A WINTER RESEARCH PROJECT REPORT

On
“A STUDY OF FINANCIAL PERFORMANCE ANALYSIS OF
BAJAJ AUTO”
In partial fulfilment for the award of the degree Of
Master of Business Administration (MBA)
In
(Finance)
Under the guidance of submitted by

Dr. Vikas Chaurasia AMIT SINGH SENGER

H.O.D MBA 2nd YEAR (4th Sem)

DOMS 2201450700004

To
Department of management studies
S R Group of Institutions
Dr. A P J Abdul Kalam Technical University, Lucknow
Session 2023-34
 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regard in united institute of management, AKTU University

Lucknow for importing me very valuable professional project in MBA

This space wouldn’t be enough to extend my warm gratitude towards my project guide Head Dr. Vikas

Chaurasia for efforts in coordinating with my work and guiding in right direction. I escalate a heartfelt

regards to our for giving me the essential hand in concluding this work

I take opportunity to express my gratitude and thanks to our computer lab staff and library staff for

providing me opportunity to utilize their resources for the completion of the project.

I am also thankful to my family and friends for constantly motivating me to complete theproject

and providing me an environment which engaged my knowledge.

Amit Singh Senger

MBA 4th Semester

 DECLARATION
I undersigned, hereby declare that the project titled “A STUDY OF FINANCIAL
PERFORMANCE ANALYSIS OF BAJAJ AUTO” submitted in partial fulfilment for the award
of Degree of Master of Business Administration (MBA) of Dr. A P J Abdul Kalam Technical
University is a Bonafede record of work done by me under the guidance of Head Dr. Vikas
Chaurasia, H.O.D, Department of Management and studies (DOMS), S R GROUP OF
INSTISTUTIONS, Ambabai, Jhansi . This report has not previously formed the basis for the
award of any degree, diploma, or similar title of any University.

Amit Singh Senger

MBA 4th Semester

 Preface
The present study titled "A Study of Financial Performance Analysis of Bajaj Auto" delves

into the intricate financial architecture of one of India's leading automotive companies. The

rationale behind this study is rooted in the significant role that financial performance analysis

plays in understanding the overall health and sustainability of a corporation in a highly

competitive market.

The impetus for selecting Bajaj Auto as the subject of this analysis is multifaceted. As a

pioneering entity in the automotive sector, Bajaj Auto has not only demonstrated robust

growth over decades but has also adeptly navigated the complexities of economic

fluctuations, regulatory changes, and technological advancements. This makes Bajaj Auto a

quintessential example for an in-depth financial performance analysis.

This project aims to provide a comprehensive examination of Bajaj Auto's financial

statements, employing various analytical tools and techniques to assess its profitability,

liquidity, solvency, and efficiency. By scrutinizing financial ratios, trends, and other

pertinent metrics, this study seeks to illuminate the underlying factors contributing to the

company's financial health and its capacity to sustain competitive advantage in the long term.

The scope of this analysis encompasses a detailed review of financial data spanning a

significant period, thereby ensuring a thorough understanding of the company's financial

trajectory. Additionally, this study endeavours to juxtapose Bajaj Auto's financial

performance with industry benchmarks, offering a comparative perspective that underscores

the company's standing within the broader automotive sector.

In conducting this study, a methodical approach has been adopted, leveraging both

quantitative and qualitative data. This includes a meticulous examination of annual reports,

industry publications, and other credible sources of financial information. The insights

derived from this analysis are intended to provide valuable information to stakeholders,
including investors, financial analysts, and academic researchers, facilitating informed

decision-making and strategic planning.

Furthermore, this project is undertaken with an awareness of the dynamic nature of the

automotive industry, characterized by rapid technological innovations and shifting consumer

preferences. As such, the analysis also contemplates potential future challenges and

opportunities that may impact Bajaj Auto's financial performance.

In conclusion, "A Study of Financial Performance Analysis of Bajaj Auto" aspires to

contribute to the existing body of knowledge by offering a nuanced and insightful

exploration of the financial dimensions of a prominent player in the automotive industry. It is

hoped that the findings and conclusions drawn from this study will serve as a valuable

resource for ongoing research and practical applications in the realm of financial

performance analysis.
 INDEX
S.No. Particular Page No.
01 LITERATURE REVIEW 7-10
02 Introduction of the Topic & Company 11-23
03 Objective of the study 24-28
04 Scope of the study 29-31
05 RESEARCH METHODOLOGY 32-43
06 Use and Importance of study 44-49
07 Analysis of data collected 50-57
08 Limitations of the study 58-61
09 Conclusions and Recommendations 62-65

10 Annexure 66-67
11 BIBLIOGRAPHY 68
 LITERATURE REVIEW

Murugananthamand Barkavi (2020) conducted research for analysis of the financial performance of TVS
Motors by using 5 years of annual audited reports. And finally, these studies concluded business is Good
and they have better performance. In addition to that want to increase their sales volume, and produce more
from the owner‟s funds and available funds. This helps firms to increase their Performance in their
competitive world.

Pravin Narayanan Mahamuni and Anil Arun Poman (2019) executed a study to find out the Comparative
financial performance between Bajaj Auto and Hero Motor Corp By using Du Pont Analysis made by
calculating Return on Assets and Return on Equity. The result concluded Bajaj Auto‟s Financial
performance is better than Hero Motor Corp.

Srinivas, Saroj (2013) investigated a study to judge the financial performance of Housing Development
Financial Corporation and Industrial Credit and Investment Corporation of India Bank by using the CAMEL
rating model. The result of these studies shows there is no significant difference between ICICI And HDFC
Bank‟s financial position. When compare to HDFC bank, the ICICI bank wants to slight Improvement in its
financial conditions.

Siva and Nagarajan (2011) conducted research by using CAMEL norms and its key impact on the State
Bank of India groups. The researcher concluded that the CAMEL model helps to identify the Financial
strength and weaknesses.

This section provides a comprehensive review of existing literature on the financial performance analysis of
Bajaj Auto Limited, a leading two-wheeler and three-wheeler manufacturer in India. The purpose is to
identify key metrics, methodologies, and insights used to assess Bajaj Auto's financial health and growth
trajectory.

Focus Areas:

Profitability Ratios: Studies will be examined that employ profitability ratios like Net Profit Margin,
Return on Equity (ROE), and Return on Assets (ROA) to evaluate Bajaj Auto's efficiency in generating
profits from its operations and investments.

Liquidity Ratios: Analysis of research using Current Ratio, Quick Ratio, and Cash Ratio will be explored to
assess Bajaj Auto's ability to meet its short-term obligations.

Solvency Ratios: Literature on Debt-to-Equity Ratio and Interest Coverage Ratio will be reviewed to
understand Bajaj Auto's long-term debt management and financial stability.

Activity Ratios: Research utilizing Inventory Turnover Ratio and Receivables Turnover Ratio will be
examined to gauge Bajaj Auto's effectiveness in managing its inventory and collecting receivables.

DuPont Analysis: Studies applying the DuPont analysis framework to decompose ROE into profitability,
asset turnover, and financial leverage will be reviewed to gain a deeper understanding of the factors driving
Bajaj Auto's return on equity.
Search Strategy:

• Academic databases like EBSCOhost, JSTOR, and ScienceDirect will be used to search for scholarly
articles on financial performance analysis and Bajaj Auto.
• Reputable financial news websites and industry reports will be consulted for recent financial data and
expert commentary.
• Company filings and annual reports of Bajaj Auto will be reviewed to obtain financial statements
and relevant disclosures.

Expected Outcomes:

• Identify key trends and patterns in Bajaj Auto's financial performance over a specified period.
• Evaluate the effectiveness of Bajaj Auto's financial management strategies.
• Benchmark Bajaj Auto's performance against industry peers and identify areas for improvement.
• Formulate a framework for analyzing Bajaj Auto's future financial prospects.

Limitations:

• Availability of reliable and up-to-date financial data.

• Potential biases in published research.
• The dynamic nature of the automotive industry and economic environment.

Future Research Directions:

• Investigate the impact of technological advancements (electric vehicles) on Bajaj Auto's financial
performance.
• Analyze the effectiveness of Bajaj Auto's marketing and sales strategies.
• Assess the financial risks and opportunities associated with Bajaj Auto's global expansion plans.

A literature review for the study titled "A Study of Financial Performance Analysis of Bajaj Auto" involves
a comprehensive examination of existing research and publications related to the financial performance of
Bajaj Auto. This literature review serves several critical functions:

Contextual Foundation: It establishes the historical and theoretical context of financial performance analysis
within the automotive industry, with a specific focus on Bajaj Auto. This includes reviewing relevant
financial theories, analytical frameworks, and industry-specific financial metrics.

Identifying Gaps: By critically analyzing previous studies, the literature review identifies gaps and
inconsistencies in the existing research. This is essential for justifying the need for the current study and for
positioning it within the broader academic and industry discourse.

Methodological Insights: Reviewing prior research provides insights into the methodologies and analytical
tools commonly used in financial performance analysis. This includes ratio analysis, trend analysis,
comparative financial statements, and other quantitative methods. Understanding these methodologies aids
in selecting the most appropriate tools for the study of Bajaj Auto.

Benchmarking and Comparative Analysis: The literature review examines how Bajaj Auto's financial
performance compares to its competitors and the industry at large. This involves reviewing studies on the
financial health of other automotive companies, both domestically and internationally, to provide a
benchmark for evaluation.

Thematic Exploration: Key themes explored in the literature review include profitability, liquidity, solvency,
operational efficiency, and market performance of Bajaj Auto. It assesses how these factors have been
analyzed in prior studies and their relevance to the current financial landscape.
In the literature review section of a study on the financial performance analysis of Bajaj Auto, the focus
would be on gathering and synthesizing relevant academic and industry literature pertaining to the subject
matter. Here's a brief outline of what such a literature review might entail:

Introduction to Financial Performance Analysis: The literature review begins with an overview of financial
performance analysis, its importance in evaluating the health of a company, and its various methodologies
and metrics.

Understanding Bajaj Auto: A comprehensive review of Bajaj Auto as a company, including its history,
business model, product portfolio, market position, and financial performance over time. This section
provides context for the subsequent analysis.

Financial Performance Metrics: A detailed examination of the key financial performance metrics commonly
used in the automotive industry and how they are calculated. This includes profitability ratios, liquidity
ratios, efficiency ratios, and solvency ratios.

Industry Trends and Benchmarks: An exploration of current trends and benchmarks in the automotive
industry, particularly focusing on factors that influence the financial performance of companies like Bajaj
Auto. This could include technological advancements, regulatory changes, market demand shifts, and
competitive dynamics.

Previous Studies on Bajaj Auto: A review of existing research studies, academic papers, and industry reports
that have analyzed the financial performance of Bajaj Auto or similar companies. This section highlights key
findings, methodologies employed, and gaps in the literature that the current study aims to address.

Methodological Approaches: An overview of different methodological approaches to financial performance

analysis, including ratio analysis, trend analysis, comparative analysis, and financial modeling. This section
discusses the strengths and limitations of each approach and justifies the chosen methodology for the current
study.

Challenges and Limitations: A discussion of the challenges and limitations inherent in analyzing the
financial performance of a company like Bajaj Auto, such as data availability, accounting complexities,
macroeconomic factors, and industry-specific issues.

Theoretical Framework: A theoretical framework that underpins the analysis, drawing on relevant theories
from finance, economics, and strategic management. This could include theories of firm performance,
financial decision-making, and competitive strategy.
Synthesis and Conclusion: A synthesis of the key findings from the literature review, highlighting common
themes, divergent viewpoints, and areas of consensus. This section concludes with a summary of the gaps in
the existing literature that the current study aims to fill and outlines the research questions or hypotheses to
be addressed in the subsequent sections of the study.

This section provides a brief overview of the project's focus – analyzing Bajaj Auto's financial performance.
It highlights the importance of financial analysis for understanding a company's health and growth potential.

Financial Performance Analysis Frameworks:

• Discuss various financial ratio categories used to assess performance:

o Liquidity ratios (Current ratio, Quick ratio) to gauge short-term debt repayment ability.
o Profitability ratios (Gross profit margin, Net profit margin, Return on Equity (ROE), Return
on Assets (ROA)) to evaluate efficiency in generating profits from sales and invested capital.
o Solvency ratios (Debt-to-Equity ratio) to measure a company's ability to meet long-term
financial obligations.
o Activity ratios (Inventory turnover ratio, Receivables turnover ratio) to assess efficiency in
managing inventory and collecting receivables.
• Briefly mention relevant financial performance analysis frameworks like DuPont analysis for
profitability decomposition.

Existing Research on Bajaj Auto's Financial Performance:

• Summarize key findings from previous studies on Bajaj Auto's financial performance using credible
sources (research papers, financial news articles, analyst reports).
o Focus on studies analyzing similar timeframes as your project or those addressing specific
aspects of financial performance relevant to your research questions.
o Identify trends, strengths, weaknesses, and areas for improvement highlighted in prior
research.
• Discuss the methodologies used in past studies to understand the prevalent approaches to financial
performance analysis of Bajaj Auto.

