Final Report - Arushi Jain

SUMMER INTERNSHIP
FINAL PROJECT REPORT
ON
Study on the Financial Performance Evaluation

of top EPC Companies in India
Internship Final Project Report
On
Study on the Financial Performance Evaluation of top EPC Companies

in India
Under the guidance of
Faculty Guide
Prof. Preeti Sharma
Assistant Professor(Analytics & IT)
IMT-Hyderabad
&
Company Guide
Mr. Amit Roy

AVP
Srei Equipment Finance Limited
Submitted By
Arushi Jain
19A3HP665
BATCH OF 2019-21
2
ARUSHI JAIN | IMT HYDERABAD
COPYWRITE NOTICE
Copyright © 2020 by Arushi Jain
No part of this report may be reproduced, distributed or transmitted by any means or in

any form without prior & written permission form the publisher.
“Institute of Management Technology,

Survey No. 38, Cherlaguda Village, Shamshabad Mandal,
Hyderabad- 501218”
3
PREFACE
This report has been prepared by me as part of my PGDM Summer Internship Project.
The internship programme has been allotted 18 credits for each student pursuing PGDM
course at IMT Hyderabad. The course of my project is of 12 weeks. The faculty guide
appointed to me for my evaluation is Prof. (Dr.) Preeti Sharma and Mr. Amit Roy,
my company mentor.
Working as a Finance Intern in Srei Equipment Finance Ltd. helped me gain immense
practical exposure and knowledge. I was able to gather hands-on-experience about
various finance tools. This has been a platform for me to implement my knowledge in
Finance Sector that I have gained through formal education till now.
The title of my project is “Study on the Financial Performance Evaluation of Top EPC
Companies in India” and it includes the financial analysis of different firms so that we
can come to the final conclusion of the performance evaluation.
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DECLARATION
I solemnly declare that the project report is constructed on my work conducted in the
course of the study under the supervision of Prof. Preeti Sharma and Mr. Amit Roy.
I declare the statements made and conclusions drawn are an outcome of my research
work. I further certify that:
 The findings present in the report are original and has been done by me under the
guidance of my supervisor.
 I have followed the guidelines given by the university in writing the report.
 I have given references for all the materials that I have used for my project like
data, theoretical analysis.
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ACKNOWLEDGEMENT
At the very outset of this report, I would like to extend my sincere and heartfelt
obligation towards all the personages who have helped me in this endeavour. Without
their active guidance, help, cooperation & encouragement, I would not have made
headway in the project.
I am ineffably grateful to Dr. M. Venkateshwarlu Director, Institute of Management

Technology Hyderabad, for permitting me to work on this project.
I am also grateful to my Faculty guide, Prof. (Dr.) Preeti Sharma whose contribution

in stimulating suggestions and encouragement, helped me to know the real scenario of
the learning and development in the corporate world.
I wish to express my gratitude to Mr. Amit Roy-AVP, for his guidance as well as for
providing necessary information regarding the project and also for the constant support
in completing the same.
I extend my gratitude to Institute of Management Technology, Hyderabad for giving

me this opportunity.
I also acknowledge with a deep sense of reverence, gratitude towards my family, who
have always supported me morally as well as economically.
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Last but not least, I express my sincere gratitude to all my friends who directly or
indirectly helped me to complete this project report.
Arushi Jain
Table of Contents
COPYWRITE NOTICE
PREFACE
DECLARATION
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
NEED OF THE STUDY
INTRODUCTION
ABOUT THE COMPANY
RESEARCH METHODOLOGY
LIMITATIONS
MANAGERIAL IMPLICATIONS
REFERENCES
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EXECUTIVE SUMMARY
This report is research on the EPC(Engineering Procurement and Construction)
sector. The study applies financial performance evaluation of top EPC Companies in
India by determining various financial ratios which will be used to evaluate the
performance of each of the companies. The study has been taken forward in three parts.
Research has been done to find the listed EPC Companies in India. Financial and
industrial data are collected for top EPC Companies. Firstly, I understood the principles
underlying in the analysis of the financial statements related to the EPC Companies.
Further, Financial Statement Analysis has been done where the top line, market capital,
ratio analysis would be used for determining the growth and the performance of the
company. The trend analysis for 3 consecutive years will be evaluated. The study
focuses on the financial statement and ratio analysis, liquidity ratio, Efficiency ratio,
Debt Management and Profitability and also analyse the market position of each of the
company.
It explains ways in which ratio analysis can be used to find out the growth and financial
performance of a company. Further projections of the coming next three years that is
FY21, FY22 and FY23 is done.
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NEED OF THE STUDY
The study is done to find out the financial performance of top EPC Companies. To know
about the financial position of different companies and how well they will be doing in
future so that it can help the management of SREI in decision making regarding the
subject matter.
The analysis of financial statements is an important step of financial analysis. They

provide information on how the firm has performed in the past and what is their current
position.
Here emphasis is given to historical comparison and on forecasting the immediate future
trends.
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INTRODUCTION
ABOUT THE EPC SECTOR
EPC stands for Engineering, Procurement and Construction. Currently, the Indian EPC
sector has more than 180 participants and a multitude of stakeholders. The engineering
and construction contractor will carry out the detailed engineering design of the project,
procure all the equipment and materials necessary, and then construct to deliver a
functioning facility or asset to their clients. Companies that deliver EPC Projects are
commonly referred to as EPC Contractors. EPC is a particular form of contracting
arrangement used in some industries where the EPC Contractor is made responsible for
all the activities from design, procurement, construction, to commissioning and
handover of the project to the End-User or Owner. Unlike other contracts where
procurement and design are considered separate processes, in EPC contracts they are
done simultaneously, reducing the overall duration of the project.
Currently, the Indian EPC sector, with its increasing renown and changing dynamics,
has more than 150 participants and a lot of stakeholders. Firms have created a niche for
themselves and have grown their reputation, based on their area focus. Some have also
divested their operations in other sectors, thereby segregating the entire EPC space,
based on operational segments.
Although the EPC contract and its fundamentals are similar in India and abroad, the
quality and strength of the different firms vary. Large global players have in-house
analysis centres and maintain state-of-the-art technologies. They have, over the years,
moulded themselves into solution providers from being a contractor. It is observed that
global EPC players are good in engineering and design while their Indian counterparts
are mainly focussed on construction
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ABOUT THE COMPANY
Company Profile
Srei Equipment Finance Limited is Public incorporated on 13 June 2006.

It offers innovative financing solutions to equipment purchasers, even those new to the
Indian equipment financing market. SREI is probably the only financial institution that
has a presence across the entire equipment life-cycle. This approach covers the value-
chain in the equipment life cycle by providing financing for customers and sustains
continuous engagement with them across equipment procurement, deployment,
maintenance, second life financing, and exit stages.
In over three decades of the group’s operations, SREI has demonstrated clear market
differentiation through a holistic approach to providing equipment financing and leasing
solutions. The equipment-centric services SREI provides includes preferred financing
and leasing schemes offered in conjunction with Original Equipment Manufacturers
(“OEMs”), equipment deployment assistance during project downtime, spare parts
financing, exchange programme financing and used equipment financing.
The Company is engaged in the business of financing of companies or of providing
infrastructural facilities. The Company’s segments include Financial Services and
Infrastructure Equipment Services. It has a portfolio in infrastructure sectors, such as
transport, energy, water sanitation, communication, social and commercial
infrastructure, among others.
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The three main business activities of the Company are categorized as fund-based,
including infrastructure equipment services and project finance; fee-based, including
project advisory, project development, investment banking, alternative investment funds
and insurance broking, and strategic investments, including telecommunication
infrastructure, transportation, rentals, rural information technology infrastructure, and
special economic zone (SEZ) and industrial parks. Its subsidiaries include Srei Capital
Markets Limited and Srei Forex Limited.
INFRASTRUCTURE SECTORS
Social & Commercial Infrastructure

Water & Sanitation
Energy
Communication
Transport & Logistics
Roads & Bridges Energy Generation, Solid Waste Telecom Towers SEZs
Ports Transmission & Management Broadband Industrial Parks
Distribution Water Supply Rural Connectivity
Shipyards Educational
Oil Pipelines Pipelines
Airports Institutions
Liquid Natural Gas Water Treatment
Railway Tracks, (LNG) Storage Plants Hospitals
Tunnels, Viaducts Facility. Sewage collection & Terminal Market
Gas Pipelines treatment Cold Chains
Irrigation Soil Testing Labs
Storm Water
Drainage System
Slurry Pipelines
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Business Model
Services Offered
SREI offers a wide gamut of services ranging from delisting, IPOs, NCD/Bond
Placement, open offers, buy-backs to M&A advisory and private placement of equities.
The aim of the company is to facilitate the creation and upgrading of infrastructure
development facilities. It has been playing the role of a catalyst to achieve sustainable
economic development and industrialization through a series of initiatives such as:-
Project Conceptualization
Identification
Market Research
Feasibility Studies
Project Structuring
Resource Mobilization
Corporate Advisory
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LITERATURE REVIEW
According to Benninga and Sarig, (1997):-
“Benninga and Sarig (1997 ) stated that and analyst may design the global industry sales
and market share of companies to reach forecast revenues of the company. The study
also showed about proper selection evaluation model and transformation forecasts
valuation.”
According to Brigham and Houstan, (2009)

