Jubilant foodworks company analysis

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jubilant foodworks economics project

jubilant foodworks economics project

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  • 1. Jubilant Food works Company Analysis
  • 2. Made by:AVI PIPADA MET BANDRA (W)
  • 3. Pharmaceuticals and Life Sciences Agri Products, Performance Polymers & Retail Auto JUBILIANT BHARTIA GROUP Services Retail Oil and Gas Exploration and Production Food
  • 4. Problems  Environmental friendly products cost high  Balance between societal expectation and companies economic objectives Trends  Health related issues  Marketing to Children  Low level customer commitment  Value added technology services  Attracting different segments of market
  • 5. Growth Drivers
  • 6. Age Composition in India 18-20 yrs 11% 16% 10% 21-30 yrs 31-40yrs 27% 36% Above 40 Below 18
  • 7. Consumers Spending Capacity Sales 14% 18% 24% 26% 6% 8% 4% housing food entertainment education healthcare misc. savings
  • 8. History of Jubilant Food Works Ltd.  Founded in 1995  First Domino’s pizza store - January 1996.  1996- company was converted into a public limited company and the name was changed to Domino's Pizza India Ltd.  September 24, 2009- the company changed their name from Domino's Pizza India Ltd to Jubilant Foodworks Ltd.
  • 9. Company Profile  Largest pizza chain  Offers a menu of quality pizza and side dishes to their customers.  Operate their stores pursuant to a Master Franchise Agreement with Domino's International.  Operational excellence.
  • 10. Management Team Chairmen Mr. Shyam S. Bhartia Mr. Hari S. Bhartia Board of Directors Mr. Ajay Kaul Mrs. Rami Nirula Mr. Vijay Marwaha
  • 11. Product Line  Pizza  Pasta  Garlic Bread  ChocoLava  Donuts
  • 12. Extra Cheeze on the Pizza...  Amongst Top        5 in Global Dominos Pizzas. 70% Market Share in Pizza Home Delivery Segment. 4 out of the 5 busiest stores in Domino‟s Pizza world are from India. Average 1.39 Lakh Pizzas is sold by per Domino‟s Store. Robust Supply Chain Management Approx 15000 employees as on 31/03/2013 54% market share in organised pizza market. 1st Brand in Food Service to launch an Online Ordering platform in India
  • 13. Major Players in Fast Food  Domino’s Pizza  Pizza Hut  Smokin Joe’s  Garcias Pizza  KFC  Subway
  • 14. Market Share in delivery system SMOKIN JOES GARCIAS 7% 2% PIZZA HUT 20% DOMINOS 65%
  • 15. Top Line Analysis 1200 1017.36 Amount in Rs Cr. 1000 765.24 800 600 400 475.52 236.03 313.91 200 0 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 Net Sales
  • 16. Highlights of F.Y 2012-2013 Particulars 2012-2013 (₹ in Cr) 2011-2012 (₹ in Cr) 1018.52 767.05 Less :- Expenditure 826.29 644.95 Operating Profit 192.85 120.54 Less :- Depreciation 37.57 29.34 Less :- Interest 0 0.34 Profit Before Tax 154.66 92.42 Less :- Tax 49.79 20.43 Total Income Profit After Tax (Net 105.64 Profit) 72
  • 17. How Every Rupee earned is spent ? Sales Depreciation 4% Miscellaneous Tax Expenses 5% 8% Selling and Admin Expenses 20% Other Manufacturing Expenses 1% Raw Materials 35% Employee Cost 22% Power & Fuel 5%
  • 18. Operating Profit Margin 192.85 Amount in Rs Cr. 200 150 120.54 100 50 66.94 26.85 34.19 Profit Margin 0 FY 0809 FY 09-10 FY 10-11 FY 11-12 FY 12-13 Profit Margin
  • 19. Bottom Line Analysis Comparative Net Profit Analysis Amount in Rs Cr 120 100 80 60 105.64 40 72 20 0 32.97 7.76 7.3 FY 08- FY 09- FY 10- FY 10- FY 1109 10 11 11 12 Net Profit
