POST GRADUATE DIPLOMA IN MANAGEMENT

TERM 1

FINANCIAL ACCOUNTING

TUBE INVESTMENT OF INDIA LTD.

Submitted to:

Prof. Sachin Choudhry

Submitted by:
Group – 9

230101127 Nandan Chowdhary pgp23nandanchowdhary@imt.ac.i 9530077880

n
230101198 Shruti Kaushik pgp23shrutikaushik@imt.ac.in 8765695243

230102023 Bhavya Garg pgp23bhavyagarg@imt.ac.in 7060830627

230103034 Anurag Yadav pgp23anuragyadav@imt.ac.in 9606583529

230103226 Sneha Singhal pgp23snehasinghal@imt.ac.in 9079948412

 COMPANY OVERVIEW
Tube Investments of India Limited (TII) is a prominent Indian engineering and manufacturing
company, part of the Murugappa Group. Originally formed through the merger of TI Cycles
of India and Tube Products of India in 1959, TII has grown into a diversified firm with a strong
presence in various sectors.
TII is a prominent Indian company known for its bicycle division, featuring popular brands
like BSA, Hercules, Montra, and Mach City. They also produce metal components like car
door frames and window channels and manufacture industrial and bicycle chains. TII
prioritizes innovation, sustainability, and global presence, with joint ventures and a strong
reputation in automotive and engineering sectors, poised for future growth.

TII currently has the 2nd highest Samvardh. Mothe.; 11.76%

market share of Rs. 59,221 crores in
Auto Ancillaries’ industry. It is in Others; 29.82%
Tube Invest-
various business segments ranging ments; 11.11%
across engineering, mobility, metal
formed products, industrial systems,
E-mobility, power systems, Exide Inds.;
4.01% Bosch; 10.93%
industrial change and gear products.
Endurance Tech.;
4.21%
Motherson Uno Minda;
Wiring; 5.08% 6.27%

Sundram Fasten.; 5.08% Sona BLW

ZF Commercial; 5.66% Precis.; 6.07%

2
 FINANCIAL STATEMENTS
Income Statement (Values in crores)
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
INCOME
Revenue From Operations [Gross] ₹ 4,983.1 ₹ 4,052.7 ₹ 4,026.2 ₹ 5,986.8 ₹ 6,791.6

Less: Excise/Service Tax/Other Levies ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0

Revenue From Operations [Net] ₹ 4,983.1 ₹ 4,052.7 ₹ 4,026.2 ₹ 5,986.8 ₹ 6,791.6
Total Operating Revenues ₹ 5,285.7 ₹ 4,276.1 ₹ 4,255.8 ₹ 6,359.3 ₹ 7,236.0
Other Income ₹ 66.5 ₹ 64.8 ₹ 46.5 ₹ 73.6 ₹ 215.2
Total Revenue ₹ 5,352.3 ₹ 4,340.9 ₹ 4,302.3 ₹ 6,432.9 ₹ 7,451.2

EXPENSES
Cost Of Materials Consumed ₹ 3,195.4 ₹ 2,295.7 ₹ 2,446.2 ₹ 3,966.2 ₹ 4,344.4
Purchase Of Stock-In Trade ₹ 187.5 ₹ 80.4 ₹ 91.7 ₹ 261.5 ₹ 327.2
Operating And Direct Expenses ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Changes In Inventories Of FG, WIP
And Stock-In Trade -26.41 125.2 -31.58 -88.72 -9.66
Employee Benefit Expenses ₹ 439.1 ₹ 450.4 ₹ 454.6 ₹ 507.1 ₹ 570.3
Finance Costs ₹ 51.7 ₹ 28.8 ₹ 19.1 ₹ 11.8 ₹ 21.6
Depreciation And Amortisation
Expenses ₹ 140.2 ₹ 160.7 ₹ 149.6 ₹ 145.0 ₹ 145.6
Other Expenses ₹ 993.8 ₹ 779.0 ₹ 792.0 ₹ 1,002.0 ₹ 1,123.5
Total Expenses ₹ 4,981.2 ₹ 3,920.1 ₹ 3,921.6 ₹ 5,804.9 ₹ 6,522.9
Profit/Loss Before Exceptional,
Extraordinary Items and Tax ₹ 371.1 ₹ 420.7 ₹ 380.7 ₹ 628.0 ₹ 928.3
Exceptional Items -₹ 9.0 -₹ 2.9 -₹ 21.7 ₹ 0.0 -₹ 52.7
Profit Before Tax ₹ 362.1 ₹ 417.9 ₹ 359.0 ₹ 628.0 ₹ 875.6