“The financial analysis entails comparing the company's performance to that of other
company in the same industry and assessing the trends about the company's financial
position over time. A critical source of information for financial statement analysis are
the audited financial statements. The financial statements usually are part of the annual
report that listed companies submit to regulatory agencies such as Securities and
Exchange Commission and Stock Exchange entities.”
According to William H. Beaver, (1966)

“The standard financial ratios could predict the financial performance of many
companies; there are studies which have attempted to describe the predictive value of
several techniques for evaluating actual business performance.”
According to D.H. Kantilal, (2002)

“The interpretation of gross profit to sales ratio of top ten pharmaceutical companies and
shows that there is a significant difference between the gross profit to sales ratio among
different companies under study as well as different years of each company lastly the
researcher concluded that Gross Profit to sales ratio among different companies and
different years under review is not same.”
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According to Tijani I. A, (2015):-
“All the ratios are essential; however, it is worth noting that it is not necessary to use all
these ratios in performing financial analysis. The use of the ratios depends on the
objectives of the concerned firms. Banking sectors will employ the use of profitability
and leverage ratios before deciding to approve a loan for a construction company.
Suppliers and subcontractors are likely to concern about the company’s liquidity ratio to
meet the short-term needs, and the shareholders involved may have more interest in the
profitability ratio.”
According to Moyer et al. (2011):-

“Financial ratios analysis is used for three main purposes. Firstly, it is used as an
analytical tool in identifying the strengths and weaknesses of the firm as well as to
assess its viability as an ongoing enterprise or to determine whether a satisfactory return
can be earned for the risk taken. Secondly, financial ratios are useful as monitoring tools
for ensuring the company objectives are compatible with its resources. Third, financial
ratios play a very effective role in planning to achieve the company‟s goals. Financial
ratio is a relationship that indicates a firms activities. Financial ratios enable an analyst
to make a comparison of a firm‟s financial condition over time or in relation to other
firms.”
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RESEARCH OBJECTIVES
The objectives of the report are:
 To study companies, analyse financials and to study the growth of the EPC
Companies.
 To do an in-depth comparative analysis of the financial position of the EPC
companies.
 To majorly focus on the construction and road sector EPC Companies.
 To know the corporate activities of different sector of EPC companies.
 To study the opportunities and threats faced by the companies.
 To study the financial position of different EPC Companies.
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RESEARCH METHODOLOGY
Study Area:
Study area is the EPC Sector
Period of Study: The data collected is for a period of 3 months from April 2020- June-
2020.
Type of Study: The type of study which is followed in the project are:
 Learn the government guidelines given to the companies.
 Analysis of their financial statements.
 Project future trend in the data and find out how the company is performing.
Research Design:
Quantitative research design has been used for this project. All the data of different
companies have been analysed by using different financial tools and parameters.
Data Type:
All the data used are Secondary Data
Sources of Data:
 Annual Reports of EPC Companies in India.
 Industry Reports
 Past and Existing Equity Research Reports of Companies
 Company website
 Financial Statements of companies which consist of balance sheet, income
statement and Cash Flow statement will be taken from relevant sources like
Prowess, Capitaline, etc.
 Credit Rating Reports from the listed CRA’s.
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 Investor presentation reports provided by the company.
Data Analysis
For analysing the data different financial parameters has been used.
LIMITATIONS
There were some crucial limitations to the project which are as under:
 Some data were withheld by the company due to confidentiality and security
reasons.
 Time Constraint, as some data pertaining to the last fiscal year such as annual
report of FY20 were not available.
 As an intern access to data of the company is limited as compared to permanent
employees.
 The economy and industry are so wide that it is difficult to study all factors that
are having impact on company and its performance.
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DESCRIPTION OF THE PROJECT
The Engineering and Construction sector plays an important role in reinforcing the
economic performance of a country. The average contribution of construction and
engineering to GDP is 7.9%. The EPC Companies are an essential contributor to the
growth of the national economy and is directly affected by the government policies as
governments usually regulate the economy by cutting back on public construction works
during stagnation periods. In this project, we are studying the top EPC Companies in
India to analyse the financial performance of the companies and to examine the Growth
Rate, Market Capitalisation of the companies under study. We are also finding the
different government initiatives taken by the companies to analyse the opportunities and
threats to the company. We are reading various credit rating reports of the construction
and road sector companies by the listed credit rating companies. In this project, we are
studying the past trends to rate the performance and compare performance in the
industry. Hence, forecasting the performance of the companies.
So, to have a quantifiable and predictable result, there are two techniques which will
help to predict future prices. They are as follows:
 Financial Statement Analysis
 Technical Analysis

Financial Statement Analysis is the process of analysing a company’s financial
statements to take major decisions.
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Technical Analysis is concerned with predicting future price trends from historical
price and volume data. We can identify previous market patterns and can form a
relatively accurate prediction of future price.
Financial Statement Analysis

Financial statement analysis requires gaining knowledge of an organization's financial
situation by examining its financial reports—the financial statements of a company
record necessary financial data on every side of a business. Financial statements are the
primary source of information for evaluating the performance and growth of the
company. It gives historical and current information about the company’s operations.
There are three major financial statements that every company creates and monitors: the
balance sheet, the profit and loss statement and the cash flow statement.
Ratio Analysis
Financial ratios are useful signs of a firm's performance and financial situation.
Financial ratios are used to analyse trends and to differentiate the firm's financials to
those of other firms. Ratio analysis is the computation and comparison of ratios which
are derived from the information in a company's financial statements.
It helps the data for easy understanding, comparison and interpretations. With the help
of ratio analysis conclusion can be drawn regarding several aspects such as financial
health, profitability and operational efficiency of the undertaking.
1. Increase in turnover: It is calculated by using the revenue of the company.

The formula is: ((Revenue of current year- Revenue of previous year)/
Revenue of previous year)*100
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2. EBITDA margin: It evaluates a company’s performance without taking into
account any financial and accounting decisions or any tax environment. It
measures a company’s earnings before interest, tax, depreciation, and
amortization as a percentage of the company’s total revenue.
The Formula is: (Operating profit/Revenue)*100
3. Net Profit margin: It is one of the most critical indicators of a company’s

financial health. By tracking increases and decreases in its net profit margin, a
company can assess whether current practices are working and forecast profits
based on revenues.
The Formula is: (PAT/Revenue)*100
4. Interest Coverage ratio: It is used to determine how easily a company can pay
interest on its outstanding debt.
The Formula is: (EBIT/Interest)
5. Total debt/TNW ratio: It indicates the level of creditors’ protection in case of

the firm’s insolvency by comparing the company’s total liabilities with
shareholder’s equity
The Formula is: (Total Debt/ Tangible NetWorth)
6. Term debt/Cash Profit: Term Debt is a loan with a set payment schedule over
several months or years. Term Debt is serviced from cash profit.
The Formula is: (Term Debt/Cash Profit)
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7. Inventory Days: This ratio shows how many times a company has sold and
replaced inventory during a given period. It helps to make better decisions on
pricing.
The Formula is: (Inventory/Revenue)*365
8. Debtor Days: It shows how quickly the credit sales are converted into cash. This
ratio measures the efficiency of a firm in managing and collecting the credit
issued to the customers.
The Formula is: (Sundry Debtors/Gross Income from Main Operations)
9. Creditor Days: It finds out the average time it takes a business to settle its debts
with trade suppliers. The ratio is a useful indicator when it comes to assessing
the liquidity position of a company.
The Formula is: (Trade Payables/Cost of Sales)*365
10. Working Capital Cycle: It is the amount of time it takes to turn the net current
assets and current liabilities into cash. Positive working capital means that the
company is able to pay off its short-term liabilities. Negative working capital
means that a company currently is unable to meet its short-term liabilities with
its current assets
The Formula is: Inventory Days + Debtor Days - Creditor Days.
11. Fixed Asset Turnover Ratio: It is used to measure operating performance.

The Formula is: Net Sales/Average Fixed Asset
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Companies Selected for Analysis
I have selected top 20 EPC Companies in India for analysis. Here is the list of the first
10 top EPC Companies with their market capital and topline followed by their
percentage break up:
Serial No. Company Name Market Capital(Cr.) Topline(Cr.)

