Finance - Telecom Industry

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The Financial aspects of the telecommunications industries.

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Finance - Telecom Industry

  1. 1. ECONOMY, INDUSTRY, COMPANYPRESENTATIONTelecommunications IndustryPresented By:Monika | Nadim Ashraf | Nikhil Agarwal | Sunkara Gokul |Subhashree Dash
  2. 2. INTRODUCTION India’s economic liberalization began in 1991. It has moved towards a market based economy. Since the 1990s, the middle class has grown and poverty levels have fallen. Economy is 9th largest in world by nominal GDP ($1.704 trillion) and 3rd largest by purchase price parity ($4.448 trillion). GDP growth has risen to 8.5% (2010-2011) from 7.4% (2009-2010). The unemployment rate for 2010-11 was 9.8%. Indias total trade in goods and services has reached a share of 43% of GDP in 2005–06, up from 16% in 1990– 91.
  3. 3. MAJOR SECTORS OF INDIAN ECONOMY 1990 2011 Servies Agriculture Services Agriculture Manufacturing IT Manifacturing IT 1% 5% 29% 39% 27% 53% 31% 15%
  4. 4. TELECOM INDUSTRY - OVERVIEW In 1880 it was an monopoly industry under government. In1881 the license was approved to Oriental Telephone Company Limited . Now India is worlds second-largest in terms of number of subscribers. In 1981 when Prime Minister Indira Gandhi signed contracts with Alcatel CIT many public sector organizations were set up. In 1991 DoT(department of telecommunication) renamed as BSNL
  5. 5. TELECOM SECTOR – CURRENT SCENARIO Indias mobile subscriber base rose to 771.2 million at the end of January 2011, up from 752.2 million in December 2010. The mobile penetration reached 64.7%. The TRAI said that the number of rural customers edged up by 3.2% to 258.9 million in January from 250.9 million a month earlier. The share of urban subscribers has declined to 66.42% from 66.65%," said the TRAI, in a statement. Average Revenue Per User (ARPU) for GSM-Full Mobility service declined by 10.16%, from Rs 122 in QE Jun-10 to Rs 110 (2.46 USD) in QE Sep-10.
  6. 6. TRENDS IN TELEPHONE SUBSCRIBERS
  7. 7. MARKET SHARE Number of Subscribers Aircel Tata Idea BSNL MTNL Others Airtel Reliance Vodafone 7% 4% 10% 19% 9% 16% 33% 1% 1%
  8. 8. MAJOR PLAYERS Airtel Vodafone Tata Communications Idea Reliance
  9. 9. CURRENT RATIO Company Current Ratio 2011 2010 Airtel .82 .71 Vodafone 1.27 1.27 Idea .49 .96 Reliance .765 .312 Tata .74 .80
  10. 10. QUICK RATIO Company Quick Ratio 2011 2010 Airtel .77 .71 Vodafone 1.2 1.2 Idea .52 .86 Reliance .76 .312 Tata .70 .75
  11. 11. LEVERAGECompany DOL DFL DCL Airtel 3.44 1.03 3.55 Idea 1.336 1.092 1.459 Reliance 7.66 3.21 24.56 Tata -0.7 7.3 -5.5
  12. 12. WORKING CAPITALCompany Current Current Working Assets Liabilities Capital Airtel 2536.8 16104.8 -13568 Idea 3906.64 6316.96 3594.05 Reliance 6088.57 7551.94 -1463.37 Tata 2489.6 1953.41 536.19
  13. 13. FINANCIAL FORECASTINGCompan 2007 2008 2009 2010 2011 CAGR y ---------------------------------------- In crores ------------------ ------------------- Airtel 17987.3 25874.2 32791.9 36693.1 38241.2 16.28% Idea 4366.4 6719.99 9857.1 11850.2 15332.8 28.56%Reliance 12756.3 14792.0 15086.6 13554.6 12129.7 -1.25% 5 6 7 Tata 3611.7 3218.04 3749.43 3283.3 3746.16 -0.73%
  14. 14. FINANCIAL FORECASTING (2012) Airtel Idea Reliance Tata --------------------------------------In crores------------------ ---------------- Net Sales 44205.6 19711.5 11978.15 3585.47 Other Income 88.82 263.8 1316.102 193.33 Stock Adjustment 12.38 0 0 0 Total Income 44306.79 19975.3 13294.25 3778.74 Raw Materials 242.70 12.3 32.032 0 Employee Cost 1993.07 977.3 626.341 511.47Other Manufacturing 13497.20 9160.2 5349.138 1722.82 Cost Misc. Expenses 1300.64 0 833.69 134.55 Total Expenses 17033.68 10149.8 8641.562 2760.7
  15. 15. THANK YOU

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