Oracle services

Income Statement 2012A 2013A

Revenues 26059 29377
Employees benefits expense 12533 14357
Other Expenses 3631 3788
Depreciation and Amortization cost 401 586
EBIT 9494 10646
Interest expense (net of interest income) 0 0
EBT 10012 10646
Tax Expense 4767 4755
Profits after tax (continuing operations) 5245 5891
Income from discontinued operations (net of taxes) 0 0
Consolidated net income 5245 5891
Minority interest share of profits 0 0
Consolidated net income attributable to Oracle 5245 5891

Balance Sheet - Assets 2012A 2013A

Cash 39476 54710
Accounts Receivables 8972 7280
Investment 10 10
Other current assets 4752 4460
Loans 2939 790
Other financial assets 0 0
Total current assets 56149 67250

Property & Equipment 3727 3858

Goodwill 0 0
Capital WIP 544 133
Other Intangible Assets 6087 6087
Investments 0 0
Loans 5235 6128
Other Financial assets 0 0
Deferred Tax assets 707 712
Other non current assets 3 1
Total assets 72452 84168

Balance Sheet - Liabilities and equity 2012A 2013A

Short term debt 272 0
Accounts payable 272 237
Other Financial Liabilities 0 0
Provision 930 1245
Current tax liabilities 0 0
Other short term liabilities 6918 7704
Total current liabilities 8392 9186

Long term debt 0 0

Other financial liabilities 0 0
Other long term liabilities 229 277
Long term provision 658 601

Common equity 63174 74103

Total liabilities and equity 72452 84168
Check 0 0
 NAME - UNNATI TANDON
ENROLLMENT NUMBER - JL18FS060

2014A 2015A 2016A 2017A 2018A 2019A

31595 33411 41313 44265 38168 35809
15762 15973.7 19496 20703 18587 11896
4090 4426 5699 6223 5474 4936
634 634 529 702 502 502
11108 12589 15589 16638 13605 18475
0 0 0 0 0 0
12308 13202 15589 16638 13605 18475
5824 5556 6987 5716 4809 7039
6484 7646 8602 10922 8796 11435
0 0 0 0 0 0
6484 7646 8602 10922 8796 11435
0 0 0 0 0 0
6484 7646 8602 10922 8796 11435

2014A 2015A 2016A 2017A 2018A 2019A

61866 35638 5790 25915 8060.99 11563
11570 6016 8311 11180 10074.8 9475
0 0 25065 9402 7968.95 7487
6061 4273 723 514 2545.08 2066
663 793 0 0 8399.68 9717
0 4122 4150 4917 5388.9 7357
80160 50843 44038 51928 42438 47664

3381 3024 2562 2509 2180 2450

0 0 0 0 0 0
125 3 48 8 26 5
6087 6087 0 0 0 0
1287 1006 102 102 102 102
5134 5866 0 0 0 0
0 0 733 715 3526 785
1006 867 1276 1346 7969 7487
0 0 733 714.59 1152 712
97180 67696 49493 57323 57393 59204

2014A 2015A 2016A 2017A 2018A 2019A

0 0 0 0 0 0
474 361.76 378 108 646 568
0 0 1926 19733 3230 2723
1372 19899 0 0 0 0
0 0 741 946 1378 1290
6589 6933 4490 4137 4838.4 5064.67
8435 27194 7535 24924 10093 9646

0 0 0 0 0 0
0 0 27 24 35 32
260 221 192 245 191 161
719 841 0 0 0 0

87765 39441 41739 32130 47074 49365

97180 67696 49493 57323 57393 59204
0 0 0 0 0 0
Oracle
HISTORICAL
Income Statement ratios Unit 2013A 2014A 2015A
Year on year revenue growth % 13% 8% 6%
Employees benefit expenses as % revenues % 49% 50% 48%
Other Expenses as % revenue % 13% 13% 13%
Depreciation expenses as % of opening Property & Equip % 15% 19% 21%
Interest expenses as % of opening total debt % 0% 0% 0%
Effective tax rate as % of pre-tax profit % 45% 47% 42%
Minority share of profit as % of total consolidated profit % 0% 0% 0%