1. Dilip Buildcon Ltd. 3616.19 9118.22
2. PNC Infratech Ltd. 3100.28 3096.87
3. KNR Constructions Ltd. 2611.97 2137.26
4. IRB Infrastructure 2504.08 3384.78
Developers Ltd.
5. Techno Electric & 2475.55 988.64
Engineering Company Ltd.
6. NCC Limited 1460.58 12079.76
7. Ashoka Buildcon Ltd. 1452.74 3820.64
8. PSL Ltd. 1298.7 1044.01
9. H.G. Infra Engineering Ltd 1006 2009.83
10. Hindustan Construction Co. 686.91 4341
Ltd.
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Market Capital Topline
5% 3%
10%
6% 18% 5% 22%
2%
7%
9%
7% 15% 7%
5%
12%
13% 8%
29%
12%
2%
Technical Analysis
The next step of the project is to project future financial statements for the chosen
companies. Projected financial statements consists of current trends, historical data
given by the company to arrive at a financial status that the management believes it can
achieve as of the future data. Projected financial statements will show an income
statement and balance sheet. It provides assumptions about the given financial situation
in the future annually or quarterly. Most recent edition of company’s annual report
should be read as the report reveals any difficulties or financial problems the company
has faced in earlier economic periods and quarterly periods. For example, a company
has lost an investor, building a drop in general revenue or income. Any possible risks
will be outlined in the annual report that has the possibility of happening in the fiscal
period for which we are preparing the projection.
Steps to financial Forecasts:
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Gathering of past financial statements: This is the first and the foremost step of
starting with the projections of the financial records. We need to gather the past financial
records like balance sheet, income statement and cash flow statement of the company for
3-5 years. We need to examine the balance sheet which shows it’s assets, liabilities and
equities of the company for a couple of years which will be given at the end of the fiscal
year.
How to make projections: There are two types of method which we are following in
our study:
 Historical forecasting: In this method, we use our past financial records to

predict future data. We look into annual Income Statements, Cash Flow
Statements, and
balance Sheets to witness the growth in the past. After this, we can make
assumptions based on the pattern of the growth and different government

guidelines given to the company. Information about circumstances can be
derived by estimating data at various time intervals like daily, monthly,
quarterly, annually or at any other time interval. This forecasting focusses on
numbers or figures, such as revenue forecast, budget forecasts and numerical
projections.
 Research based forecasting: This method is used when we are considering

broader market trends. Look at how the business has performed over the past
couple of years, study new technologies and consumer trends, or try to include
the growth of your competitors. There will be companies which may have
planned a similar growth. The advantage of research-based forecasting is that
you get a comprehensive view of how the company is performing, taking into
consideration a lot of different factors. And it’s the kind of forecast that investors
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and lenders want to see. Research-based forecasting is a better choice if you’re
looking for investors, or preparing on rapid and dynamic growth.
Trend Analysis: It is also known as Time-Series Analysis. In trend analysis, ratios are
analysed over specific periods which depends on the study basis, typically years. Trend
analysis works excellent with three to five years of ratios. Comparisons are made year to
year, which can highlight trends. The hypothesis behind trend analysis is that the
company should be assessed with its past performance, increasing trends must be
separated, and suitable action should be taken to direct the firm towards next long term
goals. Trend analysis helps in checking the firm’s projected financial statements. Indeed,
the most communicative approach to ratio analysis mixes both cross-sectional and trend
analysis. A consolidated view makes it possible to evaluate the pattern in the behaviour
of the ratio with the trend for the industry.
The method of forecasting a future balance sheet and income statement comprises of the
following steps.
1. Predict future revenue or top-line.
2. Based on the revenue forecast, estimate the level of assets necessary to support
that level of sales.
3. Choose a target financing mix.
Revenue Forecast: This is the most important step as it creates the base for the coming
next steps. First we need to decide which metric do we need to consider for our
forecasting. There are many factors which impacts sales forecast like policy change,
territory shift, competitive changes, economic conditions, market changes, industry
changes and seasonality. I have found out the quarterly results of FY2020 for the top 10
EPC Companies which were available for now. CAGR has been calculated for the three
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years and with the help of that we are forecasting the future data for three years i.e.
2021,2020 and 2023.
 Compound Annual Growth Rate(CAGR): It is used to find out the rate of return
that would be needed for an expenditure to increase from it’s beginning balance
to it’s ending balance.
Formula used: (EV/BV)1/N -1
EV: Ending Value
BV: Beginning Value
N: Number of years
Assumptions taken for all the Companies:

We have used standalone data for balance sheets and profit and loss statements and here
I have projected the Profit and Loss statement for the first top 10 companies by using 2
Scenarios:
Scenario 1:
1. CAGR is computed for FY17-FY20 by taking the Actual(A) data and that is used
to project the revenue for FY21, FY22, FY23 which will be the projected
data(P).
2. Operating profit is projected by taking the average of the operating margin for
the last 2 years.
3. Tax Rate is assumed to increase by 25%.

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4. Depreciation is computed by using (depreciation/gross block) margin. Capital
Expenditure which is taken from the investor presentations given from the
company is added to the gross block.
5. Interest rate is assumed to increase at a rate of the average of the last 2 years.
Scenario 2:
 We have done sensitivity analysis for FY21, FY22 and FY23. For FY21 we have
taken the FY20 as the base case to get a more clearer and firm position about the
companies.
 Depreciation and interest have not been sensitised and they are taken as the same
as what is computed in Scenario 1.
 Tax Rate is assumed to increase by 25%.
 Operating profit margin is taken same as the Scenario 1.
Dilip Buildcon Ltd:
Dilip Buildcon Limited is the largest road construction company in India. Over the
years, since its incorporation in 2006, through excellent track execution of constructing
landmark infrastructure projects, it has moved to a different group altogether. DBL's
strength lies in its capability to complete projects on time, within cost and of the highest
quality. Its clientele in the road segment includes the National Highway Authority of
India (NHAI), state governments and private companies. The company is also an
incorporated player in irrigation, urban development and mining segments.
28
Order Inflow and Order Book: In Fig 1, we can see that FY18 had an order book of
23888.1 Cr whereas in FY19 it was 21171.8 Cr. They have secured new orders worth Rs
61,25.7 crore for FY19, it showed a slight decrease of 3.07% as compared to previous
years. In Fig 2, we can see the order book composition of it’s various operating sectors
with Roads and Highways constituting the majority of the order book which is at
80.83%.
Order Book(Cr)
30000
23888.1
25000 21171.8
20000 17568
15000
10000
5000
0
Order Book FY17 FY18 FY19
Order Book Composition of FY19(%)

Ur
ba
Min Ro
Irri
nin Deads
Me
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g velan
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tio
14n2%
opd
%3%meHig
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Roads and Highways Mining 81
Irrigation Metro Urban Development
%
Scenario 1:
Year/ RS CR FY17 FY18 FY19 FY20 FY21 FY22 FY23

Period in months 12 12 12 12 12 12 12
(A) (A) (A) (A) (P) (P) (P)
Gross Income from Main
Operations 5,097.62 7,745.88 9,118.22 9,015.10 10,901.97 13,191.38 15,961.57
% change 52% 18% -1% 21% 21% 21%
Operating Profit 992.25 1,387.59 1,604.38 1,566.20 1,894.01 2,242.53 2,713.47
19% 18% 18% 17% 17% 17% 17%
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Less: Interest 416.24 464.44 529.88 612.80 612.80 648.41 686.09
8% 6% 6%
Less: Depreciation &
Amortisation 227.39 274.95 320.19 424.10 512.62 638.84 830.28

Gross Profit from Main
Operation 348.62 648.20 754.31 529.30 768.59 955.28 1197.09
Add: Other Income 11.45 15.52 46.39 37.10
0% 0% 1% 0%
Add: Exceptional Items 4.27 9
Net Profit Before Tax 360.07 663.72 804.97 575.40 768.59 955.28 1197.09
Deduct: Taxes -0.88 43.42 40.02 150.50 192.15 238.82 299.27
25% 25% 25%
Net Profit after Tax 360.95 620.30 764.95 424.90 576.44 716.46 897.82
Cash Profit 588.34 895.25 1085.14 849.00 1089.06 1355.30 1728.10

Equity Capital 136.77 136.77 136.77
Tangible Networth 1852.89 2457.06 3204.42
Secured Loans 2534.12 2311.08 3550.80
Term Loans from
613.30 921.10
Bank/FI 990.27
Working Capital
2029.70
from Bank 1543.85 1697.78
NCDs 600.00
Unsecured Loans 29.29 30.16 25.54
Promoters &
0.00
Directors
Others 29.29 30.16 25.54
Sundry Debtors 1016.52 1384.43 1409.26
Trade Payables/ Sundry
1507.78 1724.06
Creditors 215.32
Fixed Assets 1682.47 1831.91 2082.23
Inventory 1663.86 2026.23 2503.76
Investments 469.54 241.51 523.76
Loans & advances 1196.03 1936.34 1224.53
Interpretation: CAGR for FY17-20 is 21% and that is used to find out the revenue for
FY21, FY22 and FY23. We can see a decline of 1% in revenue of FY20. Operating
Profit margin is taken to be 17% which is used to compute the Operating Profit for
FY21-23. In the government guidelines it was given that Total Debt will remain under
control for FY20-21 hence we have taken interest same in FY21, after that interest is
increased at a constant rate of 6%. We can conclude that overall the company is doing
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good in this scenario as the PAT has also increased from 36.95 in 2017 to 897.2(P) in
2023.
Scenario 2:
Sensitised
Year/ RS CR FY21 FY22 FY23
Period in months 12 12 12
(P) (P) (P)
Gross Income from Main Operations 9,015.10 9916.61 10908.27
% change 10% 10%
Operating Profit 1566.20 1685.82 1854.41
17% 17% 17%
Less: Interest 612.80 648.41 686.09

