FINANCIAL HIGHLIGHTS

FY 07-08
A

FY 08-09
A

FY 09-10
A

FY 10-11
A

Revenues (INR Crores)

326

402

509

764

Gross Margin

36%

35%

39%

38%

EBITDA Margin

11%

9%

16%

16%

Operating Margin

6%

7%

14%

15%

Net Profit Margin

Important Ratios:

6%

6%

10%

11%

ROCE (EBIT/Average Capital Employed)

28%

31%

66%

76%

ROA (PAT/Average Total Assets)

18%

20%

45%

52%

Debt-Equity Ratio

0.7

0.2

0.0

0.0

Current Ratio (Current Assets/Current Liabilities)

1.8

1.5

1.4

1.4

Interest Coverage Ratio (EBIT/Interest Charges)

4.2

6.1

67.1

161.6

Net Profit Margin (A)

6%

6%

10%

11%

Asset Turnover (Sales/Total Assets) (B)

2.8

3.8

4.0

3.9

P&L Highlights:

Dupont Analysis:

Equity Multiplier (Debt-Equity Ratio+1) (C)

1.7

1.2

1.0

1.0

30%

27%

42%

44%

Days of Accounts Receivable (D)

44

39

32

Days of Inventory (E)

91

76

74

Days of Loans & Advances

18

24

29

Days of Accounts Payable (F)

52

55

55

Cash Conversion Cycle [D+E-F]

82

61

51

ROE [A*B*C]
Working Capital Highlights:

GHTS
FY 11-12
A

FY 12-13
E

FY 13-14
E

FY 14-15
E

FY 15-16
E

FY 16-17
E

FY 17-18
E

1,104

1,381

1,729

2,169

2,725

3,430

4,323

36%

36%

37%

37%

37%

38%

38%

16%

16%

17%

17%

18%

18%

19%

15%

14%

14%

15%

16%

17%

17%

10%

10%

9%

10%

11%

12%

12%

68%

57%

51%

51%

51%

51%

48%

46%

38%

34%

34%

35%

34%

32%

0.1

0.0

0.0

0.0

0.0

0.0

0.0

1.2

1.2

1.3

1.7

1.9

1.9

2.0

30.1

50.3

101.5

428.5

#DIV/0!

#DIV/0!

#DIV/0!

10%

10%

9%

10%

11%

12%

12%

3.7

3.4

3.2

3.0

2.8

2.5

2.4

1.1

1.0

1.0

1.0

1.0

1.0

1.0

40%

34%

31%

30%

30%

30%

28%

30

31

30

30

30

30

30

82

80

70

70

70

70

70

37

34

24

19

15

12

10

51

51

48

48

48

48

48

61

60

52

52

52

52

52

FINANCIAL MODEL ASSUMPTIONS

INR in Crores
CAGR since FY08
P&L Assumptions
A
B
C
D
Revenue Growth (annual % increase)

36%

Other Income (INR Crs)

Cost of Goods Sold (% of Sales)
Direct Labour (% increase y-o-y)

28%

Power and Fuel (as % of Sales)

Other Manufacturing Expenses (% increase y-o-y)
Selling, General and Administrative Costs (decrease every yr of % of Sales)
Effective Income Tax Rate
Dividend (as % of Face Value)
Dividend Tax Rate
Balance Sheet Assumptions
Equity Share Capital Additions
Increase in No. of Shares (in lacs)
Long Term Loan Additions
Long Term Loan Repayments
Interest on Existing Long Term Loans
Fixed Assets Gross Block Additions
Depreciation
Days of Inventory
Days of Accounts Receivables
Days of Loans & Advances
Days of Accounts Payables
Other Current Liabilities (As % of Sundry Creditors)
Current Liabilities- Provisions (As % of PAT)

