovation.

 Journal of Industry and Business Research. Authors Name :Sharma, M.

Year: 2018

Conclusion

compared Bajaj Auto's financial performance with other industry players like Hero MotoCorp.

The study found that while Bajaj Auto excels in profitability and export performance, it face

s significant competition in the domestic market, particularly from Hero MotoCorp, which l

eads in volume sales.

35
 Strategic Financial Performance of Bajaj Auto in Competitive Markets. Journal of

Business Strategy.

Authors Name :Agarwal, P.

Year: 2020

Conclusion

conducted a comparative analysis using various financial metrics and concluded that Bajaj

Auto' strategic focus on high-margin international markets has helped it maintain competitive

profitability and financial stability, despite intense competition in the domestic sector.

36
 CHAPTER 4
RESESRCH METHODOLOGY

37
SOURCE OF DATA
This project the research done is based the concept of Descriptive Research, as the data will be

collected to clarify the facts. The data used for the analysis and interpretation is the secondary

data

secondary data is the kind of data that is collected directly from the data source without going

through any existing sources. It is mostly collected specially for a research project and may be

shared publicly to be used for other research.

38
RESEARCH DESING

39
 Research design is the framework of research methods and techniques chosen by a researcher.

The design allows researchers to hone in on research methods that are suitable for the subject

matter and set up their studies up for success.

The research design use in the study is analytical research has to analysis the financial

statement which is historical data derive conclusion form it.

Analytical analysis is a type of study that entails the use of critical thinking skills as well as the

assessment of facts and relevant data for the study.

The design of a research topic explains the type of research (experimental, survey,

correlation, semi experimental, review) and also its sub-type (experimental design, research

problem, descriptive case-study).

Tools used for data analysis:

The type of research problem an organization is facing will determine the research design and

not vice-versa. The design phase of a study determines which tools to use and how they are

used. The last 4 years annual report of the company is compiled and tabulated for the purpose

of study.

The techniques used are:

• Comparative study of Balance sheet

• Comparative study of Profit and loss account for the FY 2020-23

• Trend Analysis

• Ratio Analysis

Profitability ratio.

Turnover ratio.

Solvency ratio.

40
 Current ratio.

PERIOD OF STUDY:

The data for a period of 3 years from 2020-23 has been taken into consideration to assess the

financial strength and weaknesses of the country.

PROBLEM STATEMENTS

The project titled "A Study on Financial Analysis of Bajaj Auto with Reference to Ratio

Analysis" aims to address the following problem statement:

1. Despite Bajaj Auto's prominent position in the Indian automobile industry, a comprehensive
evaluation of its financial health using ratio analysis is necessary to provide deeper insights

into its profitability, liquidity and solvency.

2. This study seeks to identify the strengths and weaknesses in Bajaj Auto's financial performance
over recent years, offering stakeholders detailed information to support informed decision-

making and strategic planning.

41
 NEED OF THE STUDY

1. Evaluation of Financial Health:

Profitability Analysis : Assessing how profitable Bajaj Auto has been over recent years.

Liquidity Analysis: Understanding the company's ability to meet its short- term obligations.

Solvency Analysis: Examining the long-term sustainability and debt management of Bajaj

Auto.

Efficiency Analysis: Evaluating how effectively the company utilizes its assets and manages

its operations.

2. Investment Decisions:

Investors require comprehensive financial performance analysis to make informed decisions

about investing in Bajaj Auto. Shareholders need to understand the return on their investment

and the potential for future growth.

3. Benchmarking:

Comparing Bajaj Auto’s performance with industry peers and competitors. Identifying best

practices and areas for improvement relative to other leading companies in the automotive

sector.

4. Strategic Planning:

Providing insights for the company's management to aid in strategic decision-making and

future planning. Highlighting strengths and weaknesses in financial performance that can

impact long-term strategies.

5. Regulatory and Compliance Requirements:

Ensuring transparency and adherence to financial reporting standards. Fulfilling obligations to

stakeholders, including regulatory bodies and financial institutions.

42
 OBJECTIVE OF THE STUDY

 To evaluate the liquidity and profitability position of Bajaj auto ltd.

 To Examine the Solvency and turnover position of Bajaj auto ltd.
 To Examine the turnover ratio of Bajaj auto ltd.