Less: Depreciation & Amortisation 512.62 638.84 638.84

Gross Profit from Main Operation 440.78 398.57 529.47
Add: Other Income
Add: Exceptional Items
Net Profit Before Tax 440.78 398.57 529.47
Deduct: Taxes 110.19 99.64 132.37
25% 25% 25%
Net Profit after Tax 330.58 298.93 397.10
Cash Profit 843.21 937.77 1035.95
Interpretation: Gross Income from Main Operations for FY22 and FY23 is computed
by taking half CAGR of FY17-20 which is 10%. FY23 revenue is projected to be
10908.27 cr. The company is doing good the PAT has increased from the projected
FY21 to FY23.
Financial Ratios 2017 2018 2019 2020 2021 2022 2023 2021(S) 2022(S) 2023(S)
Increase in
24.78% 51.95% 17.72% -1.13% 20.93% 21.00% 21.00% 10.00% 10.00%
turnover
EBITDA margin 19.46% 17.91% 17.60% 17.37% 17.37% 17.00% 17.00% 17.37% 17.00% 17.00%
Net profit margin 7.06% 8.57% 8.83% 6.38% 7.05% 7.24% 7.50% 4.89% 4.02% 4.85%
Interest coverage
2.38 2.99 3.03 2.56 3.09 3.46 3.95 2.56 2.60 2.70
ratio
Total debt/ TNW 1.38 0.95 1.12
31
Long term debt/
0.53 0.25 0.47
TNW
Term debt/ Cash
1.68 0.69 1.40
profit
Inventory Days 119 95 100
Debtor Days 73 65 56
Creditor Days 15 71 69
Working capital
177 90 88
cycle
Fixed Asset
3.03 4.23 4.38
Turnover Ratio
Ratio Analysis of Dilip Buildcon Ltd.
Interpretation: In 2020 we have seen a decrease in revenue of -1.13% which means

that the company made less revenue as compared to 2019. The net profit margin is
decreased from 8.83% to 6.38% , which means that these companies were more efficient
in converting the sales into actual profit in 2019 as compared to 2020. Interest
Coverage ratio sees an increment from 2.38 to 2.56, which means that it can pay it’s
interest payments 2.56 times with it’s operating profit. We can see that the Total
debt/TNW ratio is more than 1 in FY19 ,hence the creditors can expect receiving all the
amount in full but in long time. For Inventory days ratio, it takes 119 days for the
company to sell its stock of inventory in 2017 and the number has been reduced to 100
in 2019, which is a good sign. The debtor days ratio has been decreased from 73 in
2017 to 56 in 2019, which is a good sign for the company; as it will take less days to
collect the money owned by its debtors. We can see that the Creditor days have been
increased from 15 in 2017 to 69 in 2019, which is not a good sign as it is taking too long
to pay it’s suppliers. The working capital cycle of the company has been reduced which
is a good sign because the company’s working capital is converted into revenue or sales
soon.
PNC Infratech Ltd.:
32
PNC Infratech Ltd. is one of the Indian infrastructure construction, development and
management companies in the country, with vast and proven expertise in the
performance of major infrastructure projects, including highways, bridges, flyovers,
power transmission lines, airport runways, industrial area development and other
infrastructure activities.
They provide end-to-end infrastructure implementation solutions which include

engineering, procurement and construction ("EPC") services. They also execute and
implement projects on a "Design-Build- Finance-Operate-Transfer" ("DBFOT"),
Operate-Maintain-Transfer ("OMT") and other PPP formats.
In the below figure we can see that the order book is at 12000 Cr. in FY20 and it
increased from 5379 Cr. in FY17 which is a good for the company.
Order Book(Cr.)
14000
12000
12000
10000
8000 7318
6000 5379
4000
2000
0
Scenario 1
33
Year/ Rs Cr. FY17 FY18 FY19 FY20 FY21 FY22 FY23
Period in months 12 12 12 12 12 12 12
(A) (A) (A) (A) (P) (P) (P)
Operations 1689.11 1856.58 3096.87 4877.93 6946.43 9863.93 14006.77
% change 10% 67% 58% 42% 42% 42%
Operating Profit (PBIDTA) 221.02 318.83 457.34 764.32 1041.96 1479.59 2101.02
13% 17% 15% 16% 15% 15% 15%
Less: Interest 20.31 30.72 64.09 114.40 117.08 119.06 121.44
1% 2% 2% 2% 2% 2% 1%
Amortisation 53.33 77.20 92.24 126.38 143.33 163.63 190.41
3% 2% 2% 1%
Operation 147.38 210.91 301.01 523.54 781.55 1196.90 1789.17
Add: Other Income 46.55 23.02 43.04 88.48
3% 1% 1%
Add: Exceptional Items 0
Deduct: Taxes -15.76 -17.12 19.13 151.72 195.39 299.22 447.29
25% 25% 25%
Cash Profit 263.02 328.25 417.16 586.68 729.49 1061.31 1532.29

Equity Capital 51.31 51.31 51.31
Secured Loans 162.98 169.71 374.73
Term Loans from
73.26 169.71 374.73
Bank/FI
Working Capital
89.72 0.00 0.00
from Bank
NCDs 0.00 0.00
Promoters &
0.00
Directors
Others 0.00 0.00 0.00
Sundry Debtors 630.86 689.99 615.43
Creditors 236.9 462.84 473.74
Fixed Assets 347.89 406.42 615.49
Inventory 153.48 175.75 403.55
Investments 467.57 494.79 573.03
Loans & advances 318.67 392.72 647.71
FY21, FY22 and FY23. Operating Profit margin is taken to be 15% which is used to
34
compute the Operating Profit for FY21-23. Interest margin is taken as 2%. We can
conclude from the projections that the company is doing good because we can see an
increase in the revenue which came out to be 14006.7 Cr and an increase in PAT as
well.
Scenario 2:
Sensitised Data
Year/ Rs Cr. FY21 FY22 FY23
(P) (P) (P)
Gross Income from Main Operations 4877.93 5902.30 7141.78
% change 21% 21%
Operating Profit (PBIDTA) 764.32 885.34 1071.27
16% 15% 15%
Less: Interest 117.08 119.06 121.44
2%

Add: Other Income


Deduct: Taxes 125.98 150.66 189.85
25% 25% 25%
Cash Profit 521.26 615.62 759.97
by taking half CAGR of FY17-20 which is 21%. FY23 revenue is projected to be
7141.78 cr. The company is doing good the PAT has increased from the projected FY21
to FY23.
35
Ratio Analysis of PNC Infratech Ltd.
2021(S 2022(S
Financial Ratios 2017 2018 2019 2020 2021 2022 2023 2023(S)
) )
Increase in 42.41
9.91% 66.81% 57.51% 42.00% 42.00% 21.00% 21.00%
turnover %
15.00
EBITDA margin 13.08% 17.17% 14.77% 15.67% 15.00% 15.00% 15.67% 15.00% 15.00%
%
Net profit 11.25
11.48% 12.60% 11.11% 12.55% 12.13% 12.77% 10.33% 10.21% 10.63%
margin %
Interest coverage
10.88 10.38 7.14 6.68 8.90 12.43 17.30 6.53 7.44 8.82
ratio
Long term debt/
0.05 0.09 0.18
TNW
Term debt/ Cash
0.28 0.52 0.90
profit
Working capital
118 79 64
cycle
Fixed Asset
4.86 4.57 5.03
Turnover Ratio
Interpretation: We are seeing a decreasing trend in the revenue in 2020 of 57.51%. It

has a good net profit margin with increasing trend of 11.11% in 2019 to 12.55% in
2020 which means that these companies were more efficient in converting the sales into
actual profit in 2020 as compared to 2019. Interest Coverage ratio saw a decrement
from 10.88 to 6.88, which means that it can pay it’s interest payments 6.88 times with
it’s operating profit. We can see that the Total debt/TNW ratio is less than 1,hence the
creditors can expect receiving all the amount in full. For Inventory days ratio, it takes
33 days for the company to sell its stock of inventory in 2017 and the number has been
increased to 48 in 2019, which is a not a good sign. The debtor days ratio has been
decreased from 136 in 2017 to 73 in 2019, which is a good sign for the company; as it
will take less days to collect the money owned by its debtors. We can see that the
36
Creditor days have been increased from 53 in 2017 to 64 in 2019, which is not a good
sign as it is taking too long to pay it’s suppliers.
KNR Construction Ltd.
KNRCL was incorporated in 1995. It is a multi-domain infrastructure project

development company providing (EPC) engineering, procurement and construction
services over several fast-growing sectors, specifically roads & highways, irrigation and
urban water infrastructure management.
In the below figure 1 we can see that the total Orderbook as on 31st March 2019 is 4000
Cr. In Figure 2, we can see the segment wise split up of the order book with Roads
consisting of the majority of the order book at 88% followed by Power T&D at 12%.
Orde
Orde r
r Bo
Bo o
o k(C
k(Cr
r.
.))
450
450 0
0 4000
4000
400 3768
400 0
0 3768
350
350 0
0
300 0
300 0
250 2326.6
250 0
0 2326.6
200
200 0
0
150
150 0
0
100 0
100 0
500
500
0
0
Order
Order FY
FY 17
17 FY
FY 18
18 FY
FY 19
19
Book
Book
Pow
er
T&D
12%
Road
s
88%
Roads Power T&D
37
Scenario 1
Year FY17 FY18 FY19 FY20 FY21 FY22 FY23

