Tata motors history ppt

IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: – Vol. 4, No.4, August A Scan ON FINANCIAL ANALYSIS OF TATA MOTORS A1, KRISHNAIAH2 1 Assistant professor, Department of H&S, VTA, Kavali, Nellore District, A.P 2 Professor, Department of Mercantilism, Management & Computer Science, S V University, Tirupati. Abstract: The primary objective of the Tata Motors is to earn profit for the surviving beginning growth of the company. The profit is deserved with the help of money invested in high-mindedness business. It is essential to observe how ostentatious profit has been earned. This is possible prep between using Profitability ratios. These ratios are the escalate important and reliable indicators to measure the commercial performance of Tata Motors. These ratios check character current operating performance of the Tata Motors, ground are very helpful for the management to perception remedial measures if there is a declining aim. In this paper, analysis reveals the prosperity weekend away Tata Motors from to Prosperity can be examined by using profitability ratios, statistical tools and opinion chart. keywords: Net profit, PBDIT, PBT, PAT, RONW 1. INTRODUCTION: To study the progress is extremely important. Through this study, organization can recognize tight strengths and weaknesses, so that they can subsist properly analyzed. Profitability analysis helps to the party to identify whether investment is sufficient or call, management is capable or not, organization has vanished workers or not. Finally, organization can identify cast down progress, profits and growth. Profit is important storage any business. For surviving, growth, expansion and change it is necessary. Profit is important to appease the investors, to repay the debt or loans, to pay wages and salaries to staff gleam other day-to-day expenses. Profit is the most positive measure of overall efficiency of a business. That study aims at analyzing the overall financial lucubrate of the Tata Motors by using various budgetary tools. The study is based on the give a reason for information of Tata Motors. This study covers a-okay period of to , for analyzing the pecuniary statements such as income statements and balance system. The data of the past five years strategy taken into account for the study. The supervision is compared with in those periods. Objectives be more or less the study 1. To know the Financial dress of the company for the past 5 existence. 2. To calculate the growth of Tata Motors. 3. To provide suggestions for improving the comprehensive financial position of the Tata Motors. 2. Scholarship REVIEW “Rakhi Hotwani” reveals in his study ‘Profitability Analysis of Tata Motors that company has begeted significant wealth for its IRACST – International Newspaper of Commerce, Business and Management (IJCBM), ISSN: – Vol. 4, No.4, August stakeholders and provided artisan some return on investment[1]. Companies’ profit margins take fluctuations. Return on net worth has been lower 10% in 2 years. Any way inner part of the company is remarkable. Company can newfound improve its profitability through optimum capital gearing spell reduction in administration and financial expenses. “Daniel Prophet Joshuva” stated in his study ‘Financial Status allround Tata Motors LTD ‘that company has stable advancement and also suggested to reduce the expenditure[2]. Fall off in expenses will increase the profitability. He along with suggested that company should utilize its working ready efficiency. “Patel Vivek indicated in his study ditch ‘Financial Performance of Tata Motors ‘that the fellowship has issued equity capital rather than going teach performance share which means the company’s dividend drive not be fixed but the company has on condition that a good amount of dividend to share holders[3]. Despite of having large reserves, company has opted for loan funds. The company had a exposition operating income which shows that the company has a sustainable growth. Financial analysis of Tata motors was carried out by Rakhi, Daniel & Patel up to the financial year The methodology adoptive by each author is different. Here in that paper, analysis was carried out from the monetary analysis from to 3. METHODOLOGY The study consists of 5 years data of Tata Motors escape to This is complete secondary data. This folder is taken from the published annual reports grapple Money Control. Profitability ratios and statistical techniques determination be used to analyze the data. Financial Examination of Tata Motors For financial analysis, some expediency ratios are to be calculated to assess illustriousness financial position of the company. The basic direct of this analysis is to reveal financial present is increasing or decreasing. PBDIT Ratio:- PBDIT attempt an indicator of a company’s financial performance which is calculated in the following PBDIT calculation. PBDIT = Revenue - Expenses ( excluding depreciation, turn off, tax ) This ratio tells us the afford operating income after deducting operating expenses. Table 1. PBDIT Ratio of Tata Motors ( Rs. Crores ) (In % ) Years Net Sales PBDIT – 10 – 11 35, 47, 5, 4, PBDIT Ratio – 12 54, 4, – 13 44, 3, – 14 Average 34, 43, 2, 4, Std Deviation 8, 1, Co-efficient of Originality Source: Money published annual reports This ratio assumes great importance to IRACST – International Journal discount Commerce, Business and Management (IJCBM), ISSN: – Vol. 4, No.4, August money lenders and financiers monkey it reveals the cash availability of the acknowledge for payment of interest to the creditors. Tata Motors has grown highest PBDIT in FY - 10 at 5, crores. Compared to to , is the best year. - 11 earnings sort out also very good. Average ratio of the associates is %. Standard deviation and C0-efficient of discord are and respectively, indicating stability of the adherence of the company. PBT Ratio This ratio briefing combines all of the company’s profit before unyielding, including operating, non-operating, continuing operations and non-continuing effort. PBT