Balance Sheet ratios Unit 2013A 2014A 2015A

Accounts Receivables as % of total revenues % 25% 37% 18%
Property & Equipment as % of total revenues % 13% 11% 9%
Capital WIP as % of total revenue % 0% 0% 0%
Accounts payable as % of total revenue. % 1% 1% 1%
Provision as % of Total revenue. % 4% 4% 60%

Key cash flow numbers Unit 2013A 2014A 2015A

Short term borrowings added Rs Million 0 0 0
Short term borrowings repaid Rs Million 30 5 2
Rs Million
Long term borrowings added Rs Million 0 0 0
Long term borrowings repaid Rs Million 0 0 0
Rs Million
Dividends paid to minority interest (USD bn) Rs Million 0 0 0
Dividends paid to common shareholders (USD bn) Rs Million 0 0 41018
share buyback from minority interest (USD bn) Rs Million 0 0 0
Common equity sharebuy back (USD bn) Rs Million 0 0 0
Dividend payout ratio as % of total profit % 0% 0% 633%
HISTORICAL FORECASTED
2016A 2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E
24% 7% -14% -6% 3% 3% -1% -3% -1%
47% 47% 49% 33% 34% 34% 34% 34% 35%
14% 14% 14% 14% 15% 15% 15% 15% 15%
21% 28% 23% 20% 25% 25% 25% 25% 25%
0% 0% 0% 0% 0% 0% 1% 1% 1%
45% 34% 35% 38% 38% 39% 39% 39% 40%
0% 0% 0% 0% 0% 0% 0% 0% 0%

2016A 2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E

20% 25% 26% 26% 26% 26% 26% 26% 26%
6% 6% 6% 7% 7% 7% 7% 7% 7%
0% 0% 0% 0% 0% 0% 0% 0% 0%
1% 0% 2% 2% 2% 2% 2% 2% 2%
0% 0% 0% 0% 0% 0% 0% 0% 0%

2016A 2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E

0 0 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0
15229 8485 14471 1124 16065 11075 10244 10596 9821
0 0 0 0 0 0 0 0 0
0 0 0 0 0.0 0.0 0.0 0.0 0.0
199% 99% 132% 13% 215% 132% 118% 122% 120%
ORACLE
HISTORICAL
Income Statement 2012A 2013A 2014A 2015A 2016A
Revenues 26059 29377 31595 33411 41313
Employees Benefit expenses 12533 14357 15762 15974 19496
Other Expenses 3631 3788 4090 4426 5699
Depreciation and Amortization cost 401 586 634 634 529
EBIT 9494 10646 11108 12377 15589
Interest expense (net of interest income) 0 0 0 0 0
EBT 9494 10646 11108 12377 15589
Provisions for taxes 4767 4755 5824 5556 6987
Profits after tax (continuing operations) 4727 5891 5284 6821 8602
Income from discontinued operations (net of ta 0 0 0 0 0
Consolidated net income 4727 5891 5284 6822 8602
Minority interest share of profits 0 0 0 0 0
Consolidated net income attributable to Wa 4727 5891 5284 6822 8602

Balance Sheet - Assets 2012A 2013A 2014A 2015A 2016A

Cash 39476 54710 61866 35638 5790
Accounts Receivables 8972 7280 11570 6016 8311
Investment 10 10 0 0 25065
Other current assets 4752 4460 6061 4273 723
Loans 2939 790 663 793 0
Other financial asset 0 0 0 4122 4150
Total current assets 56149 67250 80160 50843 44038

Property & Equipment 3727 3858 3381 3024 2562

Goodwill 0 0 0 0 0
Capital WIP 544 133 125 3 48
Other intangible assets 6087 6087 6087 6087 0
Investments 0 0 1287 1006 102
Loans 5235 6128 5134 5866 0
Other Financial assets 0 0 0 0 733
Deferred Tax assets 707 712 1006 867 1276
Other long term assets 3 1 0 0 733
Total assets 72452 84168 97180 67696 49493

