1 / 15

Financial Management Project SMBA-09

Financial Management Project SMBA-09. Company Overview. Pioneer in the consumer and industrial specialty chemicals business in India High market share and strong position in most products and segments Operations in 8 countries with manufacturing facilities

onslow
Download Presentation

Financial Management Project SMBA-09

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Management Project SMBA-09

  2. Company Overview • Pioneer in the consumer and industrial specialty chemicals business in India • High market share and strong position in most products and segments • Operations in 8 countries with manufacturing facilities • Brand "Fevicol" ranked as # 1 Household care brand by Brand Equity in 2007-08 • Pidilite ranked as # 1 company in chemical segment by Business Today (2009) • Consistent growth in sales, profits and dividend payout

  3. GROWTH

  4. Consistent Dividend Payout 50.0% 36.9% 39.7% 40.0% 35.4% 30.2% 30.0% 27.5% 20.0% 10.0% 0.0% 2005-06 2006-07 2007-08 2008-09 2009-10 Dividend Payout Ratio Dividend Payout = Dividend / PAT

  5. FINANCIAL ANALYSIS • STOCK WATCH • DIRECTORS REPORT 31.03.2010 • COMMON SIZE STATEMENT • CAPITAL STRUCTURE • CONTINGENT LIABILITIES • RATIO ANALYSIS

  6. Stock Watch The overall high has been in the month of Bonus Issue i.e March 2010

  7. Performance vis BSE sensex

  8. DIRECTOR’S REPORT (YEAR ENDED 31.03.2010) • The Board reported about the expansion of the adhesives manufacturing capacities at Kalamb in Himachal Pradesh and Daman. • A drive in improving performance through greater involvement and participation of employees was initiated during the year at the manufacturing units. • The Board updated about the Synthetic Elastomer Project which is a Monomer and Polymer Plant. • The report highlighted on the Term Finances, Capital Expenditure and amount raised by the company through issue of Foreign Currency Convertible Bonds • Subsidiaries performance has also been outlined in the Board’s Report. • The Board is positive about the Sales Growth in the Current Year. However margins will be under pressure due to significant increase in inputs costs • The Board’s Report is followed by Corporate Social Responsibility Report which highlights the new initiatives taken by the company in the areas of health care, education and rural development..

  9. The Company relies more on internal sources than on borrwedfunds.Also Reserves have increased and borrowings decreased Gross Block of Fixed Assets has increased Investments have increased tremendously Current Assets have decreased as % as well as absolutely whereas Current liablitiea have increased % as well as absolutely

  10. Increase in Turnover Almost more than 50% of Sales is Materials Expenses Profit which had fallen in 2009 has rised in 2010 also it is 14 % of Sales Company is consitent in Dividend Payment EPS is on enhanced capital base

  11. SHARE CAPITAL The Authorised Capital of the Company as on 31st March 2010 is Rs. 70,00,00,000 divided into 70,00,00,000 equity shares of Re.1 each. The Issued Subscribed & Paid up Capital of the Company is Rs.50,61,34,612 divided into 50,61,34,612 equity shares of Re.1 each. As can be seen the Authorised as well as Paid up capital has increased pursuant to Bonus Issue of 1:1. Capital Structure from the period 1989 to 2009 is seen below.

  12. CONTINGENT LIABILITIES & DUES • *Tax dues as mentioned in Auditors Report for the year ended 31st March 2010

  13. RATIO ANALYSIS

  14. CONCLUSION • The financial analysis of the company can be summarized as follows: • The sales growth of the company is on the rise. The profitability of the Company significantly improved in the current year due to lower material costs, strengthening of Indian rupee, lower duties and control on costs. Sales growth picked up in the second half of the year, due to improved economic conditions. • The share prices of the company have also almost doubled vis-à-vis last year. •  The Operating Profit and Net Profit, for the year at Rs.4132 million and Rs.2891 million increased by 60% and 97% respectively. • The Total Assets of the company are comparatively lower than its competitors.The company should consider competitors financials and map its future planning .  • The stake holders have benefited with the Bonus issue and dividend payment.  • Company should give attention to its increasing liabilities and inventories. The working capital of the company had decreased considerably. The short term liquidity position of the company is area of concern.

  15. Thank You

More Related