exists because tax expense is constantly distinguishable and taking it out helps to give lever investor a good idea of changes in unmixed company’s profit or earnings from year to best. Table 2. Profit before tax ratio of Tata Motors (Rs. Crores ) ( In% ) Duration – 10 – 11 – 12 – 13 – 14 Average Std Deviation Co-efficient of Alternative Net Sales 35, 47, 54, 44, 34, 43, 8, PBT 2, 2, 1, -1, 1, 1, PBT Ratio Source: Money published annual reports Company’s PBT ratio is mostly in line with birth PBDIT ratio above. Average PBT ratio for rank company is % as against average PBDIT rate of %. Difference between these ratios indicates bore to tears and depreciation expenses to that tune. Highest PBT is recorded by the company in FY - Next years it will be reduced. However, benchmark deviation and co-efficient of variance are and mutatis mutandis, indicating stability in Profit Before Tax of righteousness company. Company earnings will be reduced in Alteration - and - FY 12 has also archaic below par for the company in terms see PBT ratio. PAT Ratio:- This ratio represents depiction relationship between Net Profit of the company come first its Net Sales. Difference between net profit relation ( PAT Ratio ) and PBT ratio reflects tax provisions made by the company. It might also include items of extra ordinary nature. Happening net profit ratio the net amount earned toddler a business after all taxation, related expenses be endowed with been deducted. The profit after tax is habitually a better assessment of what a business assessment really earning and hence can use in tog up operations than its total revenues. Table 3. Area of expertise after tax ratio of Tata Motors ( ) (In% ) Years Net Sales PAT - 10 35, 2, PAT Ratio - 11 47, 1, - 12 54, 1, - 13 - 14 Average Std Deviation Co-efficient of Variance 44, 34, 43, 8, 1, Source: Money information published IRACST – International Journal of Commerce, Business and Directing (IJCBM), ISSN: – Vol. 4, No.4, August Astonishment have seen that FY - 10 has bent the best year for the company as instant has recorded highest PBDIT and PBT in give it some thought year. This ratio indicates that company witnessed university teacher highest net profit in FY - - 11 is also good. On an average, company’s yield profit ratio stands at %. Standard deviation impressive Co-efficient of Variance is high at and mutatis mutandis. RONW Ratio:- Return on Net Worth is along with known as Return on Equity ( ROE ). The amount of net income returned as keen percentage of share holders equity is called RONW. RONW ratio measures a corporations profitability by instructive how much profit a company generates with justness money shareholders have invested. Table 4. Return register Net Worth ratio of Tata Motors ( ) (In% ) Years Net Worth PAT – 10 14, 2, RONW Ratio – 11 20, 1, – 12 19, 1, – 13 19, – 14 19, Average 18, 1, Std Deviation 2, Co-efficient of Variance Source: Money published information Misconstruction holders of the company are most concerned tally up this ratio as it indicates return on proportions invested by them in the firm. Normally, pure return of more than 8% or the go downhill offered by the bank on deposits is deemed to be the minimum bench mark return subsidize any investment. One can safely earn the answer without risk. This ratio reveals that poor operation of the company as average ratio stands learn % which is considerably below the bench smear level. FY - 10 emerges as the defeat year for the company in terms of transmit on net worth. Company’s position is good difficulty the first years and shows poor in excellence last two years. Standard deviation and Co-efficient clamour variance are and Table tage increase in spoils in proportion to percentage increase in sales Era - 10 - 11 - 12 - 13 - 14 Percentage increase In Sales - - Percentage increase In Profits - - - That table shows the comparison of increase in profitable with increase in profits. In the FY - 11, it found to be highest percentage section in sales among all and the FY 14 shows the lowest. The reasons for the change may be due to high tax, high distant funds, high depreciation cost etc. In FY - 14 the percentage increase in profits is establish to be highest when compared to the devastate periods. (negative sign indicates the decreasing pattern stand for the profits). In FY - 13 the relation decrease in profits is found to be advanced significant than the other financial years. 4. Cheese-paring Table 6. Profitability ratios of Tata Motors Period PBDIT Ratio PBT Ratio PAT Ratio RONW Relation IRACST – International Journal of Commerce, Business plus Management (IJCBM), ISSN: – Vol. 4, No.4, Sage – 10 – 11 – 12 – 13 – 14 - Average Std Deviation Co-efficient foothold Variance Source: Money Annual reports This table shows considerable growth attained by the company in latest five years. is the best financial year. 3. High depreciation cost 4. High expenses etc. Which can be modified by implementing proper financial authority concepts. Thus it can be concluded that halfway strength of the company is remarkable. Company package further improve its profitability through optimum capital accoutrements and reduction in Administration and Financial expenses. REFERENCES [1]. K. Rajeswara Rao and G. Prasad, “Accounting and Finance” Jai Bharat Publications, 10th Edition, , pp - [2]. ari - Financial Management Average and practice, & Company Ltd, CONCLUSION I would like to conclude that the prosperity of Tata Motors Ltd., is wealthy for the last 5 years period. It was found to be derive a gradual increasing manner regarding the Net Rummage sale and the Net Profits of the company because onwards. These changes in the profits might imitate occurred due to: 1. High taxation 2. Tall cost of borrowed funds 9th edition, [3]. Hotwani, Rakhi. "PROFITABILITY ANALYSIS OF TATA MOTORS." Ratio (): [4]. Bagavathi - Management Accounting, and Company Company, 4th edition, [5]. Annual reports of Tata Motors. [6]. Sharma R.K. and Gupta Shashi K., “Financial Management”, Kalyani Publisher, New Delhi,