Evaluation of Performance

Appraisal of Infrastructural
Industry- A Comparative
Study.

By
Kunal Bose
 Introduction
 Indian Construction Industry is one of
the fastest growing Construction
Industry Internationally and the
second largest employer in India.
 In India Construction has accounted
for around 40 percent of the
development investment during
the past 50 years. It contributes
more than 5 percent to the
nation’s GDP and 78 percent to
the gross capital formation.
 Objective of study.
 It is an attempt to understand
performance of Senbo Engineering
Limited by making a comparison of its
financial and non financial
performance within the industry.

 3CI analysis
 Company- Senbo- “Today’s Challenges And Tomorrows Vision”
was incorporated in 13th July 1990. Later on 1st July
1995 it was converted into a Deemed Public Limited
Company and subsequently converted into Public
Limited Company on 13th April 2005, which is now
known as Senbo Engineering Limited.
 Competitor- Larsen & Turbo, TANTIA, Gamon India,
Simplex Infrastructure Limited, Punj Lloyd, Unitech
etc.
 Clients- Hooghly River Bridge Commissioners ,
DMRC, West Bengal Transport Infrastructure
Development Corporation Ltd, RITES Limited,
Kolkata Project Office, etc.
 Industry-


 Methodology- The methodology of the project is
primarily based on in-house data and secondary data
collected from different sources


 Components of performance appraisal.

 Sales
 Profit
 Operating Expenses
 Capital Employed
 Working Capital
 ROA

 Analysis
Comparision Chart of companies(March 2006)
Headings Senbo Engg TANTIA Gamon Simplex
Ltd. Infrastructure Ltd

Sales (in cr.) 131.88 162.29 1485.09 1344.58

Profit (in cr.) 29.38 8.44 102.84 41.64
Operating 45.12 144.6 797.78 1226.47
Expences (in cr)

Return on assets(in 44.08 11.69 1.28 17.01

%)

Capital 47.25 120.8 724.1 97.6

Emploted(in cr.)

Working Capital (in 38.25 95.14 347.91 468.04

cr)

Comparision chart of companies ( March 2007 )

Headings Senbo TANTIA Gamon Simplex
Engg Infrastructu
Ltd . re Ltd
Sales ( in 68 . 96 246 . 03 1851 . 69 1710 . 96
cr .)
Profit ( in 5 . 15 13 . 14 98 . 36 53 . 71
cr .)
Operating 77 . 77 217 1055 . 59 773 . 91
Expences
( in cr )
Return on 9 . 79 12 . 45 84 . 12 16 . 86
assets ( in
%)
Capital 72 . 75 185 . 45 978 . 9 238 . 99
Emploted ( in
cr .)
Working 44 . 89 124 . 94 277 . 42 826 . 84
Capital ( in
cr )
 Cont….. comparision chart of the companies ( March 2008 )
Headings Senbo TANTIA Gamon Simplex
Engg Ltd . Infrastructur
e Ltd
Sales ( in cr .) 150 . 11 362 . 31 2340 . 84 2835 . 82
Profit ( in cr .) 7 . 02 15 . 39 197 . 71 90 . 8
Operating 122 . 99 319 . 18 2210 . 17 2653 . 38
Expences ( in cr )

Return on 7 . 27 11 . 69 18 . 11 19 . 46
assets ( in %)
Capital 128 . 82 319 . 65 1190 . 61 155 . 55
Emploted ( in cr .)
Working Capital 82 . 39 195 . 43 399 . 16 838 . 84
( in cr )

Comparision cahrt of Companies ( March 2009 )

Headings Senbo TANTIA Gamon Simplex  
Engg Infrastructu
Ltd . re Ltd
Sales ( in cr .) 199 . 01 449 . 45 19058 . 4 13875 . 6  
Profit ( in 15 . 13 17 . 26 300 . 4 120 . 8  
cr .)
Operating 284 . 63 404 . 81 3327 . 47 4266 . 63  
Expences ( in
cr )
Return on 11 % 14 . 39 % 16 . 11 % 19 . 89 %  
assets ( in %)
Capital 138 . 19 364 . 29 1542 . 7 2088 . 82  
Emploted ( in
cr .)
Working 94 . 17 218 . 89 559 . 29 1087 . 4  
Capital ( in
cr )
Ratio Analysis..
Current ratio comparison

Headings 2005 - 2006 - 2007 - 2008 -

2006 2007 2008 2009

Senbo Engineering 2 . 23 2 . 57 2 . 18 1 . 76
Ltd .
TANTIA 1 . 36 0 . 98 0 . 74 0 . 82

Gamon India 2 . 05 1 . 82 1 . 58 1 . 69

Simplex 1 . 96 1 . 69 1 . 64 1 . 58
Infrastructure Ltd .

Current Assets
Current Ratio =
Current Liabilities
Cont….
Return on investment

Headings 2005 - 2006 - 2007 - 2008 -

2006 2007 2008 2009

Senbo Engineering 0 . 92 5.2 3 . 58 6 . 26

Ltd .
TANTIA 6 . 99 7 . 13 4 . 81 4 . 74

Gamon India 14 . 2 10 . 05 16 . 6 19 . 47

Simplex 42 . 66 22 . 47 58 . 37 5 . 78
Infrastructure Ltd .

Operating Profit X 100

ROI = Average Capital Employed
 Findings
 Well managed net profit throughout the
period.
 Rate of Capital Employed is not
Attractive.
 Current Ratio is around 2.
 Lack of new projects.
 Employees skills are not totally
employed.
 Recommendation
 Since the net profit margin is good and its
assets turnover ratio is not that good so
it is necessary to get an increase in
overall return.
 reducing the inventory level and at the
same time increasing the cash will be
help it to improve its performance in
liquidity management.
 like its competitors it can also go for some
other projects besides its current
activities.