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GMR Infrastructure

GMR Group is an upcoming corporate group in India with diverse business interests in Infrastructure and

manufacturing sector. In Infrastructure sector, GMR Group has interests in Energy, Roads and Airports.

In manufacturing sector, the group's activities span Sugar and Ferro alloys. GMR Group is also engaged

in the fields of Education, Health, Hygiene and Sanitation, Empowerment & Livelihoods and Community-

Based Programmes. The group was founded in 1978 by Shri G.M. Rao.

Business Interests of GMR Group

Energy: GMR Group operates three power plants: GMR Energy Ltd. in Mangalore, GMR Power

Corporation Pvt. Ltd. in Chennai and Vemagiri Power Generation Ltd. in Andhra Pradesh. GMR's

Mangalore Power plant uses environment friendly fuel and combined cycle gas turbine technology to

achieve maximum thermal efficiency. The plant received the ISO 14001 and OHSAS 18001 certifications

from Det Norske Veritas for its compliance with internationally-benchmarked environmental standards.

GMR Power Corporation Pvt. Ltd operates a 200 MW power plant in Chennai and supplies the entirepower to the Tamil Nadu State Electricity Board. Chennai plant too has received ISO 14001 and OHSAS

18001 certifications. Vemagiri Power Generation is a natural gas based thermal power plant with an

installed capacity of 388.5 MW. Besides these power plants the GMR Group is developing three more

power projects: GMR Badrinath Hydro Power Generation Pvt. Ltd. in Alaknanda, Uttarakhand,

Kamalanga Power Project in Orissa and the Talong Power Project in Arunachal Pradesh.

Airport: GMR Group is developing a world-class Greenfield international airport in Shamshabad,

Hyderabad and modernizing and expanding the Indira Gandhi International Airport in New Delhi. A

consortium of GMR Infrastructure Malaysia Airports Holdings and Turkey's Limak recently bagged the

contract to build Istanbul's second airport.

Roads: GMR Group has completed a 4 lane Highway between Tuni-Anakapalli on NH-5 in Andhra

Pradesh for a distance of 60 km and the other between Tambaram-Tindivanam on NH-45 in Tamil Nadu

for a distance of 93 km. The company has bagged four more projects. These include: 35 km Ambala-

Chandigarh road project, 107 km Adloor-Yellareddy-Gundla Pochanpalli stretch , 58 km Thondapalli-

Jadcherla project on NH-7 in Andhra Pradesh and the 71 km Tindivanam-Ulunderpet stretch on NH-45 in

Tamil Nadu.

Agri-Business: GMR Group has a sugar plant located at Sankili in Srikakulam district of Andhra Pradesh

and is setting up two more sugar plants in Karnataka.

Ferro Alloys: GMR Ferro Alloys and Industries Ltd has an ISO 9001 certified plant located in the Tekkali

district of Andhra Pradesh. It manufactures internationally accepted high carbon ferro-chrome for the

stainless steel industry.


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Annual Growth


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Ratio trend Analysis (v/s DLF)


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Interpretation

Current Ratio

As they are real estate companies, current ratio tends to be higher

because of higher inventory and liquid money.

Debt-Equity Ratio

Both the companies keep their debt low as their returns are not stable

and realized after a long period of time.

Asset turnover ratio

In 2010, both companies showed opposite trend. While, GMR dropped

drastically, DLF grew and intensified.

Debtor turnover ratio

In the past years, they used to make credit sales. But now there isgenerally cash sales only. There is no significance if debtor turnover

here.

Inventory turnover ratio

Just from 2 years they have started keeping inventory and GMR has

showed a considerable increase in inventory.


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Net Revenues have gone up a modest 13.6%, primarily impacted by the

absence of Revenues from the decommissioned 220 MW barge

mounted power plant during the year. EBITDA, Cash Profit moved up

significantly, signifying efficient and profitable operations of the

business.

Net Revenues up by 13.62% from Rs. 4,019.22 Crore to Rs. 4,566.51

Crore

EBITDA up by 27.89% from Rs. 1,066.79 Crore to Rs. 1,364.31 Crore

PAT before minority interest and share of profits/(losses) of associates

decreased by 18.68% from Rs. 277.11 Crore to

Rs. 225.34 Crore.

PAT after minority interest and share of profits/(losses) of associates

decreased by 43.32% from Rs. 279.45 Crore to

Rs. 158.40 Crore.

Cash Profit (PAT before Minority plus depreciation plus deferred tax

plus MAT credit entitlement) increased by 14.10% from

Rs. 643.82 Crore to Rs. 734.61 Crore.

Total assets increased by 42.59% from Rs. 22,296.78 Crore to Rs.

31,793.20 Crore.