Balance Sheet - Liabilities and equity 2012A 2013A 2014A 2015A 2016A
Short term debt 272 0 0 0 0
Accounts payable 272 237 474 362 378
Other financial liabilities 0 0 0 0 1926
Provision 930 1245 1372 19899 0
Current tax liabilities 0 0 0 0 741
Other short term liabilities 6918 7704 6589 6933 4490
Total current liabilities 8392 9186 8435 27194 7535

Long term debt 0 0 0 0 0

Other financial liabilities 0 0 0 0 27
Other long term liabilities 229 277 260 221 192
Long term provision 658 601 719 841 0
0
Common equity 63174 74103 87765 39441 41739
Total liabilities and equity 72452 84168 97180 67696 49493
Check 0 0 0 0 0
RICAL FORECASTED
2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E
44265 38168 35809 36997 38045 37538 36402 36082
20703 18587 11896 12402 12867 12808 12530 12528
6223 5474 4936 5550 5707 5631 5460 5412
702 502 502 613 633 651 642 623
16638 13605 18475 18433 18838 18448 17770 17519
0 0 0 0 0 0 0 0
16638 13605 18475 18433 18838 18448 17770 17519
5716 4809 7039 7079 7291 7195 6984 6938
10922 8796 11435 11354 11547 11253 10786 10581
0 0 0 0 0 0 0 0
10922 8796 11435 11354 11547 11253 10786 10581
0 0 0 0 0 0 0 0
10922 8796 11435 11354 11547 11253 10786 10581

2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E

25915 8061 11563 14967 12943 15249 10353 11159
11180 10075 9475 9789 10066 9932 9632 9547
9402 7969 7487 9985 11982 9365 9357 9635
514 2545 2066 2024 1574 1745 1991 1880
0 8400 9717 3782 4380 5256 6307 5888
4917 5389 7357 8093 8902 9792 10771 11849
51928 42438 47664 48640 49847 51338 48411 49958

2509 2180 2450 2531 2603 2568 2491 2469

0 0 0 0 0 0 0 0
8 26 5 5 5 5 5 5
0 0 0 0 0 0 0 0
102 102 102 283 138 145 154 164
0 0 0 0 0 0 0 0
715 3526 785 785 785 785 785 785
1346 7969 7487 3789 4373 4993 5722 5273
715 1152 712 859 908 826 864 866
57323 57393 59204 56892 58659 60661 58432 59519

2017A 2018A 2019A 2020E 2021E 2022E 2023E 2024E

0 0 0 0 0 0 0 0
108 646 568 586 603 595 577 572
19733 3230 2723 5523 6627 7567 5134 5515
0 0 0 0 0 0 0 0
946 1378 1290 871 1045 1106 1138 1090
4137 4838 5065 5065 5065 5065 5065 5065
24924 10093 9646 12045 13340 14333 11914 12242

0 0 0 0 0 0 0 0
24 35 32 32 32 32 32 32
245 191 161 197 198 187 186 192
0 0 0 0 0 0 0 0
0
32130 47074 49365 44654 45126 46135 46325 47085
57323 57393 59204 56928 58697 60687 58457 59551
0 0 0 0 0 0 0 0
ORACLE
Rupee In Million
Cash flow statement 2020E 2021E
Cash flow from operations 16794 10244
Consolidated net income from continuing operations 11354 11547
Add: Depreciation and amortization 613 633
Add: Interest expense 0 0
Add: Increase in accounts payable 19 17
Add: Increase in other short term liabilities 0 0
Add: Increase in Provision 0 0
Add: Increase in other financial liability 2799 1105
Add: Increase in current tax liability -419 174
Less: Increase in investment 2498 1997
Less: Increase in accounts receivables 314 277
Less: Increase in other current assets -42 -450
Less: Increase in Loan -5935 598
Less: Increase in other financial assets 736 809

Cash flow from investment 2675 -1193

Less: Capex in property & equipment 694 705
Less: Increase in goodwill 0 0
Less: Increase in Capital WIP 0 0
Less: Increase in Investments 181 -145
Less: Increase in Loans 0 0
Less: Increase in Deferred Tax assets -3698 584
Add: Decrease in other long term assets -148 -48
Add: Decrease in Other intangible assets 0 0
Add: Decrease in Other Financial assets 0 0

