Presented by:

Hirani Vijay
(05)
Bhalala Mahesh (27)

Guided By
Mr. Nilesh Movaliya

K.K.Parekh Institutes of management studies

( AMRELI )

1 Overview of the company

2 Company profile
3 Products
4 Why financial analysis important for company
5 Financial statement analysis
6 Ratio analysis
7 Conclusion

MRF (Madras Rubber Factory) is Indias No.1 tyre manufacturing

company. It was started in the year 1946 by K M Mammen Mappillai
as a small toy ballon unit. Much later in November 1960 it ventured
in manufacturing of tyres. The company entered a technical
collaboration woth Tire & Rubber company, USA.

Currently MRF exports tyres to over 65 countries including America,

Europe, Middle East, Japan, and Pacific region. It presently has
overseas offices in Dubai, Vietnam and Australia.

Corporate Address

Management Details

Business Operation
Financials

124 Greams Road,

,Chennai-600006, Tamil
Nadu
www.mrftyres.com
Chairperson - K M Mammen
MD - Arun Mammen
Directors - Arun Mammen,
Ashok Jacob.
Tyres & Allied
Total Income - Rs. 97684.8
Million ( year ending
Sep 2011)
Net Profit - Rs. 6194.2
Million ( year ending
Sep 2011)

Tyres - It manufactures various tyres for passenger cars, twowheelers, trucks, buses, tractors, light commercial vehicles and off
the road tyres.
Conveyor belts- It manufactures conveyor belts with wide range of
grades. It has a range of applications in industries like mining, ports,
thermal power plants, cement plants, fertiliser, steel, etc. It exports
the products to 15 countries.
It also operates retreading systems for tyres that enhances road
grip, provides greater mileage and many others features.
MRF Tyres & Services is one stop shop providing range tyres.
Currently it operates 90 franchisees across the country.

(i) success of Promotion Depends on Financial Administration

(ii) Smooth Running of an Enterprise.
(iii) Financial Administration Co-ordinates Various Functional
Activities.
(iv) Focal Point of Decision Making.
(v) Determinant of Business Success.
(vi) Measure of Performance.

Financial statement analysis

(1) Earning Per share

Formula: PAT / NO.OF SHARE
(crore)
year

2011

2010

2009

2008

2007

Pat

212.29

338.92

250.23

137.43

163.99

No of share

4241143

4241143

4241143

4241143

4241143

EPS

500.55

799.12

590.01

324.04

386.66

(2) Dividend per share

Formula: profit distributed / no. of share
(crore)

year

2011

2010

2009

2008

2007

Profit
distributed

10.60

21.20

10.60

8.48

8.48

No.of share

4241143

4241143

4241143

4241143

4241143

DPS

25.00

50.00

25.00

20.00

20.00

(3) Book value per share:

2011
5,417.81

2010

2009

3,986.38

2008

3,210.03

2007

2,642.66

2,325.20

Net operating income per share:

Formula : operating income / no.of share

year
Operating
income
No.of share
NOIPS

2011
9,716.54

2010
7,462.74

2009
5,679.57

2008
5,060.81

2007
4,410.22

4241143

4241143

4241143

4241143

4241143

22,910.19

17,596.06

13,391.60

11,932.66

10,398.66

(4) Operating margin ratio:

Formula : COGS + operating expenses
sales

year

2011

COGS

279.83

sales

3337.89

Operating
margin (%)

8.37

2010

2009

2008

2007

868.63

690.63

424.56

431.68

7755.61
11.20

5560.66
12.42

4908.21
8.65

4215.68
10.24

(5) Net profit margin:

Formula: PAT / sales

year

2011

2010

2009

2008

2007

Pat

212.29

338.92

250.23

137.43

163.99

sales

3337.89

7755.61

5560.66

4908.21

4215.68

NPM %

6.36

4.73

4.50

2.80

3.89

(6)Return on investment ratio:

Formula: EBIT / net assets

year

2011

2010

2009

2008

2007

EBIT

580.21

581.87

461.31

273.10

302.41

NA

6286.13

2903.54

2509.84

2227.56

1819.55

ROI

9.23

20.04

18.38

12.26

16.62

Return on long term fund:

2011
17.04

2010
24.72

2009
28.34

2008
16.86

2007
23.29

(7) Debt-equity ratio:

Formula: total debt / net worth
2011

2010

0.65

2009

0.56

2008

0.21

2007

0.85

0.61

Fixed assets turnover ratio:

Formula: sales / fixed assets
year
FATR

2011
2.55

2010
2.22

2009
2.09

2008
2.10

2007
2.16

(8) Current ratio:

Formula : CA / CL

Year

2011

2010

2009

2008

2007

CA

3,160.49

2,117.25

1,695.98

2,003.71

1,562.93

CL

2,525.78

1,378.38

1,410.14

1,299.52

940.72

CR

1.25

1.54

1.20

1.54

1.66

(9) Quick ratio:

Formula: CA Inventory / CL

year

2011

2010

2009

2008

2007

CA-Inventoyr

1616.50

978.65

1029.40

1000.63

856.05

2,525.78

1,378.38

1,410.14

1,299.52

940.72

0.64

0.71

0.73

0.77

0.91

CL

Quick ratio

(10) Inventory ratio:

Formula : COGS / Avg Inventory

Year

2011

COGS

279.83

Avg Invetory

38.07

Inventory
turnover ratio

7.35

2010

2009

2008

2007

868.63

690.63

424.56

431.68

67.91

69.71

56.58

113.10

7.68

10.17

6.09

7.63

(11) Dividend payout ratio:

Formula : equ. Div / PAT

year

2011

2010

2009

2008

2007

Equ div

423

2365

1208

960

946

Pat

212.29

338.92

250.23

137.43

163.99

1.99

6.98

4.83

6.98

5.77

(12) Operetig leverage:

Formula: contribution / EBIT

year

2011

2010

2009

2008

2007

1718.55

6285.92

4313.96

3841.67

3304.75

EBIT

580.21

581.87

461.31

273.10

302.41

OL

2.96

10.80

9.35

14.07

10.92

(13) Financial leverage:

Formula : EBIT / EBT

year

2011

2010

2009

2008

2007

EBIT

580.21

581.87

461.31

273.10

302.41

EBT

487.19

518.77

392.39

206.85

253.17

FL

1.19

1.12

1.17

1.32

1.19

(14) Combine leverage

formula : OL * FL

year

2011

2010

2009

2008

2007

OL

2.96

10.80

9.35

14.07

10.92

FL

1.19

1.12

1.17

1.32

1.19

CL

3.52

12.09

10.94

18.57

12.99

Company overall performance is good and

fluctuation occur in sales, expenses, profits,
and price a year by year.
The small changes are big impact on financial
performance.

Thank you