"Financial Odyssey: Navigating Past Performance Through Diverse Analytical Lens"

sengarvivek696 76 views 29 slides Aug 09, 2024
Slide 1
Slide 1 of 29
Slide 1
1
Slide 2
2
Slide 3
3
Slide 4
4
Slide 5
5
Slide 6
6
Slide 7
7
Slide 8
8
Slide 9
9
Slide 10
10
Slide 11
11
Slide 12
12
Slide 13
13
Slide 14
14
Slide 15
15
Slide 16
16
Slide 17
17
Slide 18
18
Slide 19
19
Slide 20
20
Slide 21
21
Slide 22
22
Slide 23
23
Slide 24
24
Slide 25
25
Slide 26
26
Slide 27
27
Slide 28
28
Slide 29
29

About This Presentation

Embark on a captivating financial journey with 'Financial Odyssey,' our hackathon project. Delve deep into the past performance of two companies as we employ an array of financial statement analysis techniques. From ratio analysis to trend analysis, uncover insights crucial for informed deci...


Slide Content

Finance Hackathon
Financial Analysis of Ambuja Cement & J.K. Lakshmi Cement
VivekSengar
DhwaniPatel
BhavyaDetroja
DhruviDudhat
LipiOza
Sameer Shah
Prince Vadher

OBJECTIVES
•To understand market valuation of companies.
•To identify companies financial position in the market
using past data.
•Tocomputeandanalyzepastperformanceofcompanies
usingdifferenttechniquesoffinancialstatementanalysis.

AMBUJA CEMENT
Ownername:AdaniGroup
Founders:NarotamSekhsaria,SureshKumar
Neotia
BusinessStart-up:since1983
Businesstype:Cementcompany
Headquarter:Mumbai
Giant Compressive Strength

MISSION
Tocreatevalueforall:
•DelightedCustomers
•InspiredEmployees
•EnlightenedPartners
•EnergisedSociety
•LoyalShareholders
•HealthyEnvironment
Tobethemostsustainable
andcompetitivecompany
inourindustry.
VISION

Horizontal analysis
For profit and loss statement:
Mar-23 Mar-22
ABSOLUTE
CHANGE
% CHANGE
Total Revenue 20,937.70 16,532.99 4,404.71 26.64
Total Expenses 17,725.38 14,044.73 3,680.65 26.21
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax 3,212.32 2,488.26 724.06 29.10
Total Tax Expenses 501.56 360.61 140.95 39.09
Profit/Loss For The Period 2,553.49 2,051.09 502.40 24.49

0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
Jan-22 Jan-23
P&L OF AMBUJA CEMENT
Total Revenue
Total Expenses
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax
Total Tax Expenses
Profit/Loss For The Period
•Increaseisseeninalltheparameters
whichindicatesthatwithincreaseinthe
revenueofacompanyexpensealso
increase.
•Overall,itsuggestthatwithincrease
revenuecompanyisgainingmoreprofit
whichalsosuggestthatoperational
performanceandtaximplicationare
gettingbetter.

For balance sheet:
Mar-23 Mar-22 ABSOLUTE CHANGE % CHANGE
Total Shareholders Funds 28,505.54 28,007.51 498.03 1.778201632
Total Capital And Liabilities35,904.13 34,111.80 1792.33 5.25428151
Total Assets 35,904.13 34,111.80 1792.33 5.25428151
•.

Total Shareholders Funds
Total Capital And Liabilities
Total Assets
BALANCE SHEET OF AMBUJA
CEMENT
% CHANGE ABSOLUTE CHANGE Mar-22 Mar-23
•Thereisslightincreaseinthe
shareholder’sfund,capital&
liabilitiesandassetswhich
resultsininterpretingthat
company’sfinancialcondition
isgood.
•Companyisearningaprofit
whichresultedininvestingin
assetswhichultimately
increaseliability

VERTICAL ANALYSIS
For profit and loss statement:
Mar-23 Mar-22 Mar-23 % change Mar-22 % change
Total Revenue 20,937.70 16,532.99 106.0445446 105.1107119
Total Expenses 17,725.38 14,044.73 89.77489649 89.29126359
Profit/Loss Before Exceptional, ExtraOrdinary Items And
Tax
3,212.32 2,488.26 16.26964813 15.81944826
Total Tax Expenses 501.56 360.61 2.54028388 2.29262667
Profit/Loss For The Period 2,553.49 2,051.09 12.93282855 13.04008107
•The company has experienced substantial revenue growth, effectively managing expenses, and
improving profitability.
•The moderate increase in tax expenses indicates a relatively favorable tax scenario.
•Overall, it explain that company is in good condition and making profit.

