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 CommunityBased 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 entire power 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 AmbalaChandigarh road project, 107 km Adloor-Yellareddy-Gundla Pochanpalli stretch , 58 km ThondapalliJadcherla 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 is generally 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. 8,657.21 Crore

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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 is found 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 operates in two segments: Watches and Timex Global Services. Its Watches segment is engaged in manufacturing 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), the Company 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 Group companies continue to deliver unparalleled quality to highly diverse and global customers.

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Turnover Growth

Turnover Growth
160

140

120

100

80

Turnover Growth

60

40

20

0 31/3/2006 31/3/2007 31/3/2008 31/3/2009 31/3/2010

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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 liquid funds 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 year Rs. 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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