15%
0.25%

Back to Index

PTIONS
FY08

FY 12-13
E

FY 13-14
E

FY 14-15
E

FY 15-16
E

FY 16-17
E

FY 17-18
E

27%

25%

25%

25%

25%

25%

6%

15%

15%

15%

15%

15%

29%

30%

30%

30%

30%

30%

73%

20%

20%

20%

20%

20%

25%

25%

25%

26%

26%

26%

56%

56%

56%

56%

56%

56%

19%

19%

19%

19%

19%

19%

0.8%

0.8%

0.8%

0.8%

0.8%

0.8%

10%

10%

10%

10%

10%

10%

20.12%

19.9%

19.6%

19.4%

19.1%

18.9%

32%

32%

32%

32%

32%

32%

175%

200%

225%

250%

275%

300%

16%

16%

16%

16%

16%

16%

5.0

###

5.0

2.3

32.9%

32.9%

32.9%

200

100

200

100

15%

15%

15%

15%

15%

15%

78

78

78

78

78

78

34

34

34

34

34

34

30

30

30

30

30

30

54

54

54

54

54

54

109%

109%

109%

109%

109%

109%

110%

110%

110%

110%

110%

110%

GROWTH PLAN
INR in Crores
Rate
With Growth Plan? (Yes: 1; No: 0)
Market Size
India Population (millions)
No. of persons per household
No. of households (millions)
Rural Households
Rural Households without Z
Rural Households that can afford Z
Cost of Z
Market Size (INR Crores)
Penetration
Units sold

0
1.10%
5
70%
80%
50%
3500

Revenues (INR Crores)

Assumption: EBITDA Margins for Refrigerator division same as existing business
Sources of Funds
Equity infusion (INR Crores)
Valuation per share for deal (INR)
No. of shares issued to investor
Uses of Funds
Operating Expenses:
Market Surveys
Supply Chain Setup
Product Development
Prototyping
Total Operating Expenses:
Capital Expenditure:
Manufacturing Facility + Other Capex
Total

PLAN
FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
E
E
E
E
E
E

1250

1264

1278

1292

1306

1320

250
175
140
70

253
177
142
71

256
179
143
72

258
181
145
72

261
183
146
73

264
185
148
74

24500
0%
0

24770
0%
0

25042
0.10%
71,548

25317
2.00%
###

25596
5.00%
###

25877
10.00%
###

275

3186.90
862907

25
15
25
10
75
200
275

PROFIT & LOSS STATEMENT

INR in Crores
Revenues:
(A) SALES

FY 07-08
A

FY 08-09
A

FY 09-10
A

FY 10-11
A

326

402

509

764

24%

26%

50%

Growth
Other Non Operating Income
(B) TOTAL REVENUES

330

403

513

766

Direct Costs:
Cost of Goods Sold

180

as % of Sales

55%

224
56%

Direct Labour

27

as % of Sales

8%

as % of Sales

0.8%

as % of Sales

0.9%

Sub-Total of Direct Costs

GROSS MARGIN
Gross Margin (%)

117
36%

as % of Sales

81
24.9%

EBITDA
EBITDA Margin (%)

140
35%

Selling, General & Administrative Expenses

102

11.1%

Depreciation

292

119

167
21.8%

80

125
16.4%

10%

32

35

As % of Loans Outstanding

474

38%

15.8%

11%

Interest

199

23.4%

9.5%

As % of previous yr's Net Block

EBIT

314

38

4
0.5%

39%

25.4%

36

3
0.7%

262

6
0.8%

3
0.7%

213

5
1.0%

53
7%

4
1.1%

Other Manufacturing Expenses

39
8%

411
54%

31
8%

Power & Fuel

266
52%

16%

11%
77

6
27%

121

1
41%

1
33%

(C) TOTAL EXPENSES

306

374

438

646

(D) OPERATING PROFIT [A-C]

20

28

71

118

OPERATING PROFIT margin (%)

6.1%

(E) PROFIT BEFORE TAX [D+Other Income]

Net Profit Margin (%)

14.0%

15.5%

24

29

75

120

23

37

21

22

52

84

Tax
PROFIT AFTER TAX

7.1%

6.3%

5.6%

10.2%

10.9%

Divident as % of Face Value

35%

50%

100%

125%

Dividend

11

14

Dividend Tax

RETAINED EARNINGS

16

16

39

67

Shares in Issue (Lacs)

113

113

113

113

Earnings per Share (Rs.)

18

20

46

74

Face Value

10

10

10

10

EMENT
FY 11-12
A

FY 12-13
E

FY 13-14
E

FY 14-15
E

FY 15-16
E

FY 16-17
E

FY 17-18
E

1,104

1,381

1,729

2,169

2,725

3,430

4,323

45%

25%

25%

25%

26%

26%

26%

1,107

1,384

1,732

2,172

2,728

3,433

4,326

621
56%

776
56%

73
7%

87
6%

8
0.7%
0.4%

0.4%

707
400
36%

881
503

225

175
15.8%

1,097
635

278

225
16.3%

1,369
803

344

292
16.9%

1,711
1,017

425

528

378
17.4%

18.0%

8.9
0.2%

2,143
1,290

2,688
1,638
38%

656
19.1%

489

36.3
0.8%

8.1

38%

19.4%

212
5%

28.8

0.2%

37%

19.6%

178

0.8%

7.3

2,431
56%

5%

22.9

0.3%

37%

19.9%

149

0.8%

6.6

1,928
56%

5%

18.2

0.3%

37%

20.1%

124

0.8%

6.0

1,532
56%

6%

14.5

0.3%

36%

20.4%

104

0.8%

5.4

1,219
56%

6%

11.6
0.8%

972
56%

816
18.9%

634
18.5%

822
19.0%

6
6
15%

22
15%

169

15%

203

6
32%

49
15%

243

4
33%

56
15%

321

2
33%

48
15%

441

1
33%

41
15%

593

0
#DIV/0!

