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Home > Videocon Industries Limited
Stock Info
Current price BSE 165.80
Current price NSE 165.85
Market Capitalisation 5285.02
Face value Rs. 10
EPS (TTM) Rs. 4.09
P/E 40.54
Sector Consumer Electronics
No of shares 318758875
BSE 52 week high 211.05
BSE 52 week low 153.00
NSE 52 week high 211.35
NSE 52 week low 157.00
BSE Sensex 26851.05
Nifty 8014.55
Average Volume BSE 40300.50
Average Volume NSE 173403.00
BSE Code 511389
NSE Symbol VIDEOIND
Absolute returns
 
VIDEOIND
SENSEX
1 Years
-5.77%
29.29%
3 Years
-5.55%
59.96%
4 Years
-37.55%
33.15%

About the Company

Videocon Industries Limited ("Videocon" or the "Company") operates in 3 key sectors: consumer electronics and home appliances, power business and telecommunications.

Consumer Electronics and Home Appliances: The Company manufactures consumer electronics and home appliances, including finished goods such as television, home entertainment systems, refrigerators, washing machines, air conditioners and other household appliances and components such as glass shell (panels & funnels), compressors, motors etc.

Power Business: The Company is developing the Pipavav power project and Chhattisgarh power project through its wholly owned subsidiaries, Pipavav Energy Private Limited and Chhattisgarh Power Ventures Private Limited respectively. Both the plants are designed to have a capacity of 1200 MW and comprises two units of 600 MW each.

Telecommunication: The Company operates the GSM mobile services through Videocon Telecommunications Limited (VTL) to provide unified access services in the following 6 circles in India: Gujrat, Haryana, Uttar Pradesh (West), Uttar Pradesh (East), Madhya Pradesh-Chattisgarh, Bihar-Jharkhand.

* The Equity Research Report presented below is based on a Fundamental Analysis of Videocon Industries.

Latest Shareholding Pattern

* In FY 2010, the Company has changed its financial year period from October - September to January - December. As such, the figure for financial year ended December 2010 contains figures for 15 months and can't be compared.

** In FY 2013, the Company has changed its financial year period from January - December to July - June. As such, the figure for financial year ended June 2013 contains figures for last 18 months and can't be compared.

*** For FY 2011 and FY 2013, the numbers reported are on standalone basis.

Key Financial Figures

(Rs. Cr)
Consolidated
Particulars FY 2008 FY 2009 FY 2010 FY 2011 FY 2013 (18 Months)
Total Income from Operations 12,237.05 10,673.73 15,028.69 12,919.47 18,157.27
Expenses 9,446.02 8,831.36 13,159.98 10,667.06 15,150.89
Earnings Before Other Income, Interest, Tax and Depreciation (Operating Profit) 2,791.03 1,842.37 1,868.71 2,252.41 3,006.38
Depreciation 780.49 588.76 891.20 607.56 824.35
Finance Costs 532.60 747.82 1,089.21 977.79 2,714.82
Other income 95.28 102.92 156.91 106.31 418.27
Exceptional items 127.81 - 17.34 - -
PBT 1,445.41 608.71 27.87 773.37 (114.52)
Tax 340.48 192.74 325.08 227.81 (42.89)
PAT (before Minority Interest and share of Associates) 1,104.93 415.97 (297.21) 545.56 (71.63)
Profit/ (loss) attributable to Minority Interest 6.00 - (0.19) - -
Share of profit / (loss) of Associates - - - - -
Consolidated Profit / (Loss) for the year 1,098.93 415.97 (297.02) - -
Standalone
Particulars FY 2011 Q4 FY 2013 Q1 FY 2013 Q2 FY 2013 Q3 FY 2013 Q4 FY 2014 Q1 FY 2014 Q2 FY 2014 Q3 FY 2014 Q4
Total Income from Operations 3,073.39 2,996.31 3,024.38 3,021.75 3,042.48 3,183.32 3,225.73 3,086.55 3,135.57
Expenses 2,600.61 2,482.26 2,501.46 2,488.01 2,527.84 2,624.71 2,679.11 2,535.35 2,571.91
Earnings Before Other Income, Interest, Tax and Depreciation (Operating Profit) 472.78 514.05 522.92 533.74 514.64 558.61 546.62 551.20 563.66
Depreciation 143.82 138.57 135.12 134.23 146.00 128.64 132.46 191.72 182.34
Finance Costs 299.19 358.73 390.08 405.12 602.84 581.06 597.74 579.62 584.83
Other income 79.46 38.57 57.39 25.84 241.44 176.27 206.44 139.36 216.48
PBT 109.23 55.32 55.11 20.23 7.24 25.18 22.86 (80.78) 12.97
Tax 22.81 5.00 5.00 5.00 (3.39) 5.00 5.23 (15.84) 2.75
PAT (before Minority Interest and share of Associates) 86.42 50.32 50.11 15.23 10.63 20.18 17.63 (64.94) 10.22

