A Report on Financial Analysis of BHARTI AIRTEL LTD.
Prepared By: - JEET DHANAK ROLL NO.: - 11709
INDEX
1.
INTRODUCTION
2.
RATIO ANALYSIS
3.
HORIZONTAL ANALYSIS
4.
VERTICAL ANALYSIS
5.
TREND ANALYSIS
INTRODUCTION Sunil Bharti Mittal founded the Bharti Group. In 1983, Sunil Mittal was into an agreement with Germany's Siemens to manufacture the company's push-button telephone models for the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. This first-mover advantage allowed Sunil Mittal to expand his manufacturing capacity elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Sky cell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexagon and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar.’2009; Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel began operating in Bangladesh.
Today, Airtel is the largest cellular service provider in India and fifth largest in the world The organizational structure that existed till recently concentrated on the hierarchy of the operations (not services) inside the company as a whole. The structure depicts the corresponding operation/region of different in-charges and hence it didn't hold anyone responsible for each of its services. So, the company found it better to restructure its organizational chart and it came into implementation from 1 August. The transformed organizational structure will have two distinct Customer Business Units (CBU) with clear focus on B2C (Business to Customer) and B2B (Business to Business) segments. Bharti Airtel's B2C business unit will comprehensively service the retail consumers, homes and small offices, by combining the erstwhile business units – Mobile, Telemedia, Digital TV, and other emerging businesses (like M-commerce, M-health, Madvertising etc.). The B2C organization will consist of Consumer Business and Market Operations.
RATIO ANALYSIS TYPES OF RATIOS 1.
Liquidity Ratios
2.
Solvency Ratios
3.
Efficiency or Turnover Ratios
4.
Profitability Ratios
1.Liquidity Ratios i.
Current Ratio
ii.
Quick or Acid Test Ratio
2.Solvency Ratios i.
Debt-equity ratio
ii.
Total asset to debt ratio
3.Turnover Ratios i.
Debtors Turnover Ratio
ii.
Inventory Turnover Ratio
iii.
Working Capital turnover Ratio
iv.
Fixed Asset Turnover Ratio
4.Profitability Ratios i.
PBDIT Ratio
ii.
PBIT Ratio
iii.
PBT Ratio
iv.
PAT Ratio
5.Return on Investment Ratios i.
P/E Ratio
ii.
Earnings per Share
iii.
Return on Capital Employed
1.1 Current Ratio (Working Capital Ratio) =
Current Assets Current Liabilities
YEAR
CURRENT ASSETS
CURRENT LIABILITIES
RATIO
2006-07
8439.39
11,066.25
0.76
2007-08
10466.63
14,342.47
0.72
2008-09
10021.39
14,376.76
0.69
2009-10
13730.10
13,510.98
1.01
2010-11
23957.90
16,861.30
1.42
2011-12
14,043.60
19,164.70
0.73
2012-13
6,203.80
19,425.70
0.31
2013-14
6,738.80
19,108.00
0.35
2014-15
14,756.40
23,051.50
0.64
2015-16
11,405.70
27,891.80
0.40
2016-17
17,670.90
34,920.40
0.50
. ANALYSIS: The ratio since 2007 is at 0.76 which at some point reaches highest at 1.42 in 2011 and then is on a downward trend until current year where it is 0.50.Also in this period there is not any sudden increase or decrease in upward or downward trend.
INTERPRETATION: From the above table we can indicate that the current assets are very less compared to current liability of the company. The company doesn’t have enough current assets in meeting their liabilities. So, the company can’t meet immediate emergencies. The company needs to increase current assets in order to meet its short-term obligation. We can conclude that the ratio isn’t favorable as the current asset is less than the current liabilities and also less than ideal ratio.
1.2 Quick (Acid Test or Liquid) Ratio: =
Quick Assets Current Liabilities
YEAR
QUICK ASSETS
CURRENT
RATIO
LIABILITIES 2006-07
2198.98
11,066.25
0.19
2007-08
3279.40
14,342.47
0.22
2008-09
4801.65
14,376.76
0.33
2009-10
2921.72
13,510.98
0.21
2010-11
1595.10
16,861.30
0.09
2011-12
2615.70
19,164.70
0.13
2012-13
2609.50
19,425.70
0.13
2013-14
3601.50
19,108.00
0.18
2014-15
3699.70
23,051.50
0.16
2015-16
3845.10
27,891.80
0.13
2016-17
3320.50
34,920.40
0.09
ANALYSIS: The quick ratio of the company for the year 2007-08 is 0.19, 2008-09 is 0.22, 2009-10 is 0.33, 2010-11 is 0.21, and 2011-12 is 0.09. The quick ratio has increased by 15.78 % in the year 2008-09 and the year 2009-10 is increased by 50% there is decreased value found by -36.36% for the year 2010-11 and decreased by 57.14% in the year 2011-12
INTERPRETATION: As per as quick ratio is concern whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. Here, Bharti Airtel review that in 2008-09 increase their assets and then after very small percentage increase. That point of Time it has not enough asset to cover its liabilities. Ideal ratio is 1.5 so it is below the ratio. This is not good for company and it should be improving that point.