TAX EXPENSES-CONTINUED OPERATIONS

Current Tax ₹ 116.3 ₹ 115.2 ₹ 106.5 ₹ 153.4 ₹ 218.1
Less: MAT Credit Entitlement ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Deferred Tax ₹ 4.9 -₹ 22.4 -₹ 15.4 ₹ 5.7 -₹ 10.3
Tax For Earlier Years -₹ 2.7 -₹ 5.5 -₹ 5.3 -₹ 6.2 ₹ 2.5
Total Tax Expenses ₹ 118.6 ₹ 87.3 ₹ 85.9 ₹ 152.9 ₹ 210.4

Profit/Loss After Tax and Before

Extraordinary Items ₹ 243.5 ₹ 330.6 ₹ 273.2 ₹ 475.2 ₹ 665.2
Profit/Loss from Continuing
Operations ₹ 243.5 ₹ 330.6 ₹ 273.2 ₹ 475.2 ₹ 665.2
Profit/Loss for The Period ₹ 243.5 ₹ 330.6 ₹ 273.2 ₹ 475.2 ₹ 665.2

OTHER ADDITIONAL INFORMATION

3
EARNINGS PER SHARE
Basic EPS (Rs.) ₹ 13.0 ₹ 17.6 ₹ 14.4 ₹ 24.6 ₹ 34.5
Diluted EPS (Rs.) ₹ 13.0 ₹ 17.6 ₹ 14.4 ₹ 24.6 ₹ 34.4

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend ₹ 42.2 ₹ 79.8 ₹ 38.6 ₹ 67.5 ₹ 67.6
Tax On Dividend ₹ 2.8 ₹ 12.6 ₹ 0.0 ₹ 0.0 ₹ 0.0
Equity Dividend Rate (%) 250% 350% 350% 350% 350%

Balance Sheet (Values in crores)

Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Share Capital Mar-19₹18.8 Mar-₹18.820 Mar-₹19.321 ₹19.3M Mar₹19.3
Reserves and Surplus ₹ 1,398.3 ₹ 1,684.7 ₹ 2,265.1 ₹ 2,674.5 ₹ 3,258.4
Total Equity ₹ 1,425.0 ₹ 1,712.5 ₹ 2,293.1 ₹ 2,701.3 ₹ 3,292.5

Long Term Borrowings ₹ 100.0 ₹ 0.0 ₹ 51.0 ₹ 0.0 ₹ 0.0

Deferred Tax Liabilities [Net] ₹ 41.9 ₹ 13.6 ₹ 0.0 ₹ 2.0 ₹ 0.0
Other Long-Term Liabilities ₹ 9.0 ₹ 35.9 ₹ 33.0 ₹ 28.2 ₹ 25.8
Total Non-Current Liabilities ₹ 150.9 ₹ 49.5 ₹ 84.1 ₹ 30.2 ₹ 25.8

Short Term Borrowings ₹ 313.1 ₹ 165.9 ₹ 207.0 ₹ 348.1 ₹ 473.2

Trade Payables ₹ 883.8 ₹ 631.0 ₹ 1,145.8 ₹ 1,140.8 ₹ 930.7
Other Current Liabilities ₹ 179.7 ₹ 162.8 ₹ 159.5 ₹ 109.7 ₹ 118.0
Short Term Provisions ₹ 59.9 ₹ 50.6 ₹ 42.5 ₹ 37.4 ₹ 53.8
Total Current Liabilities ₹ 1,436.6 ₹ 1,010.3 ₹ 1,554.8 ₹ 1,635.8 ₹ 1,575.6

