How Automation is Driving Efficiency Through the Last Mile of Reporting
Reliance communications ltd
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COMPANY FINALYTICS
Reliance Communications Ltd
Exclusive Financial Analysis of Indian Companies
Prepared and Edited By‐
Tanay Roy, CFA
Peu Karak, MBA
Disclaimer
The information, opinions, estimates and forecasts contained in this document have been arrived at or obtained from public sources believed
to be reliable and in good faith which has not been independently verified and no warranty, express or implied, is made as to their accuracy,
completeness or correctness.
For more information about this sample and our other services, please write to tanay.roy2008@gmail.com
Monday, September 19, 2011
2. Description Page
Summary 3
Latest Result 3
Valuation Matrix 3
ROE Analysis 3
Income Statement 4
Balance Sheet 5
Cashflow Statement 6
Quarterly Result 6
Growth Analysis 7
Comparative Analysis 8
Income Statement 8
Balance Sheet 8
Index Analysis 9
Income Statement 9
Balance Sheet 9
Ratio Analysis 10
Annual 10
Quarterly 11
TTM Analysis 11
Technical Analysis 12
CONTENT
About Tanay & Peu
Our passion lies in the field of financial research & Investment management and we intend to apply
our knowledge gained over a period of years through intense study and keen observation of the
nuances of financial markets and instruments to real life scenarios. We possess expert knowledge of
financial products and markets as evidenced by top notch qualifications earned by us , all in the first
attempt and keep ourselves abreast with the latest happenings and innovations taking place in
financial landscape.
1. Expertise in Portfolio Management, Product optimization, Product performance Analysis, Financial
Reporting/ Planning, Cash Flow Analysis, Ratio Analysis, Budgeting, Forecasting, Mergers &
Acquisition and knowledge of GAAP/ IFRS
2. Possess Strong Financial Modeling skills including DCF, LBO and other techniques. Possess ability to
research all asset classes in a broad range of industries and geographies.
3. Strong equity research, finance, accounting and advisory and assurance experience
4. Expertise in Technical analysis, fundamental analysis, developing trading systems.
5. Conduct in‐depth financial analysis of company financials.
6. Write analytical or trend based reports on companies, sectors or markets.
7. Expert level application in Bloomberg, Thomson Banker, Factset, Datastream, StockVal, Merger
markets, Reuters Knowledge, Haver Analytics, Factiva, PackHedge,
8. Building Excel/VBA based customized tools to perform detailed analysis.
Contact Us: tanay.roy2008@gmail.com
Page 2
3. Summary
At a Glance
Latest Results Industry Telecommunications ‐ Service
Yearly Quarterly TTM Business Group ADA Ent. Group
March ' 11 Growth June ' 11 Growth June ' 11 Growth Face Value 5
Latest Results
Number of Equity shares 20640.27
EBDITA 906.14 (69.71) 311.00 (2.03) 1090.77 20.38
Reported Net
Profit (757.99) (258.27) (272.00) (147.93) (545.91) (28.61) Price 82
Adjusted PAT (2127.59) (97.19) (272.00) (148.50) NA NA
Market Cap(Rs. In Cr) 16765.84
Valuation Matrix Share Holding
Annual TTM Ratio General
Particulars March ' 11 March ' 11 Public
Other 12%
3%
Reported P/E NA NA FII
8%
Price/Sales Per Share 1.40 1.40
Price/ Book Value 0.35 NA BFI
Dividend Yield 0.01 NA 8%
Earning Yield NA NA MF Promote
Market Cap(Rs. In Cr) 16765.84 1% r
68%
ROE Analysis