1.3 Debtors Turnover Ratio =
Credit Sales Avg. Debtors
YEAR
CREDIT SALES
AVG. DEBTORS
RATIO
2006-07
17,960.11
1,418.52
12.66
2007-08
25,868.23
2,776.46
9.31
2008-09
32,809.46
2,550.05
12.86
2009-10
36,776.73
2,104.98
17.47
2010-11
38,338.90
1,461.90
26.22
2011-12
42,228.50
2,134.50
19.78
2012-13
46,814.00
2,246.80
20.83
2013-14
50,771.90
2165.50
23.44
2014-15
60,689.40
3,311.00
18.32
2015-16
61,785.80
3,793.00
16.28
2016-17
62,460.60
3,211.80
19.44
ANALYSIS: The debtors turnover ratio of the company for the year 2007-08 is 12.66 times, 2008-09 is 9.31 times, 2009-10 is 12.86 times, 2010-11 is 17.47 times, and 2011-12 is 26.22 times the debtors turnover ratio has decreased by 26.30% in the year 2008-09, and in 2009-10 it increased by 38.13%. There was increase positive value is found by 35.84% in year 2010-11 and increased by 50.08% in the year 2011-12.
INTERPRETATION: Higher turnover signifies speedy and effective collection. Lower turnover indicates sluggish and inefficient collection leading to the doubts that receivables might contain significant doubtful debts. Receivables collection period is expressed in number of days. Here the company in 1 st year 1month to collection & after decline then after increase. Company does not maintain lower collection period.
1.4 INVENTORY TURNOVER RATIO NET SALES AVG INVENTORY
YEAR
NET
AVG
SALES
INVENTORY
RATIO
2006-07
17,960.11 48.10529
373.35
2007-08
25,868.23 57.0967
453.06
2008-09
32,809.46 59.88986
547.83
2009-10
36,776.73 28.1372
1,307.05
2010-11
38,338.90 34.6905
1,105.17
2011-12
42,228.50 32.58196
1,296.07
2012-13
46,814.00 2.167749
21,595.67
2013-14
50,771.90 1.118806
45,380.45
2014-15
60,689.40 10.2796
5,903.87
2015-16
61,785.80 5.430573
11,377.40
2016-17
62,460.60 3.911542
15,968.28
ANALYSIS: - The ratio is on a upward trend and is rising continuously from 373.35 in 2007-08 to 15968.28 in 2017-18. The increase is at constant rate but has increased suddenly in 2010 -11 by 138%.
INTERPRETATION: - This ratio indicates how much stock is used up for sales where in high ratio is preferred which shows the stock is utilised effectively. But also very high ratio means there are lost sales where there is not enough stock to meet the demand.
1.5 EARNINGS PER SHARE PAT No. Equity Shares YEAR
PAT
No. Equity Shares
RATIO
2006-07
4,023.31
189.15
21.27
2007-08
6,304.86
191.63
32.90
2008-09
7,789.98
190.9777
40.79
2009-10
9,476.93
381.8263
24.82
2010-11
7,716.90
379.7687
20.32
2011-12
5,730.00
379.7217
15.09
2012-13
5,096.30
379.7541
13.42
2013-14
6,600.20
395.4584
16.69
2014-15
13,200.50
399.7729
33.02
2015-16
7,546.50
399.7087
18.88
2016-17
-9925.60
399.5813
-24.84
ANALYSIS: The earnings per share of the company for the year 2008-09 is 32.90, 2009-10 is 40.79, and 2010-11 is 24.82, 2011-12 is 20.32, and 2012.13is 15.09. The earnings per share has increased by 54.67% in the year 2008-09, and by 23.98% in the year 2009-10 and decreased by 39.15% in the year 2010-11 and again decreased by 18.13% in the year 2011-12.