65
758

0
#DIV/0!

0
#DIV/0!

944

1,185

1,492

1,851

2,287

2,839

3,568

161

196

237

317

438

590

755

14.6%

14.2%

13.7%

14.6%

16.1%

17.2%

17.5%

163

199

240

320

441

593

758

50

64

77

103

141

190

242

113

135

164

218

300

403

515

10.2%

9.8%

9.4%

10.0%

11.0%

11.8%

11.9%

150%

175%

200%

225%

250%

275%

300%

17

20

23

25

28

31

34

93

112

137

188

267

367

476

113

113

113

113

113

113

113

100

120

144

192

265

356

455

10

10

10

10

10

10

10

CASH FLOW STATEMENT

INR in Crores

FY 08-09
A

FY 09-10
A

FY 10-11
A

FY 11-12
A

FY 12-13
E

FY 13-14
E

FY 14-15
E

FY 15-16
E

FY 16-17
E

FY 17-18
E

22

52

84

113

135

164

218

300

403

515

Depreciation

22

49

56

48

41

65

Interest

32

57

89

121

162

215

275

348

444

580

(Increase) / Decrease in Inventories

10

(11)

(44)

(70)

10

(42)

(53)

(66)

(84)

(107)

(Increase) / Decrease in Sundry Debtors

(2)

(11)

(14)

(31)

(22)

(32)

(41)

(51)

(65)

(83)

(29)

(24)

51

(2)

18

25

27

13

29

36

46

58

74

Increase / (Decrease) in Provisions

28

34

58

31

59

89

113

122

Increase / (Decrease) in Other Current Liabilities

13

27

65

(12)

32

40

50

64

81

Sub-Total (B)

20

99

(7)

17

42

68

85

87

Cash Flow from Operating Activities [A+B]

51

65

93

221

155

232

317

416

530

667

(200)

(100)

(200)

(100)

CASH FLOW FROM OPERATING ACTIVITIES:

PAT
Adjustment for:

Sub-Total (A)

Adjustment for Working Capital:

(Increase) / Decrease in Other Current Assets

Increase / (Decrease) in Sundry Creditors

CASH FLOW FROM INVESTING ACTIVITIES:

Sale/(Purchase) of Fixed Assets
Sale/(Purchase) of Capital Work in Progress
Cash Flow from Investing Activities

(8)

(8)

(6)

(111)

(26)

(37)

(6)

(8)

(32)

(148)

87
(113)

(100)

(200)

(100)

CASH FLOW FROM FINANCING ACTIVITIES:

Increase in Share Capital

(26)

(18)

(1)

15

(5)

(5)

(5)

(2)

(5)

(21)

(36)

(64)

30

Interest

(6)

(1)

(1)

(6)

(4)

(2)

(1)

Dividends Paid

(7)

(13)

(16)

(20)

(23)

(26)

(30)

(33)

(36)

(39)

(44)

(54)

(53)

(75)

(2)

(34)

(35)

(35)

(36)

(39)

40

98

282

381

294

528

Increase / (Decrease) in Long Term Loans

(Increase) / Decrease in Loans & Advances

Cash Flow from Financing Activities

Net Increase / (Decrease) in Cash/Cash Equivalents

(2)

Opening Cash/Cash Equivalents

12

21

18

58

156

438

819

1,113

Closing Cash/Cash Equivalents

12

21

18

58

156

438

819

1,113

1,640

(0.1)

(0.0)

0.0

(0.0)

BALANCE SHEET
INR in Crores
As at: 31/3/2008 31/3/2009 31/3/2010 31/3/2011 31/3/2012 31/3/2013 31/3/2014 31/3/2015 31/3/2016 31/3/2017 31/3/2018
SOURCES OF FUNDS
Shareholders' Funds :
Share Capital
Retained Earnings + Other Reserves
Revaluation Reserves
Owned Funds