ROE
Particulars March ' 07 March ' 08 March ' 09 March ' 10 March ' 11 15%
Reported PAT / PBT 0.71 0.74 1.70 2.12 0.36 10%
Adjusted PAT / PBT 0.69 0.60 0.47 ‐5.21 1.00
5%
PBT / PBIT 0.88 0.80 0.71 0.15 1.09
PBIT / Sales 0.30 0.29 0.26 0.11 ‐0.16 0%
Sales / Total Assets 0.28 0.26 0.16 0.16 0.13 March ' March ' March ' March ' March '
‐5%
07 08 09 10 11
Total Assets / Net Worth 2.23 2.27 1.78 1.67 1.87
Reported ROE 12% 10% 9% 1% ‐2% Reported ROE Adjusted ROE
Adjusted ROE 11% 8% 2% ‐2% ‐4%
ROE Factors
2.50 14%
12%
2.00
10%
1.50 8%
6%
1.00
4%
0.50 2%
0%
0.00
‐2%
March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
‐0.50 ‐4%
Reported ROE Reported PAT / PBT PBT / PBIT
PBIT / Sales Sales / Total Assets Total Assets / Net Worth
Page 3
4. Income Statement
Particulars (Rs. In Cr) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
Net Sales 12756.30 14792.05 15086.66 13554.60 12129.77
Operating Expenses
Material Consumed 16.48 15.15 29.95 50.39 64.92
Manufacturing Expenses 3358.34 4144.21 5975.57 7994.76 9262.74
Personnel Expenses 684.40 858.65 754.56 672.39 608.07 Operating Income
Selling Expenses 1399.88 1067.76 773.21 662.96 0.00
16000.00
Adminstrative Expenses 1784.19 2532.99 2323.44 1980.67 1772.15
14000.00
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00
12000.00
Total Operating Expenses 7243.29 8618.76 9856.73 11361.17 11707.88
Operating Profit 5513.01 6173.29 5229.93 2193.43 421.89 10000.00
Other Income 169.61 28.68 675.12 797.98 484.25 8000.00
EBDITA 5682.62 6201.97 5905.05 2991.41 906.14 6000.00
Depreciation 1836.12 1843.66 1933.51 1511.24 2855.62
4000.00
Other Write offs 0.00 0.00 0.00 0.00 0.00
EBIT 3846.50 4358.31 3971.54 1480.17 (1949.48) 2000.00
Interest 456.55 870.05 1153.24 1253.84 178.11 0.00
EBT 3389.95 3488.26 2818.30 226.33 (2127.59) March March March March March
' 07 ' 08 ' 09 ' 10 ' 11
Income Tax 1043.38 1393.66 1488.64 1404.59 0.00
Adjusted PAT 2346.57 2094.60 1329.66 (1178.26) (2127.59) Net Sales Operating Profit EBDITA
Non Recurring Items 62.28 491.85 3473.01 1657.19 0.00
Other Non Cash adjustments 0.00 0.00 0.00 0.00 1369.60
Reported Net Profit 2408.85 2586.45 4802.67 478.93 (757.99)
Equity Dividend 102.23 154.80 165.12 175.44 103.20
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Dividend Tax 17.37 26.31 28.06 29.14 17.14
Retained Earnings 2289.25 2405.34 4609.49 274.35 (878.33)
Profit Levels Total Income Break‐up
7000.00
Total Operating Expenses Depreciation
6000.00 Other Write offs Interest
5000.00 Income Tax Adjusted PAT
4000.00
3000.00
2000.00 ‐13%
0%
1%
0%
1000.00
0.00 17%
(1000.00) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
(2000.00)
69%
(3000.00)
Operating Profit EBDITA EBIT
EBT Adjusted PAT
Page 4
5. Balance Sheet
Particulars (Rs. In Cr) March ' 07 March ' 08 March ' 09 March ' 10 March ' 11
SOURCES OF FUNDS
Owner's Fund
Equity Share Capital 1022.31 1032.01 1032.01 1032.01 1032.01
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves & Surplus 19503.23 23808.02 50658.31 49466.88 47112.47
Total Owners fund 20525.54 24840.03 51690.32 50498.89 48144.48
Loan Funds
Secured Loans 5113.57 950.00 3000.00 3000.00 15226.02
Unsecured Loans 9454.27 19336.43 27903.61 21478.28 16226.72
Total Loan fund 14567.84 20286.43 30903.61 24478.28 31452.74
Capital Structure
Total 35093.38 45126.46 82593.93 74977.17 79597.22
60000.00
USES OF FUNDS
Fixed Assets
Gross Block 20625.82 21576.32 37941.15 39838.17 40904.17 50000.00