43
 SCOPE OF THE STUDY

• The current research has a very wide and broad scope.

• The scope of this report is restricted to profitability analysis, liquidity analysis, short term

financial strength analysis through working capital management, and long-term financial

strength analysis through solvency ratios analysis

• The current research focuses specifically on monetary issues.

• The present study did not cover non-monetary factors that could have a direct effect on the

financial output of the two-wheeler industry and selected two-wheeler firms.

• Other financial issues such as capital budgeting, the effect of social, economic, and political

conditions on the two-wheeler industry, the impact of government policies on trade and

industry, and so on are not covered in this report.

44
HYPOTHESIS

Null Hypothesis 1 (H0): There is no decrease in profitability ratio of Bajaj auto ltd. Alternate

Hypothesis 1 (H1): There is decrease in profitability ratio of Bajaj auto ltd.

Null Hypothesis 2 (H0): There is no decrease in solvency and turnover position of Bajaj auto

ltd.

Alternative Hypothesis 2(H1): There is decrease in solvency and turnover position of Bajaj

auto ltd.

45
LIMITATION OF STUDY

 Hard to Compare: It's tough to compare Bajaj Auto to other companies because they

might do things differently or be in different situations.

 Data Availability and Quality: The study's findings may be limited by the

availability and quality of financial data on Bajaj Auto. Incomplete or inaccurate data

could lead to biased results or an incomplete analysis.

 Time frame: The study's conclusions may only be applicable to the specific

timeframe covered by the financial data. Economic conditions, industry trends, and

company strategies can change rapidly, potentially affecting the relevance of the

analysis over time.

 Future Uncertainty: The study may not account for future uncertainties, such as

changes in market conditions, technology disruptions, or unforeseen events, which

could impact Bajaj Auto's financial performance in unpredictable ways.

 Scope: The analysis may focus on certain aspects of financial performance, such as

profitability or liquidity, while neglecting others. This limited scope could provide an

incomplete picture of Bajaj Auto's overall financial

46
 CHAPTER 5
DATA ANALAYSIS & INTERPRETATION

47
Data Analysis and Interpretation

Liquidity ratio:

The liquidity ratio is used to measure the liquidity position of any organization. It means

whether the financial organization is able to pay its short-term obligations.

Current Ratio:

The formula for calculating the current ratio was = Current Assets / Current Liabilities

Current Assets included cash balance in hand, bank account balance, bills receivable,

inventories, and prepaid expenses. Current liabilities included bills payable, outstanding

expenses, and other short- term obligations.

Table 1 Current Ratio

Current Assets (Rs)

Current Liabilities (Rs)
Year Ratio( Times)

2020 6,596.96 4,253.21 1.55

2021 14,175.13 5,643.21 2.51
2022 9,994.47 4,689.44 2.13

2023 8,870.41 5,198.04 1.71

48
 Ratio
3

2.5

1.5

0.5

0 2020 2021 2022 2023

Table 1 shows the From the overall analysis, the current ratio results are more

than the standard norm of 1 except in the years 2020 and 2023. Due to the impacts of Covid -

19 lockdown in India.Bajaj Auto's current ratio for fiscal years ending March 2020 to 2023

averaged 1.9x. Bajaj Auto's operated at median current ratio of 1.8x from fiscal years ending

March 2020 to 2023. Looking back at the last 5 years, Bajaj Auto's current ratio peaked in

March 2022 at 2.5x.

49
Quick Ratio

The formula for calculating the quick ratio was = Quick Assets/ Quick Liabilities Quick assets

include all current assets except inventories and prepaid expenses, Quick liabilities include all

current liabilities except bank over draft

Table 2 Quick Ratio

Colum… Current Assets (Rs) Current Liabilities (Rs) Ratio (Times)

Cha…
2
0
2020 6,596.96 4253.21 1.30

2021 14,175.13 5643.21 2.25

2022 9,994.47 4,689.44 1.87

2023 8,870.41 5198.04 1.44

The above table 2 denotes the quick ratio of Bajaj Auto Ltd from 2020 to 2023. The ratio

decreased from 2.06 times in 2020 to 1.30 times in the year 2020 after that it increased from

1.30 times in the year 2020 to 1.44 times in the year 2023. The results of quick ratios are more

So, so the firm can easily meet its current strong and its liquidity position is too strong.

