Axis

Presented by :

Mehul Rasadiya

Ratio Analysis on

Axis bankAxis bank

K.K. Parekh Institute of Management Studies (Amreli)

Axis bankAxis bank

• Incorporated as UTI Bank, Incorporated as UTI Bank, headquartered in Mumbaiheadquartered in Mumbai

• First Branch inaugurated at First Branch inaugurated at AhmadabadAhmadabad

• Completes first profitable year in Completes first profitable year in operation in 1995operation in 1995

• Deposit crosses Rs.10bn mark in 1996Deposit crosses Rs.10bn mark in 1996

ABOUT Axis BankABOUT Axis Bank

• Opens its first international branch in Singapore• Opens Representative Office in Shanghai• Crosses the 12,600 ATM mark in 2011• Opens a Full Licence Bank Branch in Hong

Kong• Re-brands itself as Axis Bank• Mumbai, Jul 30 2007 : UTI Bank on Monday

rechristened itself as Axis Bank.

Conti………Conti………

• The Axis banks business is divided into four segments:–Retail–Corporate–Treasury –Merchant banking.

• A part from this the bank is:→Insurance

→Investment banking →Mortgage financing →Credit cards →Depository services etc .

Retail banking • Deposits schemes • Loans and advances

– Personal loans – Housing loans – Cards – Consumer durables – Auto loans

Services Services

Personal banking • Accounts

– Term deposit – Fixed deposit – Recurring deposit

• Cards – Different variant like: Gold plus card, Gold card,

Silver & silver plus cards.

Conti……Conti……

Corporate banking • Accounts

– Normal Current Account – Trust/NGO Savings Account

• Services – Private Equity, Mergers & Acquisitions – Advisory Services – Capital Market Funding – E-Broking

Conti……Conti……

As on the year ended March 31, 2012 the Bank had a net profit of Rs 4,242.21crores

The bank now has 1035 branches including extension networks across 30 States and 4 Union Territories.

The bank also has overseas offices in Singapore, China, Hong Kong and Dubai.

Crosses the 19000 ATM mark in Mar 2013

Axis Bank share is now trading at Rs 1430.00 (20th April,2013)

PerformancePerformance

By preparing financial statement By preparing financial statement investors can easily take decision about investors can easily take decision about particular org. whether to invest or not.particular org. whether to invest or not.

By preparing financial statement By preparing financial statement management are easily to identify his management are easily to identify his decision right or wrong.decision right or wrong.

Why its importantWhy its important

It is helpful to researcher to research It is helpful to researcher to research for future value of org.for future value of org.

It is also helpful toIt is also helpful to students students to to prepare such decision making reports.prepare such decision making reports.

Conti…..Conti…..

A. Per Share RatioA. Per Share Ratio

1) Earnings per share

= Net profit after Taxes No. of Equity Shares

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

102.17102.17 82.7182.71 62.1662.16 50.7950.79 30.3730.37

Conti……Conti……

2)Dividend per share2)Dividend per share

= Dividends No of shares 

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

16.00 14.00 12.00 10.00 6.00

Conti…..Conti…..

3)Book Value Per Share 3)Book Value Per Share ==

Total stockholder's equityNumber of shares Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

551.99 462.77 395.99 284.50 245.13

Conti…..Conti…..

4)Net Operating 4)Net Operating Income Per Share =Income Per Share =

operating income * (1-tax rate)operating income * (1-tax rate)

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

654.06654.06 471.17471.17 380.27380.27 377.46377.46 244.63244.63

Conti…..Conti…..

5)Price Earning Ratio =5)Price Earning Ratio =

Market price per equity share Earnings per share Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

551.99 462.77 395.99 284.50 245.13

1)Operating Margin =1)Operating Margin =

COGS + Operating expenses × 100 Net sales

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

24.13 27.43 25.58 22.13 23.25

B. B. Profitability ratio

2)Net Profit Margin =2)Net Profit Margin =

Net profit Net sales

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

15.51 17.20 16.10 13.31 12.22

Conti……Conti……

3)Return on Investment 3)Return on Investment ==

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

Conti……Conti……

4)Return on Long Term 4)Return on Long Term Funds =Funds =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

88.75 72.29 66.34 97.35 71.17

Conti……Conti……

1)Debt-Equity Ratio =1)Debt-Equity Ratio =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

9.65 9.96 8.81 11.49 9.99

C. Leverage RatioC. Leverage Ratio  Total liabilities . Shareholders equity

2)Fixed Assets Turnover 2)Fixed Assets Turnover Ratio =Ratio =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

0.10 5.65 7.31 7.78 6.32

C. Leverage RatioC. Leverage Ratio

Cost of SalesNet Fixed Assets

3)Financial Leverage =3)Financial Leverage =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

0.10 5.65 7.31 7.78 6.32

C. Leverage RatioC. Leverage Ratio

4)Operating Leverage =4)Operating Leverage =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

0.10 5.65 7.31 7.78 6.32

C. Leverage RatioC. Leverage Ratio

5)Combined Leverage =5)Combined Leverage =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

0.10 5.65 7.31 7.78 6.32

C. Leverage RatioC. Leverage Ratio

1) Current Ratio =1) Current Ratio =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

0.75 0.56 0.63 0.37 0.36

D. Liquidity RatioD. Liquidity Ratio

Current Assets Current Liabilities

2) Quick Ratio =2) Quick Ratio =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

21.63 19.60 19.19 9.52 9.23

Conti…..Conti…..

current asset-inventoriescurrent liabilities

3) Inventory Ratio =3) Inventory Ratio =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

21.63 19.60 19.19 9.52 9.23

Conti……..Conti……..

cost of goods sold average inventory

1)Divident Payout Ratio =1)Divident Payout Ratio =

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

18.15 19.78 22.56 23.16 23.49

E. Payout RatioE. Payout Ratio

Dividend per Equity Share Earnings per share

2)Financial Charges 2)Financial Charges Coverage Ratio Coverage Ratio

Mar ' 12Mar ' 12 Mar ' 11Mar ' 11 Mar ' 10Mar ' 10 Mar ' 09Mar ' 09 Mar ' 08Mar ' 08

0.48 0.65 1.62 1.43 1.46

Conti….Conti….

Profit Before Interest And Tax Annual Interest And Bank Charges==

Thank you