Less : Revaluation Reserve 0.00 0.00 0.00 0.00 0.00
Less : Accumulated 40000.00
Depreciation 2527.37 4688.69 6533.38 9225.69 12063.27
Net Block 18098.45 16887.63 31407.77 30612.48 28840.90
Capital Work‐in‐progress 2185.60 7117.56 3643.86 1683.52 9907.66 30000.00
Investments 5434.43 13844.14 31364.75 31898.60 32102.13
Net Current Assets 20000.00
Current Assets, Loans &
Advances 20107.04 18515.29 25543.01 20005.94 19153.82
Less : Current Liabilities & 10000.00
Provisions 10732.14 11238.16 9365.46 9223.37 10407.29
Total Net Current Assets 9374.90 7277.13 16177.55 10782.57 8746.53
0.00
Miscellaneous expenses not
written 0.00 0.00 0.00 0.00 0.00 March ' March ' March ' March ' March '
Total 35093.38 45126.46 82593.93 74977.17 79597.22 07 08 09 10 11
Note :
Total Owners fund Total Loan fund
Book Value of Unquoted
Investments 5434.43 13844.14 31364.63 31898.31 32101.85
Market Value of Quoted
Investments 0.00 0.00 0.12 0.29 0.28
Contingent liabilities 3781.30 4392.73 6555.82 3274.83 1958.61
Number of Equity shares
outstanding (in Lacs) 20446.15 20640.27 20640.27 20640.27 20640.27
Sources of Capital Application of capital
Total Net
Current Assets
11%
Total Loan Net Block
fund 36%
40%
Total Owners Investments
fund 40%
60%
Capital Work‐
in‐progress
13%
Page 5
6. Cash Flow Statement
Particulars (Rs. In Cr) December ' 05 March ' 07 March ' 08 March ' 09 March ' 10
Profit Before Tax 8.86 2420.85 2604.09 4815.07 619.47
Net CashFlow‐Operating
Net Cash Flow
Activity (10.98) 10469.12 2982.80 1884.87 1043.88
Net Cash Used In Investing
Activity 0.00 (4883.86) (11263.87) (7650.54) 4339.32 4645.92
NetCash Used in Fin. Activity
11.02 4645.92 6234.75 6405.25 (5868.66)
6405.25 4339.32
Net Inc/Dec In Cash And 11.02 10469.12 6234.75
Equivlnt 0.04 10231.18 (2046.32) 639.58 (485.46) 2982.80 1884.87 1043.88
0.00
Cash And Equivalnt Begin of
(4883.86)
Year 0.01 (10162.73) 2240.40 205.57 567.64 (11263.8 (7650.54) (5868.66)
(10.98)
Cash And Equivalnt End Of 7)
Year 0.05 68.45 192.66 845.15 82.18
Net CashFlow‐Operating Activity
Net Cash Used In Investing Activity
NetCash Used in Fin. Activity
Quarterly Result
September '
Particulars (Rs. In Cr) June ' 10 10 December ' 10 March ' 11 June ' 11
Sales 3,177.57 3,081.53 2,976.84 2,893.83 2,835.00
Less: Excise 0.00 0.00 0.00 0.00 0.00
Net Sales 3,177.57 3,081.53 2,976.84 2,893.83 2,835.00
Profit Levels
Other Income 8.34 8.10 118.74 349.07 19.00
Total Income 3,185.91 3,089.63 3,095.58 3,242.90 2,854.00
Stock Adjustment 0.00 0.00 0.00 0.00 0.00
Raw Material 0.00 0.00 0.00 0.00 0.00
Power And Fuel 0.00 0.00 0.00 0.00 0.00
Employee Expenses 167.26 156.83 159.65 124.34 144.00
Admin And Selling Expenses 0.00 0.00 0.00 0.00 0.00
Research And Devlopment Expe 0.00 0.00 0.00 0.00 0.00
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00
Other Expeses 2,892.28 2,927.93 2,966.64 2,312.95 2,399.00
Total Expenses 3,059.54 3,084.76 3,126.29 2,437.29 2,543.00
EBDITA 126.37 4.87 (30.71) 805.61 311.00
Provisions Made 0.00 0.00 0.00 0.00 0.00
Depreciation 406.03 370.78 395.93 421.52 372.00
EBIT (279.66) (365.91) (426.64) 384.09 (61.00)
Interest 211.15 110.56 (61.70) (81.89) 211.00
EBT (490.81) (476.47) (364.94) 465.98 (272.00)
Taxation 0.00 0.00 0.00 (101.52) 0.00
Net Profit / Loss (490.81) (476.47) (364.94) 567.50 (272.00)
Extra Ordinary Item 0.00 0.00 0.00 6.73 0.00 EBDITA EBIT
Prior Year Adjustments 0.00 0.00 0.00 0.00 0.00
EBT Net Profit / Loss
Page 6