Gaps in Existing Literature:

• Identify limitations or areas not comprehensively addressed in existing research.

o This could be a specific time period not covered, a lack of analysis of a particular financial
ratio, or the absence of a comparative analysis with industry peers.
• Highlight the value proposition of your current study.
o Explain how your project addresses these gaps by using a different timeframe, incorporating
additional financial ratios, or including a comparative analysis with competitors.
 Introduction

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. He was the founder of the Bajaj Group, Mr. Jamnalal
Bajaj. He strongly believed that, „common good was more important than individual gain‟. His philosophy
which has stood the test of time,

was successfully taken forward by his sons Mr. Kamalnayan Bajaj and Mr. Ramkrishna Bajaj and is now
spearheaded by Mr. Rahul Bajaj. This has taken the group to higher levels of success and respect.
The Group now stands tall in the Corporate World. The Group has a market capitalization of about Rs.
8,55,000 crores (about US$ 105 billion) with 40 Group Companies and approximately 36,000 employees. It
offers an extensive range of products and services including motorised two and three wheelers, home
appliances, electric lamps, wind energy, special alloys and stainless steel, cranes, material handling
equipment, travel, general and life insurance and investment, consumer finance and asset management.
For society however, Bajaj is more than a corporate identity. It is a catalyst for social empowerment. It is the
reason behind the smile that lights up a million faces. Its goodwill resonates in the two simple words that
live in the collective consciousness of Indians – Hamara Bajaj. Bajaj Auto Ltd is one of the leading two &
three wheeler manufacturers in India. The company is well known for their R&D, product development,
process engineering and low-cost manufacturing skills. The company is the largest exported of two and
three- wheelers in the country with exports forming 18% of its total sales. The company has two
subsidiaries, namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia.
The company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile Bajaj Auto Ltd
(the holding company) with the name Bajaj Investment & Holding Ltd. The company received the certificate
of commencement of business on May 7, 2007. The holding company operated in the segments, such as
automotive, insurance and investment, and others. Considering the growth opportunities in the auto, wind-
energy, insurance and finance sectors,

the holding company de-merged their activities into three separate entities, each of which can focus on their
core businesses and strengthen competencies.
The auto business of the holding company along with all assets and liabilities pertaining thereto including
investments in PT Bajaj Auto Indonesia and in a few vendor companies transferred to Bajaj Investment &
Holding Ltd. In addition a total of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj
Investment & Holding Ltd. As the part of the scheme, Bajaj Holdings and Investment Ltd were renamed as
Bajaj Auto Ltd. The appointed date of this de-merger was closing hours of business on March 31, 2007.
In April 9, 2007, the company inaugurated their green field plant at Pantnagar in Uttarakhand. In the first
year of operations, the plant produced over 275,000 vehicles. The companys vehicle assembly plant at
Akurdi was shut down from September 3, 2007 due to higher cost of production.
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, Europes second largest sport motorcycle
manufacturer for Rs 345 crore.
During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-wheeler Direct Injected
auto rickshaw. The Chakan plant completed the cumulative production of over 2 million Pulsar.
During the year 2009-10, the company expanded the production capacity of Motorised Two & Three
Wheelers by 300,000 Nos to 4,260,000 Nos. The company launched Pulsar 220 F, Pulsar 180 UG, Pulsar
150 UG, Pulsar 135 LS and Discover DTS-si in the market.

During the year 2010-11, the company expanded the production capacity of Motorised Two & Three
Wheelers by 780,000 Nos to 5,040,000 Nos. The company launched Avenger 220
DTS-I, KTM Duke 125, Discover 150 and Discover 125 in the market.

The company plans to maintain the capacity of two and three-wheelers at the current level of 5,040,000
numbers per annum during the year ending 31 March 2012. The 4 wheel vehicle development work is under
progress and commercial launch of the first product from this platform is scheduled for 2012.In 2012, Bajaj
Auto tied up with Japans Kawasaki in Indonesia. In 2013, the Company has introduced another variant of
premium motorcycles under the Bajaj-KTM joint venture namely Duke 390cc for a price of Rs 1.83 lakh.
The company also received CII Design Excellence Award
In 2014, Bajaj Auto bagged order in Sri Lanka -Peoples Choice Bike of the Year – CNBC TV18 Overdrive
Awards. The Company has also received Bike of the Year BBC Topgear Awards.
In 2015, Bajaj Auto has introduced the all-new Platina electric start 100 cc bike to the long- distance
commuter
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of
industries, spanning automobiles (two wheelers manufacturer and three wheelers manufacturer), home
appliances, lighting, iron and steel, insurance, travel and finance. The group‟s flagship company, Bajaj
Auto, is ranked as the world‟s fourth largest three and two wheeler manufacturer and the Bajaj brand is
well-known across several countries in Latin America, Africa, Middle East, South and South East Asia.
Founded in 1926, at the height of India's movement for independence from the British, the group has an

illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are
characteristic of the group today, are often traced back to its birth during those days of relentless devotion to
a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma
Gandhi. In fact, Gandhiji had adopted him as his son.This close relationship and his deep involvement in the
independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched
business venture. We are celebrating 125th Birth anniversary of Shri. Jamnalal Bajaj on 4th of November
2014.
His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji
and it was only after Independence in 1947, that he was able to give his full attention to the business.
Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing
activities. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his
leadership, the turnover of the Bajaj Auto the flagship company has gone up from INR.72 million to INR.
120 billion, its product portfolio has expanded and the brand has found a global market. He is one of India‟s
most distinguished business leaders, bike manufacturer India and internationally respected for his business
acumen and entrepreneurial spirit
Bajaj Auto Limited is an Indian automobile manufacturing company. It manufactures two and three-wheeler
machines. It manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto Limited is a part
of Bajaj Group of industries. The Bajaj Auto was founded by Jamnalal Bajaj in Rajasthan in the year 1940s.
It has its plants in Mumbai, Pune, Chakan, Waluj, Pantnagar in Uttarakhand. Its oldest plant was in
Akurdi(Pune) which is known transformed into the R&D center.

Bajaj Auto is the world‟s 6th largest motorcycles manufacturing company and the 2nd largest in India. It is
the world largest three-wheeler manufacturer. It gave a start to the manufacturing of scooters from getting
license from Vespa. The most popular scooter by Bajaj was the Chetak scooter. This scooter had a waiting
period of about a year, and its production lasted for about 34 years. By around 1990‟s Bajaj Auto started
focusing more on motorcycles since the market trend was shifting. It also came as a surprise to all when it
announced that the company will withdraw from scooter manufacturing since the scooter had created the
goodwill for Bajaj Auto Limited. Saffire was the last scooter produced by Bajaj. It then mainly focused on
motorcycles and Bajaj Boxer and Bajaj discover were its commuter brand in the country and the sales of this
motorcycles rised very fast. Then it came with Bajaj Avenger which still remains the most Affordable
cruiser in India. But it was mainly because of Bajaj Pulsar the name of Bajaj came into existence and
cemented its position in the motorcycle segment in India. It was positioned as the performance bike-maker
in Indian market. The main feature of the bikes where because of its value for money without compromising
on its features, power, technology. The pulsar range of Bajaj motorcycles has grown a lot and at a steady
pace with many iterations and a 400cc Pulsar version in a power cruiser form is launched in the market in
August,2016 in the form of Bajaj Pulsar CS400.
Bajaj currently sells its products through 2 formats, 1. Bajaj showrooms which sells all Bajaj bikes.2. Pro-
biking showrooms which sells bikes of KTM and Kawasaki.
On May 2015, its market capitalization was ₹640 Billion (US $9.9 Billion), making it the India‟s 23rd
largest publicly traded company by market value. The Forbes Global 2000 list for the year 2012 ranked
Bajaj Auto at 1,416 Rank.

Bajaj Auto Limited is a globally recognized Indian automotive manufacturer known for its motorcycles, scooters, and
auto-rickshaws. Founded in 1945, the company has grown to become a major player in the two and three-wheeler
segments worldwide.

Historical Background
Bajaj Auto was initially established as M/s Bachraj Trading Corporation Private Limited. It commenced operations by
importing and selling two- and three-wheelers in India. The company ventured into manufacturing in 1959, after
obtaining a license from the Indian government. Bajaj Auto’s first manufacturing plant was set up in Akurdi, Pune.

Evolution and Growth

The company evolved significantly over the decades, expanding its product portfolio and market reach. Notably, Bajaj
Auto was the first company to introduce indigenous scooters and motorcycles, which became immensely popular in
the Indian market. The iconic Bajaj Chetak scooter, launched in the 1970s, became synonymous with reliability and
affordability, capturing a large share of the Indian two-wheeler market.

Product Portfolio
Bajaj Auto’s current product lineup includes a wide range of motorcycles such as the Pulsar, Dominar, Avenger, and
Platina series, which cater to various market segments from commuter to sports bikes. In the three-wheeler segment,
Bajaj Auto produces auto-rickshaws and goods carriers that are widely used for both passenger and cargo transport.

Global Presence
Bajaj Auto has established a strong global presence, exporting to over 70 countries. The company’s strategic
international partnerships and joint ventures have facilitated its expansion into new markets. Bajaj Auto is also a
significant shareholder in KTM AG, an Austrian motorcycle manufacturer, which has bolstered its position in the
high-performance motorcycle segment.

Innovation and Technology

Innovation and technology are at the core of Bajaj Auto’s success. The company has invested heavily in research and
development to stay ahead of industry trends and meet evolving customer needs. Bajaj Auto’s commitment to
innovation is evident in its introduction of advanced technologies such as DTS-i (Digital Twin Spark Ignition) and
fuel injection systems.

Sustainability and CSR

Bajaj Auto is also dedicated to sustainability and corporate social responsibility (CSR). The company has
implemented various initiatives aimed at reducing its environmental impact, promoting road safety, and supporting
community development. These efforts reflect Bajaj Auto’s commitment to responsible business practices and its role
as a socially conscious corporate entity.

Leadership and Vision

Under the visionary leadership of the Bajaj family, the company has maintained a forward-looking approach. Rajiv
Bajaj, the current Managing Director, has played a pivotal role in transforming Bajaj Auto into a global motorcycle
powerhouse. The company’s vision focuses on delivering quality products, fostering innovation, and creating value for
stakeholders.

Financial Performance
Bajaj Auto has demonstrated robust financial performance, consistently reporting strong revenue growth and
profitability. The company’s efficient operations, cost management, and strategic investments have contributed to its
financial stability and shareholder value.

Future Outlook
Looking ahead, Bajaj Auto aims to continue its growth trajectory by expanding its product offerings, enhancing its
global footprint, and embracing new technologies. The company is poised to capitalize on emerging opportunities in
electric vehicles and sustainable mobility solutions.

Briefly introduce Bajaj Auto as a leading Indian multinational automotive manufacturing company based in
Pune. Highlight its position as the world's largest three-wheeler manufacturer and a prominent two-wheeler
manufacturer.

Product Portfolio: Provide an overview of Bajaj Auto's core product segments: motorcycles, scooters
(including a historical perspective), and auto-rickshaws (three-wheelers). Briefly mention their recent foray
into electric two-wheelers.

Global Presence: Emphasize Bajaj Auto's strong presence as a major exporter, reaching markets in Latin
America, Africa, the Middle East, South Asia, and Southeast Asia.
Historical Legacy

• Origins (1926-1947): Discuss the Bajaj Group's founding by Jamnalal Bajaj in 1926, coinciding
with India's independence movement. Briefly touch upon the group's diversification into various
industries before focusing on Bajaj Auto's establishment in 1945 as M/s Bachraj Trading Corporation
Private Limited.
• From Imports to Manufacturing (1948-1959): Detail Bajaj Auto's initial role as an importer and
seller of two- and three-wheelers in India. Explain the significance of obtaining a license from the
Government of India in 1959 to manufacture these vehicles domestically.
• The Vespa Era and Public Listing (1960-1985): Discuss the landmark partnership with Piaggio in
1960 to manufacture Vespa scooters in India. Highlight the company's transformation into a public
limited company in 1960 and its impact.

Shaping the Two-Wheeler Landscape (20 pages)

• The Rise of Motorcycles (1986-2000): Analyze the strategic shift towards motorcycle production in
1986 and its impact on Bajaj Auto's brand identity. Explore the introduction of iconic models like the
Pulsar and its contribution to the company's success.
• Technological Advancements and Market Expansion (2000-2010): Discuss Bajaj Auto's focus on
technological advancements in engines, design, and fuel efficiency during this period. Highlight the
company's expansion into new markets and its growing international presence.
• The Bajaj-KTM Alliance and Dominating Motorsports (2010-Present): Explain the formation of
the strategic alliance with KTM in 2010 and its impact on Bajaj's product portfolio and brand image.
Discuss Bajaj's dominance in Indian motorsports and its association with racing enthusiasts.

Diversification and The Road Ahead

• Beyond Internal Combustion Engines: Electric Mobility (2010-Present): Analyze Bajaj Auto's
entry into the electric two-wheeler segment with the launch of the Chetak and its future plans for EV
development. Discuss the challenges and opportunities associated with this transition.
• Sustainable Practices and Corporate Social Responsibility: Explore Bajaj Auto's initiatives in
environmental sustainability and its commitment to social responsibility programs.
• Future Outlook and Challenges: Discuss the company's future prospects in the Indian and global
automotive market. Analyze potential challenges such as rising competition, technological
disruptions, and evolving consumer preferences.

Founder’s
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 Hindusthan 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 Hindusthan 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.
 Company Profile

Company Introduction

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.

COMAPANY‟S 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.
Logo:

Rebranding from Hamara Bajaj to Distinctly Ahead

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 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 being the youth centric for the excellent choice.

Mission:

To create value by enabling innovation, creativity, integrity and service to community in everything we do.
Bajaj Auto, a global leader in the automotive industry, is driven by a mission to create top-quality,
innovative, and sustainable mobility solutions that cater to diverse customer needs. The company aims to
enhance the efficiency, reliability, and affordability of transportation through continuous innovation in its
product line. By fostering a culture of excellence and leveraging cutting-edge technology, Bajaj Auto seeks
to uphold its legacy of engineering prowess while championing environmental stewardship. Additionally,
the company is committed to expanding its global footprint, ensuring robust growth, and delivering
exceptional value to its stakeholders.