Net Worth increased by 4.59% from Rs. 8,277.24 Crore to Rs. 8,657.21Crore


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Balance Sheet


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Profit and Loss Statement


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Conclusion

GMR is a big company; it keeps no inventory with it. Also it

avoids keeping long term debt as well. After the analysis it isfound that companys overall profitability and revenue has

been increasing and they are also acquiring long term projects

and hence it will have the capacity to pay high returns over

investments on its equity.


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Timex Group

Business Description:

Timex Group India Limited (TGIL) is an India-based company. The Company is engaged in

manufacturing and trading of watches, and the provision of related after-sales service. It operatesin two segments: Watches and Timex Global Services. Its Watches segment is engaged inmanufacturing and trading of watches. The Company's Timex Global Services is engaged in the

provision of information technology (IT) and finance related back office support. Its brands

include Timex, Marc Ecko, Nautica and Salvatore Ferragamo. The Company's plant is located in

Solan, Himachal Pradesh. During the fiscal year ended March 31, 2010 (fiscal 2010), theCompany produced 1.661 million units of watches. During fiscal 2010, TGIL had a portfolio of

11 international brands 69 stores.

Timex Group designs, manufactures and markets innovative timepieces and jewelry globally.Timex, founded in 1854, has expanded to become Timex Group, a privately-held company, with

several operating units and over 5,000 employees worldwide.

One of the largest watch makers in the world, Timex Group companies include the Timex

Business Unit (Timex, Timex Ironman, Opex, TX, Nautica, Marc Ecko); Timex Group Luxury

Watches (Valentino, Salvatore Ferragamo); Sequel (Guess, Gc) and Vertime (Versace, Versus).

Timex Group built its reputation as the pioneer in timekeeping by harnessing the power and

possibility of time. From the first clock and wristwatch we produced through data integration -

from classic, time-honored designs through exclusive, luxury collector's pieces - Timex Groupcompanies continue to deliver unparalleled quality to highly diverse and global customers.


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Turnover Growth

0

20

40

60

80

100

120

140

160

31/3/2006 31/3/2007 31/3/2008 31/3/2009 31/3/2010

Turnover Growth

Turnover Growth


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Ratio trend Analysis (v/s Titan)


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Interpretation

Current Ratio

Titan Industries current ratio is low that means they have low liquidfunds to pay off current liabilities but there is less blockage of funds as

compared to timex.

Timex have considerable short term assets to pay off their short term

liabilities but there is a blockage of funds.

Debt Equity Ratio

Timex from past years has been paying off its debt and has optimized

its leverage. Titan has minimized its debt equity is in excellent

condition.

Earnings per share

Timex has showed a decline in trend while titan showed a considerable

increase.

Book value

Overall book value is increasing as we can see it counts value of

business and adds up with the goodwill and profitability.

Asset turnover ratio

It is also increasing in both the companies as sales turnover over the

assets employed has been increasing.


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Return on capital employed

Overall return is increasing in both the companies as no more capital

has been issued and profitability over it is increasing.

Inventory turnover

Inventory in timex has been reduced. So there will be less blockage of

funds. On the other hand, inventory in titan is quite stable.

Debtor turnover ratio

Titans position is better than timex in terms of realizing the debtors

more frequently.

Dividend payout ratio (net profit)

Timexs frequency of paying dividend is less but pays a good amount of

dividend in a row. Whereas titan frequently pays dividend to its

shareholders.


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During the year under review, the Company made payment aggregating

to Rs.30.06 Crore by way of Central, State and local sales taxes and

duties as against Rs. 27.39 Crore in the previous year.

Company is also paying dividend on its Preference Shares at the agreed

coupon rate.

The Company has earned Rs.7.15 Crore in Foreign exchange and used

Rs.0.92 Crore.

Upgraded process automations will help improve productivity and

quality and reduce assembly costs.

In determining the cost, the weighted average cost method is used.

Fixed production overheads are allocated on the basis of normal

capacity of production facilities. Finished goods and work-in-progress

include appropriate share of allocable overheads.

Intangible assets are amortised over their estimated useful life of 5

years.

Assets costing upto Rs. 5,000 are fully depreciated in the year of

purchase.

During the year, the Company has revised its estimate of residual

values of certain items of office equipment, leasehold improvement, IT

equipment and furniture and fixture and provided accelerated

depreciation thereon amounting to Rs. 3,230 thousand (previous yearRs. 281 thousand).


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Balance Sheet


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Profit and Loss Statement


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Conclusion

Here, it was found that Timex did not show a considerable

profit realization but it is focused on investing in R&D and

upgrading production and also minimizing the cost. Therefore

the profitability and opportunity with this company is high. Also

the P/E ratio of this company is quite favorable. So as an

investors point of view this company has lot of potential of

giving high returns over investment.

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