financial perfomense analysis
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Transcript of financial perfomense analysis
FLOW OF PRESENTATION
Company profile
Vision & mission
Financial analysis
Conclusion
ITC. Touching your life. Everyday
PROFILE OF ITC• Type: Public• Traded as: BSE: 500875 BSE SENSEX Constituent• Industry: Conglomerate• Predecessor(s):• Founded: August 24, 1910 (as Imperial Tobacco Company of India)
Founder(s) Henry Overton Wills • Headquarters: Kolkata, West Bengal, India• Chairman: Yogesh Chandler Deveshwar• Products: Tobacco, Hotels, Paperboards & specialty papers,
packaging, agri-business, packaged foods & confectionery, IT, branded apparel, personal care, stationery, safety matches and other FMCG products
• Revenue : US$ 7 billion (2010) • Employees : 29,000 (2012)• Website : www.itcportal.com
VISION & MISSION
• Vision: Sustain ITC’s position as one of India’s most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders.
• Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.
ITC. Touching your life. Everyday
FINANCIAL ANALYSIS
• BALANCE SHEET• trend and percentage analysis• PROFIT AND LOSS ACCOUNT• trend and percentage analysis
ITC. Touching your life. Everyday
Trend analysis of balance sheetsources of fund
ITC. Touching your life. Everyday
Mar' 14 Mar' 13 Mar' 12 Mar' 11 Mar' 100
50
100
150
200
250
300
350
400
450
Series1
Interpretation
• Base year is 2010• Show a positive trend over the years• The general reserve is contribute more• So the company retained earning is high• Their main sources for production
requirement is reserve
ITC. Touching your life. Everyday
Trend analysis of balance sheetapplication of fund
ITC. Touching your life. Everyday
Mar' 14 Mar' 13 Mar' 12 Mar' 11 Mar' 100
100
200
300
400
500
600
700
800
900
1000
Series1
INTERPRETATION
• 2012 is make a different increase in the flow
• Capital work in progress is high• Company invest or applying more in
production
ITC. Touching your life. Everyday
Common size vertical analysis of sources of funds balance sheet
ITC. Touching your life. Everyday
Owners'
Fund
Equity
Share
Cap
ital
Share
App
licati
on M
oney
Pefer
ence
Share
Cap
ital
Reserv
es &
Surp
lus
Secu
red L
oans
Unsec
ured
Loa
ns0
100
200
300
400
500
600
Mar' 11
Mar' 12
Mar' 13
Mar' 14
Series1
INTERPRETATION• Major sources is general reserve• The retained earning of the company is
increased by over the years.• They invest more in the work in progress• Equity shareholders not get regular
dividends
ITC. Touching your life. Everyday
Common size vertical analysis of application of funds balance sheet
ITC. Touching your life. Everyday
1 2 3 4 5 6
-20
0
20
40
60
80
100
120
Series4
Series3
Series2
Series1
INTERPRETATION
• Net block is increasing• Investment flows show that the company is
saves more money for the future• Proper application of money is done.
ITC. Touching your life. Everyday
Common size horizontal analysis of balance sheet sources of funds
ITC. Touching your life. Everyday
1 2 3 4 5 60%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Series7
Series6
Series5
Series4
Series3
Series2
Series1
INTERPRETATION
• Analysing the various resources of balance sheet the major contribution is reserves
• Each one is contributing to the balance sheet
ITC. Touching your life. Everyday
Common size horizontal analysis of balance sheet application of funds
ITC. Touching your life. Everyday
1 2 3 4 50%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Series4
Series3
Series2
Series1
INTERPRETATION
• Each item is contributing • In 2010 total net current item is become -10
lower value• So the liquidity position of the company is
in deficiency
ITC. Touching your life. Everyday
Trend analysis of profit and loss account
ITC. Touching your life. Everyday
Operat
ing i
ncom
e
Mate
rial c
onsu
med
Man
ufac
turin
g exp
ense
s
Perso
nnel
expe
nses
Selli
ng ex
pens
es
Admin
strati
ve ex
pens
es
Expen
ses c
apita
lised
Cost o
f sale
s
Operat
ing p
rofit
Other
recur
ring i
ncom
e
Adjus
ted PB
DIT
Fina
ncial
expe
nses
Deprec
iatio
n
Other
write o
ffs
Adjus
ted PB
T
Tax ch
arges
Adjus
ted PA
T
Non re
curri
ng it
ems
Other
non c
ash a
djus
tmen
ts
Repor
ted ne
t pro
fit
Earnig
s befo
re ap
prop
riatio
n
Equity
divi
dend
Prefe
rence
divi
dend
Divid
end t
ax
Retain
ed ea
rnin
gs0
500
1000
1500
2000
2500
3000
3500
4000
Series10
Series9
Series8
Series7
Series6
Series5
Series4
Series3
Series2
Series1
INTERPRETATION
