A COMPARATIVE FINANCIAL

ANALYSIS OF EXIDE INDUSTRIES

LTD. & AMARA RAJA GROUPBY GROUP A-10

Project by:

SUDIP DUTTA PGPM 2010 - 2012

EXIDE INDUSTRIES LTD. – A BRIEF OVERVIEW The Company was incorporated as Associated Battery

Makers (Eastern) Ltd., on 31st January, 1947 under the Companies Act, 1913.

The name of the Company was changed to Chloride India Ltd. on 2nd August, 1972.

The name of the Company was further changed to Exide Industries Ltd. on 25th August, 1995.

The Company manufactures the widest range of storage batteries in the world from 2.5 Ah to 20,400 Ah capacity, covering the broadest spectrum of applications.

The Company has 6 factories strategically located across the country – 2 in Maharashtra, 1 in West Bengal, 2 in Tamil Nadu and 1 in Haryana.

Constant innovations have helped the Company to produce the world’s largest range of industrial batteries extending from 2.5 Ah to 20,400 Ah and covering various technology configurations.

EXIDE INDUSTRIES LTD. – ACHIEVEMENTS

Exide Industries Limited Awarded the Frost & Sullivan 2010 Market Share Leadership Award in the Industrial Battery Segment.

Exide Industries was awarded for ‘demonstrating outstanding achievement in areas such as improving market reach, technological innovations, customer service, strategic product development, and building strategies to sustain growth amidst fierce competition.’

EXIDE INDUSTRIES LTD

2010 2009 2008 2007 2006

CURRENT RATIO 1.538 1.524 1.531 1.402 1.564LIQUID RATIO 0.515 0.745 0.611 0.537 0.882DEBT-EQUITY RATIO 0.04054 0.25367 0.34083 0.48429 0.52325DEBT-ASSET RATIO 0.039 0.202 0.254 0.326 0.344INTEREST COVERAGE RATIO

4.10008 3.32865 8.20859 9.57363 9.73839FIXED CHARGE COVERAGE RATIO

4.93 4.407 9.741 11.16 11.51INVENTORY TURNOVER RATIO

10.95 14.65 9.407 8.942 10.92GROSS PROFIT MARGIN (%) 28.67 25.8 26.7 27.65 28.52NET PROFIT MARGIN (%) 14.36 10.53 12.28 12.97 13.93PRICE BY BOOK VALUE 4.82 2.72 5.43 5.09 3.91PRICE EARNING RATIO 19.91 11.98 22.26 21.98 21.5YIELD RATIO 0.05 0.084 0.045 0.045 0.047RETURN ON EQUITY 0.242 0.227 0.244 0.231 0.182NET WORTH 2219.77 1250.35 1026.35 670.46 553.94ECONOMIC VALUE ADDED 1796.13 751.19 1823.65 1779.37 1418.09RETURN ON NET WORTH (%) 100.915 80.08 197.68 285.39 276.00

AMARA RAJA GROUP

2010 2009 2008 2007 2006

CURRENT RATIO 1.852 2.59671209 2.7283934 2.41659762 1.75303613

LIQUID RATIO 1.21 1.8 1.84 1.78 1.31DEBT-EQUITY RATIO 0.16774 0.70482507 0.949474632 0.577420282 0.201400964

DEBT-ASSET RATIO 0.14364 0.413429555 0.487048786 0.366053542 0.16951704INTEREST COVERAGE RATIO

42.76 11.2949561 12.1964424 26.381877 34.358209FIXED CHARGE COVERAGE RATIO 49.1034 13.18969298 14.08739366 31.88349515 45.32835821INVENTORY TURNOVER RATIO

10.8056 14.02126631 9.451097927 11.05582356 11.95752876GROSS PROFIT MARGIN (%)

19.4581 14.30675236 15.72743301 14.80362538 14.36139392NET PROFIT MARGIN (%) 11.383 6.077953071 8.710180647 7.970795569 6.68542891PRICE BY BOOK VALUE 2.8586 3.743103811 2.920512821 0.722731096 0.565738855PRICE EARNING RATIO 9.54116 19.13455328 10.38601824 3.798820929 4.859086492YIELD RATIO 0.10481 0.052261476 0.096283289 0.263239573 0.2058RETURN ON EQUITY 0.30724 0.198426983 0.283278295 0.194894735 0.12037359NET WORTH 543.64 405.59 333.1 243.67 201.29ECONOMIC VALUE ADDED 58.302 -0.638 22.74 -1.694 -16.418RETURN ON NET WORTH (%)

30.7244 19.842 28.327 19.304 11.843

2010 2009 2008 2007 20060

0.5

1

1.5

2

2.5

3

1.538 1.524

1.531

1.402

1.564

1.852

2.597

2.728

2.416

1.753 EXIDEAMARA_RAJA

CURRENT RATIO

2005.5 2006 2006.5 2007 2007.5 2008 2008.5 2009 2009.5 2010 2010.50

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0.17

0.70

0.95

0.58

0.20

0.04

0.25

0.34

0.48

0.52

EXIDEAMARA_RAJA

DEBT - EQUITY RATIO

2010 2009 2008 2007 20060

5

10

15

20

25

19.91

11.97

22.2621.98

21.50

9.54

19.13

10.38

3.794.86

EXIDEAMARA_RAJA

PRICE EARNING RATIO

2010 2009 2008 2007 20060

50

100

150

200

250

300

100.915

80.078

197.683

285.395276.001

30.72419.842 28.327 19.305 11.844

EXIDEAMARA_RAJA

RETURN ON NET WORTH

2010 2009 2008 2007 20060

500

1000

1500

2000

2500

2219.77

1250.35

1026.35

670.46553.94543.64

405.59 333.1243.67

201.29

EXIDEAMARA_RAJA

NET WORTH

2010 2009 2008 2007 2006

-500

0

500

1000

1500

20001796.13

751.19

1823.65 1779.37

1418.09

58.302

-0.637999999999991

27.74

1.694 -16.42

EXIDEAMARA_RAJA

ECONOMIC VALUE ADDED

CONCLUSION

From the previous graphs, and the discussions we had; we can clearly comment that Exide Industries Limited is in a better financial position than Amara Raja Group.

Exide Industries Ltd. maximizes it’s Shareholder’s Funds better than Amara Raja Group.

Exide Industries Ltd., having the highest market share is clearly a better organization than Amara Raja Group.