Dissertation on Financial Analysis in Videocon Industries-Finance Project Report
Synopsis for MBA Project Report on Videocon Industries-Finance Topic
• Videocon Industries is a one of the major players in the consumer goods industry.
• The Cost of marketing, advertising and after sale services are increasing tremendously.
• The company’s current debt-equity is looking a bit high in comparison with its peers and stood at around 1 x.
• The promoters have pledged 36.4 per cent, or 83.55 million shares.
• Due to rise in interest and depreciation costs NPM for the Dec.quarter declined to 2.90 % from 6.60%
of last quarter.
• The topline of the company is expected to grow only at a CAGR of 5.98% over FY07 to FY10E.
• The company plans to enter into power equipment business and expects to clock revenues of Rs 10000
mn by 2011.
Videocon Industries was incorporated in 1986. The company has two core activities, which include the manufacturing, assembly, marketing and distribution of consumer electronics and home appliances, and exploration and production of oil and gas.The company presently has seven operating business divisions, in which major divisions are consumer electronics, home appliances, components, etc.
Videocon started its oil and gas division a few years ago, and presently holds a 25 per cent stake in the Ravva oil field, located on the Krishna-Godavari basin.The operating cost of the Ravva oil field is supposed to be the lowest in the world, at less than EUR 0.78 per barrel of oil. Internationally, it has interests in oil blocks, one in Oman, two in Australia and one in Timor Sea near Indonesia.