Total Liabilities ₹ 1,587.5 ₹ 1,059.8 ₹ 1,638.9 ₹ 1,666.1 ₹ 1,601.4

Total Equity and Liabilities ₹ 3,012.5 ₹ 2,772.3 ₹ 3,932.0 ₹ 4,367.4 ₹ 4,893.8

Tangible Assets ₹ 980.6 ₹ 1,055.5 ₹ 991.2 ₹ 1,017.2 ₹ 987.7

Intangible Assets ₹ 0.2 ₹ 1.3 ₹ 1.1 ₹ 1.2 ₹ 2.2
Capital Work-In-Progress ₹ 68.7 ₹ 52.1 ₹ 126.3 ₹ 55.6 ₹ 96.7
Other Assets ₹ 4.9 ₹ 4.8 ₹ 4.8 ₹ 4.7 ₹ 4.6
Non-Current Investments ₹ 557.3 ₹ 538.9 ₹ 1,230.2 ₹ 1,385.8 ₹ 1,747.8
Deferred Tax Assets [Net] ₹ 0.0 ₹ 0.0 ₹ 2.6 ₹ 0.0 ₹ 3.6
Long Term Loans and Advances ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 64.4 ₹ 225.8
Other Non-Current Assets ₹ 88.7 ₹ 89.5 ₹ 73.2 ₹ 62.3 ₹ 64.5
Total Non-Current Asset ₹ 1,700.5 ₹ 1,742.3 ₹ 2,429.4 ₹ 2,591.3 ₹ 3,132.9

Current Investments ₹ 0.0 ₹ 90.0 ₹ 304.3 ₹ 280.5 ₹ 293.3

Inventories ₹ 647.2 ₹ 413.8 ₹ 514.1 ₹ 647.9 ₹ 604.4
Trade Receivables ₹ 561.1 ₹ 439.2 ₹ 605.5 ₹ 761.2 ₹ 688.2
Cash And Cash Equivalents ₹ 29.8 ₹ 23.5 ₹ 8.7 ₹ 4.8 ₹ 114.1
Short Term Loans and Advances ₹ 1.6 ₹ 3.1 ₹ 1.9 ₹ 2.2 ₹ 2.1
Other Current Assets ₹ 72.4 ₹ 60.5 ₹ 68.1 ₹ 79.6 ₹ 58.9

4
Total Current asset ₹ 1,312.1 ₹ 1,030.1 ₹ 1,502.6 ₹ 1,776.1 ₹ 1,761.0

Total Asset ₹ 3,012.5 ₹ 2,772.3 ₹ 3,932.0 ₹ 4,367.4 ₹ 4,893.8

5
 VERTICAL ANALYSIS

Income Statement
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
INCOME
Revenue From Operations [Gross] 100.0 100.0 100.0 100.0 100.0

Less: Excise/Service Tax/Other Levies 0.0 0.0 0.0 0.0 0.0

Revenue From Operations [Net] 100.0 100.0 100.0 100.0 100.0
Total Operating Revenues 106.1 105.5 105.7 106.2 106.5
Other Income 1.3 1.6 1.2 1.2 3.2
Total Revenue 107.4 107.1 106.9 107.5 109.7

EXPENSES
Cost Of Materials Consumed 64.1 56.6 60.8 66.2 64.0
Purchase Of Stock-In Trade 3.8 2.0 2.3 4.4 4.8
Operating And Direct Expenses 0.0 0.0 0.0 0.0 0.0
Changes In Inventories Of FG, WIP And
Stock-In Trade -0.5 3.1 -0.8 -1.5 -0.1
Employee Benefit Expenses 8.8 11.1 11.3 8.5 8.4
Finance Costs 1.0 0.7 0.5 0.2 0.3

Depreciation And Amortisation Expenses 2.8 4.0 3.7 2.4 2.1

Other Expenses 19.9 19.2 19.7 16.7 16.5
Total Expenses 100.0 96.7 97.4 97.0 96.0
Profit/Loss Before Exceptional,
Extraordinary Items and Tax 7.4 10.4 9.5 10.5 13.7
Exceptional Items -0.2 -0.1 -0.5 0.0 -0.8
Profit Before Tax 7.3 10.3 8.9 10.5 12.9