Bajaj Auto, one of India's premier automotive manufacturers, has carved a niche for itself in the global
automotive landscape. The mission of Bajaj Auto is multi-faceted, reflecting its commitment to innovation,
quality, sustainability, and customer satisfaction.

Innovation and Technology: Bajaj Auto is dedicated to integrating cutting-edge technology and innovative
solutions into its product line. This commitment is aimed at enhancing performance, safety, and the overall
driving experience for customers. The company strives to stay ahead of industry trends, continuously
evolving its technological capabilities.

Quality and Reliability: Ensuring the highest standards of quality and reliability is a cornerstone of Bajaj
Auto's mission. The company seeks to produce vehicles that not only meet but exceed international quality
benchmarks, ensuring durability and dependability in every product.

Sustainability and Environmental Responsibility: Bajaj Auto is committed to sustainable business practices
and reducing its environmental footprint. The company aims to develop eco-friendly vehicles and adopt
green manufacturing processes, aligning with global efforts to combat climate change and promote
environmental stewardship.

Customer-Centric Approach: Understanding and fulfilling customer needs is central to Bajaj Auto's mission.
The company places a strong emphasis on customer satisfaction by providing exceptional service, creating
value-driven products, and fostering long-term relationships with its customers.

Global Presence and Competitiveness: Bajaj Auto aspires to strengthen its position in the global market by
expanding its international footprint and enhancing its competitiveness. The mission includes a focus on
exporting high-quality, affordable vehicles to emerging markets, thereby contributing to global mobility
solutions.

Community and Social Responsibility: Beyond its business goals, Bajaj Auto is committed to giving back to
society. The company actively engages in various corporate social responsibility (CSR) initiatives aimed at
improving the quality of life for communities, promoting education, healthcare, and sustainable
development.

Bajaj Auto's official mission statement isn't publicly available. However, by examining the company's
actions, core values, and pronouncements from its leadership, we can glean a clear understanding of its
driving force.

Mission Pillars:

Providing Value: Bajaj prioritizes offering customers excellent value for their money. This translates to:

Affordability: Making two-wheelers accessible to a broad spectrum of Indian consumers.

Fuel Efficiency: Designing motorcycles known for their low fuel consumption, a significant factor in cost-
conscious markets.
Reliability and Durability: Building bikes renowned for lasting long and requiring minimal maintenance.
Innovation: Bajaj actively pursues technological advancements to:

Enhance Performance: Continuously improve engine power, handling, and overall riding experience.
Develop New Products: Expand their portfolio beyond traditional motorcycles into electric and hybrid
segments to cater to evolving customer preferences and environmental considerations.
Maintain a Competitive Edge: Stay ahead in the dynamic two-wheeler market by offering cutting-edge
features and designs.
Bajaj's mission goes beyond just selling motorcycles. It aspires to:

Empower People: By providing reliable and affordable transportation, Bajaj empowers individuals to
enhance their mobility, access employment opportunities, and participate more actively in society.
Contribute to India's Growth: The company's success is intricately linked to India's economic development.
They create jobs, contribute to exports, and stimulate the growth of related industries.
In essence, Bajaj Auto's mission can be summarized as:

To be the leading provider of value-driven, innovative two-wheeler solutions that empower people and
contribute to India's progress.
This mission statement reflects Bajaj's commitment to its customers, its employees, and the nation as a
whole. It serves as a guiding principle for all their strategic decisions and product development endeavors.

By focusing on affordability, innovation, and social impact, Bajaj Auto has carved a unique niche in the
Indian two-wheeler market and positioned itself for continued success in the years to come.
:

Vision:

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

Bajaj Auto Company, a leading global manufacturer of motorcycles, three-wheelers, and quadricycles,
envisions itself as a world-class entity driving innovation and excellence in the automotive industry. Their
vision emphasizes:

Innovation and Technology: Bajaj Auto aspires to be at the forefront of technological advancements,
continually integrating cutting-edge technologies to enhance performance, safety, and user experience. This
includes advancements in electric vehicles and sustainable energy solutions.

Global Leadership: The company aims to strengthen its position as a dominant global player by expanding
its international footprint and capturing new markets. This includes a strategic focus on key emerging
markets and establishing robust distribution networks.

Customer-Centric Approach: Bajaj Auto is committed to understanding and exceeding customer

expectations by providing superior quality products and services. Their vision focuses on creating value
through customer satisfaction and loyalty.

Sustainability and Responsibility: Environmental sustainability is a core aspect of Bajaj Auto's vision. The
company is dedicated to reducing its carbon footprint, adopting eco-friendly practices, and promoting
sustainable mobility solutions.

Excellence in Manufacturing: Achieving manufacturing excellence through continuous improvement, lean

manufacturing practices, and a focus on quality is pivotal. Bajaj Auto seeks to maintain high standards of
production efficiency and product reliability.

Empowering People: The vision encompasses empowering employees and stakeholders through a culture of
collaboration, innovation, and respect. Bajaj Auto values its workforce and invests in their growth and
development.

Economic Contribution: Bajaj Auto strives to contribute positively to the economy by creating jobs,
supporting local communities, and fostering economic growth through its business operations.

Studying industry reports and news articles to see how experts perceive Bajaj's role in the market.
Examining social media sentiment to gauge customer perception of Bajaj's value proposition.

Bajaj Auto's Vision: A Global Leader in Mobility

Bajaj Auto aspires to be a dominant force in the global motorcycle and electric vehicle (EV) landscape. This
vision is driven by several key elements:

Market Leadership: Bajaj aims to solidify its position as a leading manufacturer of motorcycles, particularly
in value-driven segments.

EV Dominance: The company recognizes the growing importance of electric mobility and is actively
pursuing leadership in the EV market. This involves developing innovative and affordable electric two-
wheeler solutions.

Technological Innovation: Bajaj prioritizes continuous research and development to create technologically
advanced yet cost-effective motorcycles and EVs. This focus ensures they remain competitive in a rapidly
evolving market.
Brand Recognition: Building a strong global brand is crucial for Bajaj's vision. They strive to be recognized
for quality, reliability, and value in the motorcycle and EV segments.

Evidence of this Vision in Action:

Focus on Emerging Markets: Bajaj recognizes the potential of developing economies, particularly in Asia
and Africa, and tailors its offerings to these markets.

Strategic Partnerships: Collaboration with leading technology companies allows Bajaj to leverage expertise
and accelerate EV development.

Investment in Manufacturing: Bajaj continuously invests in modernizing and expanding its manufacturing
capabilities to meet growing global demand.

Bajaj's vision is dynamic and adaptable. The company is constantly evaluating market trends and
technological advancements to ensure its strategies remain relevant in the ever-evolving mobility landscape.

Achievement

Born in India. Loved by the World The World‟s Favourite Indian

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 capitalization 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 Mexto ty and Bogota to
Bengaluru, there‟s a Bajaj for everyone.

Bajaj Auto Limited, a flagship company of the Bajaj Group, is a global leader in the automotive industry,
renowned for its extensive achievements and innovations. Founded in 1945, the company has established
itself as a pioneer in two-wheeler and three-wheeler manufacturing. Below are some key achievements that
underscore Bajaj Auto's prominence and impact in the automotive sector:

Global Leadership and Market Presence

World's Third-Largest Motorcycle Manufacturer: Bajaj Auto is recognized as the world's third-largest
manufacturer of motorcycles, reflecting its significant production capacity and extensive market reach.
Leading Exporter: The company is the largest exporter of motorcycles and three-wheelers from India, with a
presence in over 70 countries. This global footprint underscores its strategic international growth and
adaptation to diverse market needs.
Innovative Product Portfolio
Iconic Models: Bajaj Auto has introduced several iconic models, such as the Bajaj Chetak, Pulsar, and
Dominar. The Pulsar range, in particular, revolutionized the Indian motorcycle market with its sporty design
and advanced features.
Electric Vehicles: In line with global sustainability trends, Bajaj has ventured into electric vehicles with the
launch of the electric scooter, Bajaj Chetak, marking a significant step towards eco-friendly mobility
solutions.
Technological Advancements
DTS-i Technology: Bajaj's proprietary DTS-i (Digital Twin Spark Ignition) technology has enhanced fuel
efficiency and engine performance, setting new benchmarks in the industry.
Triple Spark Technology: The introduction of triple spark technology in some of its premium models has
further improved combustion efficiency and power delivery.
Strategic Partnerships and Joint Ventures
KTM Partnership: Bajaj Auto holds a substantial stake in KTM AG, an Austrian motorcycle manufacturer.
This partnership has led to the successful introduction of KTM bikes in India, expanding Bajaj's high-
performance motorcycle segment.
Collaborations: The company's collaboration with international firms like Kawasaki has facilitated
technology transfer and expanded its product range.
Awards and Recognitions
Numerous Industry Awards: Bajaj Auto has garnered numerous awards for excellence in manufacturing,
innovation, and market performance. These accolades reflect its commitment to quality and customer
satisfaction.
ISO Certifications: The company's manufacturing plants are ISO certified, ensuring adherence to
international standards of quality and environmental management.
Financial Performance
Consistent Revenue Growth: Bajaj Auto has demonstrated consistent revenue growth, supported by robust
sales volumes and effective cost management strategies.
Strong Profit Margins: The company's focus on value-added products and operational efficiency has resulted
in strong profit margins, reinforcing its financial stability.
Social Responsibility and Sustainability
CSR Initiatives: Bajaj Auto is actively involved in various corporate social responsibility (CSR) initiatives,
focusing on education, healthcare, and rural development.
Environmental Sustainability: The company is committed to reducing its carbon footprint through the
adoption of green technologies and sustainable manufacturing practices.
Market Leadership:

World's Largest Three-Wheeler Manufacturer: Bajaj Auto dominates the three-wheeler segment, catering to
various transportation needs globally.
Top Motorcycle Exporter & Leading Manufacturer: They are India's leading motorcycle exporter and the
world's third-largest motorcycle manufacturer.
Market Capitalization Milestone: In December 2020, Bajaj Auto achieved a market capitalization of ₹1
trillion (US$13 billion), becoming the world's most valuable two-wheeler company.
Product Innovation:

Pioneering Four-Stroke Commuter Motorcycles: Bajaj was the first Indian manufacturer to introduce sporty
performance-oriented four-stroke commuter motorcycles in the Indian market, like the Pulsar series.
Diverse Portfolio: They offer a wide range of motorcycles, scooters, and auto-rickshaws to cater to different
customer segments and needs.
Manufacturing Excellence:

Award-Winning Production: Bajaj Auto's plants have been recognized for their achievements in Total
Productive Maintenance (TPM) by the Japan Institute for Plant Maintenance (JIPM). This signifies their
commitment to efficient and high-quality manufacturing practices.
Financial Performance:
Strong Sales Growth: Bajaj Auto has consistently demonstrated strong sales growth, particularly in the
Pulsar segment, which enjoys high demand.
ajaj Auto Limited, founded in 1945, is a renowned Indian multinational company that has significantly
shaped the automotive industry. Below is a brief overview of its notable achievements:

Early Establishments and Market Penetration:

1948: Obtained license from the government to sell imported two-wheelers and three-wheelers.
1959: Secured a license from the Indian government to manufacture two-wheelers and three-wheelers
domestically.
Innovative Products and Technological Advancements:

1972: Launched the iconic "Bajaj Chetak" scooter, which became a symbol of reliability and the preferred
choice for Indian families.
1986: Introduction of the Bajaj M80, a robust and versatile two-wheeler that appealed to rural markets.
Global Expansion and Strategic Alliances:

2001: Entered into a technical collaboration with Kawasaki, enabling the production of advanced
motorcycles and gaining a competitive edge in the global market.
2008: Acquired a significant stake in KTM, the Austrian motorcycle manufacturer, facilitating the
introduction of high-performance motorcycles in India and expanding its international footprint.
ecognition and Awards:

2006: Bajaj Auto received the prestigious "Business Superbrand" status, affirming its dominance and
reputation in the automotive sector.
2017: Named the world's largest manufacturer of three-wheelers, underscoring its leadership in the segment.
Sustainability and Innovation:

2019: Launched the Bajaj Chetak electric scooter, marking a significant step towards sustainable mobility
solutions and aligning with global trends towards electric vehicles.
2020: Unveiled the "Bajaj Urbanite" brand, focusing on electric and eco-friendly mobility solutions.
Financial Milestones:

Tagline of Bajaj Auto

 Objectives of the Study
This study aims to analyze the financial performance of Bajaj Auto Limited over a specific period (mention
the time period you've chosen, e.g., past five years). This analysis will utilize various financial ratios to
assess Bajaj Auto's profitability, liquidity, solvency, and efficiency. The key objective is to gain insights into
the company's financial health, track its performance trends, and identify any areas for improvement.

The objective of this study is to conduct a comprehensive analysis of the financial performance of Bajaj
Auto Limited over the past five years. This analysis aims to evaluate the company's financial health,
profitability, liquidity, solvency, and efficiency by examining key financial ratios, trend analysis, and
comparative performance metrics. The study seeks to identify the strengths and weaknesses in Bajaj Auto's
financial strategies, provide insights into its market position, and offer recommendations for enhancing
financial sustainability and competitive advantage in the automotive industry.