INTERPRETATION: - As per as EPS ratio is concern the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company’s profitability. Here the company shows high profitability so it is good for company as well as investor.
1.5 Return on Capital Employed PBIT Capital Employed YEAR
PBIT
CAPITAL EMPLOYED
RATIO
2006-07
4,590.09
19125.38
0.24
2007-08
6,937.29
30162.13
0.23
2008-09
8,111.76
38627.43
0.21
2009-10
10,654.80
48430.91
0.22
2010-11
8,725.80
62327.14
0.14
2011-12
6,956.20
74797.85
0.09
2012-13
6,454.80
87227.03
0.07
2013-14
8,584.50
103427.7
0.08
2014-15
15,655.30
122307
0.128
2015-16
10,719.70
190742
0.056
2016-17
8,761.30
-137756
-0.06
ANALYSIS: - The return on capital employed of the company for the year 2007-08 is 0.24, 2008-09 is 0.23, and 2009-10 is 0.21, 2010-11 is 0.22 and 2011-12 is 0.14. The return on capital employed has increased by 14.28% in the year 2014-15, and increased by 50% in the year 2015-16 and decreased by 56.25 % in the year 2016-17 and again decreased by-207% in the year 2017-18.
INTERPRETATION: - It is expressed as a percentage and can be very revealing about the industry a company operates in, the skills of the management and occasionally the general business climate. Here, the company continuous increases efficiency. It is good for the company.
1.6 Debt Equity Ratio Long Term Debt Share Holder Fund
YEAR
Long Term Debt Share Holder Fund
RATIO
2006-07
11,413.27
24283.55
0.47
2007-08
20,183.86
61163.21
0.33
2008-09
27,527.75
98313.39
0.28
2009-10
36,551.09
261079.2
0.14
2010-11
44,111.60
191789.6
0.23
2011-12
49,429.60
170446.9
0.29
2012-13
54,146.20
225609.2
0.24
2013-14
66,728.00
513292.3
0.13
2014-15
78,272.90
301049.6
0.26
2015-16
84,446.80
168893.6
0.5
2016-17
1,01,207.30
180727.3
0.56
ANALYSIS: - The debt equity ratio of the company for the year 2007-08 is 0.47, 2008-09 is 0.33, and 200910 is 0.28, 2010-11 is 0.14, and 2011-12 is 0.23. The debt equity ratio has decreased by 29.78% in the year 2008-09, and decreased by 15.15% in the year 2009-10, decreased by 50% in the year 2010-11 and again decreased by 64.28% in the year 2011-12
INTERPRETATION: A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. Here the company ratio so good in the current situation as to the previous years. This is good for the company.
1.7 Total Asset to Debt Ratio Total Asset Long Term Debt
YEAR
TOTAL
Long Term RATIO
ASSETS
Debt
2006-07
27,796.74
11,413.27
2.435476
2007-08
41,174.17
20,183.86
2.039955
2008-09
49,824.50
27,527.75
1.809974
2009-10
55,414.40
36,551.09
1.516081
2010-11
71,582.60
44,111.60
1.622761
2011-12
80,323.70
49,429.60
1.625012
2012-13
87,883.20
54,146.20
1.623072
2013-14
98,204.10
66,728.00
1.471708
2014-15
1,26,423.70 78,272.90
1.615166
2015-16
1,61,938.80 84,446.80
1.917643
2016-17
1,90,741.60 1,01,207.30
1.884662
ANALYSIS: - The total assets to debt ratio of the company for the year 2007-08 is2.43, 2008-09 is 2.03, and 2009-10 is 1.80, 2010-11 is 1.51, and 2011-12 is 1.62. The total asset ratio has decreased by 16.46% in the year 2008-09, and decreased by 11.33% in the year 2009-10 and decreased by 16.11% in the year 2010-11 and increased by7.28% in the year 2011-12.
INTERPRETATION: - : As per the total asset to debt ratio is concern ratio between asset & long term debt is consisdered. In the ratio total asset more than long term debt. So here company total asset is high in 2009-10 but company can’t maintain that so improve that point is actually it is good.