50
Profitability Ratio
Operating Profit Ratio
The operating profit ratio helps to measure the operating efficiency of the business. Operating

profit comes from the company‟s regular courses of business. And it is the major source of

income.

The formula for calculating operating profit ratio = Operating profit/ Net Sales

Table 3

Operation Profit Ratio

Year Operating profit (Rs) Total Revenue Ratio%

2020 29,918.65 31652.21 95.16

2021 27,741.08 29017.54 94.52

2022 33,144.71 34353.95 95.60

2023 36,427.60 37,609.02 95.72

From the above table, 3 clearly shows the operating profit position of the firm. The operating
profit ratios show a constant trend. The operating profit ratio increased from 95.16 percent to
95.72 in the year 2022. It is an appreciable one. So, the company tries to increase revenue from
the operations of the business.

51
Return on Equity Ratio

The formula for calculating Return on equity = Net Income/Shareholders' equity

Table 4
Return on Equity Ratio

Year Net income (Rs.) Shareholder equity Ratio %

(Rs.)

2020 5,099.98 19,925.49 25.59

2021 4,554.59 25,202.26 18.07

2022 5018.17 26,668.80 18.82

2023 5,627.60 25,425.86 20.50

The above table 4 clearly explains the return on equity ratio of Bajaj Auto Ltd. The highest
return on equity ratio shown in the year 2020 was 25.59 percent. The lowest ratio shown in
theyear 2020 was 18.07 percent. This ratio suddenly decreased from 25.59 percent in the year
2020 to
18.82 percent in the year 2023. Because of that the firm had increased equity shareholders fund
in their capital structure.

52
Return on Investment Ratio
The return on investment is helping to measure used to assess the efficiency or profitability of
an investment. Income from investment is not a main source of business. Investment may be
invested in other companies‟ equity shares, debenture, and another mode.
The formula for calculating Return on Investment ratio = Net Profit/ Investment ×100

Table 5
Return on Investment Ratio

Year Net Profit (Rs) Total Investment (Rs) Ratio %

2020 5,099.98 1,8195.95 28,03

2021 4554.59 22,630.95 24.40

2022 5018.17 23,818.76 23.13

2023 5,627.60 22,923.33 25.69

shows the return on investment ratio of Bajaj auto limited. This ratio increased from
23.13 percent to 28.03 percent in the year 2020 to 2023. After that, the ratio decreased from
28.03 percent to 23.23 percent in the year 2020 to 2023. It is not an appreciable factor. So, the
firm must want to concentrate on returns from investments by the way of selecting the best
investment securities when choosing investments.

53
Solvency Ratio
The solvency ratio is used to measure a firm‟s ability to its long-term obligation of the
business. It includes the debt-equity ratio and proprietary ratio.

Debt- Equity Ratio

Debt- equity ratio is the important ratio to measure long-term obligations. It matches the total
liabilities with the total shareholders‟ equity fund. High debt equity shows a levered firm and
low debt-equity ratio low levered firms.
Table 6
Debt- Equity Ratio

Year Debt (Rs) Equity (Rs) Ratio (Times)

2020 125.59 19,925.49 0.006
2021 121.46 25,202.26 0.005
2022 159.07 26,668.80 0.006

2023 100.45 28,845.10 0.003

The above table shows the Debt – Equity ratio of Bajaj Auto Ltd. As per the standard norms,
the debt equity ratio. The above results are below. So, we Know the firm can
easilyable paid its outsiders' funds by using its total shareholders‟ funds.

54
Proprietary Ratio
The formula for calculating proprietary ratio = Shareholders fund/ Total Asset
Table 7 Proprietary Ratio

Year Shareholder Total Assets Ratio (Times)

2020 19,925.49 24,773.30 0.80
2021 325,202.26 31,530.20 0.80
2022 26,668.80 31,921.94 0.84
2023 27,660.40 31,127.69 0.87

Ratio
3

2.5

1.5

0.5

0
2020 2021 2022 2023

Shows the Proprietary ratio of the firm and highlights the general financial strength of
the firm. The proprietary ratio was increased from 0.80 times to 0.84 times in the year 2020 to
2023. The results of the proprietary ratios were above the standard norm. It denotes the firm
has enough assets to meet its shareholders‟ fund. So, that firm can easily compensate their
equity shareholders fund.

