42 DALAL STREET INVESTMENT JOURNAL I JULY 22 - AUG 4, 2019 DSIJ. in^
Financial Review For FY19
I
ndian automobile industry is one of the key drivers that
help the country to keep its growth engine running. The
sector contributes 7.1 per cent to the total Gross
Domestic Product (GDP). India is also the largest
manufacturer of two-wheelers, three-wheelers and
tractors in the world, and overall, the fifth largest vehicle
manufacturer. The industry has four main segments, namely,
passenger cars (PVs), commercial vehicles (CVs), three-
wheelers and two-wheelers. Among these, two-wheelers
dominate with domestic market share of 81 per cent during
April-December period of FY19, followed by PVs with 12 per
cent share and CVs with 4 per cent share and three-wheelers 3
per cent market share. In recent times, the auto industry is
going through turbulence due to weak demand and declining
sales of auto companies. In June 2019, the sales volumes of all
segments, viz. passenger vehicles (PVs), commercial vehicles
(CVs) and two-wheeler slid to double digits.The slowing economic growth, continuing liquidity crunch,
rural stress, etc. have resulted in the decline in volumes.
Axle-load norms also added to the woes to auto players which
impacted new truck sales. Further, an introduction of new
ABS/CBS norms has resulted in higher input cost which, in
turn, led to higher ownership cost which affected sales. The
weak agricultural demand owing to delayed monsoon and
lower Kharif sowing impacted the tractor sales. Owing to the
muted demand, many auto producers have slashed their
production to reduce high channel stocks and align supply with
demand.To analyse the industry performance, we have taken into
Automobiles
Company Name
Market Cap
(` in Cr.)Net Sales (` in Cr.) Operating Profit (Excluding OI) (` in Cr.) Net Income (` in Cr.)
FY19 FY18 FY17 FY19 FY18 FY17 FY19 FY18 FY17Sector Sponsor
Maruti Suzuki India 192266.41 86068.50 82041.10 77316.40 11003.20 12063.40 10358.10 7494.90 7717.40 7338.20
Bajaj Auto 82128.15 30249.96 25617.27 23088.03 4978.99 4835.65 4419.39 4577.85 3931.33 3824.86
Mahindra & Mahindra 79851.34 53614.00 49444.99 47383.74 6639.56 6224.02 4514.66 4796.04 4356.01 3643.39
Eicher Motors 53558.12 9797.06 9219.26 7939.45 2903.11 2807.63 2173.95 1961.85 1923.16 1523.61
Hero MotoCorp 50203.35 33972.23 33100.94 30983.66 5018.43 5325.05 4575.97 3405.59 3672.51 3229.29
Tata Motors 46240.89 301938.40 292340.64 274492.12 24664.33 30272.40 29588.69 -28933.70 6813.10 6063.56
Ashok Leyland 25539.09 33196.84 29917.11 24189.82 4907.37 4245.22 3293.94 2183.32 1807.25 1647.01
TVS Motor Company 20155.57 20159.99 16701.75 13573.89 2160.82 1542.45 868.76 723.70 664.21 509.09
Escorts 6638.76 6262.02 5080.19 4219.76 724.53 553.60 309.55 478.63 346.96 172.52
HMT 1878.38 262.77 202.41 215.36 -12.20 -90.13 -148.59 -35.47 -118.33 -149.48
Force Motors 1820.10 3652.45 3523.77 3494.95 278.78 267.79 268.10 147.43 147.21 180.18
Atul Auto 596.86 666.76 569.33 531.92 81.48 72.55 59.51 53.12 46.19 37.05
The Yamuna Syndicate 301.22 66.25 56.00 47.41 1.74 1.32 0.97 3.50 10.93 8.71