Period in months 12 12 12 12 12 12 12
(A) (A) (A) (A) (P) (P) (P)
Operations 1541.05 1931.65 2137.26 2244.24 2543.82 2883.40 3268.30
% change 25% 11% 5% 13% 13% 13%
14% 20% 20% 22% 21% 21% 21%
Less: Interest 21.90 23.14 29.61 47.41 48.41 49.33 50.18
1% 1% 1% 2% 2% 2% 2%
Amortisation 63.87 134.15 168.11 191.85 222.24 259.91 307.79
9% 9% 9%
Operation 132.94 228.84 227.20 247.81 263.55 296.27 328.38
Add: Other Income 30.28 39.31 63.39 56.59
2% 2% 3%
Deduct: Taxes 5.96 -3.94 27.33 79.18 65.89 74.07 82.10
25% 25% 25%
Cash Profit 221.13 406.24 431.37 417.07 419.90 482.11 554.07

Secured Loans 13.78 8.54 42.90
Term Loans from
8.54 25.96
Bank/FI 13.78
Working Capital
0.00 16.94
from Bank
NCDs 0.00 0.00
Promoters &
0.00
Directors
Others 0.00 0.00 0.00
Sundry Debtors 163.96 231.98 234.41
Creditors 134.39 210.17 223.61
Fixed Assets 322.18 393.56 434.02
Inventory 57.36 71.18 95.09
Investments 535.08 535.61 644.75
Loans & advances 346.53 454.68 537.84
38
FY21, FY22 and FY23. The revenue is increasing at a constant rate of 13%. Operating
Profit margin is taken to be 21% which is used to compute the Operating Profit for
FY21-23. Interest margin is taken as 2%. We have projected that the PAT has also
increased to 246.29 which means that the company is fairly doing good.
Scenario 2:
Sensitised
Year FY21 FY22 FY23
(P) (P) (P)
% change 7% 7%
22% 21% 21%
Less: Interest 48.41 49.33 50.18
2% 2% 2%
10% 11% 12%
Add: Other Income


Deduct: Taxes 54.10 48.38 44.58
25% 25% 25%
Cash Profit 384.55 405.04 441.54
by taking half CAGR of FY17-20 which is 7%. The revenue projected for FY23 is
almost as FY20 and also PAT has decreased from 2017 to 2023, which means either the
cost or variable values are not well controlled.
39
Ratio Analysis of KNR Construction Ltd.:
2021(S 2022(S
) )
Increase in
25.35% 10.64% 5.01% 13.35% 13.35% 13.35% 6.67% 6.67%
turnover
EBITDA margin 14.19% 19.99% 19.88% 21.70% 21.00% 21.00% 21.00% 21.70% 21.00% 21.00%
Net profit
10.59% 13.88% 13.60% 13.56% 10.36% 10.27% 10.05% 9.64% 8.08% 6.98%
margin
Interest
9.99 16.69 14.35 10.27 11.03 12.27 13.68 10.06 10.19 10.69
coverage ratio
Total debt/
0.02 0.01 0.03
TNW
Long term debt/
0.02 0.01 0.02
TNW
Term debt/ Cash
0.06 0.02 0.06
profit
Working capital
21 18 18
cycle
Fixed Asset
4.78 4.91 4.92
Turnover Ratio
Interpretation: KNR Construction Limited has a good net profit margin with
increasing trend of 10.59% in 2017 to 13.56% in 2020 which means that these
companies were more efficient in converting the sales into actual profit in 2020 as
compared to 2017. Interest Coverage ratio saw an increment from 9.99 to 10.27, which
means that it can pay it’s interest payments 10.27 times with it’s operating profit. We
can see that the Total debt/TNW ratio is less than 1,hence the creditors can expect
receiving all the amount in full. For Inventory days ratio, it takes 14 days for the
company to sell its stock of inventory in 2017 and the number has been increased to 16
in 2019, which is a not a good sign. The debtor days ratio has been increased from 39
in 2017 to 40 in 2019, which is not a good sign for the company; as it will take more
days to collect the money owned by its debtors. We can see that the Creditor days have
40
been increased from 32 in 2017 to 38 in 2019, which is not a good sign as it is taking too
long to pay it’s suppliers.
Techno Electric Engineering Ltd.
TEECL is a leading EPC services company in India’s power sector. The Company
provides EPC services to all three industry segments, which are generation, transmission
and distribution. It was engaged in setting up over 50% of India’s thermal power
generating capacity and a vital portion of the national power grid. The Company also
has specific domain expertise that provides it to serve the EPC needs of power, steel,
fertilizer, metals and petrochemicals sectors, among others.
The two primary business divisions of the Company’s presence comprise EPC for the
power sector and power generation.
The order book is at 1580.8 Cr in FY19. In the below figure we can see the order book
spilt up of 3 major segments namely Generation(1%), Transmission(83%) and
Distribution(16%).
Order Book(Cr.)
3000 2600
2500 2025
2000 1580.8
1500
1000
500
0
41
Order Book Composition of FY19
DisGe
trib
ner
utiatiTra
ononns
151%
mis
% sio
n
83
%
Generation Transmission Distribution
Scenario 1
Year /Rs Cr. FY17 FY18 FY19 FY20 FY21 FY22 FY23
Period in months 12 12 12 12 12 12 12
(A) (A) (A) (P) (P) (P) (P)
Gross Income from Main 1698.0 3277.2
Operations 120.37 1294.36 988.64 876.17 3 0 6351.25
975% -24% -11% 94% 93% 94%
91% 23% 25% 25% 25% 25% 25%
Less: Interest 21.41 24.77 13.38 6.05 6.09 6.11 6.13
18% 2% 1% 1% 0% 0% 0%
Amortisation 37.47 42.36 41.82 41.52 43.49 44.60 45.21
5% 3% 1% 1%
Operation 51.23 228.20 195.11 168.62 374.93 768.58 1536.48
Add: Other Income 19.11 36.96 59.17 44.93
16% 3% 6%
Deduct: Taxes 14.28 64.87 72.68 36.86 93.73 192.15 384.12
25% 25% 25%
Cash Profit 93.53 242.65 223.42 128.35 324.68 621.04 1197.57

Equity Capital 178.21 22.54 22.54
1,222.9
Tangible Networth
662.15 9 1,404.37
Secured Loans 335.11 108.70 68.34
42
Term Loans from
Bank/FI 335.11 106.44 47.72
Working Capital from

Bank 2.26 20.62
NCDs 0.00 0.00
Promoters & Directors 0.00
Others 0.00 0.00 0.00
Sundry Debtors 75.73 757.83 544.43
Creditors 0.00 449.17 336.44
Fixed Assets 615.97 584.62 545.12
Inventory 0.00 7.83 18.92
Investments 209.92 441.55 560.93
Loans & advances 54.28 59.97 250.36
FY21, FY22 and FY23. We can see a decline of 11% in the revenue in FY20 which
means that sales generated in 2020 were comparatively less than 2019. Operating Profit
margin is taken to be 25% which is used to compute the Operating Profit for FY21-23.
Interest margin is taken as 1%. PAT has increased from 56.06 in 2017 to 1152.36(P) in
2023 which is good for the company as the company is generating profits.
Scenario 2:
Sensitised
Year /Rs Cr. FY21 FY22 FY23
(P) (P) (P)
47% 47%
33% 25% 25%
Less: Interest 6.09 6.11 6.13
1%
5%
Add: Other Income

