Apex Group Final
-
Upload
bhaveshmankani7373 -
Category
Documents
-
view
213 -
download
0
Transcript of Apex Group Final
-
8/9/2019 Apex Group Final
1/25
Apex IndustriesBusiness Plan
-
8/9/2019 Apex Group Final
2/25
Mission Statement
To enhance value generating capability of the Company in a globalizing environment,
delivering superior and sustainable customer value.
To display highest commitment to excellence in product quality, service and
enriching customers through added value.
Build exceptional standards and systems for productivity, performance, safety,
environment and quality.
Expand manufacturing facility and distribution network to cater to all regions in the
country.
Be a socially responsible corporate, addressing need of community and
environment.
Empower and energise employees to embrace new ideas, learn continuously and
build HR processes for continual capability development of its talent.
-
8/9/2019 Apex Group Final
3/25
The Team
Prasun Pandey CEO and MD
Sajesh Nair
Bhavesh Mankani
Sunil Ledwani
Sagar Vartak
Nikesh Malhotra
-
8/9/2019 Apex Group Final
4/25
Company Profile
Apex is a Power Cable Company and has thepotential to greatly benefit from the replacement ofthe overhead conductors with the undergroundcables.
-
8/9/2019 Apex Group Final
5/25
Why in Red?
Loss in 2009 is due to low market request, deferredor cancelled orders and the ambiguity of Authoritieshow to invest.
Due to the impetus of setting up power generation
plants, most companies exceeded the capacity andthus lead to excess supply.
Hence, Management and Production team restructured.
Cost cutting measures have been taken.
-
8/9/2019 Apex Group Final
6/25
Opportunities
Benefit from replacement of overhead conductorswith underground cables
There is a potential replacement opportunity of10,000 Cr. in India.
Privatization of power transmission and distributioncompany.
Change in Government Policy
An amount of 35 Billion was budgeted for theAccelerated Power Development and ReformsProgramme (APDRP)
-
8/9/2019 Apex Group Final
7/25
Opportunities
In India, Transmission and Distribution loss aremainly due to theft and lack of maintenance.
Estimates of T&D loss is around 25% to 50%.
Government provides 50% subsidy on capitalinvestment meant to reduce T & D losses.
Tapping Top corporate, Indian Railways etc.
Entry into the HT cables segment gives accessibilityto the generation and distribution segment, wherethe market opportunity is estimated at Rs37,000crover the next 10 years.
-
8/9/2019 Apex Group Final
8/25
Balance Sheet and P-L Analysis
0
50
100
150
200
250
300
Mar 09 Mar 10E Mar 11E Mar 12E Mar 13E
INCOME :
Sales Turnover
-
8/9/2019 Apex Group Final
9/25
Balance Sheet and P-L Analysis
-40.00
-30.00
-20.00
-10.00
0.00
10.00
20.00
30.00
40.00
Mar 09 Mar 10E Mar 11E Mar 12E Mar 13E
Operating Profit
Profit Before Tax
-
8/9/2019 Apex Group Final
10/25
Financial Ratio
-0.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Mar 09 Mar 10E Mar 11E Mar 12E Mar 13E
Debt to Equity Ratio
Interest Cover Ratio
-
8/9/2019 Apex Group Final
11/25
Assumptions:
Sales growth rate 20% to 30%
Poised for high growth going ahead: Strong growth inthe existing LT cables segment and entry into the HTand extra high voltage (EHV) cables verticals. Increase
in demand of higher quality and branded wires.
Major capex already undertaken: The company hasalready incurred the major capex required to registergrowth over the next 4-5 years. Thus, on account ofhigh operating leverage and strong sales growth, we
expect the company to increase its net profit to Rs 3.41CR in FY2013E from loss of Rs32 CR in FY2009.