  • 20. Earnings Per Share & Dividend Per Share Chart Title Amount in ₹ /share DPS FY 12-13 0 FY 11-12 0 FY 10-11 0 FY 09-10 0 FY 08-09 0 EPS 16.23 11.16 5.18 1.26 1.33
  • 21. Amount in ₹/share. Book Value Per Share 50 45 40 35 30 25 20 15 10 5 0 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13
  • 22. Financial Leverage 4.50 4.21 4.44 4.00 3.50 3.00 2.50 2.00 Financial Leverage 1.50 1.07 1 1 1.00 0.50 0.00 FY 0809 FY 09- FY 10-11 FY 11-12 FY 12-13 10
  • 23. Liquidity Analysis Quick Ratio Current Ratio Current Ratio Quick Ratio 1 0.8 0.6 0.4 0.2 0 0.88 0.72 0.78 0.59 Current Ratio 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0.66 0.68 0.72 0.45 Quick Ratio
  • 24. Debtors Turnover Ratio Debtors Turnover Ratio FY 12-13 FY 11-12 FY 10-11 187.15 206.59 230.93 259.17 FY 09-10
  • 25. Asset Turnover Ratio Asset Turnover Ratio Asset Turnover Ratio, 4.14 5 4 3 2 1 0 FY 09-10 FY 10-11 FY 11-12 FY 12-13
  • 26. Return Analysis Return on Capital Employed ROE % Return on Networth % 48.67 50 40 33.91 30 20 Return on Networth 16.44 10 0 FY FY FY 10-11 11-12 12-13 40 35 30 25 20 ROE % 15 10 5 0 Return on Networth %
  • 27. Jubilant Performance in Secondary Capital Market Co-relation with Sensex Company Equity Share price comparison with Sensex Returns on Benchmark Index
  • 28. Market Price as on 1st Oct 2013
  • 29. Price to Earning Comparison as on 31/03/2013 Chart Title Jubilant P/E, 76.56 Axis Title 80 60 40 Industry P/E, 34.9 Jubilant P/E 20 Industry P/E 0 Category 1
  • 30. Shareholders Holding Pattern 38% 57%, 2% 2% 1% Promoters FII Corporate Bodies Indian Public Others
  • 31. Competitive Analysis Brand No. of Stores Cities Format Dominos 439 100 Own stores Pizza Hut 180 56 Franchisee Smokin‟ Joe‟s 42 23 Franchisee Garcia‟s Pizza 20 1 Own+Franchisee
  • 32. Differentiation Strategies adopted by Dominos and Pizza Hut. Dominos Pizza Hut Differentiation Strategy Delivery Innovation Competitive advantage Favourable Pricingvalue for money Focused on Quality Store Location Located near Target Market Located at up Markets Format Delivery and take-away „Sit & Dine‟ Tag line “Hungry Kya?”, “30 minutes or free” and “Khushiyon ki Home Delivery” “good times starts with great pizzas” Price Range Rs. 39-260 Rs.75--380
  • 33. Future Prospects  Plans to diversify into non food business  Aims to add 100 more stores and hike the price by 3 %  Plans to open 100 new stores of Dunkin donuts across the country this financial year  At present it runs 3 store
  • 34. Things Jubilant must watch out for...  Till now no nation wide competitor, only city wise  Competition from New Entrants as market is untapped  Substitution effect (like restaurants, other food joints)  Suppliers growing bargaining power
  • 35. Dominos on the Industry Life Cycle
  • 36. Conclusion  Business Model  Relatively inelasticity of Demand Advantage.  Future growth depends on how well retailers are able to innovate, provide value for money, and keep up and surpass competitors.  The fast-food industry is becoming more global and it seems that will continue  The growth of the fast-food industry is expected to generally stay the same over the next few year.
  • 37. Bibliography  www.moneycontrol.com  www.jubilantfoodworks.comrk  http://en.wikipedia.org/wiki/Jubilant_FoodWorks  http://articles.economictimes.indiatimes.com/2012- 09-19/news/33952579_1_jubilant-foodworksjubilant-foodworks-jubilant-plans  http://marketentryindia.com  http://economictimes.indiatimes.com  Annual report of Jubilant FoodWorks Limited 20122013
  • 38. THANK YOU !