PANASONIC CARBON INDIA LTD. GROUP – 2

• ARNAB KR. CHATTERJEE

• KOUSTAV NAHA • MUDIT KANSAL • RAJVEERSINH

CHAUHAN • RIDDHIMA KARTIK • JYOTI SINGH

TABLE OF CONTENTS

• COMPANY INTRODUCTION• MANAGEMENT STRUCTURE• PERFORMANCE OVERVIEW• FINANCIAL ANALYSIS BASED ON RATIO ANALYSIS

COMPANY INTRODUCTION

• ESTABLISHED IN THE YEAR 1982• PANASONIC CARBON OPERATES IN THE ELECTRODES AND GRAPHITE

SECTOR.• MANUFACTURES ELECTRODES AND WELDING EQUIPMENTS• CURRENT MARKET CAPITALIZATION OF PANASONIC CARBON STANDS FOR

RS.224.54 CRORES.• COMPANY IS BOTH LISTED IN BOMBAY STOCK EXCHANGE(BSE) & NEW

YORK STOCK EXCHANGE(NSE)

MANAGEMENT STRUCTURE

• R SENTHIL KUMAR - MANAGING DIRECTOR,• V R GUPTE – DIRECTOR• A RAGHAVENDRA RAO – DIRECTOR• K SUBRAMANIAN – DIRECTOR• C JAYASHREE – DIRECTOR• CHIAKI KIDANI - ADDNL. NON EXECUTIVE DIRECTOR. 

MISSION AND VISIONMISSION• RECOGNIZING OUR RESPONSIBILITIES AS INDUSTRIALISTS, WE WILL

DEVOTE OURSELVES TO THE PROGRESS AND DEVELOPMENT OF SOCIETY AND THE WELL-BEING OF PEOPLE THROUGH OUR BUSINESS ACTIVITIES, THEREBY ENHANCING THE QUALITY OF LIFE THROUGHOUT THE WORLD.

VISION• THROUGH OUR BUSINESS ACTIVITIES, WE AT PANASONIC HAVE LONG

NURTURED OUR “CONSUMER ELECTRONICS DNA.” MAKING THIS DNA CENTRAL TO ALL OF OUR ACTIVITIES AND CARRYING IT FORTH, WE AIM TO CONTINUE TO PROVIDE “BETTER LIVING” FOR OUR CUSTOMERS IN THE VARIOUS SPACES AND AREAS WHERE OUR CUSTOMERS GO ABOUT THEIR LIVES, SUCH AS THEIR HOMES, COMMUNITIES, BUSINESSES, JOURNEYS, AND AUTOMOBILES.

COMPANY OPERATIONS

Appliances Company is

committed to developing

environmentally leading products that meet new

customer needs in the areas of

homemaking, cooking, air

conditioning, water heating,

beauty and health.

Eco Solutions Company will make untiring efforts to offer solutions for

creating a comfortable

environment.The services under this

category are :

Lighting Business Division

Energy Systems Business DivisionHousing Systems Business Division

AVC Networks Company was newly

formed by combining BtoC and BtoB businesses of the

former AVC Networks Company, which has

strong expertise in Audio Visual technology and of

the former Systems & Communications

Company, which has strong expertise in

wireless-communications technology.Some of the

Services under this category are :

Storage Business DivisionVisual Systems Business

Division

Automotive & Industrial Systems

Company will help realize ecological and smart lifestyles that

are also safe and secure through using

our unique core technology as a

base.Some of the services are : Automotive

Electronics Systems Business Division

Rechargeable Battery Business Division

MAJOR COMPETITORS AND THEIR MARKET CAP VALUE

• AIA ENGG. – INR 8,497 CR • SKF INDIA – INR 6,101 CR • GRAPHITE INDIA – INR 1,356 CR• ESAB INDIA – INR 857 CR

• PANASONIC CARBON – INR 224.54 CR

PERFORMANCE OVERVIEW

• PROS:

- COMPANY IS VIRTUALLY DEBT FREE.- COMPANY HAS BEEN MAINTAINING A HEALTHY DIVIDEND PAYOUT OF 46.87%

• CONS:

- STOCK IS TRADING AT 2.94 TIMES ITS BOOK VALUE- COMPANY HAS A LOW RETURN ON EQUITY OF 12.35% FOR LAST 3 YEARS.- EARNINGS INCLUDE AN OTHER INCOME OF RS.5.87 CR.