• The 5 year analysis shows that company year 2012 is benchmark year
• The trend flow of each item in 2012 is increased in compare with other years
• Sales is increasing year by year• ITC also introduced new products in the
market
ITC. Touching your life. Everyday
Common size analysis of profit and loss account
ITC. Touching your life. Everyday
Operat
ing i
ncom
e
Mate
rial c
onsu
med
Man
ufac
turin
g exp
ense
s
Perso
nnel
expe
nses
Selli
ng ex
pens
es
Admin
strati
ve ex
pens
es
Expen
ses c
apita
lised
Cost o
f sale
s
Operat
ing p
rofit
Other
recur
ring i
ncom
e
Adjus
ted PB
DIT
Fina
ncial
expe
nses
Deprec
iatio
n
Other
write o
ffs
Adjus
ted PB
T
Tax ch
arges
Adjus
ted PA
T
Non re
curri
ng it
ems
Other
non c
ash a
djus
tmen
ts
Repor
ted ne
t pro
fit
Earnig
s befo
re ap
prop
riatio
n
Equity
divi
dend
Prefe
rence
divi
dend
Divid
end t
ax
Retain
ed ea
rnin
gs0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Series10
Series9
Series8
Series7
Series6
Series5
Series4
Series3
Series2
Series1
INTERPRETATION
• The chart shows the operating income is increased
• Indirect expenses, selling, manufacturing and work in progress are slightly increasing
• ITC makes new steps to enter in various markets so the direct as well as indirect expenses is increasing
ITC. Touching your life. Everyday
Fund flow statement
FUND FLOW STATEMENTSOURCES OF FUND
APPLICATION OF FUND
Fund from operation 6092.9 Investment 3227
Issue of shares 513.5Changes in working capital 584.43
Dividend 293.5
Additional purchase 1893.34
Tax paid 608.11
6606.4 6606.38
ITC. Touching your life. Everyday
INTERPRETATION
• Major sources of the company is issue of share capital
• ITC get profit from the fund from operation• The investment in additional assets is the major
application of money• The company is paying major part of the cash is in
retained earning form• Working capital is in a positive flow
ITC. Touching your life. Everyday
FUND FROM OPERATION
TO TRANSFORMATION BY BALANCE B/D
TO RESERVE 3969 7418.39
TO DEPRECIATION 757.08BY FUND FROM OPERATION 6092.9
TO BALANCE C/D 8785.21
13511.29 13511.29
ITC. Touching your life. Everyday
INTERPRETATION
• Company is not written off any items in 2014.
• Fixed assets depreciate additionally in 2014• Company is transferring amount to general
reserve
ITC. Touching your life. Everyday
STATEMENT OF CHANGES IN WORKING CAPITAL 2013-2014
PARTICULARS 2013 2014WORKING CAPITAL
INCREASE DECREASE
CURRENT ASSET
Current Assets 14260.01 16097.49 1837.48
Current Liabilities 11663.18 12916.23 1253.05
TOTAL
DIFFERENSE 25923.19 29013.72 584.43
ITC. Touching your life. Everyday
Fixed asset
ITC. Touching your life. Everyday
PARTICULARS AMOUNT PARTICULARS AMOUNT
Depreciation 757.08 TO balance b/d 16679.17
Purchase of assets
1893.34
By balance b/d 18239.65
INTERPRETATION
• Only provide the total assets and liabilities. The statement of changes said that the increase in current assets. Increase in current liabilities leads to the decrease of working capital.
ITC. Touching your life. Everyday
(Rs in Cr)
Mar' 14 Mar' 13 Mar' 12 Mar' 11 Mar' 10
Profit Before Tax 12,659.11 10,684.18 8,897.53 7,268.16 6,015.31Net CashFlow-Operating Activity 6,962.30 6,709.89 6,015.59 5,264.24 4,630.65
Net Cash Used In INVESTING
-2,823.29 -3,580.78 -2,210.19 -616.22 -3,531.56 ActivityNetCash Used in
Fin. Activity -4,173.85 -3,232.55 -3,246.55 -3,551.64 -1,009.86Net Inc/Dec In
Cash And Equivlnt -34.84 -103.44 558.85 1,096.38 89.23Cash And
Equivalnt Begin of Year 155.9 259.34 2,178.92 1,082.93 993.7
Cash And Equivalnt End Of
Year 121.06 155.9 2,737.77 2,179.31 1,082.93ITC. Touching your life. Everyday
CASH FLOW STATEMENT
INTERPRETATION
• Cash from financial activity is negative, it means that the company sources and cash amount is low, depend more creditors.
• Cash from operation is positive, it shows the operational efficiency is high.
• Investment activity deals with the growth of the firm. ITC have enough investment. But additional investment make the overall operation is negative
ITC. Touching your life. Everyday
CONCLUSION
• ITC promoting their brands through advertisement campaign as well as door to door promotion.
• ITC is also focusing on Retailers and Wholesalers to promote their brand.
• The demand of their product in very low, because people don’t know about their brands very well.
• The financial analysis shows that the company is in a positive flow
• They use various sources and make effective application of money