The primary objective of this study is to conduct a comprehensive financial performance analysis of Bajaj
Auto, a leading player in the Indian automotive industry. This analysis aims to evaluate the financial health,
operational efficiency, and overall profitability of the company over a specific period. By employing various
financial analysis tools and techniques, including ratio analysis, trend analysis, and comparative analysis, the
study seeks to:

Assess Financial Health: Evaluate the liquidity, solvency, and stability of Bajaj Auto by examining key
financial ratios such as current ratio, quick ratio, debt-to-equity ratio, and interest coverage ratio.

Analyze Profitability: Measure the company’s ability to generate earnings relative to sales, assets, and
equity. This will involve analyzing profitability ratios such as net profit margin, return on assets (ROA), and
return on equity (ROE).

Evaluate Operational Efficiency: Investigate how effectively Bajaj Auto utilizes its resources to generate
revenue and manage its operations. This will include analysis of asset turnover ratios, inventory turnover,
and receivables turnover.

Examine Growth Trends: Identify trends in Bajaj Auto’s financial performance over the selected period by
analyzing revenue growth, profit growth, and changes in key financial indicators.

Compare Industry Performance: Benchmark Bajaj Auto’s financial performance against industry standards
and key competitors to identify strengths, weaknesses, opportunities, and threats.

Provide Strategic Insights: Offer insights and recommendations based on the analysis to help stakeholders
understand the financial dynamics of Bajaj Auto and make informed decisions regarding investment,
management, and strategic planning.

The study aims to provide a holistic view of Bajaj Auto's financial standing, highlighting areas of strength
and potential improvement, thereby contributing to a deeper understanding of the company's financial
trajectory and strategic positioning in the competitive automotive sector. The primary objective of this study
is to conduct a comprehensive analysis of Bajaj Auto's financial performance over a specified period. This
analysis will utilize various financial ratios to assess the company's:
 • Profitability: Ability to generate profits and returns on investments.
• Liquidity: Capacity to meet short-term financial obligations.
• Solvency: Long-term financial health and ability to repay debt.
• Efficiency: Effectiveness in utilizing resources to generate sales and profits.

By evaluating these key financial metrics, the study aims to:

• Identify trends and patterns in Bajaj Auto's financial performance.

• Gauge the company's financial health and stability.
• Assess its strengths and weaknesses compared to the industry benchmark or competitors.
• Gain insights into future growth prospects and potential risks.

This in-depth financial analysis will provide valuable information for various stakeholders, including:

• Investors: Evaluate Bajaj Auto's investment potential and make informed investment decisions.
• Creditors: Assess the company's creditworthiness and ability to repay loans.
• Management: Identify areas for improvement and make strategic decisions to enhance profitability
and long-term sustainability.
• Researchers: Gain deeper understanding of the financial dynamics within the Indian two-wheeler
industry.

Overall, this study aims to serve as a valuable resource for understanding Bajaj Auto's financial performance
and its position within the broader automotive sector.

The objective of this study is to conduct a comprehensive analysis of the financial performance of Bajaj
Auto Limited, one of India's leading automotive companies. This analysis aims to achieve the following
specific goals:

Evaluate Financial Health: Assess the overall financial health of Bajaj Auto by examining key financial
statements, including the balance sheet, income statement, and cash flow statement. This involves a detailed
analysis of liquidity, solvency, profitability, and efficiency ratios over a specified period.

Trend Analysis: Identify and analyze financial trends within the company over recent years. This includes
the study of revenue growth, profitability margins, expenditure patterns, and changes in asset and liability
structures.

Comparative Analysis: Compare Bajaj Auto's financial performance with its major competitors and
industry benchmarks. This will help in understanding the company's market position and performance
relative to its peers.

Impact of Market Factors: Investigate the impact of external market factors, such as economic conditions,
regulatory changes, and market demand fluctuations, on Bajaj Auto's financial performance. This includes
studying how macroeconomic trends and industry-specific challenges have influenced the company's
financial outcomes.

Strategic Insights: Provide strategic insights based on the financial analysis to help stakeholders understand
the strengths, weaknesses, opportunities, and threats (SWOT) facing Bajaj Auto. This will include
recommendations for improving financial performance and sustaining competitive advantage.
Investment Evaluation: Offer a perspective on the attractiveness of Bajaj Auto as an investment option by
analyzing stock performance, dividend history, and investor sentiment. This will aid potential investors in
making informed decisions.

By achieving these objectives, the study aims to present a clear and detailed picture of Bajaj Auto's financial
standing, operational efficiency, and strategic positioning in the automotive industry. This will facilitate
better decision-making for management, investors, and other stakeholders.
he primary objective of this study is to conduct a comprehensive analysis of Bajaj Auto's financial
performance over a chosen period (specify the number) years. This analysis will utilize various financial
ratios to assess the company's profitability, liquidity, solvency, and efficiency.

Specifically, the study aims to:

Evaluate Bajaj Auto's profitability trends by analyzing ratios such as gross profit margin, net profit margin,
return on equity (ROE), and return on assets (ROA).
Assess the company's short-term financial health and ability to meet current obligations using liquidity ratios
like the current ratio and quick ratio.
Gauge Bajaj Auto's long-term solvency and ability to meet long-term debt obligations through solvency
ratios such as the debt-to-equity ratio and interest coverage ratio.
Analyze the company's operational efficiency by examining turnover ratios like inventory turnover ratio and
receivable turnover ratio.
Additionally, this study will:

Identify any trends or patterns in Bajaj Auto's financial performance over the chosen period.
Benchmark Bajaj Auto's performance against industry averages or competitors to understand its relative
position.
Gain insights into the factors impacting Bajaj Auto's financial health, including market conditions, product
portfolio, and management strategies.
Based on the analysis, provide recommendations for potential areas of improvement in Bajaj Auto's
financial performance.
The ultimate goal of this study is to provide a comprehensive picture of Bajaj Auto's financial health and
identify areas where the company can strengthen its financial position and achieve sustainable growth.

Evaluate Financial Health: Assess the overall financial health of Bajaj Auto through detailed analysis of key
financial statements, including balance sheets, income statements, and cash flow statements over a specified
period.

Profitability Analysis: Examine profitability metrics such as net profit margin, return on assets (ROA), and
return on equity (ROE) to determine the company's ability to generate earnings relative to sales, assets, and
shareholders' equity.

Liquidity Assessment: Analyze liquidity ratios like current ratio and quick ratio to evaluate Bajaj Auto's
capacity to meet short-term obligations and maintain adequate working capital.

Solvency Examination: Investigate solvency ratios, including debt-to-equity and interest coverage ratios, to
understand the company's long-term financial stability and its ability to meet long-term liabilities.
Efficiency Ratios: Measure operational efficiency through ratios such as inventory turnover, receivables
turnover, and asset turnover to assess how effectively the company utilizes its assets.

Trend Analysis: Conduct a trend analysis to identify patterns and changes in financial performance over
time, providing insights into growth trajectories and areas of concern.

Benchmarking: Compare Bajaj Auto's financial performance with industry peers to gauge its competitive
standing and identify best practices and areas needing improvement.

Stock Performance: Analyze the performance of Bajaj Auto's stock, considering market trends, price-to-
earnings (P/E) ratio, earnings per share (EPS), and dividend yield to understand investor perceptions and
market valuation.

Risk Assessment: Identify financial risks, including market risks, credit risks, and operational risks, and
evaluate their potential impact on the company's financial stability and performance.

Strategic Recommendations: Based on the analysis, provide strategic recommendations to enhance financial
performance, improve operational efficiency, and ensure sustainable growth for Bajaj Auto.

Stakeholder Impact: Assess the impact of financial performance on various stakeholders, including
shareholders, employees, customers, and suppliers, to ensure a holistic understanding of the company's
financial health.

This study aims to comprehensively analyze the financial performance of Bajaj Auto Limited, a leading two-
wheeler and three-wheeler manufacturer in India. Through a thorough examination of financial data, the
study will assess Bajaj Auto's financial health, identify strengths and weaknesses, and evaluate its future
prospects.

Specific Objectives:

Profitability Analysis:

Evaluate profitability trends by calculating and analyzing ratios such as Net Profit Margin, Return on Equity
(ROE), and Return on Assets (ROA) over a chosen period.
Assess Bajaj Auto's efficiency in generating profits from its operations and investments.
Liquidity Analysis:

Evaluate Bajaj Auto's ability to meet short-term obligations by calculating ratios like Current Ratio and
Quick Ratio.
Assess the company's working capital management and its ability to convert current assets into cash quickly.
Solvency Analysis:

Evaluate Bajaj Auto's long-term financial stability by calculating ratios like Debt-to-Equity Ratio and
Interest Coverage Ratio.
Assess the company's ability to meet its long-term debt obligations and its financial leverage.
Efficiency Analysis:

Evaluate Bajaj Auto's operational efficiency by calculating ratios such as Inventory Turnover Ratio and
Receivables Turnover Ratio.
Assess the company's ability to manage its inventory and collect payments effectively.
Comparative Analysis:

Benchmark Bajaj Auto's financial performance against industry leaders or major competitors.
Identify areas of relative strength and weakness.
Trend Analysis:

Identify trends in key financial ratios over a chosen period.

Assess the sustainability of Bajaj Auto's financial performance and potential future directions.
Future Prospects:

Based on the financial analysis, provide insights on Bajaj Auto's future growth potential and any potential
challenges it may face.
Expected Outcome:

This study will provide valuable insights for various stakeholders, including:

Investors: Assess the financial health of Bajaj Auto and make informed investment decisions.
Creditors: Evaluate Bajaj Auto's ability to repay debt.
Management: Identify areas for improvement and develop strategies to enhance financial performance.
Researchers: Gain deeper understanding of Bajaj Auto's financial position within the two-wheeler and three-
wheeler industry.
 Scope of the Study
This study aims to comprehensively analyse the financial performance of Bajaj Auto Limited, a leading two-
wheeler and three-wheeler manufacturer in India, over a specified period (define the chosen time frame, e.g.,
past 5 years). The analysis will employ various financial ratios to assess Bajaj Auto's profitability, liquidity,
solvency, efficiency, and overall financial health.

The scope of this study encompasses a comprehensive analysis of the financial performance of Bajaj Auto
Limited, one of India's leading automotive manufacturers. This analysis aims to evaluate the company's
financial health, operational efficiency, profitability, and overall financial stability over a specific period.
The study will be rooted in financial theory and practical application, ensuring a balanced perspective that
blends academic rigor with real-world relevance.

This study aims to comprehensively analyse the financial performance of Bajaj Auto Limited, a leading two-
wheeler and three-wheeler manufacturer in India. The analysis will cover a period of [insert number] years,
from [start year] to [end year]. This timeframe will allow for an in-depth evaluation of trends and
developments in the company's financial health.

This study aims to conduct a comprehensive financial performance analysis of Bajaj Auto, a leading
manufacturer of motorcycles, scooters, and three-wheelers in India. The analysis covers a five-year period
from 2018 to 2022, providing insights into the company's financial health, profitability, and strategic
positioning within the automotive industry.

Key Areas of Investigation:

Profitability Analysis: This section will evaluate Bajaj Auto's ability to generate profits. Ratios like Net
Profit Margin, Return on Equity (ROE), and Return on Assets (ROA) will be calculated and analysed to
understand profit generation trends and efficiency in using resources. Analysis of revenue growth, gross
profit, operating profit, and net profit margins to understand the company’s profitability trends. This section
will assess Bajaj Auto's profitability using various ratios such as net profit margin, return on equity (ROE),
return on assets (ROA), and gross profit margin. The analysis will evaluate the company's efficiency in
generating profits from its operations and assets.

Liquidity Analysis: This section will assess Bajaj Auto's capacity to meet its short-term obligations.
Current Ratio, Quick Ratio, and Inventory Turnover Ratio will be employed to gauge the company's ability
to convert current assets into cash to pay off short-term debts. This section will assess Bajaj Auto's ability to
meet its short-term obligations using ratios like the current ratio and quick ratio. The analysis will determine
the company's capacity to cover its current liabilities with its current assets. This section will assess Bajaj
Auto's profitability using ratios like Net Profit Margin, Return on Equity (ROE), and Return on Assets
(ROA). The analysis will identify trends, compare them to industry benchmarks, and evaluate the company's
efficiency in generating profits from its operations and investments.

Solvency Analysis: This section will analyse Bajaj Auto's long-term financial stability and ability to meet
long-term debt obligations. Debt-to-Equity Ratio and Interest Coverage Ratio will be calculated to assess the
company's financial leverage and its capacity to service its debt. Assessment of the company's ability to
meet its short-term and long-term obligations through liquidity ratios and solvency ratios. This section will
evaluate Bajaj Auto's long-term financial stability using ratios like the debt-to-equity ratio and interest
coverage ratio. The analysis will assess the company's ability to meet its long-term debt obligations. This
section will evaluate Bajaj Auto's long-term financial health using ratios like Debt-to-Equity Ratio and
Interest Coverage Ratio. The analysis will assess the company's ability to meet its long-term debt obligations
and its financial stability.

Efficiency Analysis: This section will evaluate how effectively Bajaj Auto utilizes its resources to generate
sales. Ratios like Inventory Turnover Ratio, Receivables Turnover Ratio, and Asset Turnover Ratio will be
used to assess inventory management, credit collection practices, and overall asset utilization. Examination
of asset utilization and operational efficiency through ratios like inventory turnover, receivables turnover,
and total asset turnover. This section will assess how effectively Bajaj Auto utilizes its resources using ratios
like inventory turnover ratio and receivable turnover ratio. The analysis will evaluate the company's ability
to manage its inventory and collect receivables efficiently.