TREND OF BOOK VALUE CHANGEMar 2011 Mar 2012 Mar 2013 Mar 2015 Mar 2015

Value in Rs 117.21 117.27 122.69 128.77 137.93Percentage change

0.05% 4.62% 4.96% 7.11%

OTHER OBSERVATIONS

SHARE CAPITAL SHARE CAPITAL IS CONSTANT.(4.80 CRORE) NO MERGER/ DEMERGER / ACQUISITION HAS NOT HAPPENED. NO CHANGE IN FINANCIAL STRUCTURE IN COMPANY.

RESERVES THERE IS A INCREASE IN THE RESERVES ALONG WITH THE DECREASE IN FIXED

COST. NO INVESTMENT EVEN IF THERE ARE INCREASE IN THE CASH RESERVES.

LIABILITY LIABILITY IS INCREASED.

RESERVES OVER THE YEARMar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015

Reserves (in crore)

51.46 51.49 54.09 57.01 61.40

Reserves46485052545658606264

Mar-11Mar-12Mar-13Mar-14Mar-15

FIXED COSTMar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015

Fixed Asset (in Crore)

3.94 3.69 3.42 3.38 2.76

Fixed Cost0

0.51

1.52

2.53

3.54

4.5

Mar-11Mar-12Mar-13Mar-14Mar-15

LIABILITIESMar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015

Liabilities(in crore)

64.39 63.98 67.81 70.99 76.81

Total Liab-ilities

0102030405060708090

Mar-11Mar-12Mar-13Mar-14Mar-15

TREND OF COMPANY SHARE PRICE

• THE COMPANY HAS SEEN A STIFF INCREASE IN SHARE MARKET VALUE.• INCREASE IN PREMIUM.(WHICH WAS BEEN CONTRIBUTED TO THE SHARE

PREMIUM ACCOUNT)

GRAPH

OTHER OBSERVATION

• THE COMPANY HAS SEEN A CONSISTENCE INCREASE IN THE AMOUNT IN TRADE RECEIVABLES SINCE 2011 WHICH CAN BE ATTRIBUTED TO INCREASE IN OPERATIONS.

• THE COMPANY HAS SEEN A CONSISTENCE INCREASE IN THE AMOUNT OF CASH AND CASH EQUIVALENTS SINCE 2011.

TRADE RECEIVABLES

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015Value(INR) 15,378,613 22,625,482 30,338,055 33,165,209 39,803,967

Trade Receiv-ables

05,000,000

10,000,00015,000,00020,000,00025,000,00030,000,00035,000,00040,000,00045,000,000

Mar-11Mar-12Mar-13Mar-14Mar-15

CASH AND CASH EQUIVALENTSMar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015

Value (INR) 548,595,788 528,189,170 568,524,459 594,588,000 644,764,523

Cash and cash

equival-ent

0100,000,000200,000,000300,000,000400,000,000500,000,000600,000,000700,000,000

Mar-11Mar-12Mar-13Mar-14Mar-15

FINANCIAL ANALYSISBASED ON

RATIOS

BALANCE SHEET ANALYSIS

2015 2014 2013 2012 20110100,000,000200,000,000300,000,000400,000,000500,000,000600,000,000700,000,000800,000,000

Asset – Liabilities Comparison

Axis Title

The high value of Current asset implies that company has enough reserves to pay it’s liabilities.

CURRENT RATIO

2015 2014 2013 2012 20116.40

6.60

6.80

7.00

7.20

7.40

7.60

7.80

8.00

Current Ratio

Axis Title

QUICK RATIO

2015 2014 2013 2012 20116.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

7.60

Quick Ratio

Axis Title

TOTAL DEBT EQUITY RATIO

2015 2014 2013 2012 20110.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

Total Debt Equity Ratio

Axis Title

Company’s debt has increased with time which can be termed as risky

INTEREST COVERAGE RATIO

2015 2014 2013 2012 2011 -

50.00

100.00

150.00

200.00

250.00

Interest Coverage Ratio

Axis Title

INVENTORY TURNOVER RATIO

2015 2014 2013 2012 2011 -

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Inventory Turnover Ratio

Axis Title

After a dip in sales in the year 2012 the company has constantly increased it’s sales which has reduced their holding inventory

RETURN ON EQUITY

2015 2014 2013 2012 20110

2

4

6

8

10

12

14

16

ROE

Axis Title

Company’s high return on equity indicates that the company is on the growth stage during last one year

P/E RATIO

2015 2014 2013 2012 20110.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

P/E Ratio

Axis Title

Company’s fluctuating P/e ratio shows the investors willingness to invest which has increased in the past 1 year.

THANK YOU