Profitability Analysis

(%)
Consolidated
Particulars FY 2008 FY 2009 FY 2010 FY 2011 FY 2013 (18 Months)
Operating Profit Margin Ratio 22.81 17.26 12.43 17.43 16.56
Net Profit Margin Ratio 9.03 3.90 (1.98) 4.22 (0.39)
Standalone
Particulars FY 2011 Q4 FY 2013 Q1 FY 2013 Q2 FY 2013 Q3 FY 2013 Q4 FY 2014 Q1 FY 2014 Q2 FY 2014 Q3 FY 2014 Q4
Operating Profit Margin Ratio 15.38 17.16 17.29 17.66 16.92 17.55 16.95 17.86 17.98
Net Profit Margin Ratio 2.81 1.68 1.66 0.50 0.35 0.63 0.55 (2.10) 0.33

Operating profit margin is a measurement of the proportion of a company’s revenue that is left over after paying for production costs such as raw materials, salaries and administrative costs. Net profit margin is arrived at by deducting non operating expenses such as depreciation, finance costs and taxes out of operating profit and shows what is left for the shareholders as a percentage of net sales. Together these ratios help in understanding the cost and profit structure of the firm and analysing business inefficiencies.

Key Balance Sheet Figures

(Rs. Cr)
Sources of Funds / Liabilities
Particulars FY 2008 FY 2009 FY 2010 FY 2011 FY 2013
Share Capital 275.31 275.42 347.96 333.94 334.09
Share application money pending allotment 802.25 95.00 500.00 544.87 -
Reserves & Surplus 6,600.44 7,013.72 8,067.83 6,945.04 4,379.60
Net worth (shareholders funds) 7,678.00 7,384.13 8,915.79 7,823.85 4,713.70
Minority Interest 54.00 0.05 0.32 10.41 207.98
Long term borrowings 11,339.22 12,067.56 14,373.92 27,283.35 31,078.66
Current liabilities 1,327.66 1,550.67 2,361.76 3,418.99 13,318.68
Deferred Tax Liabilities 423.78 512.34 674.12 735.12 149.94
Total Liabilities 20,822.66 21,514.75 26,325.92 39,271.72 49,468.95
(Rs. Cr)
Application of Funds / Assets
Particulars FY 2008 FY 2009 FY 2010 FY 2011 FY 2013
Fixed Assets 9,084.88 10,763.24 13,086.17 16,534.87 19,419.47
Noncurrent Investments 2,452.84 787.69 348.80 1,108.32 754.90
Current assets 9,274.56 9,950.75 12,887.10 21,620.73 21,880.48
Goodwill on consolidation (net) 10.38 13.05 3.83 7.79 1,107.95
Total assets 20,822.66 21,514.75 26,325.92 39,271.72 49,468.95

Efficiency Analysis

(%)
Particulars FY 2008 FY 2009 FY 2010 FY 2011 FY 2013
ROCE 14.63 9.47 8.02 6.41 8.35
ROE / RONW 14.39 5.63 (3.33) 6.97 (1.52)

Return on Capital Employed (ROCE) measures a company’s profitability from its overall operations by calculating the return generated on the total capital invested in the business (i.e. equity + debt). Return on Equity (ROE) or Return on Net worth (RONW) measures the amount of profit which the company generates on money invested by the equity shareholders. In short, ROE draws attention to the return generated by the shareholders on their investment in the business. Together these ratios can be used in comparing the profitability of the company with other companies in the same industry.