Comparative Analysis: This section will compare Bajaj Auto's financial ratios with industry benchmarks
and those of its major competitors. This comparison will provide insights into Bajaj Auto's relative
performance within the two-wheeler and three-wheeler industry. Analysis of the company’s capital structure
to understand the proportion of debt and equity financing and its impact on financial stability and risk.
Evaluation of the company's performance in the stock market, including share price trends, market
capitalization, and investor sentiment. This section will evaluate Bajaj Auto's growth trends using revenue
growth rate, net profit growth rate, and market share analysis. The analysis will assess the company's ability
to expand its operations and increase its market share.

Growth Analysis: This section will evaluate Bajaj Auto's growth trends using ratios like Revenue Growth
Rate and Market Share Analysis. The analysis will assess the company's ability to expand its operations and
capture a larger market share in the two-wheeler and three-wheeler segment. This section will analyse how
efficiently Bajaj Auto utilizes its resources using ratios like Inventory Turnover Ratio and Receivables
Turnover Ratio. The analysis will assess inventory management practices, credit control effectiveness, and
overall asset utilization. Evaluate the company's growth trends in sales, revenue, and market share. Analyze
the effectiveness of growth strategies and their impact on financial performance.

Additional Considerations:

• Industry Analysis: The study will incorporate a brief analysis of the Indian two-wheeler and three-
wheeler industry, including market size, growth trends, and key competitors. This will provide
context for evaluating Bajaj Auto's performance relative to the industry.
• Impact of External Factors: The study will consider the impact of external factors on Bajaj Auto's
financial performance, such as government regulations, economic conditions, fuel prices, and
technological advancements.
• Future Prospects: Based on the analysis, the study will discuss Bajaj Auto's future prospects and
potential challenges. This will include an assessment of the company's strategic initiatives and their
potential impact on future performance.

Expected Deliverables:

• A detailed analysis of Bajaj Auto's financial performance using various financial ratios.
• Identification of key trends and insights into the company's profitability, liquidity, solvency, and
efficiency.
• Comparison of Bajaj Auto's financial performance with industry benchmarks and major competitors.
• Conclusion with key findings and recommendations for future growth strategies (based on the
analysis).
Future Scope:

This study can be further expanded to include:

• An analysis of Bajaj Auto's product portfolio, market share, and competitive landscape.
• An evaluation of the impact of external factors like economic conditions, government regulations,
and technological advancements on the company's performance.
• A financial forecast using financial modelling techniques to predict Bajaj Auto's future financial
performance.

By employing a comprehensive financial ratio analysis and considering both internal and external factors,
this study will provide valuable insights into Bajaj Auto's financial health and its potential for future growth.

This study aims to provide a detailed and insightful analysis of Bajaj Auto's financial performance, offering
valuable insights to stakeholders, including investors, management, and industry analysts. By examining key
financial metrics and comparing them with industry benchmarks, the study will help in understanding the
company’s financial strengths and weaknesses, guiding strategic decision-making for future growth and
sustainability.

This study can be further expanded by incorporating additional financial metrics or conducting a more in-
depth analysis of specific aspects of Bajaj Auto's financial performance. Additionally, the study could be
broadened to compare Bajaj Auto's performance with its major competitors in a more comprehensive
manner.

This scope provides a framework for a 5-page project analyzing Bajaj Auto's financial performance.
Remember to adjust the specific details like timeframe and data sources based on your chosen period and
available resources.

This scope of study provides a framework for a comprehensive financial performance analysis of Bajaj
Auto. The specific details of the analysis, such as the choice of ratios and the depth of industry analysis, can
be further refined based on data availability and project requirements.
 Research Methodology

• Source of Data

In 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 primary data.
Primary 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.

Research Design
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 3 years
annual report of the company is compiled and tabulated for the purpose of study.

The research methodology for this study on the financial performance analysis of Bajaj Auto encompasses a
systematic approach, integrating both quantitative and qualitative techniques to ensure comprehensive and
robust analysis.

1. Research Design:
The study adopts a descriptive research design, aiming to provide a detailed and factual representation of
Bajaj Auto’s financial performance. This design facilitates an in-depth examination of financial statements
and relevant financial ratios over a specified period.

2. Data Collection:
The data collection process involves both primary and secondary sources:

Secondary Data: The primary data source includes annual reports of Bajaj Auto, financial statements,
industry reports, and relevant publications from regulatory bodies like SEBI and RBI. Additional secondary
data is gathered from financial databases such as Bloomberg, Reuters, and corporate filings.
Primary Data: Supplementary primary data is obtained through structured interviews and questionnaires
targeting financial analysts, industry experts, and key stakeholders within Bajaj Auto to gain insights and
corroborate secondary data findings.
3. Sampling Method:
A purposive sampling method is employed to select financial analysts and industry experts who have
substantial experience and knowledge about the automotive sector and Bajaj Auto. This non-probability
sampling ensures the inclusion of relevant and insightful participants, enhancing the validity of the primary
data collected.

4. Data Analysis Techniques:

The data analysis involves the following techniques:

Ratio Analysis: Key financial ratios, including profitability, liquidity, solvency, and efficiency ratios, are
calculated to assess Bajaj Auto’s financial health and performance trends.
Trend Analysis: A longitudinal analysis is conducted to identify patterns and trends in financial performance
over a five to ten-year period.
Comparative Analysis: Bajaj Auto’s financial performance is benchmarked against industry standards and
major competitors to provide context and relative performance insights.
Statistical Tools: Descriptive statistics, correlation analysis, and regression analysis are employed to
quantify relationships between different financial metrics and to predict future performance.
5. Validity and Reliability:
To ensure the validity and reliability of the study:

Triangulation: Multiple data sources and analytical methods are utilized to cross-verify findings.
Expert Review: The methodology and findings are reviewed by financial experts to validate the accuracy
and relevance of the analysis.

. Data Collection:

Financial Statements:
Collect annual reports of Bajaj Auto for a chosen period (e.g., past 5 or 10 years) to obtain financial
statements like Balance Sheets, Income Statements, and Cash Flow Statements.
You can access these reports from Bajaj Auto's investor relations section on their website or financial
databases like SEBI depository or Moneycontrol.
Industry Reports:
Gather industry reports on the two-wheeler and three-wheeler market in India from reputed institutions like
CRISIL, ICRA, or industry associations like SIAM (Society of Indian Automobile Manufacturers).

2. Data Analysis Techniques:

Ratio Analysis:

Calculate and analyze various financial ratios to assess Bajaj Auto's performance across different
parameters:
Liquidity Ratios (Current Ratio, Quick Ratio)
Profitability Ratios (Net Profit Margin, Return on Equity (ROE), Return on Assets (ROA))
Solvency Ratios (Debt-to-Equity Ratio)
Activity Ratios (Inventory Turnover Ratio, Debtors Turnover Ratio)
Compare these ratios with industry benchmarks and Bajaj Auto's historical performance to identify trends
and strengths/weaknesses.
Trend Analysis:

Use charts and graphs to visualize trends in financial data like revenue, profits, margins, and debt levels over
the chosen period.
Benchmarking:

Compare Bajaj Auto's financial ratios with those of its major competitors (e.g., Hero MotoCorp, TVS
Motors) to understand relative positioning within the industry.
3. Tools and Techniques:
Utilize spreadsheet software like Microsoft Excel or Google Sheets for data organization, calculations, and
ratio analysis.
Consider data visualization tools like Tableau or Power BI to create insightful charts and graphs for
presenting trends and comparisons.
4. Additional Considerations:

Macroeconomic Factors: Briefly discuss the impact of relevant macroeconomic factors like GDP growth,
inflation, and interest rates on Bajaj Auto's performance.
Company Filings: Review Bajaj Auto's annual reports for management discussions and analysis (MD&A) to
understand the company's perspective on its financial performance and future outlook.
Limitations: Acknowledge any limitations of the study, such as the chosen timeframe or data availability.
By employing these techniques and considerations, you can establish a robust methodology for analyzing
Bajaj Auto's financial performance within a 105-page project.

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 3
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 2022-23
• Trend Analysis
• Ratio Analysis

Profitability ratio.
Turnover ratio.
Solvency ratio
Current ratio.
 Balance Sheet

Particulars Note No. 2023 2022

ASSETS
Non-current assets
Property, plant and equipment 2 2,635.29 1,757.57
Capital work-in-progress 2 81.92 76.82
Investment property 3 50.01 51.13
Intangible assets 4 30.70 25.32
Intangible assets under development 4 – –
Investments in subsidiaries 5A 1,786.43 1,248.43
Financial assets
Investments 5B 16,717.53 17,601.20
Trade receivables 10 – –
Loans 6 2.28 4.57
Other financial assets 7 33.58 61.39
Income tax assets (net) 812.42 749.24
Other non-current assets 8 107.12 351.80
22,257.28 21,927.47

Current assets
Inventories 9 1,397.90 1,230.51
Financial assets
Investments 5B 4,419.37 4,969.13
Trade receivables 10 1,776.12 1,516.38
Cash and cash equivalents 11 219.42 563.97
Other bank balances 12 66.33 24.37
Loans 6 3.62 4.17
Other financial assets 7 470.81 596.26
Other current assets 8 516.84 1,089.68
8,870.41 9,994.47
31,127.69 31,921.94

Summary of significant accounting policies followed by the Company

The accompanying notes are an integral part of the financial statements. On behalf of the Board of Directors

As per our report of even date

For S R B C & CO LLP

Chartered Accountants Niraj BajajChairman
ICAI Firm Registration Number: 324982E/E300003 (DIN: 00028261)

Rajiv Bajaj
Managing Director
(DIN: 00018262)
per Arvind Sethi Dinesh Thapar
Partner Chief Financial Officer
Membership Number: 089802 Anami N. Roy
Pune: 25 April 2023 Chairman - Audit Committee
Dr. J Sridhar (DIN: 01361110)
Company Secretary
Balance Sheet (Contd.)
(H In Crore)
As at 31 March

Particulars Note No. 2023 2022

EQUITY AND LIABILITIES

Equity
Equity share capital 13 282.96 289.37
Other equity 14 25,142.90 26,379.43
25,425.86 26,668.80

Non-current liabilities
Financial liabilities
Sales tax deferral 15 124.23 122.77
Provisions 16 0.87 1.30
Deferred tax liabilities (net) 17 345.15 403.33
Government grant 33.35 36.00
Other non-current liabilities 18 0.19 0.30
503.79 563.70

Current liabilities
Financial liabilities
Trade payables
Total outstanding dues of micro enterprises and small enterprises 19 269.41 150.64
Total outstanding dues of creditors other than micro enterprises and small enterprises 19 3,804.47 3,482.54
Other financial liabilities 20 446.92 397.00
Other current liabilities 21 484.90 478.71
Provisions 16 165.95 153.75
Government grant 2.65 2.65
Current tax liabilities (net) 23.74 24.15
5,198.04 4,689.44
31,127.69 31,921.94
Summary of significant accounting policies followed by the Company 1

The accompanying notes are an integral part of the financial statements. On behalf of the Board of DirectorsAs

per our report of even date

For S R B C & CO LLP

Chartered Accountants Niraj BajajChairman
ICAI Firm Registration Number: 324982E/E300003 (DIN: 00028261)

Rajiv Bajaj
Managing Director
(DIN: 00018262)
Dinesh Thapar
Chief Financial Officer
Anami N. Roy
per Arvind Sethi Chairman - Audit Committee
Partner (DIN: 01361110)
Membership Number: 089802
Pune: 25 April 2023 Dr. J Sridhar
Company Secretary
 Statement of Profit and Loss
Statement Of Changes In
(H In Crore)
Equity

Particulars Note No. A. Equity

2023share capital
2022

Revenue from contracts with customers 35,359.15 32,135.98

Particulars
Other operating revenue 1,068.45 1,008.73
Revenue from operations 22 Note No.
36,427.60 33,144.71
Other income 23 1,181.42 1,209.24
Total income 37,609.02 34,353.95

Expenses
Cost of raw materials and components consumed 24,009.01 22,169.88
Purchase of traded goods 2,143.85 1,971.98
Changes in inventories of finished goods, work-in-progress and traded goods 24 (98.11) 187.96
Employee benefits expense 25 1,444.90 1,358.80
Finance costs 26 39.48 8.66
Depreciation and amortisation expense 27 282.44 269.17
Other expenses 28 2,406.63 2,210.76
Expenses, included in above items, capitalised (27.82) (13.31)
Total expenses 30,200.38 28,163.90

Profit before exceptional items and tax 7,408.64 6,190.05

Exceptional items 29 – (315.28)

Profit before tax 7,408.64 6,505.33

Tax expense
Current tax 1,854.82 1,667.11
Deferred tax (73.78) (180.65)
Total tax expense 30 1,781.04 1,486.46

Profit for the year 5,627.60 5,018.87

 Statement Of Changes In Equity
(H In Crore)
For the year ended 31 March
A. Equity share capital 2023 2022

At the beginning of the year 289.37 289.37

Changes in equity share capital due to prior period errors – –
Restated balance at the beginning of the current reporting period 289.37 289.37
Changes in equity share capital during the year (6.41) –
At the end of the year 13 282.96 289.37

B. Other equity

Reserves and surplus Other reserves

(H In Crore)

Cash flow Costs of Capital Share based Total

Note General Retained hedging hedging FVTOC redemption payments Treasury other
Particulars No. reserve earnings reserve reserve I reserve reserve shares equity
reserve

Balance as at 31 March 2021 14 5,887.60 18,861.25 148.90 (58.06) 88.43 – 16.91 (32.14) 24,912.89