55
Turnover Ratio
Assets Turnover ratio

The assets turnover ratio measures how the firm utilized its total assets in that business and

how it helps to generate revenue for the business. The higher the ratio denotes the company‟s

better performance.

The formula for calculating assets turnover ratio = Revenue/Total assets

Table 8
Assets Turnover ratio

Year Total Revenue (Rs) Total Assets (Rs) Ratio (Times)

2020 31,652.21 24,773.30 120.77

2021 29,017.54 31,530.20 87.98

2022 34,353.95 31,921.94 1.04

2023 37,609.02 31,127.69 1.16

56
shows the assets turnover ratio of Bajaj Auto Ltd from 2020 to 2023.

This ratio increased from 105.88 times to 120.77 times in the year 2020 to 2023. After that

results suddenly decreased from 120.77 to 87.98 due to the post-impact of Covid-19. Then the

ratio slowly increased to 103.83.

57
 CHAPTER 6

FINDINGS & SUGGESTIONS

58
 FINDINGS

The study was conducted on the basis of ratio analysis of Bajaj Auto Limited. The following

were the observations from the analysis.

 The profitability ratio of Bajaj auto limited was considered to be more favorable.

 Bajaj motors have a favorable generating revenue from its assets.

 Company have got an average and yet favorable leverage ratio.

 There was no significant increase or decrease in the companies leverage ratio.

 There was an Decreased in the coverage ratio Bajaj motors ratio.

59
 SUGGESTIONS

 Except 2020 & 2023, the results of the current ratios were shown above the standard Norm of

2:1. So, it is appreciable that the firm must maintain equal or above the Standard Norm in their

future periods

 The results of the operating profit ratios were no great improvement when compared to

previous years. If the firm concentrates on its operating sources means it furthermore helps

the company‟s growth.

 The debt-equity ratio of the firm was too good. The firm tries to follow that same

Improvement in the future also.

 The results of the proprietary ratios were above the standard norm. It helps to the easy to Meet

its shareholder‟s fund by its assets of the firms. So, they continue to follow this same Strategy

in the future period.

 The overall Assets turnover ratio was appreciable. In Addition, to that, the firm tries to

Increase the utilization of its resources. It creates a positive appearance among the investors.

60
 CHAPTER 7
CONCLUSION

61
CONCLUSION

Over the last decade, the two-wheeler industry has grown significantly. Increased demand in

urban and semi-urban regions, as well as a relatively low cost of ownership, are two major

factors, two - wheelers industry is growing in India. Its success is boosted by the fact that it is

the favored mode of transportation over public transportation and four-wheelers. With

increasing fuel costs, raising safety concerns, numerous road crashes, higher insurance

premiums, and speculation about the electrification of motorcycles, the industry has recently

been facing downturns and showing signs of decline. There are roadblocks to the industry's

expansion.

The primary motive of this report is to analyze financial statement of the Bajaj it measures the

performance in term of assets utilization, and profitability. Also provides some suggestion to

improve the overall financial performance of the Bajaj. The secondary data is used from

published reports and journal article to study Two-wheeler Industry.

HYPOTHESIS TESTING

After Performing the study and analysis the data, it is found that “Null Hypothesis (H0) - There

is no decrease in Profitability ratio of bajaj auto is rejected and Alternate hypothesis(H1) -

There is decrease in profitability ratio of Bajaj auto is accepted”.

Similarly, After Performing the study and analysis the data I found that Null Hypothesis

There is decrease in solvency and turnover position of Bajaj auto is or rejected and alternate

hypothesis(H1) There is decrease in solvency and turnover position is accepted.

62
CHAPTER 8

REFERENCES

63
References

https://en.wikipedia.org/wiki/Bajaj_Auto

https://en.wikipedia.org/wiki/Bajaj_Group

https://www.bajajgroup.company/core-companies/bajaj-auto-limited/

https://www.moneycontrol.com

https://www.investing.com

Books

T. S. GREWAL’S “Analysis of Financial Statement

K. R. Subramanyam “Financial Statement Analysis

64
CHAPTER 9
ANNEXURE

65
BAJAJ AUTO

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

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 282.96 289.37 289.37 289.37 289.37
Equity Share Capital 282.96 289.37 289.37 289.37 289.37
Reserves 25,142.90 26,379.43 24,912.89 19,636.12 21,490.53
Networth 25,425.86 26,668.80 25,202.26 19,925.49 21,779.90
Total Liabilities 25,425.86 26,668.80 25,202.26 19,925.49 21,779.90
Mar '23 Mar '22 Mar '21 Mar '20 Mar '19