1.8 Fixed Assets Turnover Ratio Net Sales Net Block of Fixed Asset YEAR
NET
FIXED
SALES
ASSETS
RATIO
2006-07
17,851.61 21,681.45
0.823359
2007-08
25,761.11 21,781.73
1.182693
2008-09
34,048.32 27,580.03
1.234528
2009-10
35,609.54 29,619.70
1.202225
2010-11
38,017.70 47,179.90
0.805803
2011-12
41,603.80 44,907.30
0.926437
2012-13
45,350.90 44,213.40
1.025727
2013-14
49,918.50 41,122.40
1.2139
2014-15
55,496.40 62,511.30
0.887782
2015-16
60,300.20 95,611.10
0.630682
2016-17
62,276.30 1,21,123.00
0.514158
ANALYSIS: - The fixed asset turnover ratio of the company for the year 2007-08 is 0.82, 2008-09 is 1.18, and 2009-10 is 1.23, 2010-11 is 1.20, and 2011-12 is 0.80. The fixed asset turnover ratio has increased by 43.90% in the year 2008-09, and increased by 4.23% in the year 2009-10 and decreased by 2.43% in the year 2010-11 and decreased by 33.33% in the year 2011-12.
INTERPRETATION: - Ratio measures a company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues. Here the company’s decline the use of the asset continues decline. This is not good for the company.
1.8 Working Capital Turnover Ratio Net Sales Working Capital
YEAR
NET
WORKING
RATIO
SALES
CAPITAL
2006-07
17,851.61
-5,803.18
-3.07618
2007-08
25,761.11
-6,339.38
-4.06366
2008-09
34,048.32
-4,951.75
-6.87602
2009-10
35,609.54
-4,285.90
-8.30853
2010-11
38,017.70
-11,550.80
-3.29135
2011-12
41,603.80
-5,121.10
-8.124
2012-13
45,350.90
-13,221.90
-3.42998
2013-14
49,918.50
-12,369.20
-4.03571
2014-15
55,496.40
-8,295.10
-6.69026
2015-16
60,300.20
-16,486.10
-3.65764
2016-17
62,276.30
-17,249.50
-3.61032
ANALYSIS: - The working capital turnover ratio of the company for the year 2007-08 is -3.07, 2008-09 is 4.06, and 2009-10 is -6.87, 2010-11 is -8.30, and 2011-12 is 3.29. The working capital turnover ratio has decreased by 32.24% in the year 2008-09, and decreased by 69.21% in the year 2009-10 and again decreased by 22.05% in the year 2010-11 and increased by 61.44% in the year 2011-12.
INTERPRETATION: - The working capital turnover ratio concern to increasing ratio indicates that working capital is more active; it is supporting, comparatively, higher level of production and sales; it is being used more intensively. Here company is not performing well due to negative working capital. This is not good for company
1.9 PBDIT Ratio PBDIT Net Sales
YEAR
PBDIT
NET
x 100
RATIO
SALES 2006-07
7149.57
17,851.61 40.05
2007-08
10319.9
25,761.11 40.06
2008-09
11532.17 34,048.32 33.87
2009-10
14660.45 35,609.54 41.17
2010-11
13659.76 38,017.70 35.93
2011-12
14265.94 41,603.80 34.29
2012-13
14929.52 45,350.90 32.92
2013-14
17152
2014-15
24623.75 55,496.40 44.37
2015-16
23818.58 60,300.20 39.5
2016-17
23876.73 62,276.30 38.34
49,918.50 34.36
ANALYSIS: The PBDIT ratio of the company for the year 2007-08 is 40.05%, 2008-09 is 40.06%, and 200910 is 33.87%, 2010-11 is 41.17%, and 2011-12 is 35.53%. The PBDIT ratio has decreased by 15.45% in the year 2009-10 and increased by 21.55% in the year 2010-11 and decreased by 12.72% in the year 2011-12 and again decreased by 4.56% in the year 2012-13.
INTERPRETATION: Financial metric used to assess a company's profitability by comparing its revenue with earnings. More specifically, since PBDIT is derived from revenue, this metric would indicate the percentage of a company is remaining after operating expenses. Here high ratio indicate good position in market this is good for company
1.10 PBIT or Operating Profit Ratio PBIT Net Sales
YEAR
PBIT
NET
x 100
RATIO
SALES 2006-07
4796.728 17,851.61 26.87
2007-08
7153.86
2008-09
8328.219 34,048.32 24.46
2009-10
10768.32 35,609.54 30.24
2010-11
9048.213 38,017.70 23.8
2011-12
8349.883 41,603.80 20.07
2012-13
8104.206 45,350.90 17.87
2013-14
9918.806 49,918.50 19.87
2014-15
17059.59 55,496.40 30.74
2015-16
14273.06 60,300.20 23.67
2016-17
11670.58 62,276.30 18.74
25,761.11 27.77
ANALYSIS: The PBIT ratio of the company for the year 2007-08 is 26.87%, 2008-09 is 27.77%, and 200910 is 24.46%, 2010-11 is 30.24%, and 2011-12 is 23.80%. The PBIT ratio has decreased by 11.91% in the year 2009-10, and increased by 23.63% in the year 2010-11, decreased by 21.29% in the year 2011-12 and decreased by 15.67% in the year 2012-13
INTERPRETATION: As per as ratio is concern a higher operating margin means that the company has less financial risk. Here company has average high ratio so the company is a good position.