43

Deduct: Taxes 41.65 192.15 105.50
25% 25% 25%
Cash Profit 168.45 123.73 361.71
by taking half CAGR of FY17-20 which is 47%. PAT is fluctuating and there is an
increase from projected FY21 to FY23
Ratio Analysis of Techno Electric Engineering Ltd.:
2021(S 2022(S
) )
Increase in 975.32 11.38 93.80 93.80
23.62% 93.00% 47.00% 47.00%
turnover % % % %
24.67 25.00 25.00
EBITDA margin 91.48% 22.82% 25.32% 25.00% 24.67% 25.00% 25.00%
% % %
14.12 22.08 24.19
Net profit margin 58.44% 20.49% 25.72% 23.45% 19.02% 21.06% 22.29%
% % %
Interest coverage
5.14 11.92 18.71 35.73 69.69 134.01 259.23 35.49 52.67 77.28
ratio
Long term debt/
0.51 0.09 0.03
TNW
Term debt/ Cash
3.58 0.44 0.21
profit
Working capital
230 89 84
cycle
Fixed Asset
0.20 2.21 1.81
Turnover Ratio
44
Interpretation: Techno Electric & Engineering Ltd. has a good net profit margin with
a decreasing trend of 58.44 % in 2017 to 14.12% in 2020 which means that these
company to sell its stock of inventory in 2017 and the number has been increased to 7 in
2019, which is a not a good sign. The debtor days ratio has been decreased from 230 in
to pay it’s suppliers.
NCC Ltd:
Nagarjuna Construction Company Limited (NCCL) is a construction and infrastructure

enterprise which was established as a Partnership firm in 1978. The Company is
involved in the infrastructure sector and is offering turnkey EPC contracts as well as
BOT projects on a Public-Private Partnership basis. The Company's range of verticals
consists of Building & Housing Transportation Water & Environment Irrigation Power
Electrical Metals and Oil & Gas and International business division.
Well diversified order book with presence across buildings & housing, roads, water &
environment, irrigation, electrical, metals, mining and railways.
Total Order Book of INR 41197 cr as on March 31, 2019. We can see from the figure
that Roads consists of the majority of the order book which is 80%.
45
Order
Order Book(Cr.)
Book(Cr.)
45000
45000 41197
41197
40000
40000
35000 32532
32532
35000
30000
30000
25000
25000
20000 18089
18089
20000
15000
15000
10000
10000
5000
5000
0
0
Order
Order Book
Book FY17
FY17 FY18
FY18 FY19
FY19
Order Book Composition

P of FY19(%)
oRa
wil
erw R
Tayoa
&s ds
D9 8
1% 0
1 %
%
Roads Power T&D Railways
Scenario 1
46
Year / Rs Cr. FY17 FY18 FY19 FY20 FY21 FY22 FY23
Period in months 12 12 12 12 12 12 12
(A) (A) (A) (A) (P) (P) (P)
Gross Income from Main 12079.7
Operations 7892.07 7559.33 6 8218.80 8330.69 8444.10 8559.06
-

-4.22% 59.80% 31.96% 1.36% 1.36% 1.36%
7.41% 9.73% 4.00% 12.53% 10.76% 12.00% 12.00%
Less: Interest 395.70 378.94 451.26 517.90 550.53 585.23 622.10
5.01% 5.01% 3.74% 6.30% 6.61% 6.93% 7.27%
Amortisation 112.06 117.47 149.37 177.50 191.66 206.80 223.09
1.42% 1.55% 1.24% 2.16% 2.30% 2.45% 2.61%
Operation 77.39 239.49 760.87 334.80 154.08 221.26 181.89
Add: Other Income 189.77 128.25 120.82 118.60
2.40% 1.70% 1.00%
Add: Exceptional Items 0.00
Deduct: Taxes 41.65 80.94 317.78 71.30 38.52 55.32 45.47
25.00% 25.00% 25.00%
Cash Profit 337.57 404.27 713.28 559.60 307.22 372.75 359.51

Equity Capital 111.19 120.13 120.13
Secured Loans 1572.76 1296.20 1912.76
Term Loans from
Bank/FI 44.50 251.11 496.45
Working Capital
from Bank 1528.26 1045.09 1416.31
NCDs 0.00 0.00
Promoters &
0.00
Directors
Others 0.00 0.00 46.00
Sundry Debtors 3535.81 4505.64 3049.57
Creditors 2593.02 2917.25 4093.26
Fixed Assets 640.33 808.06 1309.75
Inventory 1525.83 1695.56 512.94
Investments 1028.69 1023.74 919.27
Loans & advances 1713.73 1656.64 6000.91
47
Interpretation: CAGR for FY17-20 is 1.36% and it is used to find out the revenue for
FY21, FY22 and FY23. There is a decline of 31.96% in revenue of FY20 as compared
to FY19. Operating Profit margin is taken to be 12% which is used to compute the
Operating Profit for FY21-23. Interest margin is taken as 6.36%. There has been a
decline in PAT which is not a good sign for the company.
Scenario 2
Sensitised
Year / Rs Cr. FY21 FY22 FY23
(P) (P) (P)
0.68% 0.68%
11.00% 12.00% 12.00%
Less: Interest 550.53 585.23 622.10
6.70% 7.07% 7.47%
2.33% 2.50% 2.68%
Add: Other Income


Deduct: Taxes 40.47 50.23 38.63
25.00% 25.00% 25.00%
Cash Profit 313.06 357.51 338.99
by taking half CAGR of FY17-20 which is 0.68%. We can see a decrement in PAT
which means that the company is not doing good as compared to as it was doing in the
past.
48
Ratio Analysis of NCC Ltd.
2021(S 2022(S
) )
Increase in 59.80
-4.22% 31.96% 1.36% 1.36% 1.36% 0.68% 0.68%
turnover %
11.27 12.00 12.00
EBITDA margin 7.41% 9.73% 12.53% 10.76% 11.00% 12.00% 12.00%
% % %
Net profit
3.39% 4.86% 7.30% 5.52% 1.85% 2.62% 2.13% 1.97% 2.43% 1.85%
margin
Interest coverage
1.48 1.94 3.02 1.99 1.63 1.73 1.65 1.64 1.70 1.61
ratio
Long term debt/
0.01 0.06 0.10
TNW
Term debt/ Cash
0.13 0.62 0.70
profit
Working capital
114 159 -16
cycle
Fixed Asset
12.33 9.35 9.22
Turnover Ratio
Interpretation: Techno Electric & Engineering Ltd. has a good net profit margin with
a decreasing trend of 58.44 % in 2017 to 14.12% in 2020 which means that these
company to sell its stock of inventory in 2017 and the number has been increased to 7 in
49
2019, which is a not a good sign. The debtor days ratio has been decreased from 230 in
to pay it’s suppliers.
Ashoka Buildcon Ltd:
Ashoka Buildcon Ltd. is an integrated EPC and BOT player. It has a portfolio of 36 PPP
projects, which is the highest in quantity by any private player in India.
The company is also engaged in Power Transmission and Distribution on EPC basis
other than the construction of highways and bridges. It is one of the first Indian
infrastructure companies to be certified for Integrated Management Systems, which
incorporates ISO certification for Quality, Occupational Health and Safety and
Environment.
Company’s Current Order Book is at Rs. 8394 Cr, which is comfortable and is expected
to help the Company in carrying on its operations smoothly. In the below figure we can
see the order book break up for FY19 and break up of it’s composition in which
Transport consists of 50% followed by Hydro which consists of 23%.
Orde
Orde r
r Bo
Bo o
o k(C
k(Cr
r.)
.)
9000
9000 8394
8394
8000
8000 7004
7004
7000
7000 5849
5849
6000
6000
5000
5000
4000
4000
3000
3000
2000
2000
1000
1000
0
0
Order
Order FY
FY 17
17 FY
FY 18
18 FY
FY 19
19
Book
Book
50
Nu
cle
arPW Tr
&Mate an
BuHy
r
dr6% sp
C
ildi
ngo ort
9%
50
s 23 %
12%
%
Transport
Hydro Nuclear & Buildings
PMC Water
Scenario 1
Year / Rs Cr. FY17 FY18 FY19 FY20 FY21 FY22 FY23

Period in months 12 12 12 12 12 12 12
% change (A) (A) (A) (A) (P) (P) (P)
Operations 2013.31 2448.26 3820.64 3937.43 4923.95 6157.64 7700.43
22% 56% 3% 25% 25% 25%
12% 12% 12% 15% 13% 14% 14%
Less: Interest 47.43 48.53 90.69 85.45 87.30 88.85 90.13
2% 2% 2% 2% 2% 1% 1%
Less: Depreciation & Amortisation 50.74 53.22 76.27 111.13 145.57 197.44 260.12
3% 3% 3%
Gross Profit from Main Operation 144.48 191.66 301.20 389.06 407.24 575.78 727.81
Add: Other Income 71.92 97.79 115.70 144.93
4% 4% 3%

Deduct: Taxes 40.31 52.44 130.73 146.85 101.81 143.94 181.95
25% 25% 25%
Cash Profit 226.83 290.23 362.44 498.27 451.00 629.27 805.97

Equity Capital 93.57 93.57 140.36
51
Secured Loans 132.76 107.79 519.96
Term Loans from Bank/FI 64.92 104.06 244.50
Working Capital from Bank 67.84 3.73 275.46
NCDs 0.00 0.00
Others 0.00 0.00 0.00
Sundry Debtors 457.52 860.03 1279.15
Trade Payables/ Sundry Creditors 565.54 588.71 852.80
Fixed Assets 168.82 217.38 379.90
Inventory 86.60 145.91 152.66
Investments 1306.47 1346.21 1364.07
Loans & advances 1021.37 681.29 855.34
Interpretation: CAGR for FY17-20 is 25 % and it is used to find out the revenue for
FY21, FY22 and FY23. Operating Profit margin is taken to be 13% for FY21 and 14%
for FY22 and FY23. Interest margin is taken as 2%. We can conclude that the company
is doing good as we can see that there is fairly an increment in revenue as well as PAT.
Scenario 2
Sensitised
Year / Rs Cr. FY21 FY22 FY23
% change (P) (P) (P)
13% 13%
15% 14% 14%
Less: Interest 87.30 88.85 90.13
2%
5%
52
Add: Other Income


Deduct: Taxes 88.19 83.50 86.94
25% 25% 25%
Cash Profit 410.14 447.94 520.93
by taking half CAGR of FY17-20 which is 13%. From this scenario also we can
conclude that the company is doing good as it’s PAT and revenue are showing good
numbers.
Ratio Analysis of Ashoka Buildcon Ltd.