TAX EXPENSES-CONTINUED OPERATIONS

Current Tax 2.3 2.8 2.6 2.6 3.2
Less: MAT Credit Entitlement 0.0 0.0 0.0 0.0 0.0
Deferred Tax 0.1 -0.6 -0.4 0.1 -0.2
Tax For Earlier Years -0.1 -0.1 -0.1 -0.1 0.0
Total Tax Expenses 2.4 2.2 2.1 2.6 3.1

Profit/Loss After Tax and Before

Extraordinary Items 4.9 8.2 6.8 7.9 9.8

Profit/Loss from Continuing Operations 4.9 8.2 6.8 7.9 9.8

Profit/Loss for The Period 4.9 8.2 6.8 7.9 9.8

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 0.3 0.4 0.4 0.4 0.5
Diluted EPS (Rs.) 0.3 0.4 0.4 0.4 0.5

6
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 0.8 2.0 1.0 1.1 1.0
Tax On Dividend 0.1 0.3 0.0 0.0 0.0
Equity Dividend Rate (%) 5.0 8.6 8.7 5.8 5.2

Balance Sheet
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Share Capital 0.6 0.7 0.5 0.4 0.4
Reserves and Surplus 46.4 60.8 57.6 61.2 66.6
Total Equity 47.3 61.8 58.3 61.9 67.3

Long Term Borrowings 3.3 0.0 1.3 0.0 0.0

Deferred Tax Liabilities [Net] 1.4 0.5 0.0 0.0 0.0
Other Long-Term Liabilities 0.3 1.3 0.8 0.6 0.5
Total Non-Current Liabilities 5.0 1.8 2.1 0.7 0.5

Short Term Borrowings 10.4 6.0 5.3 8.0 9.7

Trade Payables 29.3 22.8 29.1 26.1 19.0
Other Current Liabilities 6.0 5.9 4.1 2.5 2.4
Short Term Provisions 2.0 1.8 1.1 0.9 1.1
Total Current Liabilities 47.7 36.4 39.5 37.5 32.2

Total Liabilities 52.7 38.2 41.7 38.1 32.7

Total Equity and Liabilities 100.0 100.0 100.0 100.0 100.0

Tangible Assets 32.6 38.1 25.2 23.3 20.2

Intangible Assets 0.0 0.0 0.0 0.0 0.0
Capital Work-In-Progress 2.3 1.9 3.2 1.3 2.0
Other Assets 0.2 0.2 0.1 0.1 0.1
Non-Current Investments 18.5 19.4 31.3 31.7 35.7
Deferred Tax Assets [Net] 0.0 0.0 0.1 0.0 0.1
Long Term Loans and Advances 0.0 0.0 0.0 1.5 4.6
Other Non-Current Assets 2.9 3.2 1.9 1.4 1.3
Total Non-Current Asset 56.4 62.8 61.8 59.3 64.0

Current Investments 0.0 3.2 7.7 6.4 6.0

Inventories 21.5 14.9 13.1 14.8 12.3
Trade Receivables 18.6 15.8 15.4 17.4 14.1
Cash And Cash Equivalents 1.0 0.8 0.2 0.1 2.3
Short Term Loans and Advances 0.1 0.1 0.0 0.0 0.0
Other Current Assets 2.4 2.2 1.7 1.8 1.2
Total Current asset 43.6 37.2 38.2 40.7 36.0

Total Asset 100.0 100.0 100.0 100.0 100.0

7
Comments:
 It can be seen that over the years the share of other income has increased as a
percent of revenue which is mainly coming from the interest that company is
receiving from its investments.
 Company’s efficiency has increased, it has been able to reduce the expenses (as a
percent of RFO).
 Profit as a percent of Sales have doubled i.e., from 4.90% in FY19 to 9.80% in FY23.
 Company has been working on decreasing the long-term borrowings and is using its
reserves in surplus to fund its operations and projects.
 Company has been investing heavily into its own subsidiaries leading to a very high
NCI.
 Share of Tangible asset has decreased because they are more or less the same all
throughout the years.