11

11

11

11

11

11

11

11

11

11

11

55

71

110

178

271

384

521

709

976

1,343

1,819

69

85

124

191

285

397

534

723

990

1,357

1,832

Loan Funds :
Long Term Loans

47

21

17

12

116

105

127

194

302

409

542

725

990

1,357

1,832

Gross Block

67

75

83

89

200

400

500

500

500

700

800

Less: Accumulated Depreciation

36

40

43

47

49

72

121

177

225

266

331

31

35

40

42

151

328

379

323

275

434

469

25

24

24

50

87

Inventories

61

50

61

105

175

165

207

259

325

410

Sundry Debtors

47

49

60

75

106

128

160

201

252

317

400

13

21

18

58

156

438

819

1,113

1,640

17

22

44

79

144

113

113

113

113

113

113

32

56

136

133

210

335

447

468

640

1,016

1,514

1,957

2,674

Sundry Creditors

33

31

49

74

101

114

143

179

225

283

357

Provisions

15

24

52

86

144

148

178

237

327

440

TOTAL SOURCES OF FUNDS

APPLICATION OF FUNDS
Fixed Assets:

Net block
Other Non-Current Assets incl. Capital WIP

Current Assets, Loans & Advances:

Cash and Bank Balances

Loans & Advances
Other Current Assets
Sub Total (A)

516

Less : Current Liabilities and Provisions:

As % of PAT

71%

Other Current Liabilities

As % of Sundry Creditors
Sub Total (B)
Net Current Assets [A-B]
TOTAL APPLICATION OF FUNDS
Check

106%
29

89%

99%

32
104%

103%
45

93%

127%

73
98%

109%

137
136%

109%

125
110%

109%

157
110%

109%

197
110%

109%

247
110%

561
109%

311
110%

392
110%

77

87

147

233

382

387

478

613

799

1,034

1,311

59

46

63

102

65

82

163

402

715

923

1,363

116

105

127

194

302

410

542

725

990

1,357

1,833

(0)

(0)

(0)

(0)

(0)

(0)

(0)

(0)

(0)

(0)

VALUATION
INR in Crores unless otherwise specified

FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18

E
E
E
E
E
E
0
1
2
3
4
5

Year
EBIT

203

Tax Rate

243

321

441

593

758

32%

Terminal Growth Rate

EBIT * (1-tax)

138

165

218

300

403

515

22

49

56

48

41

65

111

200

100

Increase in Net Working Capital

(23)

(17)

(42)

(68)

(85)

Free Cash Flow to Firm

175

226

206

216

430

Depreciation
Capital Expenditure

Terminal Value
Total Free Cash Flow to Firm

Cost of Debt
Pre-Tax Cost of Debt
Post-Tax Cost of Debt (Kd)

(87)

Cost of Equity

667

Risk Free Rate

8,843

Beta

9,510

Risk Premium

226

206

216

430

Discount Factor

0.89

0.78

0.69

0.62

0.54

Present Value of Free Cash Flow to Firm

200

162

150

264

5,179

Cost of Equity (Ke)

Debt : (Debt + Equity)
Equity : (Debt + Equity)

Enterprise Value (INR Crores)

5,955

Net Debt

5,956

Total No. of Shares as of 31/3/2012

###

Price per Share (INR)

5,261

Implied EBITDA Multiple

34.04

Implied Revenue Multiple

5.39
Enterprise Value:
5,955

Terminal Growth Rate

3%

4%

5%

6%

7%

6%

7%

6%

7%

11%
WACC

12%
13%
14%
15%

Equity Value:

Terminal Growth Rate

5,956

3%

4%

5%

11%
WACC

12%
13%
14%
15%

Price per Share:

Terminal Growth Rate

5,261
11%
WACC

SENSITIVITY ANALYSIS:

WACC (Kc)

(1)

Equity Value (INR Crores)

5.0%

WACC Calculation:

12%
13%
14%
15%

3%

4%

5%

14.0%
9.5%
8.5%
0.8
6.0%
13.3%
10%
90%
12.9%

OF ABC
INR in Crores

FY 12-13 FY 13-14 FY 14-15 FY 15-16

E
E
E
E
Quarterly Segment-wise Gross Revenues
FY10-11

Particulars
A
B
C
D
Total

FY11-12

413
223
455
32

525
237
587
55

1,123

1,405

406
219
447
31

516
233
578
54

645
268
751
65

806
309
976
78

1007
355
1269
94

1104

1,381

1,729

2,169

2,725

Y-o-y growth rates

A
B
C
D
Total
Quarterly Segment-wise Net R
Particulars
A
B
C
D
Total

FY 16-17 FY 17-18
E
E

1259
408
1650
113

1574
469
2144
135

3,430

4,323