2021(S 2022(S 2023(S
Financial Ratios 2017 2018 2019 2020 2021 2022 2023
) ) )
Increase in 25.05
21.60% 56.06% 3.06% 25.05% 25.05% 12.53% 12.53%
turnover %
14.00
EBITDA margin 12.05% 11.98% 12.25% 14.87% 13.00% 14.00% 14.87% 14.00% 14.00%
%
Net profit
10.75% 11.82% 10.91% 13.56% 8.27% 9.35% 9.45% 8.96% 7.54% 6.97%
margin
Interest coverage
5.12 6.05 5.16 6.85 7.33 9.70 11.96 6.71 6.98 7.74
ratio
Long term debt/
0.04 0.05 0.11
TNW
Term debt/ Cash
0.29 0.36 0.67
profit
Working capital
-4 62 55
cycle
Fixed Asset
11.93 11.26 10.06
Turnover Ratio
53
Interpretation: Ashoka Buildcon Ltd. has a good net profit margin with an increasing
trend of 10.75% in 2017 to 13.56% in 2020 which means that these companies were
more efficient in converting the sales into actual profit in 2020 as compared to 2017.
Interest Coverage ratio saw an increment from 5.12 to 6.85, which means that it can
pay it’s interest payments 6.85 times with it’s operating profit. We can see that the Total
debt/TNW ratio is less than 1,hence the creditors can expect receiving all the amount in
full. For Inventory days ratio, it takes 16 days for the company to sell its stock of
inventory in 2017 and the number has been decreased to 15 in 2020, which is a not a
good sign. The debtor days ratio has been decreased from 83 in 2017 to 122 in 2019,
which is a good sign for the company; as it will take less days to collect the money
owned by its debtors. We can see that the Creditor days have been increased from 103
in 2017 to 81 in 2019, which is not a good sign as it is taking too long to pay it’s
suppliers.
PSL Ltd:
PSL Limited, a global leader in manufacturing and coating of pipes for transporting
hydrocarbon products, water products, and steel structural applications, and the biggest
producer of high-quality large diameter Helical Submerged Arc Welded (HSAW) pipes
in India.
The Company's principal activities include other tubes, pipes and hollow profiles in a
spiral or straight welded seam of diameter 300 millimetres and above and made out of
iron steel of all type; sale of service (rebar coating and induction bending), and other
operating revenue. The Company is engaged in the development of bio-diesel on a
commercial basis.
54
Year(Rs/Cr) FY17 FY18 FY19 FY20 FY21 FY22 FY23
Period in months 12 12 12 12 12 12 12
(A) (A) (A) (P) (P) (P) (P)
Gross Income from
Main Operations 19.05 48.85 80.12 79.28 127.52 205.12 329.94
% change 156% 64% -1% 61% 61% 61%
Operating Profit
(PBIDTA) -561.14 -47.52 -13.41 -18.68 -26.78 -45.13 -72.59
-2946% -97% -17% -24% -21% -22% -22%
Less: Interest 0.86 0.13 0.14 0.00 0.00 0.00 0.00
5% 0% 0% 0% 0% 0% 0%
Amortisation 140.49 111.93 96.65 82.77 169.19 393.68 1149.24
737% 229% 121% 104% 133% 192% 348%
Gross Profit from
Main Operation -702.49 -159.58 -110.20 -101.45 -195.97 -438.80 -1221.82
Add: Other Income 5.11 12.88 12.11
27% 26% 15%
Add: Exceptional
Items 0.00

Net Profit Before
Tax -697.38 -146.70 -98.09 -101.45 -195.97 -438.80 -1221.82
Deduct: Taxes 0.00 6.05 0.00 0.00 -48.99 -109.70 -305.46
25% 25% 25%
Net Profit after Tax -697.38 -152.75 -98.09 -95.99 -146.98 -329.10 -916.37
Cash Profit -556.89 -40.82 -1.44 -13.21 22.21 64.57 232.87

Equity Capital 124.93 124.93 124.93
Tangible Networth -2153.47 -2306.23 -2404.31
Secured Loans 3880.23 3870.17 3859.98
Term Loans
from Bank/FI 3880.23 3870.17 3859.98
Working
0.00 0.00
Capital from Bank
NCDs 0.00 0.00
Promoters &
0.00
Directors
Others 0.00 0.00 0.00
Sundry Debtors 9.63 6.59 9.53
Trade Payables/
Sundry Creditors 5.16 13.28 10.16
Fixed Assets 1438.43 1326.66 1226.84
Inventory 19.52 20.67 26.20
55
Investments 174.27 174.27 174.27
Loans & advances 450.20 424.69 408.15
Interpretation: CAGR for FY17-20 is 61% and it is used to find out the revenue for
FY21, FY22 and FY23. Operating Profit margin is taken to be -21% for FY21 and -22%
for FY22 and FY23. Interest is given as 0 for FY20 and hence it’s assumed to be
constant at 0 for FY21-23. We can conclude that the company is not doing good as PAT
and operating profit are showing negative numbers which means that the company is not
able to generate profits.
Scenario 2
Sensitised
Year(Rs/Cr FY21 FY22 FY23
(P) (P) (P)
% change 30% 30%
Operating Profit (PBIDTA) -18.68 -22.75 -29.67
-24% -22% -22%
Less: Interest 0.00
0%
852%
Gross Profit from Main Operation -187.87 -416.42 -1178.91
56
Add: Other Income


Net Profit Before Tax -187.87 -416.42 -1178.91
Deduct: Taxes -46.97 -104.11 -294.73
25% 25% 25%
Net Profit after Tax -140.91 -312.32 -884.18
Cash Profit 28.29 81.36 265.06
by taking half CAGR of FY17-20 which is 30%. We can conclude that the negative
numbers of PAT and operating profit have increased which means that the company is
not doing good.
Ratio Analysis of PSL Ltd.
Financial
2017 2018 2019 2020 2021 2022 2023 2021(S) 2022(S) 2023(S)
Ratios
Increase in
156.43% 64.01% 582.86% 60.85% 60.85% 60.85% 30.43% 30.43%
turnover
EBITDA
-2945.26% -97.28% -16.74% -23.56% -21.00% -22.00% -22.00% -23.56% -22.00% -22.00%
margin
Net profit -
-3660.79% -300.31% -122.43% -127.97% -153.68% -370.32% -236.98% -402.73% -874.16%
margin 213.92%
Interest
coverage -652.49 -365.54 -95.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ratio
57
Total debt/
-1.80 -1.68 -1.61
TNW
Long term
-1.80 -1.68 -1.61
debt/ TNW
Term debt/
-6.97 -94.81 -2680.54
Cash profit
Inventory
374 154 119
Days
Creditor
99 99 46
Days
Working
460 104 116
capital cycle
Fixed Asset
Turnover 0.01 0.04 0.07
Ratio
Interpretation: PSL Ltd. has a negative net profit margin which means that the
company is making less money than it is spending. Interest Coverage ratio is negative
which means that the company is in loss making state. We can see that the Total
debt/TNW ratio is negative because tangible networth is negative, it means that it’s
total debt is greater than it’s total assets. For Inventory days ratio, it takes 374 days for
the company to sell its stock of inventory in 2017 and the number has been decreased to
119 in 2019, which is a a good sign because it takes less days to sell it’s inventory. The
debtor days ratio has been decreased from 185 in 2017 to 43 in 2019, which is a good
sign for the company; as it will take less days to collect the money owned by its debtors.
H.G Infra Engineering Ltd.
H.G. Infra Engineering Limited is a leading player in the roads & highways space with a
fulfilling history of over 15 years. They provide engineering procurement and
construction services on a fixed-sum turnkey basis and offers civil construction and
similar infrastructure projects in the road construction space.
The company has established a robust business model built around the complete
amalgamation of in-house equipment and skilled manpower.
58
It has a Robust & well diversified order book of Rs 6220 Cr in FY19 and it has
increased from 3900 in FY17.
Order Book(Cr.)
7000
7000 6220
6220
6000
6000
5000 4600
4600
5000
3900
3900
4000
4000
3000
3000
2000
2000
1000
1000
0
0
Order
Order Book
Book FY17
FY17 FY18
FY18 FY19
FY19
Scenario 1
Period in months 12 12 12 12 12 12 12
(A) (A) (A) (A) (P) (P) (P)
Operations 1,056.03 1,392.73 2,009.83 2,196.14 2,803.20 3,578.07 4,567.13
% change 32% 44% 9% 28% 28% 28%
Operating Profit (PBIDTA)
124.44 208.07 303.21 342.39 392.45 536.71 639.40
12% 15% 15% 16% 14% 15% 14%
Less: Interest 18.88 40.06 49.03 52.36 53.61 54.63 55.47
2% 3% 2% 2% 2% 2% 1%
Amortisation 25.60 53.92 75.45 75.63 83.60 92.67 102.53
59
3% 3% 3% 2%
Operation 79.96 114.09 178.73 214.40 255.24 389.41 481.40
Add: Other Income 3.42 4.67 11.52 13.65 0 0 0
0% 0% 1% 1% 0% 0% 0%
Deduct: Taxes 29.96 34.49 66.68 62.33 63.81 97.35 120.35
25% 25% 25%
Cash Profit 79.02 138.19 199.02 214.05 275.03 384.72 463.58