HORIZONTAL ANALYSIS

8
Income Statement
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
INCOME
Revenue From Operations [Gross] 100.0 81.3 80.8 120.1 136.3

Less: Excise/Service Tax/Other Levies - - - - -

Revenue From Operations [Net] 100.0 81.3 80.8 120.1 136.3
Total Operating Revenues 100.0 80.9 80.5 120.3 136.9
Other Income 100.0 97.4 69.9 110.6 323.5
Total Revenue 100.0 81.1 80.4 120.2 139.2

EXPENSES
Cost Of Materials Consumed 100.0 71.8 76.6 124.1 136.0
Purchase Of Stock-In Trade 100.0 42.9 48.9 139.5 174.5
Operating And Direct Expenses - - - - -
Changes In Inventories Of FG, WIP And Stock-In
Trade 100.0 -474.1 119.6 335.9 36.6
Employee Benefit Expenses 100.0 102.6 103.5 115.5 129.9
Finance Costs 100.0 55.7 36.9 22.8 41.8

Depreciation And Amortisation Expenses 100.0 114.6 106.7 103.4 103.8

Other Expenses 100.0 78.4 79.7 100.8 113.1
Total Expenses 100.0 78.7 78.7 116.5 131.0
Profit/Loss Before Exceptional, Extraordinary
Items and Tax 100.0 113.4 102.6 169.2 250.2
Exceptional Items 100.0 31.8 240.8 0.0 585.8
Profit Before Tax 100.0 115.4 99.2 173.5 241.8

TAX EXPENSES-CONTINUED OPERATIONS

Current Tax 100.0 99.1 91.6 131.9 187.5
Less: MAT Credit Entitlement - - - - -
Deferred Tax 100.0 -454.3 -310.9 114.8 -207.9
Tax For Earlier Years 100.0 206.0 198.1 233.5 -95.5
Total Tax Expenses 100.0 73.6 72.4 128.9 177.4

Profit/Loss After Tax and Before Extraordinary

Items 100.0 135.7 112.2 195.1 273.2

Profit/Loss from Continuing Operations 100.0 135.7 112.2 195.1 273.2

Profit/Loss for The Period 100.0 135.7 112.2 195.1 273.2

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 100.0 135.2 110.9 189.2 264.7
Diluted EPS (Rs.) 100.0 135.0 110.7 189.0 264.3

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 100.0 189.0 91.3 159.9 160.0
Tax On Dividend 100.0 451.6 0.0 0.0 0.0

9
Equity Dividend Rate (%) 100.0 140.0 140.0 140.0 140.0

Balance Sheet
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Share Capital 100.0 100.1 102.7 102.8 102.9
Reserves and Surplus 100.0 120.5 162.0 191.3 233.0
Total Equity 100.0 120.2 160.9 189.6 231.0

Long Term Borrowings 100.0 0.0 51.0 0.0 0.0

Deferred Tax Liabilities [Net] 100.0 32.5 0.0 4.8 0.0
Other Long-Term Liabilities 100.0 398.9 366.9 313.4 286.2
Total Non-Current Liabilities 100.0 32.8 55.7 20.0 17.1

Short Term Borrowings 100.0 53.0 66.1 111.2 151.1

Trade Payables 100.0 71.4 129.6 129.1 105.3
Other Current Liabilities 100.0 90.6 88.8 61.0 65.6
Short Term Provisions 100.0 84.4 70.9 62.4 89.8
Total Current Liabilities 100.0 70.3 108.2 113.9 109.7

Total Liabilities 100.0 66.8 103.2 105.0 100.9

Total Equity and Liabilities 100.0 92.0 130.5 145.0 162.5

Tangible Assets 100.0 107.6 101.1 103.7 100.7

Intangible Assets 100.0 638.1 533.3 585.7 1,066.7
Capital Work-In-Progress 100.0 75.9 183.9 80.9 140.8
Other Assets 100.0 98.2 96.3 94.7 93.1
Non-Current Investments 100.0 96.7 220.7 248.7 313.6
Deferred Tax Assets [Net] - - - - -
Long Term Loans and Advances - - - - -
Other Non-Current Assets 100.0 100.9 82.5 70.3 72.7
Total Non-Current Asset 100.0 102.5 142.9 152.4 184.2