1.11 PBT Ratio PBT Net Sales
YEAR
PBT
NET
x 100
RATIO
SALES 2006-07
4589.649 17,851.61 25.71
2007-08
6934.891 25,761.11 26.92
2008-09
8110.31
2009-10
10654.37 35,609.54 29.92
2010-11
8725.062 38,017.70 22.95
2011-12
6956.155 41,603.80 16.72
2012-13
6453.433 45,350.90 14.23
2013-14
8376.324 49,918.50 16.78
2014-15
15649.98 55,496.40 28.2
2015-16
10033.95 60,300.20 16.64
2016-17
-8506.94
34,048.32 23.82
62,276.30 -13.66
ANALYSIS: The PBIT ratio of the company for the year 2007-08 is 25.71%, 2008-09 is 26.92%, and 200910 is 23.82%, 2010-11 is 29.92% and 2011-12 is 22.95%. The PBT ratio has decreased by 11.51% in the year 2009-10, and increased by 25.60% in the year 2010-11 and again decreased by 23.29% in the year 2011-12 and decreased by 27.18% in the year 2012-13.
INTERPRETATION: As per as ratio is concern a higher interest margin means that the company has less financial risk. Here company has average high ratio so the company is a good position.
1.12 Net Profit Ratio Net Profit Net Sales
YEAR
NET
NET
PROFIT
SALES
x 100
RATIO
2006-07
4032.679 17,851.61 22.59
2007-08
6241.917 25,761.11 24.23
2008-09
7742.588 34,048.32 22.74
2009-10
9425.845 35,609.54 26.47
2010-11
7713.791 38,017.70 20.29
2011-12
5728.843 41,603.80 13.77
2012-13
5092.906 45,350.90 11.23
2013-14
6599.226 49,918.50 13.22
2014-15
13197.04 55,496.40 23.78
2015-16
7543.555 60,300.20 12.51
2016-17
-9920.61
62,276.30 -15.93
ANALYSIS: The net profit ratio of the company for the year 2007-08 is 22.59%, 2008-09 is 24.23%, and 2009-10 is 22.74%, 2010-11 is 26.47% and 2011-12 is 20.29%. The net profit ratio has decreased by 6.09% in the year 2009-10, and increased by 16.40% in the year 2010-11 and decreased by 23.34% in the year 2011-12 and decreased by 32.13% in the year 2012-13.
INTERPRETATION: This ratio is a measure of the overall profitability net profit is arrived at after taking into accounts both the operating and non-operating items of incomes and expenses. The ratio indicates what portion of the net sales is left for the owners after all expenses have been met. Here the company high profit in year 2009-10 then decline. This is not good for company. Company should be maintaining the NP ratio
1.13 Price Earnings Ratio Market Price of a Share Earnings per Share
YEAR
Earnings Share
Market Price of a Share
per RATIO(%)
2006-07
709
21.27
33.33333
2007-08
822.5
32.9
25
2008-09
582.7143
40.79
14.28571
2009-10
310.25
24.82
12.5
2010-11
338.6667
20.32
16.66667
2011-12
377.25
15.09
25
2012-13
268.4
13.42
20
2013-14
333.8
16.69
20
2014-15
412.75
33.02
12.5
2015-16
377.6
18.88
20
2016-17
354.8571
-24.84
-14.2857
ANALYSIS: The net profit ratio of the company for the year 2007-08 is 33.33, 2008-09 is 25, and 2009-10 is 14.28, 2010-11 is 12.05 and 2011-12 is 16.67. The net profit ratio has decreased by 24.99% in the year 2008-09, and decreased by 42.88% in the year 2009-10 and decreased by 12.46% in the year 2010-11 and again increased by 33.36%
INTERPRETATION: The P/E looks at the relationship between the stock price and the company’s earnings. Here the company has a high P/E ratio in last year it suggests that stock is undervalued and investor can earn from it.