Cash flow from financing -16065 -11075

Add: New short term debt to be raised 0 0
Add: New long term debt to be raised 0 0
Less: Interest expense 0 0
Less: Short term debt to be repaid 0 0
Less: Long term debt to be repaid 0 0
Less: Dividends to be paid to common shareholders+ Minority Interest 16065 11075
Less: Share buyback from common shareholders+ Minority Interest 0 0

Net cash flows 3404.3 -2024

Opening cash balance 11563 14967
Closing cash balance 14967 12943
2022E 2023E 2024E
13711 7040 10791
11253 10786 10581
651 642 623
0 0 0
-8 -18 -5
0 0 0
0 0 0
940 -2433 381
61 32 -48
-2617 -7 278
-134 -301 -85
170 246 -111
876 1051 -419
890 979 1077

-1161 -1340 -163

616 564 601
0 0 0
0 0 0
7 9 10
0 0 0
619 729 -449
81 -38 -2
0 0 0
0 0 0

-10244 -10596 -9821

0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
10244 10596 9821
0 0 0

2305 -4896 806

12943 15249 10353
15249 10353 11159
ORACLE
Rupee In Million
Free cash flow to firm calculation (FCFF)
Operating cash profit calculation FY 2019A FY2020E FY2021E
Revenues 36997 38045
Less: Operating expenses (COGS + SGA) 17951 18574
Less: Depreciation 613 633
Earnings before interest and tax (EBIT) 18433 18838
Less: Operating taxes 7079 7291
Post tax operating profit (NOPLAT) 11354 11547
Add: Depreciation 613 633
Post tax operating cash profit 11967 12180

Operating cash investments FY 2019A FY2020E FY2021E

Capital expenditures investments -2675 1193

Working Capital 31902 32673 36818

Increase in working capital 770.6 4145.1
Operating cash investments -1905 5338

Free cash flow to firm FY 2019A FY2020E FY2021E

FCFF 13872 6842

Cost of Capital calculation Percent

Tax rate 24% 2019 tax rate
Cost of debt Gurufocus
Cost of equity Gurufocus
Target capital structure (debt to capital) Gurufocus
WACC (Weighted average cost of capital) 9.1% WACC=% of debt in total capital*post tax cost of debt+%

Present value of future cash flows FY 2019A FY2020E FY2021E

Years from current 1 2
Discount factor 0.9 0.8
Present value of FCFF 12714 5748

Terminal value calculation FY 2019A FY2020E FY2021E

Terminal growth
Terminal value TV=FCFF (2024)*(1+g)/(WACC-g)
Present value of terminal value

Share price calculation FY 2019A 360.4 3.00%

Enterprise value (EV) for ORACLE 156510 7.00% 448.0
Less: Short term debt 0 8% 374.4
Less: Long term debt 0 9.00% 325.9
Less: Other long term liabilities 32 10.0% 291.7
Add: Cash and cash equivalents 11563 11.00% 266.3
Add: Other long term assets 712
Consolidated equity value 168752
Less: Value of minority interest 14953
ORACLE equity value 153800
Total shares outstanding (bn) 426.7 as per consolidated income statement (diluted figure)
ORACLE's equity value per share 360.4
Current market price 3066.85 as per feb 2019 fig.
Gap 751% overvalued
 FY2022E FY2023E FY2024E
37538 36402 36082
18439 17990 17941
651 642 623
18448 17770 17519
7195 6984 6938
11253 10786 10581
651 642 623
11904 11428 11204

FY2022E FY2023E FY2024E

1161 1340 163

36891 36412 37587

73.1 -478.9 1174.7
1235 861 1338

FY2022E FY2023E FY2024E

10669 10566 9865

otal capital*post tax cost of debt+% of equity*cost of equity

FY2022E FY2023E FY2024E

3 4 5
0.8 0.7 0.6
8216 7458 6383

FY2022E FY2023E FY2024E

4.0% AS PER GDP GROWTH RATE
130154 161827.45
104696
Growth Rate
4% 4.00% 5% 5.00%
494.2 555.7 641.9 771.2
 402.1 436.7 481.2 540.5
344.1 365.9 392.6 426.0
304.4 319.2 336.8 357.8
275.6 286.2 298.5 312.8

come statement (diluted figure)