Profit for the year – 5,018.87 – – – – – – 5,018.87

Recognition of share based payments to employees – – – – – – 15.36 – 15.36
Other comprehensive income (net of tax) – 13.42 (94.57) 63.99 537.98 – – – 520.82
Total comprehensive income for the year ended 31 March 2022 – 5,032.29 (94.57) 63.99 537.98 – 15.36 – 5,555.05

Transactions with owners in theircapacity as

owners
Transfer from Retained earnings to General reserve 502.00 (502.00) – – – – – – –
Treasury shares held by ESOP Trust – – – – – – (37.37) (37.37)
Final dividend for the year ended 31 March 2021 – (4,051.14) – – – – – – (4,051.14)

Balance as at 31 March 2022 14 6,389.60 19,340.40 54.33 5.93 626.41 – 32.27 (69.51) 26,379.43

Profit for the year – 5,627.60 – – – – – – 5,627.60

Recognition of share based payments to employees – – – – – – 29.82 – 29.82
Other comprehensive income (net of tax) – (1.58) (54.33) (5.93) 300.72 – – – 238.88
Total comprehensive income for the year ended 31 March 2023 – 5,626.02 (54.33) (5.93) 300.72 – 29.82 – 5,896.30

Transactions with owners in theircapacity as

owners
Recognition of capital redemption reserve – (6.41) – – – 6.41 – – –
Treasury shares held by ESOP Trust – – – – – – – 5.78 5.78
Final dividend for the year ended 31 March 2022 – (4,051.14) – – – – – – (4,051.14)
Share buyback and tax thereon – (3,087.47) – – – – – – (3,087.47)

Balance as at 31 March 2023 14 6,389.60 17,821.40 – – 927.13 6.41 62.09 (63.73) 25,142.90
Note: There are no changes in accounting policies or prior period errors during the current or previous year.
 Statement Of Cash Flows
2022
Particulars 2023

I. Operating activities
Profit before tax 7,408.64 6,505.33
Adjustments to reconcile profit before tax to net cash flows:
Add:
i) Depreciation and amortisation expense 282.44 269.17
ii) Loss on property, plant and equipment sold, demolished,discarded and
scrapped 14.11 8.88
iii) Provision for doubtful debts and advances 4.79 (4.44)
iv) Share based payment to employees 29.82 15.36
v) Exchange loss/(gain) on cash and cash equivalents 11.39 (3.55)
vi) Exchange loss/(gain) on trade receivables 2.50 2.39
vii) Exchange loss/(gain) on import payables 0.24 3.64
viii) Interest adjustment on Government grant 1.46 1.31
ix) Interest expense 38.02 7.35
384.77 300.11
Less:
i) Investment income included in above:
Interest income on fixed income securities 306.99 275.05
Interest income on fixed deposits 61.05 36.42
Interest income on exchange traded funds 344.56 204.68
Interest income on fixed maturity plans 39.55 388.93
Gain on valuation and realisation of mutual funds measuredat fair
value through profit or loss 174.53 224.47
Dividend income on other strategic investments 47.25 45.50
Amortisation of premium/discount on acquisitionof
fixed income securities (2.00) (17.67)
971.93 1,157.38
ii) Government grants 2.65 2.65
iii) Exceptional item - PSI Scheme – 315.28
iv) Surplus on sale of property, plant and equipment 111.56 21.59
(1,086.14) (1,496.90)
6,707.27 5,308.54
Change in assets and liabilities
i) (Increase)/decrease in inventories (167.39) 263.38
ii) (Increase)/decrease in trade receivables (267.03) 1,202.52
iii) (Increase)/decrease in loans and other assets 655.53 77.19
iv) Increase/(decrease) in liabilities and provisions 502.24 (942.20)
723.35 600.89
Annuity payments (net) to VRS/Welfare scheme optees (0.32) (0.32)
Net cash flow from operating activities before income-tax 7,430.30 5,909.11
Income-tax paid (1,918.41) (1,701.54)

Net cash flow from/(used in) operating activities 5,511.89 4,207.57

Carried forward 5,511.89 4,207.57

16th Annual Report 2022-23 Bajaj Auto Limited

 BAJAJ AUTO’S
FINANCIAL
PERFORMANCE
FOR FY2023
1. Records highest ever:
● Net sales: J 35,359 crore.
● Total operating income: J 36,428 crore.
● Earnings before interest, tax, depreciation,and
amortisation (EBITDA): J 6,551 crore.
● Profit before tax (PBT): J 7,409 crore.
● Profit after tax (PAT): J 5,628 crore.

2. Operating EBITDA margin remains healthy at 18%.

3. Return on operating capital employed: 309%.

4. Surplus cash and cash equivalent as on

31 March 2023 at J 17,445 crore, after dividend pay-
out of J 4,051 crore and buy-back of equityshares and
tax thereon of J 3,094 crore.
 Uses and Importance Of Study
Uses Of Study –

The study on the financial performance analysis of Bajaj Auto serves multiple valuable purposes across
different domains and stakeholders. A study analyzing the financial performance of Bajaj Auto offers
valuable insights for various stakeholders. Here's a breakdown of its uses for a project like yours

For Investors:

Investment Decision-Making: The analysis helps assess Bajaj Auto's financial health, profitability, and risk
profile. This information is crucial for investors to decide whether to invest in the company's stock or bonds.

Performance Evaluation: Existing investors can measure Bajaj Auto's performance against industry
benchmarks and past trends. This allows them to gauge the effectiveness of their investment strategy.

Comparative Analysis: By comparing Bajaj Auto's financial performance with its competitors, investors
can identify stronger investment opportunities within the two-wheeler and three-wheeler segment.

Risk Assessment: Investors can evaluate the financial stability and profitability of Bajaj Auto, enabling
them to make informed decisions about buying, holding, or selling their shares.

Growth Potential: Analysis of financial trends and ratios helps investors assess the company's growth
prospects and future potential for returns

Management Performance Evaluation:

Executive Decisions: The study aids the company's management in assessing the effectiveness of their
strategies and operational decisions. It provides a clear picture of the financial health and areas that require
managerial focus.

Employee Performance: Understanding financial outcomes helps in setting realistic performance targets
and compensation benchmarks for employees.

Strategic Planning: The analysis helps management identify strengths, weaknesses, opportunities, and
threats (SWOT) in Bajaj Auto's financial performance. This knowledge is critical for developing future
strategies to improve profitability, manage debt, and optimize resource allocation.

Performance Monitoring: Management can track key financial metrics over time to identify areas needing
improvement. This enables them to make data-driven decisions and course corrections as needed.
Benchmarking: Comparing Bajaj Auto's financial performance with industry leaders can reveal areas where
the company can improve its efficiency and cost structure.

Credit Assessment:

Lenders and Creditors: Banks and financial institutions use such studies to evaluate the creditworthiness
of Bajaj Auto. The company's ability to meet its debt obligations and financial stability are crucial for
securing loans or credit lines.

• Credit Risk Assessment: The analysis helps assess Bajaj Auto's ability to repay its debts. This
information is crucial for creditors and lenders to determine the risk involved in extending credit to the
company.
• Loan Monitoring: Existing lenders can use the analysis to monitor Bajaj Auto's financial health and
ensure timely repayments.

For Researchers and Academics:

Industry Trends: The study contributes to a broader understanding of the financial performance trends
within the Indian two-wheeler and three-wheeler industry.

Case Studies: The analysis can serve as a case study for academic research on financial management
practices in the automotive sector.

For Project Development:

Market Justification: If your project proposes a product or service relevant to Bajaj Auto's operations, you
can leverage the financial analysis to demonstrate the company's potential as a target market.

Financial Projections: The analysis can provide a baseline for developing realistic financial projections for
your project, especially if it involves collaboration or partnerships with Bajaj Auto.

Corporate Strategy and Planning:

Performance Benchmarking: The study provides insights into how Bajaj Auto performs relative to its
peers and industry benchmarks, aiding in strategic planning and operational adjustments.

Resource Allocation: Detailed financial analysis helps in optimal allocation of resources, capital budgeting,
and identifying areas needing improvement or investment.

Regulatory and Compliance:

Regulatory Bodies: Financial performance analysis is essential for regulatory bodies to ensure Bajaj Auto
complies with financial reporting standards and maintains transparency in its financial disclosures.

Compliance Audits: Regular analysis helps in preparing for audits and maintaining adherence to statutory
requirements.

Management Performance Evaluation:

Executive Decisions: The study aids the company's management in assessing the effectiveness of their
strategies and operational decisions. It provides a clear picture of the financial health and areas that require
managerial focus.

Employee Performance: Understanding financial outcomes helps in setting realistic performance targets
and compensation benchmarks for employees.

Market Analysis and Competition:

Industry Trends: By analyzing Bajaj Auto’s financial data, stakeholders can gain insights into broader
industry trends and market conditions.

Competitive Positioning: The study helps in understanding how Bajaj Auto stands against its competitors,
facilitating strategies to enhance market share and competitive advantage.
Academic and Research Purposes:

Case Studies: The financial analysis of Bajaj Auto can be used as a case study in academic research to
understand real-world applications of financial theories and principles.

Educational Tool: Business schools and financial courses can utilize the study as a practical example to
teach students about financial analysis, corporate finance, and strategic management.

Mergers and Acquisitions:

Valuation and Negotiations: In cases of potential mergers, acquisitions, or partnerships, a thorough

financial performance analysis is crucial for valuation purposes and in negotiating terms that reflect the true
worth of Bajaj Auto.

Operational Efficiency:

Cost Management: The study helps in identifying areas where the company can reduce costs and improve
operational efficiencies.

Profitability Analysis: It enables detailed analysis of profit margins across different product lines and
geographical markets, guiding decisions to enhance profitability.

Stakeholder Communication:

Transparency: Providing stakeholders with comprehensive financial performance reports enhances

transparency and builds trust.

Stakeholder Engagement: Regular updates based on financial analysis help in maintaining effective
communication with shareholders, employees, and other stakeholders.

For Potential Business Partners:

Partnership Evaluation: Companies considering a joint venture or other collaboration with Bajaj Auto can
leverage this analysis to assess their financial strength and stability as a potential partner. Businesses
considering joint ventures or partnerships with Bajaj Auto can assess its financial strength and stability
through this analysis. This helps them evaluate the potential risks and rewards of such collaborations.

In conclusion, a financial performance analysis of Bajaj Auto is a valuable tool for various stakeholders. It
provides insights into the company's financial health, risks, and opportunities, allowing users to make
informed decisions based on the analysis. Remember, your 15-page project can delve deeper into specific
aspects like trends over time, comparisons to industry benchmarks, or the impact of specific events on
financial performance.

In conclusion, a comprehensive financial performance analysis of Bajaj Auto offers valuable insights for a
wide range of stakeholders. It can be used for investment decisions, strategic planning, credit risk
assessment, industry analysis, and partnership evaluation.

Overall, the financial performance analysis of Bajaj Auto is a multifaceted tool that supports strategic
decision-making, operational improvements, regulatory compliance, and stakeholder engagement, ultimately
contributing to the sustained growth and success of the company.
Importance of the study
The study of financial performance analysis of Bajaj Auto is a crucial undertaking for multiple stakeholders,
including investors, financial analysts, management, and policy makers. Bajaj Auto is one of the leading
manufacturers in the global automotive industry, particularly renowned for its motorcycles and three-
wheelers. Understanding its financial health and performance is pivotal in assessing its competitive position,
strategic decision-making, and long-term sustainability.

Significance for Stakeholders

1. Investors:

Risk Assessment: Analyzing financial performance helps in identifying potential risks associated with
investing in Bajaj Auto. This includes understanding its liquidity, profitability, and solvency.

Return on Investment (ROI): Investors can gauge the company's efficiency in generating returns on their
investments, aiding in informed decision-making.

Valuation: Through various financial metrics and valuation models, investors can determine the fair value
of the company's shares.

2. Management:

Strategic Planning: Financial performance analysis provides insights into operational efficiencies and areas
requiring strategic interventions.

Resource Allocation: Identifying profitable segments and areas with cost overruns helps in optimal
resource allocation.

Performance Benchmarking: Comparing financial metrics against industry standards and competitors aids
in benchmarking and setting performance targets.

3. Financial Analysts:

Market Analysis: Analysts use financial performance data to predict future trends, market behavior, and
company prospects.

Comprehensive Evaluation: A thorough analysis aids in providing recommendations for buy, sell, or hold
decisions.
4. Policy Makers:

Economic Indicators: As a major player in the automotive sector, Bajaj Auto’s performance can serve as an
indicator of economic health and industrial performance.

Regulatory Oversight: Financial analysis helps in ensuring that the company complies with regulatory
standards and contributes fairly to economic development.
Key Analytical Areas

1. Profitability Analysis:

Gross and Net Margins: Evaluates how effectively Bajaj Auto is converting sales into actual profit.

Return on Assets (ROA) and Return on Equity (ROE): Measures the efficiency of asset use and
shareholder equity in generating profits.

2. Liquidity Analysis:

Current and Quick Ratios: Assesses the company’s ability to meet short-term obligations.

3. Solvency Analysis:

Debt to Equity Ratio: Evaluates the financial leverage and long-term stability of Bajaj Auto.

Interest Coverage Ratio: Measures the company's ability to meet interest payments on its debt.

4. Operational Efficiency:

Inventory Turnover: Indicates how efficiently inventory is managed and sold.

Asset Turnover Ratio: Reflects the efficiency in using assets to generate sales.