2. VERTICAL ANALYSIS Profit & Loss Statement INCOME Revenue From Operations [Gross] Revenue From Operations [Net] Total Operating Revenues Other Income Total Revenue EXPENSES Purchase Of Stock-In Trade Operating And Direct Expenses Employee Benefit Expenses Finance Costs Depreciation And Amortisation Expenses Other Expenses Total Expenses Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax Exceptional Items Profit/Loss Before Tax Tax Expenses-Continued Operations Current Tax Less: MAT Credit Entitlement Deferred Tax Tax For Earlier Years Total Tax Expenses Profit/Loss After Tax And Before ExtraOrdinary Items Profit/Loss From Continuing Operations Profit/Loss For The Period
2016-17 62,276.30 62,276.30 62,276.30 184.30 62,460.60
% 99.70 99.70 99.70 0.30 100
2015-16 60,300.20 60,300.20 60,300.20 1,485.60 61,785.80
% 97.59 97.59 97.59 2.41 100
2014-15 55,496.40 55,496.40 55,496.40 5,193.00 60,689.40
% 91.44 91.44 91.44 8.56 100
0.00 0 29,528.10 54.98 1,738.50 3.23 2,912.50 5.42 22.72 12,203.40
51.60 15,074.70 1,869.30 3,559.00
0.10 29.51 3.66 6.96 18.68
71.40 14,602.50 1,691.50 1,409.10
0.15 32.42 3.75 3.12 16.78
7,316.80 13.62 53,699.30 100
20,968.40 41.03 51,066.10 100
19,699.90 45,034.10
8,761.30
10,719.70
15,655.30
-17,270.80
-679.90
0.00
-8,509.50
10,039.80
15,655.30
9.50 121.80 1,867.30 -338.90 1,416.10
2,050.10 1,763.10 2,206.30 0.00 2,493.30
3,109.20 779.00 124.60 0.00 2,454.80
-9,925.60
7,546.50
13,200.50
-9,925.60
7,546.50
13,200.50
-9,925.60
7,546.50
13,200.50
9,543.10
7,559.70
43.74 100
Balance Sheet EQUITIES AND LIABILITIES SHAREHOLDER'S FUNDS Equity Share Capital Total Share Capital Revaluation Reserves Reserves and Surplus Total Reserves and Surplus Total Shareholders Funds NON-CURRENT LIABILITIES Long Term Borrowings Deferred Tax Liabilities [Net] Other Long Term Liabilities Long Term Provisions Total Non-Current Liabilities CURRENT LIABILITIES Short Term Borrowings Trade Payables Other Current Liabilities Short Term Provisions Total Current Liabilities Total Capital And Liabilities ASSETS NON-CURRENT ASSETS Tangible Assets Intangible Assets Capital Work-In-Progress Intangible Assets Under Development Fixed Assets Non-Current Investments Deferred Tax Assets [Net] Long Term Loans And Advances Other Non-Current Assets Total Non-Current Assets CURRENT ASSETS Current Investments Inventories Trade Receivables Cash And Cash Equivalents Short Term Loans And Advances OtherCurrentAssets Total Current Assets Total Assets
2016-17
%
2015-16
%
2014-15
%
1,998.70 1.04 1,998.70 1.04 0.00 0 99,208.60 52.01 99,208.60 52.01 101,207.30 53.05
1,998.70 1,998.70 2.10 82,446.00 82,448.10 84,446.80
1.23 1.23 0 50.91 50.91 52.14
1,998.70 1,998.70 2.10 76,272.10 76,274.20 78,272.90
1.58 1.58 0.001 60.33 60.33 61.91
50,342.10 26.39 0.00 0 4,038.80 2.11 233.00 0.12 54,613.90 28.63
41,700.20 3,278.40 4,395.40 226.20 49,600.20
25.75 2.02 2.71 0.13 30.60
19,626.70 1,072.10 4,203.60 196.90 25,099.30
15.52 0.84 3.32 0.15 19.8
6,547.80 3.43 20,536.90 10.76 7,706.60 4.04 129.10 0.06 34,920.40 18.30 190,741.60 100
699.90 7,058.80 19,360.40 772.70 27,891.80 161,938.80
0.40 4.35 11.95 0.47 17.22 100
625.90 7,123.20 14,067.50 1,234.90 23,051.50 126,423.70
0.49 5.63 11.12 0.97 18.23 100
38,117.60 73,405.20 1,181.80 8,418.40 121,123.00 45,959.00 887.50 1,115.80 3,985.40 173,070.70
19.98 31.48 0.61 4.41 63.50 24.09 0.46 0.58 2.08 90.73
31,156.30 60,658.20 2,825.10 971.50 95,611.10 43,026.10 0.00 9,347.00 2,548.90 150,533.10
19.23 37.45 1.74 0.59 59.04 26.56 0 5.77 1.57 92.95
25,655.20 27,789.20 2,656.10 6,410.80 62,511.30 38,395.80 0.00 8,838.10 1,922.10 111,667.30
