Pure-play Design and animation (D&A) service providers achieved a CAGR of 27% in the period FY2007 to FY2011, in a study conducted by ValueNotes. This study covers the financial performance of pure-play D&A firms, principally in the Indian D&A industry. The report includes service provider profiles of 13 D&A firms, along with their service offerings, key financial ratios, shareholding patterns, and names of directors. Visit Us @ http://www.sourcingnotes.com/content/view/886/
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Table of Contents Research Methodology ......................................................................................................................vi Executive Summary ........................................................................................................................... ix 1 Macroeconomics ......................................................................................................................... 1 1.1 Global Economy .................................................................................................................... 1 1.2 Major Economic Regions ....................................................................................................... 2 1.3 National Economic Performance of Select Countries ............................................................. 4 1.4 Currency Movements ............................................................................................................ 7 1.5 Global Capital Markets .......................................................................................................... 8
2 Industry Insights .......................................................................................................................... 9 2.1 Indian IT-BPO Industry Revenue ............................................................................................ 9 2.2 IT-BPO Contribution Towards India’s GDP ........................................................................... 10 2.3 IT-BPO Contribution Towards India’s Exports ...................................................................... 10
3 Operating Earnings .................................................................................................................... 12 3.1 Total Income ....................................................................................................................... 12 3.2 Revenue Per Employee ....................................................................................................... 14
5 Profitability ............................................................................................................................... 20 5.1 EBITDA Margin .................................................................................................................... 20 5.2 EBIT Margin ........................................................................................................................ 21 5.3 Net Profit Margin ................................................................................................................ 22 5.4 Net Profit Per Employee ...................................................................................................... 23
6 Operating Efficiency .................................................................................................................. 25 6.1 Debtor Days ........................................................................................................................ 25 6.2 Creditor Days ...................................................................................................................... 27 6.3 Debtor Days Versus Creditor Days ....................................................................................... 28 6.4 Net Operating Cycle ............................................................................................................ 28
8 Capital Efficiency ....................................................................................................................... 37 8.1 Return On Capital Employed ............................................................................................... 37 8.2 Return on Equity ................................................................................................................. 38 8.3 Return On Assets ................................................................................................................ 39
Table of Exhibits Exhibit i: Service Provider Categories and Sample Size .................................................................................... vii
Exhibit ii: Parameters Used for Service Provider Comparison .......................................................................... vii
Exhibit iii: Legend Used for Service Provider Comparison ............................................................................... viii
Exhibit iv: List of Abbreviations ...................................................................................................................... viii
Exhibit v: Leading Service Providers in the Design and Animation Segment in 2011 ........................................... x
Exhibit 1: Global GDP Growth Rate from 2007 to 2013 ...................................................................................... 1
Exhibit 2: European Union (EU) GDP Growth Rate from 2007 to 2013 ............................................................... 2
Exhibit 3: BRIC (Brazil, Russia, India, China) GDP Growth Rate from 2007 to 2013.............................................. 2
Exhibit 4: India GDP Growth Rate from 2007 to 2013 ........................................................................................ 4
Exhibit 5: USA GDP Growth Rate from 2007 to 2013 ......................................................................................... 5
Exhibit 6: UK GDP Growth Rate from 2007 to 2013 ........................................................................................... 6
Exhibit 7: Indian Currency Movements from 2007 to 2011 ................................................................................ 7
Exhibit 8: Capital Market Performance from 2007 to 2011 ................................................................................ 8
Exhibit 9: Indian IT-BPO Revenue from 2007 to 2012 ........................................................................................ 9
Exhibit 10: Indian IT-BPO Contribution to the National GDP ............................................................................ 10
Exhibit 11: Indian IT-BPO Contribution to the National Exports ....................................................................... 10
Exhibit 12: Revenue and Growth Over Five Years ............................................................................................ 12
Exhibit 13: Revenue by Service Provider Type ................................................................................................. 13
Exhibit 14: Revenue Change (YoY) by Service Provider Type ............................................................................ 13
Exhibit 15: Revenue of Design & Animation Segment by Service Provider in 2011 ........................................... 14
Exhibit 16: Revenue Per Employee (RPE) Over Five Years ................................................................................ 14
Exhibit 17: RPE by Service Provider Type ......................................................................................................... 15
Exhibit 18: RPE Change (YoY) by Service Provider Type.................................................................................... 15
Exhibit 19: Operating Expense as a Percent of Revenue For Five Years ............................................................ 16
Exhibit 20: Operating Expense as a Percent of Revenue by Service Provider Type ............................................ 17
Exhibit 21: Employee Cost as a Percent of Operating Expense Over Five Years ................................................ 17
Exhibit 22: Employee Cost as a Percent of Revenue Over Five Years ................................................................ 18
Exhibit 23: Employee Cost as a Percent of Revenue by Service Provider Type .................................................. 18
Exhibit 24: Total Cost Per Employee Over Five Years ....................................................................................... 19
Exhibit 25: Total Cost Per Employee by Service Provider Type ......................................................................... 19
Exhibit 26: EBITDA Margin Over Five Years...................................................................................................... 20
Exhibit 27: EBITDA Margin by Service Provider Type........................................................................................ 21
Exhibit 28: EBIT Margin Over Five Years .......................................................................................................... 21
Exhibit 29: EBIT Margin by Service Provider Type ............................................................................................ 22
Exhibit 30: NPM Over Five Years ..................................................................................................................... 22
Exhibit 31: NPM by Service Provider Type ....................................................................................................... 23
Exhibit 32: Net Profit Per Employee Over Five Years........................................................................................ 23
Exhibit 33: Net Profit Per Employee by Service Provider Type.......................................................................... 24
Exhibit 34: Debtor Days Over Five Years .......................................................................................................... 25
Exhibit 35: Debtor Days by Service Provider Type ............................................................................................ 26
Exhibit 36: Debtor Days Change (YoY) by Service Provider Type ...................................................................... 26
Exhibit 37: Creditor Days Over Five Years ........................................................................................................ 27
Exhibit 38: Creditor Days by Service Provider Type .......................................................................................... 27
Exhibit 39: Debtor Days Versus Creditor Days ................................................................................................. 28
Exhibit 40: Net Operating Cycle Over Five Years .............................................................................................. 28
Exhibit 41: Net Operating Cycle by Service Provider Type ................................................................................ 29
Exhibit 42: Quick Ratio Over Five Years ........................................................................................................... 30
Exhibit 43: Quick Ratio by Service Provider Type ............................................................................................. 31
Exhibit i: Service Provider Categories and Sample Size
The total number of companies that form the
sample for this report is 13. Companies have
been grouped into categories based on their
latest reported total revenue. This has been
done to allow for a more meaningful comparison
of results. The categories, which are based on
annual revenue, are depicted in the adjacent
along with the sample size of each category.
Service Provider Comparison and Ratings The report provides a relative positioning of Indian service providers in the design and animation segment featured in the report. The evaluation is based on their financial performance on each of the 10 key financial ratios as listed in the exhibit below.
Exhibit ii: Parameters Used for Service Provider Comparison
Parameter
Total Income
Revenue Per Employee
Total Cost Per Employee
EBITDA Margin
Net Profit Per Employee
Net Operating Cycle
Quick Ratio
Debt/Equity Ratio
Return On Capital Employed
Return On Equity
The methodology adopted for considering companies for inclusion in the ranking requires FY 2011
data to be available for calculating at least five of the financial ratios listed above. A relative ranking
is assigned to each company based on their performance on each financial ratio. A single relative
ranking is then given to each company by taking an equally weighted average of each ranking. The
top five service providers are then positioned relative to each other across the ratios listed in the