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    Assignment 11

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    mpvrsmshriram807

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    Assignment 11

    Uploaded by

    mpvrsmshriram807
    7 views2 pages

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    Copyright:

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    Download as docx, pdf, or txt
    7 views2 pages

    Assignment 11

    Uploaded by

    mpvrsmshriram807

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Assignment No: - 11

    Assignment name:- Prepare a financial feasibility report on a chosen product.

    Financial feasibility report on Tata Motors:-

    Introduction

    Tata Motors Limited is a leading Indian multinational automotive manufacturing company


    headquartered in Mumbai, India. This financial feasibility report evaluates the current
    financial performance and future prospects of Tata Motors.

    Market Analysis

    Tata Motors operates in the passenger vehicle, commercial vehicle, and electric vehicle
    segments in India and globally.

    The company has a strong market presence in India, with a significant share in the
    commercial vehicle and passenger vehicle markets.

    The global automotive industry has been impacted by the COVID-19 pandemic, but the
    Indian market is showing signs of recovery.

    Financial Performance

    Tata Motors reported a revenue of ₹3,507,040 million in FY2023, up 24% from the previous
    year.

    The company's net profit stood at ₹23,535 million in FY2023, compared to a net loss of
    ₹112,347 million in FY2022.

    Operating profit margins improved from 8.2% in FY2022 to 9.7% in FY2023.

    Growth Prospects

    Tata Motors is focusing on expanding its electric vehicle portfolio to capitalize on the
    growing demand for eco-friendly mobility solutions.

    The company is also exploring partnerships and collaborations to enhance its product
    offerings and reach new markets.

    Tata Motors' strong brand recognition and established distribution network provide a solid
    foundation for future growth.

    Risks and Challenges

    The automotive industry is highly competitive, and Tata Motors faces intense competition
    from both domestic and international players.
    The company is exposed to currency fluctuations and raw material price volatility, which can
    impact its profitability.

    Regulatory changes, such as stricter emission norms and safety standards, may require
    significant investments in research and development.

    Key financial Ratios

    Ratio FY2023 FY2022

    Current Ratio 1.0 1.0

    Debt to Equity Ratio 2.0 2.2

    Return on Assets 3.8% -0.6%

    Return on Equity 5.2% -25.2%

    Return on Capital Employed 9.9% 1.6%

    Conclusion

    Tata Motors has shown signs of recovery in FY2023, with improved financial performance
    and growth prospects. The company's focus on electric vehicles and strategic partnerships
    positions it well for future growth. However, the company must address the challenges posed
    by intense competition, currency fluctuations, and regulatory changes to maintain its
    competitive edge.

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