The Financial aspects of the telecommunications industries.

1. ECONOMY, INDUSTRY, COMPANY
PRESENTATION
Telecommunications Industry
Presented By:
Monika | Nadim Ashraf | Nikhil Agarwal | Sunkara Gokul |
Subhashree Dash

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%.
 India's total trade in goods and services has reached a
share of 43% of GDP in 2005–06, up from 16% in 1990–
91.

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. 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 world's 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. TELECOM SECTOR – CURRENT SCENARIO
 India's 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. TRENDS IN TELEPHONE SUBSCRIBERS

8. MARKET SHARE
Number of Subscribers
Aircel Tata Idea BSNL MTNL
Others Airtel Reliance Vodafone
7% 4%
10%
19% 9%
16%
33%
1%
1%

9. MAJOR PLAYERS
 Airtel
 Vodafone
 Tata Communications
 Idea
 Reliance

10. CURRENT RATIO
Company Current Ratio
2011 2010
Airtel .82 .71
Vodafone 1.27 1.27
Idea .49 .96
Reliance .765 .312
Tata .74 .80

11. QUICK RATIO
Company Quick Ratio
2011 2010
Airtel .77 .71
Vodafone 1.2 1.2
Idea .52 .86
Reliance .76 .312
Tata .70 .75

12. LEVERAGE
Company 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

13. WORKING CAPITAL
Company 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

14. FINANCIAL FORECASTING
Compan 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%

15. 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 1993.07 977.3 626.341 511.47
Other 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

16. THANK YOU