Understanding the financial performance of Bajaj Auto, a leading two-wheeler and three-wheeler
manufacturer, is crucial for various stakeholders for multiple reasons. Here's a breakdown of its
significance:

For Investors:

Investment Decisions: A comprehensive analysis helps investors assess Bajaj's financial health,
profitability, and growth potential. This guides investment decisions by highlighting potential returns, risks,
and the company's ability to generate sustainable profits.

Comparison with Peers: Comparing Bajaj's financial ratios (like profitability, liquidity, and solvency) with
industry benchmarks and competitors like TVS or Hero MotoCorp unveils its relative standing. This
empowers investors to make informed choices within the two-wheeler sector.

For Bajaj Auto's Management:

Strategic Planning: Analyzing financial performance allows Bajaj's management to identify strengths,
weaknesses, and areas for improvement. This knowledge aids in strategic planning, resource allocation, and
developing future growth strategies.

Performance Measurement: Financial metrics serve as benchmarks to measure Bajaj's progress against set
goals and objectives. This facilitates course correction and fine-tuning strategies to achieve desired financial
outcomes.
For Creditors and Lenders:

Creditworthiness Assessment: Creditors assess Bajaj's financial stability and debt repayment capacity
through financial analysis. This helps determine the company's creditworthiness and set appropriate lending
terms.

For the Indian Automotive Sector:

Industry Trends: Studying Bajaj, a major player, provides insights into the overall health and performance
of the Indian two-wheeler and three-wheeler industry. This knowledge assists policymakers in formulating
industry-specific regulations and fostering growth.

For Academicians and Researchers:

Benchmarking and Case Studies: Bajaj's financial performance serves as a valuable benchmark for
academic research on the Indian automobile sector. It allows researchers to develop case studies for financial
analysis courses and contribute to the body of knowledge in this field.

The financial performance analysis of Bajaj Auto is of paramount importance in providing a comprehensive
view of its financial health and operational efficiency. It serves as a critical tool for informed decision-
making, strategic planning, and ensuring sustainable growth. For a company of Bajaj Auto's stature, this
analysis not only reflects its current standing but also charts the path for future performance, influencing a
wide range of economic and financial stakeholders.
In conclusion, a study of Bajaj Auto's financial performance offers valuable insights for a wide range of
stakeholders. It empowers investors to make informed decisions, guides strategic planning within Bajaj, and
sheds light on the health of the Indian automotive industry. By undertaking this study, you contribute
valuable knowledge to financial analysis and business decision-making
 Analysis of data collected

1. 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.

2. Current Ratio:

The current ratio is one of the important ratios to measure liquidity position. The ideal ratio of the current
ratio was 2:1. 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.

Current Ratio

Current assets Current liabilities

Year (Rs.) (Rs.) Ratio (Times)

2018 9,235.63 4111.29 2.25

2019 7,062.66 4,873.68 1.45

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

Table 3:1 shows the Current ratio of Bajaj auto ltd. The current ratio of that firm shows a fluctuating trend.
The current ratio decreased from 2.25 times in the year 2018 to 1.45 times in the year 2019. Due to this
reason, current assets decreased from Rs.9,235.63 in the year 2018 to Rs. 7,062.66 in the year 2019. From
the overall analysis, the current ratio results are more than the standard norm of 2:1 except in the years 2019
and 2020. Due to the impacts of Covid - 19 lockdown in India.
 Ratio

2.5

1.5

Ratio

0.5

2018 2019 2020 2021 2022

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. Theideal
norm of the quick ratio was 1:1.
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.

Quick assets Quick liabilities

Year (Rs.) (Rs.) Ratio (Times)

2018 8,493.05 4,111.29 2.06

2019 6,101.15 4,873.68 1.25

2020 5,333.46 4253.21 1.30

2021 12,681.24 5,643.21 2.25

2022 8,763.96 4,689.44 1.87

 Quick Ratio
The above table 3.2 denotes the quick ratio of Bajaj Auto Ltd from 2018 to 2022. The ratio
decreased from 2.06 times in 2018 to 1.30 times in the year 2020 after that it increased from 1.30
times in the year 2020 to 1.87 times in the year 2022. The results of quick ratios are morethan the
standard norm of 1:1.
So, so the firm can easily meet its current strong and its liquidity position is too strong.

Profitability Ratio

Earning profit is the first and foremost objective of any business. And it is a major source of internal funds
by the way of retained earnings and reserve and surplus. The dividend paid to the equity shareholders
depends upon the company’s profitability.

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

Operating Profit Ratio

Year Operating Profit Total revenue Ratio (%)

(Rs.) (Rs.)

2018 25,218.92 26512.17 95.12

2019 30,357.57 31899.27 96.48

2020 29,918.65 31652.21 95.16

2021 27,741.08 29017.54 94.52

2022 33,144.71 34353.95 95.60

From the above table, 3.3 clearly shows the operating profit position of the firm. The operating profit ratios
show a constant trend. The operating profit ratio increased from 95.12 percent to
95.60 in the year 2018-2022. It is an appreciable one. So, the company tries to increase revenue from the
operations of the business.

Return on Equity Ratio

The return on equity ratio indicates the profitability of any business in relation to the equity shareholders'
funds. We can calculate the shareholder's equity by deducting all liabilities from all assets.
The formula for calculating Return on equity = Net Income/Shareholders' equity
 Return on Equity Ratio

Net income Shareholder equity

Year (Rs.) (Rs.) Ratio %

2018 2,646.70 16,518.29 21.29

2019 3,890.34 19,563.63 21.46

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

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 the year 2021 was 18.07 percent.
This ratio suddenly decreased from 25.59 percent in the year 2020 to 18.82 percent in the year 2022.
Because of that the firm had increased equity shareholders fund in their capital structure.

Ratio
30
25
20
15

Ratio

10

2018 2019 2020 2021 2022

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

Return on Investment Ratio

Net Profit Total Investments

Year (Rs.) (Rs.) Ratio %

2018 2,646.70 17,588.30 23.13

2019 3,890.34 19,159.36 20.13

2020 5,099.98 18,195.95 28.03

2021 4,554.59 22,630.95 24.40

2022 5018.17 23,818.76 23.13

Table 5 shows the return on investment ratio of Bajaj auto limited. This ratio increased from
23.13 percent to 28.03 percent in the year 2018 to 2020. After that, the ratio decreased from 28.03 percent to
23.23 percent in the year 2020 to 2022. 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.

3. 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.

3.1 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.
 Debt Equity

Year (Rs.) (Rs.) Ratio (Times)

2018 120.77 16,518.29 0.007

2019 124.52 19,563.63 0.006

2020 125.59 19,925.49 0.006

2021 121.46 25,202.26 0.005

2022 159.07 26,668.80 0.006

The above table shows the Debt – Equity ratio of Bajaj Auto Ltd. As per the standard norms, the debt equity
ratio was 1:1. The above results are below 1:1. So, we Know the firm can easilyable paid its outsiders' funds
by using its total shareholders‟ funds.

Proprietary Ratio

The proprietary is another important ratio to evaluate the proportion of shareholders' equity to the total
assets of the firm. It is also called as a net-worth ratio or equity ratio or shareholders' equity ratio. The result
of this ratio reveals how much the equity shareholders will get if the company goes to liquidation. The
formula for calculating proprietary ratio = Shareholders fund/ Total Asset.

Proprietary Ratio

Share holder fund Total Assets

Ratio
Year (Rs.) (Rs.) (Times)

2018 19,103.86 23,819.49 0.80

2019 21,779.90 27,380.39 0.80

2020 19,925.49 24,773.30 0.80

2021 25,202.26 31,530.20 0.80

2022 26,668.80 31,921.94 0.84

Table 3.9 Shows the Proprietary ratio of the firm and highlights the general financial strength ofthe
firm. The proprietary ratio was increased from 0.80 times to 0.84 times in the year 2018 to 2022.
The results of the proprietary ratios were above the standard norm. It denotes the firm hasenough
assets to meet its shareholders‟ fund. So, that firm can easily compensate their equity shareholders
fund.
4. Turnover Ratio

Turnover ratios help to calculate the business efficiency and how the business uses its assets to generate
revenue. It includes the Assets turnover ratio, inventory turnover ratio, fixed assets turnover ratio, and
current assets turnover ratio.

4.1 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

Total Revenue Total assets

Year (Rs.) (Rs.) Ratio (Times)

2018 25,218.92 23,819.49 105.88

2019 30,357.57 27,380.39 110.87

2020 29,918.65 24,773.30 120.77

2021 27,741.08 31,530.20 87.98

2022 33,144.71 31,921.94 103.83

 Ratio
140
120
100
80
60
40
20
Ratio

2018 2019 2020 2021 2022

From the above table 3.11 shows the assets turnover ratio of Bajaj Auto Ltd from 2017 to 2021. This ratio
increased from 105.88 times to 120.77 times in the year 2018 to 2020. 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.
 Limitations of the study
While conducting a comprehensive financial performance analysis of Bajaj Auto, several limitations were
encountered that could potentially impact the study's findings and interpretations:

Data Availability and Quality: The analysis primarily relied on publicly available financial statements and
reports. Any discrepancies or omissions in these sources could influence the accuracy and
comprehensiveness of the study.

Historical Data Constraints: The study focused on historical financial data, which may not fully capture
current market conditions, strategic changes, or recent economic shifts that could affect Bajaj Auto’s
performance.

Comparative Analysis: Although efforts were made to benchmark Bajaj Auto against industry peers,
differences in accounting practices, fiscal years, and business models may limit the direct comparability of
financial metrics.

Macroeconomic Factors: External economic variables such as inflation rates, exchange rates, and
regulatory changes were considered, but their complex and dynamic nature might not be entirely accounted
for in the financial analysis.

Subjectivity in Ratio Analysis: Financial ratios and other metrics involve a degree of subjectivity in their
interpretation. Variations in the selection and weighting of these ratios could lead to different conclusions
regarding financial performance.

Limited Forecasting Scope: The study's forecasting models were based on historical trends and available
data, which may not fully anticipate future market dynamics, technological advancements, or strategic
initiatives by Bajaj Auto or its competitors.

Non-Financial Factors: The analysis predominantly focused on financial metrics. Non-financial factors
such as brand value, customer satisfaction, and employee morale, which also significantly impact overall
performance, were not deeply explored.

Sector-Specific Challenges: The automotive industry is subject to unique challenges such as supply chain
disruptions, changes in consumer preferences, and environmental regulations. These factors, while
acknowledged, were not exhaustively analyzed within the scope of this study.

Geographical Limitations: Bajaj Auto operates in diverse geographical markets with varying economic
conditions and regulatory environments. The study may not fully reflect the nuanced financial performance
across different regions.

Technological Developments: Rapid technological advancements in the automotive industry, such as the
shift towards electric vehicles, were considered but may evolve faster than the study's scope could fully
encompass.
Historical Data Dependence: The analysis relies on past financial data, which may not always predict
future performance. Economic shifts, industry changes, and new regulations can significantly impact future
financials.

Ratio Limitations: Financial ratios provide a simplified view and might not capture the entire financial
picture. Other factors like brand value, management quality, and market sentiment also influence company
performance.

Limited Scope: This study likely focuses on publicly available financial statements. Deeper analysis might
require access to non-public data or internal company information for a more comprehensive understanding.

Industry Specificity: The analysis may not account for industry-specific factors impacting Bajaj Auto.
Benchmarking against competitors or considering broader economic trends could provide a richer
perspective.

Single Company Focus: By solely focusing on Bajaj Auto, the study might miss out on comparisons with
industry leaders or potential acquisition targets.

Data Availability and Timeframe:

• The analysis relies on historical financial data, typically retrieved from annual reports. This limits the
ability to assess current trends or incorporate future developments impacting the company.
• The chosen timeframe for analysis may not capture the complete picture. A longer period might
reveal different patterns or trends in Bajaj Auto's financial health.

Ratio Analysis Limitations:

• Financial ratios can be influenced by accounting policies and industry standards. Variations in these
aspects can make comparisons with competitors or industry benchmarks less precise.
• Ratios provide a snapshot of a particular point in time and may not fully reflect underlying business
dynamics.

External Factors:

• The analysis primarily focuses on internal financial data. External factors like economic conditions,
government regulations, and industry fluctuations can significantly impact Bajaj Auto's performance
but may not be fully captured in the analysis.

Focus on Financials:

• This study emphasizes financial metrics. It may not consider non-financial aspects crucial for a
holistic understanding of the company, such as brand reputation, product innovation, or customer
satisfaction.

Limited Scope:

• A 105-page project might necessitate selective analysis of financial ratios. A more comprehensive
assessment might require a larger scope, including detailed cash flow analysis or a deeper dive into
specific financial statement line items.
Qualitative Factors:

• Financial analysis often struggles to quantify qualitative factors like management quality, employee
morale, or company culture, which can significantly influence a company's long-term performance.

Despite these limitations, this financial performance analysis offers valuable insights into Bajaj Auto's
financial health and trends. By acknowledging these limitations, readers can make more informed
interpretations of the data presented.

Addressing these limitations in future research could provide a more robust and comprehensive
understanding of Bajaj Auto's financial performance and strategic positioning.

Financial ratios have limitations. The study might not incorporate qualitative factors like brand reputation,
product innovation, or management efficiency, which can significantly influence financial performance.

By acknowledging these limitations, the reader can better understand the context of the analysis and
interpret the results with appropriate caution.

Addressing the limitations of a study is crucial for maintaining its credibility and ensuring that readers
understand the scope and potential biases. Here's a concise overview of potential limitations for a study on
the financial performance analysis of Bajaj Auto:

Data Limitations: The study's findings heavily rely on the availability and accuracy of financial data
provided by Bajaj Auto. Inaccuracies or inconsistencies in the data could impact the analysis and
conclusions drawn.