Current Investments - - - - -
Inventories 100.0 63.9 79.4 100.1 93.4
Trade Receivables 100.0 78.3 107.9 135.7 122.6
Cash And Cash Equivalents 100.0 79.1 29.4 16.2 383.6
Short Term Loans and Advances 100.0 195.6 122.2 137.3 131.0
Other Current Assets 100.0 83.5 94.0 109.9 81.3
Total Current asset 100.0 78.5 114.5 135.4 134.2

Total Asset 100.0 92.0 130.5 145.0 162.5

Comments:
 The percentage change in Revenue exceeds that of expenses by 8.20%. However, the
uncertainties with the company have led to erosion of a considerable share of profit.

10
  The company’s EPS has risen over the years as a result of better management and
efficient operations.
 Total Equity has doubled majorly because of the retained earnings of the company,
on the other hand, debt has significantly reduced indicating a shift towards utilization
of own funds rather than the external ones.
 Company has created a software which is the major part of intangible asset’s
exponential increase.
 Company’s Cash and Cash equivalents are considerably increased indicating
company’s efficient cash flows.

RATIO ANALYSIS

Liquidity Ratios:
11
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Current Ratio 0.91 1.02 0.97 1.09 1.12
Quick Ratio 0.46 0.61 0.64 0.69 0.73

1.20 Comments: The current and

1.00 quick ratio signifies that the
0.80 company’s short term solvency
0.60 position is weak. Even the
0.40 efforts to increase these ratios
0.20 have not been that sufficient.
0.00
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Current Ratio Quick Ratio

Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Inventory Turnover 5.35x 4.72x 5.40x 7.12x 7.45x
Receivables Turnover 8.77x 8.10x 7.71x 8.76x 9.37x
Creditors Turnover Ratio 3.84x 3.14x 2.86x 3.70x 4.51x

10.00x
Comments: The company’s efficiency 9.00x
to turn its inventory into sales have 8.00x

been quite successful. However, it is 7.00x

6.00x
still majorly into credit sales which 5.00x
might lead to cash crunch. 4.00x
3.00x
2.00x
1.00x
0.00x
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Inventory Turnover Receivables Turnover

Creditors Turnover Ratio

Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Inventory Holding Period 67 days 76 days 67 days 51 days 48 days

Collection Period 41 days 44 days 47 days 41 days 38 days

12
Payable Days 94 days 115 days 126 days 97 days 80 days

140 days
Comments: As a result of
120 days
company’s consistent efforts,
100 days
inventory holding period has
80 days
decreased.
60 days

40 days It can be seen that company has

20 days been able to manage its
0 days
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 receivables well. Along with this
Inventory Holding Period Collection Period it has also increased its
Payable Days
bargaining power. This shows
better performance by the company’s sales and purchase
department.
Leverage Ratios
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Debt to Equity Ratio 0.25x 0.15x 0.10x 0.14x 0.14x
Debt to Asset Ratio 0.15x 0.08x 0.07x 0.09x 0.10x

0.30x
Comments: The company is reducing its 0.25x
debt and shifting towards using its own 0.20x
funds. 0.15x

0.10x

0.05x

0.00x
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Debt to Equity Ratio Debt to Asset Ratio

Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Interest Coverage Ratio 8.01x 15.51x 19.84x 54.36x 41.50x

13
60.00x
Comments: As an effect of change
50.00x in Capital structure, i.e., the
40.00x reduction in debt, the finance costs
30.00x
have decreased considerably
20.00x
leading to an increase in ICR.