Total Revenue
Total Expenses
Profit/Loss Before Exceptional, ExtraOrdinary
Items And Tax
Total Tax Expenses
Profit/Loss For The Period
P&L
Mar-22 % change Mar-23 % change Mar-22 Mar-23

For Balance sheet:
Mar-23 Mar-22 Mar-23 % Change Mar-22 % Change
Total Shareholders Funds 28,505.54 28,007.51 79.39348482 82.10504869
Total Non-Current Liabilities 975.12 667.89 2.715899257 1.957944172
Total Current Liabilities 6,423.47 5,436.40 17.89061593 15.93700714
Total Capital And Liabilities 35,904.13 34,111.80 100 100
Total Non-Current Assets 24,657.62 23,235.11 68.67627763 68.11458205
Total Current Assets 11,246.51 10,876.69 31.32372237 31.88541795
Total Assets 35,904.13 34,111.80 100 100
•It gives the idea that company has retained earnings, and is trying to expand along with
new investments.
•Therefore, looking at the data one can say that company is growing at its pace and have
potential to compete in the market.

Total Shareholders Funds
Total Non-Current Liabilities
Total Current Liabilities
Total Capital And Liabilities
Total Non-Current Assets
Total Current Assets
Total Assets
B/S
Mar-22 % Change Mar-23 % Change Mar-22 Mar-23

Trend analysis
Ambuja Cements P&L (Trend Analysis)
Change in %
Mar 23 Dec-22Dec-21Dec-20Dec-19Dec-18 Mar 23Dec-22Dec-21Dec-20Dec-19Dec-18
Revenue From Operations [Gross] 19,744.25 15,729.12 13,793.56 11,174.97 11,352.76 10,977.00 179.8692721143.2916097125.658741101.8034982103.4231575 100
Other Income 952.27 803.87 285.64 372 426.52 374.98 253.9522108214.376766876.1747293299.20529095113.7447331 100
Total Revenue 20,937.70 16,532.99 14,250.59 11,743.86 12,094.40 11,731.74 178.4705423140.9253018121.4703872100.1033095103.0912721 100
Cost Of Materials Consumed 7,677.48 1,305.55 4,555.26 3,126.79 3,580.84 3,558.92 215.724995236.68388163127.995571787.85783328100.6159172 100
Other Expenses 7,215.57 10,795.47 5,519.48 4,639.42 5,140.64 5,294.71 136.2788519203.8916201104.245180687.6236847797.09011447 100
Total Expenses 17,725.38 14,044.73 11,399.65 9,329.48 10,146.38 10,095.72 175.5732132139.1156847112.915671292.4102491100.5017968 100

J.K. LAKSHMI CEMENT
•Ownername:ArunKumarShukla
•BusinessStartup:since1938
•Businesstype:buildingmaterialcompany
•Headquarter:JKLakshmiCementLtd,
NehruHouse4,BahadurShahZafarMarg,
NewDelhi
India Ab Soch Karo Buland

MISSION
•Tofosterinspirecapitalanddeliverbest-in-
classcustomerexperiencetoachievea
turnoverofINR30,000croreby2030.
•Todevelopinnovativesolutionswitha
compellingvalueproposition
•Toembracesustainabilityforourshared
future.
Tobethemosttrustedbrand
providinginnovativebuilding
solutions,deliveringexcellence
andunparalleledstakeholder
experiencebyempowering
humancapitalandharnessing
thepoweroftechnology.
VISION

Horizontal analysis
For profit and loss statement:
P&L OF JK (H) Mar-23 Mar-22
ABSOLUTE
CHANGE
% change
Profit/Loss Before Exceptional, ExtraOrdinary Items
And Tax
481.46 581.69 -100.23 -17.23
Total Tax Expenses 150.69 132.08 18.61 14.09
Profit/Loss For The Period 330.77 426.22 -95.45 -22.39

-200
-100
0
100
200
300
400
500
600
700
Mar-23 Mar-22 ABSOLUTE
CHANGE
% change
P&L
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax
Total Tax Expenses
Profit/Loss For The Period
•Companyshouldtryto
decreasetheirexpensesand
alsoincreasetheirincomeso
thatgrowthcanoccur.

For balance sheet:
BS OF JK (H) Mar-23 Mar-22 ABSOLUTE CHANGE % change
Total Capital And Liabilities5,211.174,839.00 372.17 7.691052
Total Assets 5,211.174,839.00 372.17 7.691052
By looking at data, it seems that total asset and liabilities are increasing
at same rate. So, company should focus on increasing asset with
decreasing liabilities.