Sales to be driven by improvement in the economy
OPM to remain under pressure owing to high copper
prices
-
8/9/2019 Apex Group Final
12/25
Goals and Objectives
To raise the fund for Rs. 50 Crore
To diversify into another segment mainly in retail &trading, real estate development, hospitalityconstruction and infrastructure development
-
8/9/2019 Apex Group Final
13/25
Industry Analysis
Key Characteristics
Comparative low project risk.
The infrastructure segment is expected to see
investments of Rs 5356 billion till 2012, as comparedto Rs 3320 billion.
According to a recent report by Cris Infac on Indianconstruction industry, government's spending oninfrastructure has increased by 106 percent to Rs
8,163 billion in the tenth plan period compared to Rs3959 billion during the ninth plan period.
Competitive pricing due to competitive bidding ingovernment projects.
-
8/9/2019 Apex Group Final
14/25
Industry Analysis
Key Characteristics
Over Rs 380 billion will be spent on hydropowerprojects, resulting construction contracts worthalmost Rs 266 billion in the next five years.
Implementation of the build-operate-transfer(BOT), build-own-operate-transfer (BOOT)mechanism by the government has generatedinterest from the private sector and a lot of projectsin the road and hydropower segments are already
underway.
Roads, urban infrastructure are expected to be stillthe key for investment in infrastructure sector.
-
8/9/2019 Apex Group Final
15/25
Infrastructure Mix
0%
5%
10%
15%
20%
25%
30%
35%
40%
2001-02 to 2005-06
2006-07 to 2007-12
-
8/9/2019 Apex Group Final
16/25
Resource Requirements
Personnel
Technology
Finances
Material
Land
-
8/9/2019 Apex Group Final
17/25
-
8/9/2019 Apex Group Final
18/25
Project Cost
Cost Structure of the Project:
Total Cost 75 Cr
Equity : 25 Cr
Debt : 50 Cr
Concession Period : TillM
arch 2020
-
8/9/2019 Apex Group Final
19/25
Assumptions Cash Flow
Method DCFE Discounted Cash Flow To Equity
FCFE=
Net Income + Depreciation
Expenditure-increase in Working
Cap+debt Infusion
Repayments
The FCFE is discounted at expected rate of return by equity capital provider
Discounting
Rate Risk Free Rate + Market Risk Premium
Risk Free Rate =7.75
Interest Rate on Long Term Govt. Securities
Source (www.rbi.org.in)
Risk Premium =4.25
Beta ( Expected market return of the similar
listed Company
Rate)
Average Int. volatility 0.65
Discounting rate lower limit of the sector 11.35
Discounting rate upper limit of the sector 12.65
For Valuation Discounting rate range is 10.5% to 14.0%
-
8/9/2019 Apex Group Final
20/25
Assumptions Cash Flow
The FCFE is projected after industry analysis, historicaldata and future potential estimates.
The discounting rate is 11.5%.
-
8/9/2019 Apex Group Final
21/25
FCFE Projections
FCFE Projections
Year End 31-Mar FCFE
2012 8.4
2013 11.9
2014 14.4
2015 18.5
2016 22.3
2017 25.7
2018 40.1
2019 61.25
2020 85.86
-
8/9/2019 Apex Group Final
22/25
Expected Financial Position
-40.00
-30.00
-20.00
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Mar 09 Mar 10E Mar 11E Mar 12E Mar 13E
Operating Profit
Profit Before Tax
Debt to Equity Ratio
Interest Cover Ratio
-
8/9/2019 Apex Group Final
23/25
Summary of the Project
IRR is more than 15 % and therefore the project isworthwhile
Average DSCR is satisfactory. DSCR is gradually
increasing.
Promoters contribution is fairly good
ROI (before tax) and ROI (after tax) are good
Profitability ratios show that the project would earn
sufficient returns on the capital employed over itsestimated life
-
8/9/2019 Apex Group Final
24/25
Bibliography
Rbi.org.in
Wikipedia.com
Indiainfoline.com
Angelbroking.com
Cmie.com
-
8/9/2019 Apex Group Final
25/25
Thank You