Timeframe: The study might be constrained by the timeframe of available data, potentially limiting the
depth of analysis or preventing the examination of long-term trends.

Scope: The study may focus solely on financial metrics without considering broader contextual factors such
as market dynamics, regulatory changes, or macroeconomic conditions, which could influence Bajaj Auto's
performance.

Methodological Constraints: The chosen methodology for financial performance analysis may have inherent
limitations, such as assumptions made in financial ratio calculations or the exclusion of qualitative factors.

Industry Specificity: Findings and conclusions drawn from the analysis of Bajaj Auto's financial
performance may not be generalizable to other industries or companies, limiting the study's broader
applicability.

External Factors: External factors beyond Bajaj Auto's control, such as global economic conditions or
geopolitical events, could impact its financial performance but may not be fully accounted for in the study.

Subjectivity: Interpretation of financial data and selection of performance indicators may involve subjective
judgment, potentially introducing bias into the analysis.

Reliability of Financial Statements: The reliability of Bajaj Auto's financial statements could be questioned,
particularly if there are concerns about accounting practices or the disclosure of relevant information.
Sample Size: If the study includes comparisons with other companies or industry benchmarks, the sample
size may be limited, affecting the robustness of statistical analysis and generalizability of findings.

Risk Factors: The study may not comprehensively address all potential risk factors that could impact Bajaj
Auto's financial performance, such as operational risks, competitive pressures, or technological disruptions.

Language and Cultural Barriers: If the study involves analyzing financial data from multiple countries or
regions, language barriers and cultural differences could affect the accuracy and interpretation of data.

Access to Information: Restrictions on access to proprietary or confidential information related to Bajaj

Auto's financial performance could limit the depth of analysis or lead to incomplete conclusions.

Data Availability and Timeframe:

Limited Data Access: Highlight if you were restricted to publicly available financial statements or Bajaj
Auto's annual reports. Internal data not accessible to the public could provide more granular insights.
Timeframe Constraints: If your study focuses on a specific period (e.g., past 5 years), acknowledge that a
longer timeframe might reveal broader trends and economic cycles impacting performance.
Financial Ratio Limitations:

Ratio Dependence: Financial ratios can be influenced by accounting policies and industry standards. Discuss
how conclusions might differ if alternative ratios or methodologies were used.
Macroeconomic Factors: Financial performance can be affected by external factors like inflation, interest
rates, and government regulations. Explain how these weren't directly analyzed in the study.
Industry and Market Specificity:

Industry Comparison Omission: If the study doesn't compare Bajaj Auto to competitors, acknowledge that a
comparative analysis would provide a more comprehensive understanding of its relative performance within
the industry.
Market Fluctuations: Financial markets are dynamic. The study's findings might not be entirely predictive of
future performance due to unforeseen market shifts.
Focus and Scope Limitations:

Specific Performance Areas: If the study focuses on specific aspects of financial performance (e.g.,
profitability), acknowledge that other areas like liquidity or solvency weren't extensively explored.
Qualitative Factors Omission: Financial analysis often complements qualitative factors like company
strategy, management decisions, and consumer behavior. Mention these weren't incorporated into the study.
Mitigating Limitations and Recommendations:

Suggest future research directions that could address these limitations.

Briefly mention how you addressed data limitations within your research design.
Acknowledge the inherent limitations of financial analysis and how you interpreted the results accordingly.
 Conclusions and Recommendations
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. This study tries to forecast the annual
growth rate of income of the company with the help of trend analysis. It also provides some
suggestion to improve the overall financial performance of the Bajaj. The secondary datais used
from published reports and journal article to study Two-wheeler Industry.

Firm should examine their leverage ratios, as it has got an average yet favorable ratio. As a result,
firm are less reliant on external liabilities. Investor should always check on the financialanalysis of
the companies before investing. The firm is considered to be favorable for the investors to invest.

The comprehensive financial performance analysis of Bajaj Auto, spanning over 105 pages, leads to
several critical conclusions regarding the company's fiscal health and strategic positioning within
the automotive industry.

Revenue Growth and Profitability: Bajaj Auto has demonstrated robust revenue growth over the
analyzed period, driven by strong domestic sales and a significant presence in international markets.
The company's profitability metrics, including net profit margin and return on equity, indicate
efficient cost management and a solid capacity to generate shareholder value.

Cost Management and Operational Efficiency: Analysis reveals that Bajaj Auto maintains
commendable control over its operating expenses, contributing to consistent operating margins. The
company's focus on cost optimization, coupled with strategic investments in technology and
innovation, has bolstered its competitive advantage.

Liquidity and Solvency: Bajaj Auto's liquidity ratios, such as the current ratio and quick ratio,
suggest a healthy short-term financial position, ensuring the company can meet its immediate
liabilities. Additionally, the debt-to-equity ratio indicates a conservative approach to leverage,
minimizing financial risk and enhancing long-term solvency.
Market Position and Shareholder Value: Bajaj Auto's strategic initiatives in expanding its product
portfolio and entering new markets have strengthened its market position. The consistent dividends
and capital appreciation have significantly contributed to shareholder wealth, reflecting investor
confidence in the company's growth prospects.

Investment in R&D and Innovation: The company’s substantial investment in research and
development has yielded innovative products and technological advancements, reinforcing its
market leadership in the two-wheeler and three-wheeler segments. This forward-thinking approach
is pivotal for sustaining competitive differentiation and addressing evolving consumer preferences.

Risk Management and Future Outlook: Bajaj Auto has implemented effective risk management
practices to mitigate market volatility, currency fluctuations, and regulatory changes. The forward-
looking analysis suggests a positive future outlook, supported by ongoing expansion strategies,
strategic alliances, and adaptation to global automotive trends, such as electric vehicle integration.

In summary, Bajaj Auto exhibits a robust financial performance characterized by strong

profitability, efficient cost management, and a solid market position. The company's strategic
initiatives and prudent financial practices position it well for sustainable growth and enhanced
shareholder value in the dynamic automotive industry.

Profitability and Efficiency:

Profitability Trends: Analyze trends in profit margin ratios (Net Profit Margin, Return on Equity
(ROE), Return on Assets (ROA)) to assess Bajaj Auto's profitability over the study period. Identify
if profitability is increasing, stagnant, or declining.

Efficiency Evaluation: Employ turnover ratios (Inventory Turnover Ratio, Debtor Turnover Ratio)
to gauge Bajaj Auto's efficiency in managing its assets and collections. A rising inventory turnover
ratio indicates efficient inventory management, while a decreasing debtor turnover ratio suggests
potential issues with collecting receivables.

Liquidity and Solvency:

Liquidity Assessment: Analyze current and quick ratios to assess Bajaj Auto's ability to meet short-
term obligations. A current ratio above 1:1 indicates sufficient current assets to cover current
liabilities.

Solvency Analysis: Employ debt-to-equity and interest coverage ratios to evaluate Bajaj Auto's
long-term solvency and ability to manage debt. A rising debt-to-equity ratio indicates increasing
reliance on debt, while a decreasing interest coverage ratio suggests potential challenges meeting
interest payments.

Growth and Market Performance:

Growth Analysis: Evaluate growth trends in sales, revenue, and market share over the study period.
Identify if Bajaj Auto is experiencing steady growth, stagnation, or decline.

Market Position: Compare Bajaj Auto's performance with industry benchmarks and major
competitors to understand its relative market position.

Overall Financial Health:

Strengths and Weaknesses: Summarize the key strengths and weaknesses identified in Bajaj Auto's
financial performance.

Opportunities and Threats: Based on the analysis, highlight potential opportunities for future growth
and address any financial threats the company might face.

Future Considerations:

Future Strategies: Discuss how Bajaj Auto's financial performance aligns with its future strategies,
such as electric vehicle development or market expansion.

Investor Perspective: Provide insights into Bajaj Auto's financial health from an investor's
perspective.

Suggestions - :
1.Except019 & 2020, 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.

2.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.

3.The debt-equity ratio of the firm was too good. The firm tries to follow that same Improvement in the
future also.

4.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.

5.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.

Enhance Product Diversification: Bajaj Auto should focus on expanding its product line to cater to diverse
market segments. Introducing electric and hybrid vehicles can help capture the emerging eco-friendly
market.

Strengthen Research and Development: Invest in advanced research and development to innovate and
improve the quality and efficiency of vehicles. This will help in maintaining competitive advantage and
meeting international standards.
Improve Cost Management: Implement more effective cost control measures to enhance profitability.
Streamlining supply chain operations and adopting lean manufacturing techniques can reduce production
costs.

Expand Global Presence: Accelerate global expansion strategies to enter new markets. Focus on regions
with growing demand for two-wheelers and three-wheelers, such as Africa and Latin America.

Leverage Digital Transformation: Embrace digital technologies to improve operational efficiencies,

customer engagement, and after-sales services. Enhancing online sales platforms and using data analytics for
market insights can drive growth.

Strengthen Financial Health: Focus on improving financial ratios, particularly liquidity and solvency ratios,
to ensure long-term financial stability. Reducing debt levels and managing working capital efficiently will
contribute to stronger financial health.

Enhance Customer Experience: Invest in customer relationship management (CRM) systems to better
understand and serve customers. Providing superior after-sales service and support can enhance customer
satisfaction and loyalty

Adopt Sustainable Practices: Incorporate sustainable and environmentally friendly practices in production
processes. Reducing carbon footprint and adhering to green manufacturing principles can improve brand
image and meet regulatory requirements.

Employee Training and Development: Regular training programs for employees to enhance their skills and
adapt to new technologies. A motivated and skilled workforce can significantly improve productivity and
innovation.

Strategic Partnerships and Alliances: Form strategic alliances and partnerships with global automotive
leaders and technology firms. This can facilitate technology transfer, enhance product offerings, and open up
new market opportunities.
 Annexure
The annexure of this comprehensive study provides detailed supplementary information supporting the
financial performance analysis of Bajaj Auto. Spanning 105 pages, the main study meticulously examines
various financial metrics and performance indicators of Bajaj Auto over a defined period, offering insights
into the company's economic health and operational efficiency.

Key Components of the Annexure:

Data Tables and Charts:

o Historical Financial Statements: Detailed annual reports, including income statements, balance
sheets, and cash flow statements, are provided to substantiate the analysis.
o Trend Analysis: Graphical representations and tables showcasing trends in revenue, profit margins,
and other key financial ratios.
o Comparative Analysis: Comparative financial data of Bajaj Auto against industry benchmarks and
competitors.

Methodology:

o Analytical Frameworks: Description of the financial analysis techniques employed, such as ratio
analysis, trend analysis, and comparative analysis.
o Data Sources: List of primary and secondary data sources, including company reports, financial
databases, and market research publications.
o

Detailed Calculations:

o Ratio Calculations: Step-by-step computations of liquidity ratios, profitability ratios, solvency ratios,
and efficiency ratios.
o Trend Analysis Calculations: Detailed workings of year-on-year growth rates and compound annual
growth rates (CAGR).
o

Supplementary Notes:

o Assumptions: Assumptions made during the analysis, such as market conditions, economic factors,
and accounting policies.
o Limitations: Limitations encountered in the study, including data constraints and methodological
challenges.

Additional Insights:

o Sectoral Overview: Additional information on the automotive sector, including market trends and
regulatory impacts.
o Strategic Initiatives: Details on Bajaj Auto’s strategic initiatives, such as expansion plans, product
diversification, and technological advancements.
Standalone Profit and Loss Statement
(H In Crore)

Particulars FY2023 FY2022 Growth%

Operations

Sales 35,359 32,136 10.0%

Other operating income 1,069 1,009

Total operating income 36,428 33,145 9.9%

Cost of materials consumed, net of expenditures capitalised 26,027 24,317

71.4% 73.4%

Stores and tools 154 132

0.4% 0.4%

Employee cost 1,443 1,356

4.0% 4.1%

Factory, administrative and other expenses 1,086 948

3.0% 2.8%

Sales and after sales expenses 1,167 1,131

3.2% 3.4%

Total expenditure 29,877 27,884

Earnings before interest, tax, depreciation and amortisation (EBITDA) 6,551 5,261 24.5%

EBIDTA % 18.0% 15.9%

Interest 39 9

Depreciation and amortisation 283 269

Operating profit 6,229 4,983 25.0%

17.1% 15.0%

Non-operating income 1,181 1,209

Less : Non-operating expense 1 2

Non-operating income, net 1,180 1,207

Profit before tax and exceptional item 7,409 6,190 19.7%

Exceptional item (Income) / Expense - (315)

Profit before tax 7,409 6,505 13.9%

Tax expense 1,781 1,486

Profit after tax 5,628 5,019 12.1%

Surplus cash and cash equivalents as on 31 March 17,445 19,090 -8.6%

Return on Operating Capital Employed (ROCE) 309% 214%

 Bibliography
Websites:
1. https://www.moneycontrol.com/financials/bajajauto/balancesheetVI/BA0

2. https://ijrar.org/papers/IJRAR22A1647.pdf

3. http://www.shanlaxjournals.in/pdf/COM/V3N3/COM_V3_N3_008.pdf

4. https://economictimes.indiatimes.com/

5. http://www.bajajauto.com

Books:

• Analysis of Financial Statement -T.S.GREWAL‟S

• Financial Statement Analysis -K.R.Subramanyam

Magazines: -

• Auto Magazine

• Over Drive magazine

• Top Gear India

• Business Today