FINAL PPT

PRESENTATION ON

SUMMER TRAINING REPORT

FINANCIAL ANALYSIS AND COMPARISON OF VARIOUS TELECOM INDUSTRIES WITH SPECIAL REFERENCE TO VIDEOCON TELECOMMUNICATIONS Submitted ByMohit Vinayak

MBA 3rd C5325

INTRODUCTION SWOT ANALYSIS OBJECTIVES OF STUDY RESERCH METHODOLOGY DATA ANALYSIS FINDINGS SUGGESTIONS

CONTENTS

Videocon telecommunications ltd or Videocon Mobile Service., is a GSM based cellular operator in India based in Gurgaon(Delhi).Videocon Telecommunications Limited which holds a market share of 0.78% in the country, a Videocon group company offers GSM mobile services GSM service under the brand name Videocon. Videocon Group operates the GSM mobile services through Videocon Telecommunications Limited (VTL).

INTRODUCTION

STRENGTHS  Pan-India reach Total telecom service provider Huge Resources (financial & technical pool) Transparency in billing Easy deployment of new services   

SWOT ANALYSIS

WEAKNESSES  Non-optimization of network capabilities Poor marketing strategy   Poor franchisee network Lack of strategic alliances Poor knowledge Management

CONT……..

OPPORTUNITIES Tremendous market growing customers per

month. Untapped broadband services.  Diversification of business to turn-key projects. Fuller utilization of slack resources. Can make a kill through deep penetration and low

cost advantage.

CONT….

THREATS   Competition from other operators.   Keeping pace with fast technological changes. Multinational eyeing Indian telecom market. Decreasing per line revenues due to competitive

pricing. Populist policies of government like “One India”

rates.

CONT….

Analyze the financial statements of past 5 years of Videocon and Other major competitors in the telecom industry.

Predict the performance in next year on the basis of last 5 year performance.

Describe the trends of various financial factors of Videocon over past 5 years.

Analyze the profitability of Videocon industry.

OBJECTIVES OF STUDY

Minor objectives are: Know the Financial Position. Help in planning. Inter- Intra firm Comparison.

CONT……..

In the present project report type of research conducted is Quantitative research. Descriptive research is undertaken which involves extensive scanning of secondary data. For my project most of the finance related books have been considered. The best websites are considered which gives all the efficient and effective information. References for the project are from the websites and books and the company’s annual reports.

RESERCH METHODOLOGY

DATA COLLECTION (THROUGH SECONDARY DATA)Sources of secondary data are

(a) Authenticated company’s website on Internet. (b) Annual reports provided by Videocon, BSNL, Bharti

Airtel and IDEA of financial year 2007-08, 2008-09, 2009-10, 2010-11, 2011-12.

CONT……

CURRENT RATIO S. No.Telecom Players 2007-08 2008-09 2009-10  2010-11  2011-12  2012-13

1 BSNL 1.75 1.98 2.46 2.47 2.25 2.63

2 Videocon 1.29 1.34 1.34 1.34 1.35 1.37 3 Tata Telecom 1.84 1.19 1.08 1.44 1.31 1.13 4 Bharti Airtel 0.47 0.44 0.47 0.57 0.69 0.70 5 Idea Cellular 2.45 0.74 0.87 0.43 0.36 0.21

IDEAL RATIO = 2:1

DATA ANALYSIS

EARNING PER SHARE S. No. Telecom Players 2007-08 2008-09 2009-10  2010-11  2011-12  2012-13

1 BSNL 15.65 15.28 14.03 4.44 1.15 1.08

2  Videocon 15.05 9.21 7.4 6.46 5.45 2.219

3 Tata Telecom 26.54 16.83 16.44 10.68 18.1 10.8

4 Bharti Airtel 6.53 10.62 21.27 32.9 40.79 49.6

5 Idea Cellular 0.1 0.56 1.94 3.96 3.96 0.21

CONT……

DEBTOR TURNOVER RATIOS. No.  Telecom Players 2007-08 2008-09 2009-10  2010-11  2011-12  2012-13

1 BSNL 5.03 5.73 6.2 5.92 6.41 6.742

2 Videocon 3.29 3.51 4.12 4.95 5.36 5.924

3 Tata Telecom 6.3 5.62 4.78 3.25 3.12 1.99

4 Bharti Airtel 11.38 12.57 14.31 12.28 12.78 13.41

5 Idea Cellular 17.74 20.01 35.89 38.28 47.35 55.10

CONT……

DEBT EQUITY RATIOS. No.  Telecom Players 2007-08 2008-09 2009-10  2010-11  2011-12  2012-13

1 BSNL 0.31  0.29  0.26  0.24 0.27 0.235

2 Videocon Nil Nil Nil Nil Nil Nil

3 Tata Telecom -------  0.02  0.03  0.12  0.34 0.39

4 Bharti Airtel 1.1  0.65  0.47  0.33  0.28 0.22

5 Idea Cellular 2.58  4.96  1.95  1.84  1.525 1.002

CONT……

RETURN ON CAPITAL EMPLOYEDS. No.  Telecom Players 2007-08 2008-09 2009-10  2010-11  2011-12  2012-13

1 BSNL 10.09 9.94 9.5 4.96 1.47 0.433

2 Videocon 10.16 5.95 6.77 6.48 4.78 3.76

3 Tata Telecom 11.41 11.52 10.28 6.53 6.23 5.58

4 Bharti Airtel 19.27 20.74 29.06 27.95 28.4 32.72

5 Idea Cellular 7.52 10.44 14.96 16.92 20.64 23.91

CONT……

NET PROFIT MARGIN RATIO S. No.  Telecom Players 2007-08 2008-09 2009-10  2010-11  2011-12  2012-13

1 BSNL 30.4 24.7 22.5 9.3 2 -3.88

2  Videocon 16.1 9.7 8.5 7.7 3.9 1.26

3 Tata Telecom 22.2 12.1 11.2 8.9 13.25 7.2

4 Bharti Airtel 14.8 17.8 22.5 24 22.58 26.864

5 Idea Cellular 1.6 6.2 11.4 15.3 20.2 24.83

CONT……

Except BSNL no other company have fulfilled the current ratio norm which is 2:1 in current year but still Videocon and Tata Telecom is flatter over the subsequent year which means company is maintaining significant liquidity over the period of time.

Profit margins has been reduced over the period of time which leads to significant reduction in the earning power of the company.

Management in relation to debtors is less efficient. Company is totally dependent on Equity. Returns of Videocon Industry is quite low. Profits of the company are decreasing at an increasing

rate which show inefficiency to face adversities.

Findings

Limited Time: Although the staff at Videocon was highly cooperative and devoted their valuable time but because of time constraint they were not able to devote much time with me.

  Lack of interest on the part of officials to provide the required data.  Lack of experience: There was no prior experience in the field of

study, so it became difficult to analyse and interpret the financial statements of the companies.

Uniformity of Content and Mode of preparation of financial

statements was not there among the various companies. So it became difficult to compare among each other. 

LIMITATIONS

It is the right time to cut down the employee’s force, by giving them voluntary retirement or by any other method and give chance to new guns.

  Use better & high tech methods of advertising, so that more & more

subscriber attract towards Videocon.  Should increase the service quality as well as better customer care service.  Should work towards 3 G phones, means high speed streaming video,

gaming, video messaging, and even mobile TV.  There are several global players keen to enter India. Like Telenor, China

mobile, Telephonic, SK telecom, NTT DoCoMo, Orson. Their entry will make the market even more competitive. So, should be ready for new competition.

  Provide better customer care service and provide them maximum

satisfaction.

SUGGESTIONS

THANK YOU