The Bajaj Group
GSIB PGDBACASE STUDY ON BAJAJ AUTO LTD [pic 1] BYTARUN SREEPADA VAISHNAVI SHRAVANCOMPANY PROFILEThe 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 groups flagship company, Bajaj Auto, is ranked as the worlds 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 Indias 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.
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. Share price pattern for FY 16-17 & FY 17-18[pic 2]Discussions On CaseThe sales as well as profit ratios for the period under study are computed below.(Rs Crores)ParticularsMar-03Mar-04Mar-05Mar-06Sales 4,987.05 5,721.44 7,078.06 9,284.84 Other income 297.10 507.04 516.41 602.52 Total Income 5,284.15 6,228.48 7,594.47 9,887.36 PBDIT 981.91 1,221.43 1,295.99 1,805.59 Less: Interest 1.12 0.94 0.67 0.34 Less: Depreciation 171.42 184.32 185.66 191.28 PBT 809.37 1,036.17 1,109.66 1,613.97 Tax Provision 274.44 285.41 349.32 509.37 PAT 534.93 750.76 760.34 1,104.60 Profit %10.12%12.05%10.01%11.17%