20.29 21.98 2.10 5.70 49.4 30.33 0 6.99 1.52 88.32
0.00 0 3.90 0.002 3,211.80 1.68 108.70 0.05 9,678.40 5.07 4,668.10 2.44 17,670.90 9.26 190,741.60 100
0.80 5.30 3,793.00 52.10 6,842.90 711.60 11,405.70 161,938.80
0.0004 0.003 2.34 0.032 4.22 0.43 7.04 100
4,721.10 9.40 3,311.00 388.70 5,394.20 932.00 14,756.40 126,423.70
3.73 0.007 2.61 0.30 4.22 0.73 11.60 100
ANALYSIS & INTERPRETATION:
1. As compared to sales the other expense cover 47.27% & 24.39% respectively for 2017-18 & 2016-17. cover the large amount of revenue so that’s not good for the company and mostly affected the company performance.
2. Hear that profitability of company‘s performance that shows as per profit before tax as compared to sale is -1.37 & 16.24% respectively 2017-18 & 2017-16 that shows that company profit margin is low which is not good for the company as well as investor.
3. According to reserve & surplus is 75.37% & 74.78% respectably to 2010-11 & 2011-12. That’s show that company is not maximize use of their funds in implication is not proper manner.
4. Company fixed asset is very high i.e. 63.5% & 59.04% respectively 2017-18 & 2016-17 it shows that company bare low fix cost during operation that is good for the company.
5. As camper the total asset to investment that 24.09 % & 26.56 % respectively in 2017-18 & 2016-17 hear the company sales there in current year by same proportion this not good for the company. Overall performance of the company could be better in next year that by increasing performance of sale and cost which should be improving.
3. HORIZONTAL ANALYSIS:
INCOME
2016-17
2015-16
(INCREASE/DECREASE) % CHANGE
Revenue From Operations [Gross] Revenue From Operations [Net] Total Operating Revenues Other Income
62,276.30
60,300.20
1,976.10
3%
62,276.30
60,300.20
1,976.10
3%
62,276.30
60,300.20
1,976.10
3%
184.3
1,485.60
-1,301.30
-88%
Total Revenue
62,460.60
61,785.80
674.80
1%
0.00
51.6
-51.60
-100%
29,528.10
15,074.70
14,453.40
96%
1,738.50
1,869.30
-130.80
-7%
2,912.50
3,559.00
-646.50
-18%
12,203.40
9,543.10
2,660.30
28%
7,316.80
20,968.40
-13,651.60
-65%
53,699.30
51,066.10
2,633.20
5%
8,761.30
10,719.70
-1,958.40
-18%
-17,270.80
-679.9
-16,590.90
2440%
-8,509.50
10,039.80
-18,549.30
-185%
9.5
2,050.10
-2,040.60
-100%
EXPENSES Purchase Of Stock-In Trade Operating And Direct Expenses Employee Benefit Expenses Finance Costs Depreciation And Amortisation Expenses Other Expenses Total Expenses Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax Exceptional Items Profit/Loss Before Tax Tax ExpensesContinued Operations Current Tax
Less: MAT Credit Entitlement Deferred Tax Tax for Earlier Years Total Tax Expenses Profit/Loss After Tax and Before Extraordinary Items Profit/Loss from Continuing Operations Profit/Loss For The Period
121.8
1,763.10
-1,641.30
-93%
1,867.30
2,206.30
-339.00
-15%
-338.9
0.00
-338.90
-33890%
1,416.10
2,493.30
-1,077.20
-43%
-9,925.60
7,546.50
-17,472.10
-232%
-9,925.60
7,546.50
-17,472.10
-232%
-9,925.60
7,546.50
-17,472.10
-232%
INCOME
2015-16
2014-15
Revenue From Operations [Gross] Revenue From Operations [Net] Total Operating Revenues Other Income
60,300.20
1,485.60
Total Revenue
61,785.80
EXPENSES Purchase Of Stock-In Trade Operating And Direct Expenses Employee Benefit Expenses Finance Costs Depreciation And Amortisation Expenses Other Expenses Total Expenses
(INCREASE/DECREASE) % CHANGE 4803.8
8.65%
4803.8
8.65%
4803.8
8.65%
5,193.00
-3708
-71.4%
60,689.40
1096
1.80%
-19.8
-27.7%
472
3.23%
178
10.5%
2105
149.3%
1984
26.2%
1269
6.44%
6032
13.39%
55,496.40 60,300.20 55,496.40 60,300.20 55,496.40