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 5,384.22 4,542.45 4,278.68 4,118.27 4,271.60
Less: Accum. Depreciation 2,668.22 2,708.43 2,613.75 2,419.25 2,507.66
Net Block 2,716.00 1,834.02 1,664.93 1,699.02 1,763.94
Capital Work in Progress 81.92 76.82 15.98 60.19 48.02
Investments 22,923.33 23,818.76 22,630.95 18,195.95 19,159.36
Inventories 1,397.90 1,230.51 1,493.89 1,063.50 961.51
Sundry Debtors 1,776.12 1,516.38 2,716.85 1,725.10 2,559.69
Cash and Bank Balance 285.75 588.34 527.36 308.27 922.81
Total Current Assets 3,459.77 3,335.23 4,738.10 3,096.87 4,444.01
Loans and Advances 1,946.67 2,857.11 2,480.24 1,721.27 1,965.06
Total CA, Loans & Advances 5,406.44 6,192.34 7,218.34 4,818.14 6,409.07
Current Liabilities 5,535.01 5,098.09 6,173.59 4,609.34 5,445.31
Provisions 166.82 155.05 154.35 238.47 155.18
Total CL & Provisions 5,701.83 5,253.14 6,327.94 4,847.81 5,600.49
Net Current Assets -295.39 939.20 890.40 -29.67 808.58
Total Assets 25,425.86 26,668.80 25,202.26 19,925.49 21,779.90

Contingent Liabilities 1,784.80 2,172.93 1,667.21 1,803.85 1,853.88

Book Value (Rs) 898.58 921.63 870.94 688.59 752.67

Source : Dion Global Solutions Limited

Bajaj Auto
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 282.96 289.37 289.37 289.37 289.37
Total Share Capital 282.96 289.37 289.37 289.37 289.37
Reserves and Surplus 25,142.90 26,379.43 24,912.89 19,636.12 21,490.53
Total Reserves and Surplus 25,142.90 26,379.43 24,912.89 19,636.12 21,490.53
Total Shareholders Funds 25,425.86 26,668.80 25,202.26 19,925.49 21,779.90
NON-CURRENT LIABILITIES
Deferred Tax Liabilities [Net] 345.15 403.33 522.14 346.38 542.66
Other Long Term Liabilities 157.77 159.07 160.61 167.72 169.59
Long Term Provisions 0.87 1.30 1.98 80.50 14.56
Total Non-Current Liabilities 503.79 563.70 684.73 594.60 726.81
CURRENT LIABILITIES
Trade Payables 4,073.88 3,633.18 4,573.81 3,199.70 3,786.73
Other Current Liabilities 958.21 902.51 917.03 895.54 946.33
Short Term Provisions 165.95 153.75 152.37 157.97 140.62
Total Current Liabilities 5,198.04 4,689.44 5,643.21 4,253.21 4,873.68
Total Capital And Liabilities 31,127.69 31,921.94 31,530.20 24,773.30 27,380.39
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,635.29 1,757.57 1,565.33 1,602.03 1,688.69
Intangible Assets 30.70 25.32 47.30 43.09 19.75
Capital Work-In-Progress 81.92 76.82 15.98 46.54 11.54
Intangible Assets Under Developmen 0.00 0.00 0.00 13.65 36.48
Other Assets 50.01 51.13 52.30 53.90 55.50
Fixed Assets 2,797.92 1,910.84 1,680.91 1,759.21 1,811.96
Non-Current Investments 18,503.96 18,849.63 14,602.84 15,416.20 17,582.88
Long Term Loans And Advances 2.28 4.57 5.22 32.46 31.63
Other Non-Current Assets 953.12 1,162.43 1,066.10 968.47 891.26
Total Non-Current Assets 22,257.28 21,927.47 17,355.07 18,176.34 20,317.73
CURRENT ASSETS
Current Investments 4,419.37 4,969.13 8,028.11 2,779.75 1,576.48
Inventories 1,397.90 1,230.51 1,493.89 1,063.50 961.51
Trade Receivables 1,776.12 1,516.38 2,716.85 1,725.10 2,559.69
Cash And Cash Equivalents 285.75 588.34 527.36 308.27 922.81
Short Term Loans And Advances 3.62 4.17 5.74 6.11 6.34
OtherCurrentAssets 987.65 1,685.94 1,403.18 714.23 1,035.83
Total Current Assets 8,870.41 9,994.47 14,175.13 6,596.96 7,062.66
Total Assets 31,127.69 31,921.94 31,530.20 24,773.30 27,380.39
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 1,784.80 2,172.93 1,667.21 1,803.85 1,853.88
CIF VALUE OF IMPORTS
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 1,138.68 902.08 753.34 872.88 973.07
REMITTANCES IN FOREIGN CURRENCIES FO R
DIVIDENDS
Dividend Remittance In Foreign Currency - - - -