0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
Total Capital And Liabilities Total Assets
B/S
Mar-23 Mar-22 ABSOLUTE CHANGE % change

Vertical analysis
For profit and loss statement:
P&L OF JK (V) Mar-23 Mar-22 ABSOLUTE CHANGE
Total Revenue 6,133.28 5,108.03 101.0473318
Total Expenses 5,651.82 4,526.34 93.11515707
Profit/Loss Before Exceptional, Extraordinary Items And
Tax
481.46 581.69 7.932174684
Total Tax Expenses 150.69 132.08 2.482655679
Profit/Loss For The Period 330.77 426.22 5.449519005

0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
P&L
Mar-23 Mar-22 ABSOLUTE CHANGE
Companyneedstofocusmoreon
increasingrevenueasprofitfortheperiod
isdecreasingandalsofocusonexpense.

For balance sheet:
BS OF JK (V) Mar-23 Mar-22
MAR-23 %
CHANGE
MAR-22 %
CHANGE
Total Shareholders Funds 2,723.74 2,452.35 52.26734112 50.67886
Total Non-Current Liabilities 1,137.10 1,239.50 21.82043572 25.6148
Total Current Liabilities 1,350.33 1,147.15 25.91222317 23.70634
Total Capital And Liabilities 5,211.17 4,839.00 100 100
Total Non-Current Assets 3,327.85 3,305.44 63.85993932 68.30833
Total Current Assets 1,883.32 1,533.56 36.14006068 31.69167
Total Assets 5,211.17 4,839.00 100 100

0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
B/S
Mar-23Mar-22MAR-23 % CHANGE MAR-22 % CHANGE
Companyshouldtrytoincreaseassetas
increaseinassetissomewhatsametoincrease
inliabilitywhichcanaffectcompanies
growth.

Trend analysis:
TREND OF JK P&L
202320222021 2020 2019 2018 Changein %
Revenue From Operations [Gross] 6,069.715,038.114,381.034,039.873,878.10 3509.74 172.939143.5465124.8249115.1045110.4954100
Other Income 62.2367.25 74.47 50.08 56.26 68.1 91.3803298.75184109.353973.5389182.6138100
Total Revenue 6,133.285,108.034,459.184,093.583,938.60 3480.25 176.231146.7719128.1282117.6232113.17 100
Total Expenses 5,651.824,526.343,931.673,723.893,834.17 3377.54 167.3354134.0129116.4063110.2545113.5196100
Profit/Loss Before Exceptional, ExtraOrdinary Items And
Tax
481.46581.69527.51 369.69 104.43 102.71 468.7567566.3421513.5917359.9357101.6746100
Total Tax Expenses 150.69132.08132.77 104.23 24.87 18.75 803.68704.4267708.1067555.8933132.64 100

QUALITATIVE ANALYSIS
FOLLOWING ARE THE REASONS FOR FLUCTUATIONS IN FINANCIALS OF BOTH THE
COMPANIES:
•INTERNAL FACTORS:
Production and operational costs
Debt levels of company
Product mix and pricing
•EXTERNAL FACTORS:
Economic growth of company
Government policies
Competition

QUALITATIVE ANALYSIS
KEY EVENTS:
•Expansion in east India.
•Focus on sustainability.
KEY EVENTS:
•Acquisition by Adani
group.
•Covid-19 pandemic
AMBUJA CEMENTS
JK LAKSHMI CEMENTS

Ratio analysis
•Liquidity ratio
Theindicatorsofliquidityratioi.e.currentratioandquickratio.
Currentratioshowsthegraduallyincreasefromtheyear2022to2023thatis1.2to1.67.
Quickratioshowsincreasefromyear2022to2023thatis0.98to1.39.
•Profitability ratio
Net profit margin has been increased from year 2022 to 2023 is 7.22 to 7.69.
•Solvency ratio
Debtequityratioremainssameinbothyearsthatis2022to2023andis0.00.
Interestcoverageratioshowsincrease2022to2023is27.53to30.07.
Ambuja cement

Ratio analysis
•Liquidity ratio
Theindicatorsofliquidityratioi.e.currentratioandquickratio.
Currentratioshowsthegraduallyincreasefromtheyear2022to2023thatis1.14to1.17.
Quickratioshowsdecreasefromyear2022to2023thatis0.8to0.66.
•Profitability ratio
Net profit margin has been detoriatedfrom year 2022 to 2023 is gradually 8.81 to 5.72.
•Solvency ratio
Debtequityratioshowsdecrease2022to2023is0.74to0.66
Interestcoverageratioshowsdecrease2022to2023is7.17to6.72.
JK Lakshmi cement

Thank You
Tags