51.6
71.40
15,074.70 14,602.50 1,869.30 1,691.50 3,559.00
1,409.10
9,543.10 7,559.70 20,968.40 51,066.10
19,699.90 45,034.10
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax Exceptional Items Profit/Loss Before Tax Tax ExpensesContinued Operations Current Tax Less: MAT Credit Entitlement Deferred Tax Tax for Earlier Years Total Tax Expenses Profit/Loss After Tax and Before Extraordinary Items Profit/Loss from Continuing Operations Profit/Loss For The Period
10,719.70
-4936
-31.5%
-679
-679%
-5616
-55.94%
1059
34.06%
984
126.33%
2082
1679.03%
15,655.30
-679.9
0.00
10,039.80 15,655.30
2,050.10
3,109.20
1,763.10 779.00 2,206.30 0.00 2,493.30
124.60 0.00 2,454.80
7,546.50
0 39
1.58%
-56
0.42%
-56
0.42%
-56
0.42%
13,200.50
7,546.50 13,200.50 7,546.50
13,200.50
ANALYSIS & INTERPRETATION:
1. Net sales growth by 3% 2. Increase in expenses like operating and direct expenses by 13.23% this is very high to camper to sales growth so it is not good for the company. 3. Depreciation & Amortization even increase by 28.28% that shows that company noncash charges increase not well for the company. 4.
Interest Expenses is decline by 76.95% this is good for the company.
5. Decline in income tax by 15.99% due to low profit margin. This is not good for company. 6. Decline in PAT by 232% is not good for company.
5.TREND ANALYSIS
SALES
62,276.30
60,300.20
55,496.40
49,918.50
45,350.90
Index
1.37
1.33
1.22
1.10
1.00
PBDIT
8,761.30
10,719.70
15,655.30
8,584.50
6,454.80
Index
1.36
1.66
2.43
1.33
1.00
PBT
-8,509.50
10,039.80
15,655.30
8,377.40
6,454.80
Index
-1.32
1.56
2.43
1.30
1.00
PAT
-9,925.60
7,546.50
13,200.50
6,600.20
5,096.30
Index
-1.95
1.48
2.59
1.30
1.00
SHARE
1,01,207.30
84,446.80
78,272.90
66,728.00
54,146.20
Index
1.87
1.56
1.45
1.23
1.00
TOTAL DEBT
54,613.90
49,600.20
5,099.30
12,368.10
14,311.30
Index
3.82
3.47
1.75
0.86
1.00
NET
17,670.90
11,405.70
14,756.40
6,738.80
6,203.80
Index
2.85
1.84
2.38
1.09
1.00
TOTAL
1,90,741.60
1,61,938.80
1,26,423.70
98,204.10
87,883.20
2.17
1.84
1.44
1.12
1.00
HOLDERS
CURRENT ASSETS
ASSETS/TOTA L LIABILITY Index
ANALYSIS & INTERPRETATION: 1. In sale continuously increase. This is good performance of the company that is currently company is market leader in telecom industry. 2.
As per as profit after tax is concern high profit sow the high performance of the company hear the company 2009-10 is very high but company should be maintain that profitability.
3. Share holders fund continuous up by creating the good image in the market that’s shows the goodwill of the company. 4.
Total debt of the company is in year 2009-10 is very low as camper the base year of 2007-08 this is good for company but in year 2011-12 is very high so that not maintain by the company.
5. net current asset of the company is in negative that not good for the company
Total asset/ total liability of the company is continues increasing that shows that turnover year by year that’s good for the company.
CONCLUSION The company has been doing their activity effectively and efficiently. The company has a sound long term solvency. The company can rise from the financial crush it is in right now by taking proper steps to increase its sales of production and to minimize cost by maximize utilization of resources. A already known there is a thin line between profitability and liquidity and the company lost two years made a profit has very low and another two making better profit. This shows the company in a good position and the management of the company has much as better so that does way maintain the market leadership.