-
EARNINGS IN FOREIGN EXCHANGE - - - -

FOB Value Of Goods 16,280.38 12,181.88 11,872.37 11,434.23

-
258.85 258.85 258.85 258.85
Other Earnings
14,461.4
7
16,563.73 10,140.04 4,028.29 5,600.71
BONUS DETAILS
Bonus Equity Share Capital 258.85 3,011.82 4,969.48 13,993.62 13,560.83
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market
17,271.6 - - - -
7Value
Non-Current Investments Unquoted Book
5,332.8 4,154.58 7,468.64 174.07 -
4Value
CURRENT INVESTMENTS
Current Investments Quoted Market

-Value
Current Investments Unquoted Book
4,419.3
7Value
Bajaj Auto

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '23 Mar '22 Mar '21 Mar '20 Mar '19

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 36,427.60 33,144.71 27,741.08 29,918.65 30,249.96
Net Sales 36,427.60 33,144.71 27,741.08 29,918.65 30,249.96
Other Income 1,179.84 1,537.94 1,288.68 1,700.37 1,987.75
Stock Adjustments 98.11 -187.96 219.48 63.01 56.42
Total Income 37,705.55 34,494.69 29,249.24 31,682.03 32,294.13
Expenditure
Raw Materials 26,715.73 24,816.51 20,309.42 21,576.84 22,369.94
Power & Fuel Cost 122.51 108.01 91.34 116.57 115.01
Employee Cost 1,444.90 1,358.80 1,285.96 1,389.21 1,255.40
Selling and Admin Expenses 359.85 168.06 247.91 488.27 484.94
Miscellaneous Expenses 1,333.58 1,246.73 1,097.45 1,314.54 1,099.07
Total Expenses 29,976.57 27,698.11 23,032.08 24,885.43 25,324.36
Mar '23 Mar '22 Mar '21 Mar '20 Mar '19

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 6,549.14 5,258.64 4,928.48 5,096.23 4,982.02

PBDIT 7,728.98 6,796.58 6,217.16 6,796.60 6,969.77
Interest 39.48 8.66 6.66 3.16 4.48
PBDT 7,689.50 6,787.92 6,210.50 6,793.44 6,965.29
Depreciation 282.44 269.17 259.28 246.43 265.69
Profit Before Tax 7,407.06 6,518.75 5,951.22 6,547.01 6,699.60
PBT (Post Extra-ord Items) 7,407.06 6,518.75 5,951.22 6,547.01 6,699.60
Tax 1,781.04 1,486.46 1,384.41 1,480.22 2,027.98
Reported Net Profit 5,627.60 5,018.87 4,554.59 5,099.98 4,675.18
Total Value Addition 3,260.84 2,881.60 2,722.66 3,308.59 2,954.42
Equity Dividend 4,051.14 4,051.14 0.00 5,208.60 1,736.20
Corporate Dividend Tax 0.00 0.00 0.00 1,049.33 337.49
Per share data (annualised)
Shares in issue (lakhs) 2,829.57 2,893.67 2,893.67 2,893.67 2,893.67
Earning Per Share (Rs) 198.89 173.44 157.40 176.25 161.57
Equity Dividend (%) 1,400.00 1,400.00 1,400.00 1,200.00 600.00
Book Value (Rs) 898.58 921.63 870.94 688.59 752.67

Source : Dion Global Solutions Limit ed