10.00x

0.00x
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Interest Coverage Ratio

Profitability Ratios:

Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Gross Profit Margin 32.64% 38.28% 37.75% 30.86% 31.36%
Operating Profit Margin 8.30% 11.02% 9.39% 10.69% 13.21%
Net Profit Margin 4.89% 8.43% 6.97% 8.19% 10.20%

Comments: The Company’s COGS is 45.00%

40.00%
very high which is decreasing its Gross 35.00%

Profit Margin. The Company’s 30.00%

25.00%
Operating expenses are also significant 20.00%

resulting in lower Operating Profit 15.00%

10.00%
Margin, and because of this Net Profit 5.00%
0.00%
Margin is also else even though the Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

indirect expenses are insignificant. Gross Profit Margin Operating Profit Margin
Net Profit Margin

Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Return On Assets 8.15% 11.43% 8.15% 11.45% 14.37%

Return On Capital Employed 22.99% 23.40% 16.76% 22.59% 26.12%

Return On Equity 18.46% 21.07% 13.64% 19.03% 22.20%

14
 30.00%
Comments: The Company has been
able to use its total assets as well as 25.00%

capital employed to generate higher 20.00%

profits. 15.00%

10.00%

5.00%

Return On Assets Return On Capital Employed

0.00%
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Return On Equity

Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Earnings Per Share ₹ 13.0 ₹ 17.6 ₹ 40.0₹ 14.4 ₹ 24.6 ₹ 34.5

₹ 35.0
Dividend Per Share ₹ 2.2 ₹ 4.2 ₹ 30.0 ₹ 2.0 ₹ 3.5 ₹ 3.5
₹ 25.0
₹ 20.0
₹ 15.0
₹ 10.0
₹ 5.0
₹ 0.0
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Earnings Per Share Dividend Per Share

Comments: Due to increase in operational efficiency and profits, the

earnings of the company have increased leading to a more lucrative image
of the company from the Investor’s point of view. Same is reflected in the
DPS.

15
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Price to Earnings Ratio 29.43x 15.61x 82.99x 65.54x 73.90x

90.00x
80.00x
Comments: As compared to
70.00x the industry average (69.18
60.00x
50.00x
times), the companies PE ratio
40.00x is high which signifies that the
30.00x
company is at premium
20.00x
10.00x valuation.
0.00x
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Price to Earnings Ratio

Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Earning Yield 3.40% 6.41% 1.20% 1.53% 1.35%

Dividend Yield 0.59% 1.55% 0.17% 0.22% 0.14%

7.00%
Comments: As compared to 6.00%
industry average (.58%), the 5.00%
dividend yield is very less which 4.00%
makes it a lacklustre for the 3.00%

return seeking investor. EPS has 2.00%

increased over time but the 1.00%

Market Price of the share has 0.00%

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
increased significantly leading to
Earning Yield Dividend Yield
fall in Earning Yield.

16
Activity Ratios:
Years Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Total Asset Turnover 2.14x 1.40x 1.20x 1.44x 1.47x

2.50x
Comments: The assets turnover ratio has
been decreasing since FY19 due to the 2.00x

covid impact, however, the company is on 1.50x

again on a rising trend, indicating a better 1.00x

deployment of assets in generating sales.
0.50x

0.00x
Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Total Asset Turnover

17
 CONCLUSION

The operational efficiency of the company has decreased. However,

the recent trends have shown that due to better use of assets, the
company’s asset management have been leading to a better profit
scale.
In order to make the company more lucrative for the investors, the
company needs to work on its efficiency and that will eventually lead
to a better EPS getting a better valuation for the company. As
currently it is having a very premium valuation which might be a
point of diversion for the potential investors.
It can be seen then that the ownership strength of the company has
not been up to the mark, the history of managing debt shows that
company is stable which means the capital structure of the company
is quite apt. What company needs to do right now is to improve the
management, control costs of the materials and direct expenses in
order to scale of the profits.

REFERENCES
 https://tiindia.com/ti_content/uploads/2023/07/Annual-
Report-FY-2022-23.pdf
 https://tiindia.com/
 https://www.moneycontrol.com/india/stockpricequote/auto-
ancillaries/tubeinvestmentsindialtd/TIIND54076
 https://ticker.finology.in/company/MOTHERSON
 https://www.screener.in/company/TIINDIA/#balance-sheet
 https://www.screener.in/company/TIINDIA/#balance-sheet

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  https://www.indiainfoline.com/company/tube-investments-of-
india-ltd-share-price/peer-comparison/40963

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