Valuation Analysis

Consolidated
Particulars FY 2008 FY 2009 FY 2010 FY 2011 FY 2013 (18 Months)
Total Income from Operations (Rs. Cr.) 12,237.05 10,673.73 15,028.69 12,919.47 18,157.27
Growth (%) - (12.78 %) 40.80 % (14.03 %) 40.54 %
PAT (Rs. Cr.) 1,104.93 415.97 (297.21) 545.56 (71.63)
Growth (%) - (62.35 %) (171.45 %) 283.56 % (113.13 %)
Earnings Per Share – Basic (Rs. ) 48.21 22.27 (13.27) 17.86 (2.38)
Earning Per Share - Diluted (Rs. ) 46.88 21.07 (10.99) 17.86 (2.38)
Price to Earnings 4.15 11.88 - 9.74 -
Standalone
Particulars FY 2011 Q4 FY 2013 Q1 FY 2013 Q2 FY 2013 Q3 FY 2013 Q4 FY 2014 Q1 FY 2014 Q2 FY 2014 Q3 FY 2014 Q4
Total Income from Operations 3,073.39 2,996.31 3,024.38 3,021.75 3,042.48 3,183.32 3,225.73 3,086.55 3,135.57
Growth (%) - (2.51 %) 0.94 % (0.09 %) 0.69 % 4.63 % 1.33 % (4.31 %) 1.59 %
PAT 86.42 50.32 50.11 15.23 10.63 20.18 17.63 (64.94) 10.22
Growth (%) - (41.77 %) (0.42 %) (69.61 %) (30.20 %) 89.84 % (12.64 %) (468.35 %) 115.74 %
Earnings Per Share – Basic 2.85* 1.66* 1.62* 0.48* 0.33* 0.63* 0.55* (2.04*) 0.32*
Earning Per Share - Diluted 2.85* 1.66* 1.62* 0.48* 0.33* 0.63* 0.55* (2.04*) 0.32*
Price to Earnings - - - - - - - - -
* Not annualised

Dividend History

Year Rate of dividend (of face value) Rs. Closing price* Date*
FY 2007 35 % 3.50 300.32 14 March 2008
FY 2008 10 % 1.00 84.48 13 March 2009
FY 2009 20 % 2.00 227.75 18 March 2010
FY 2010 10 % 1.00 183.05 14 June 2011
FY 2011 5 % 0.50 173.10 14 June 2012
FY 2013 20 % 2.00 166.50 12 December 2013

* Closing Price as on the date of declaration of final (or last) dividend for the Financial Year.


The Company has maintained an average dividend yield of 0.81 % over the last 5 financial years.

Liquidity and Credit Analysis


Current Ratio

 

Higher current ratio implies healthier short term liquidity comfort level. A current ratio below 1 indicates that the company may not be able to meet its obligations in the short run. However, it is not always a matter of worry if this ratio temporarily falls below 1 as many times companies squeeze out short term cash sources to achieve a capital intensive plan with a longer term outlook. Videocon’s average current ratio over the last 4 financial years has been 6.30 times which indicates that the Company has been maintaining sufficient cash to meet its short term obligations.

 

Long Term Debt to Equity Ratio

 

Companies operating with high debt to equity on their balance sheets are vulnerable to economic cycles. In times of slowdown in economy, companies with high levels of debt find it increasingly difficult to service the interest on their borrowings as profit margins decline. We believe that long term debt to equity ratio higher than 0.6 - 0.8 could affect the business of a company and its results of operations.

 

Videocon’s average long term debt to equity ratio over the last 4 financial years has been 2.05 which indicate that the Company is operating with a high level of debt and is not placed well to withstand economic slowdown.

 

Interest Coverage ratio

 

Interest coverage ratio indicates the comfort with which the company may be able to service the interest expense (i.e. finance charges) on its outstanding debt. Higher interest coverage ratio indicates that the company can easily meet the interest expense pertaining to its debt obligations. In our view, interest coverage ratio of below 1.5 should raise doubts about the company’s ability to meet the expenses on its borrowings. Interest coverage ratio below 1 indicates that the company is just not generating enough to service its debt obligations.

 

Videocon’s average interest coverage ratio over the last 5 financial years has been 2.57 times which indicates that the Company has been generating enough for the shareholders after servicing its debt obligations.

Ownership pattern

(%)
Shareholding March 2010 March 2011 March 2012 March 2013 March 2014
Promoter 74.88 71.96 71.70 69.38 68.82
FIIs 3.98 3.12 2.96 2.09 3.67
DIIs 7.25 10.48 10.26 8.87 8.48
Others 13.89 14.44 15.08 19.66 19.03

In its latest stock exchange filing dated 31 March 2014, Videocon’s reported a promoter holding of 68.82 %. Large promoter holding indicates conviction and sincerity of the promoters. We believe that a greater than 35 % promoter holding offers safety to the retail investors.

At the same time, institutional holding in the Company stood at 12.15 % (FII+DII). Large institutional holding indicates the confidence of seasoned investors. At the same time, it can also lead to high volatility in the stock price as institutions buy and sell larger stakes than retail participants.

 

 


Final Score Based on Fundamental Analysis of Videocon Industries Limited
Is this the right time to buy / sell Videocon Industries Limited ?

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