Secured Loans 194.70 322.53 315.02
Term Loans from
Bank/FI 108.95 229.54 197.00
Bank 85.75 92.99 118.02
NCDs 0.00 0.00
Others 0.00 0.00 0.00
Sundry Debtors 180.92 429.43 621.40
Creditors 89.13 304.37 350.13
Fixed Assets 204.38 411.90 461.89
Inventory 49.20 106.75 116.10
Investments 0.00 0.00 20.00
Loans & advances 60.72 253.48 216.25
for FY22. Interest rate is taken as 2% to be constant. The company is performing well
has the operating profit as well as PAT has been increased.
Scenario 2:
Sensitised
Year FY21 FY22 FY23
(P) (P) (P)
Gross Income from Main Operations 2,196.14 2,503.60 2,854.10
60
% change 14% 14%
16% 15% 14%
Less: Interest 53.61 54.63 55.47
2% 2% 2%
4% 4% 4%
Add: Other Income


Deduct: Taxes 51.30 57.06 60.39
25% 25% 25%
Cash Profit 237.49 263.85 283.71
by taking half CAGR of FY17-20 which is 14%. The company is doing good in this
scenario also as there is an increment in operating profit as well as PAT.
Ratio Analysis of H.G Infra Engineering Ltd.
Financial
2017 2018 2019 2020 2021 2022 2023 2021(S) 2022(S) 2023(S)
Ratios
Increase in
31.88% 44.31% 9.27% 27.64% 27.64% 27.64% 14.00% 14.00%
turnover
EBITDA
11.78% 14.94% 15.09% 15.59% 14.00% 15.00% 14.00% 15.59% 15.00% 14.00%
margin
Net profit
7.90% 8.53% 9.47% 9.14% 9.11% 10.88% 10.54% 9.34% 9.12% 8.46%
margin
Interest
6.59 5.19 6.18 6.54 7.32 9.82 11.53 6.39 6.87 7.20
coverage ratio
Total debt/ 1.11 0.60 0.48
61
TNW
Long term
0.62 0.42 0.30
debt/ TNW
Term debt/
1.38 1.66 0.99
Cash profit
Working
49 61 70
capital cycle
Fixed Asset
5.17 3.38 4.35
Turnover Ratio
Interpretation: H.G Infra Engineering Ltd has a net profit margin with an increasing
trend of 7.9% in 2017 to 9.14% in 2020 which means that these companies were more
efficient in converting the sales into actual profit in 2020 as compared to 2017. Interest
Coverage ratio were almost same in 2017 and 2020, which means that it can pay it’s
interest payments 6.54 times with it’s operating profit in 2020. We can see that the Total
debt/TNW ratio is less than 1,hence the creditors can expect receiving all the amount in
full. For Inventory days ratio, it takes 17 days for the company to sell its stock of
inventory in 2017 and the number has been increased to 21 in 2020, which is a good
sign. The debtor days ratio has been increased from 63 in 2017 to 113 in 2019, which
is a good sign for the company; as it will take less days to collect the money owned by
its debtors. We can see that the Creditor days have been increased from 31 in 2017 to
64 in 2019, which is not a good sign as it is taking too long to pay it’s suppliers.
Hindustan Construction Co. Ltd.

Hindustan Construction Company is one of India’s leading engineering and construction
(E&C) enterprises. It has a rich heritage of over 90 years. It main focus are on civil
works and has a strong history of achieving large, complex infrastructure projects, many
of which are of national importance.
62
The company’s order backlog as on March 2019 is 41197 cr. In the below figure we can
see the order book composition of FY19 with transport having the highest percentage of
50%.
Order Book(Cr.)
45000
45000 41197
41197
40000
40000
35000 32532
32532
35000
30000
30000
25000
25000
20000 18089
18089
20000
15000
15000
10000
10000
5000
5000
0
0
Order
Order Book
Book FY17
FY17 FY18
FY18 FY19
FY19
Water
PMC6%
Nuclear
& 9%
Buildin Transp
gs ort
12% 50%
Hydro
23%
Transport Hydro Nuclear & Buildings

PMC Water
Scenario 1

Period in months 12 12 12 12 12 12 12
(A) (A) (A) (P) (P) (P) (P)
Operations 4195.94 4575.08 4341.00 3858.47 4051.39 4253.96 4466.66
% change 9% -5% -11% 5% 5% 5%
63
Operating Profit (PBIDTA) 717.66 643.88 -1880.99 779.35 810.28 850.79 893.33
17% 14% -43% 20% 20% 20% 20%
Less: Interest 772.37 659.97 698.91 703.65 661.43 769.42 908.59
18% 14% 16% 18% 16% 18% 20%
Amortisation 125.28 122.94 144.53 117.40 130.13 130.28 144.86
3% 3% 3% 3%
Operation -179.99 -139.03 -2724.43 -41.71 18.71 -48.91 -160.12
Add: Other Income 276.95 251.00 132.21
7% 5% 3%

Net Profit Before Tax 96.96 111.97 -2592.22 -41.71 18.71 -48.91 -160.12
Deduct: Taxes 37.55 34.44 -630.47 361.41 4.68 -12.23 -40.03
25% 25% 25%
Net Profit after Tax 59.41 77.53 -1961.75 -403.12 14.04 -36.68 -120.09
Cash Profit 184.69 200.47 -1817.22 -285.72 144.17 93.60 24.77

Equity Capital 101.08 101.55 151.31
Secured Loans 2948.04 2368.09 1956.96
Term Loans from
Bank/FI 1687.13 1274.72 831.10
Bank 1146.88 1026.00 1079.06
NCDs 114.03 67.37 46.80
Others 0.00 0.00 0.00
Sundry Debtors 2086.55 2397.79 3482.76
Creditors 1616.40 1810.14 1808.45
Fixed Assets 595.47 597.94 418.09
Inventory 233.31 179.33 197.16
Investments 796.35 781.14 1627.29
Loans & advances 3596.82 2982.37 2355.27
for FY22. Interest rate is taken as 2% to be constant. We can see that the interest costs
64
have been very high for the company and hence the PAT has been showing negative
numbers.
Scenario 2
Sensitised
Year FY21 FY22 FY23
(P) (P) (P)
% change 2% 2%
20% 20% 20%
Less: Interest 661.43 769.42 908.59
17% 19% 22%
3% 4% 4%
Gross Profit from Main Operation -12.21 -123.65 -242.69
Add: Other Income


Net Profit Before Tax -12.21 -123.65 -242.69
Deduct: Taxes -3.05 -30.91 -60.67
25% 25% 25%
Net Profit after Tax -9.16 -92.74 -182.02
Cash Profit 120.97 52.48 -37.15
by taking half CAGR of FY17-20 which is 14%. The operating profit has been increased
but because of interest costs, PAT is showing negative numbers.
Ratio Analysis of Hindustan Construction Co. Ltd.
65
Financial 2021(S
2017 2018 2019 2020 2021 2022 2023 2022(S) 2023(S)
Ratios )
Increase in 258.97
9.04% -5.12% 5.00% 5.00% 5.00% 2.50% 2.50%
turnover %
EBITDA -
17.10% 14.07% 20.20% 20.00% 20.00% 20.00% 20.20% 20.00% 20.00%
margin 43.33%
Net profit -
2.31% 2.45% -1.08% 0.46% -1.15% -3.58% -0.32% -3.13% -5.99%
margin 59.71%
Interest
0.93 0.98 -2.69 1.11 1.23 1.11 0.98 1.18 1.03 0.89
coverage ratio
Total debt/
1.10 0.85 1.51
TNW
Long term
0.67 0.48 0.68
debt/ TNW
Term debt/
9.75 6.69 -0.48
Cash profit
Inventory
20 14 17
Days
Working
61 61 157
capital cycle
Fixed Asset
Turnover 7.05 7.65 10.38
Ratio
Interpretation: Hindustan Construction Co. Ltd. has a net profit margin with an
decreasing trend of 2.31% in 2017 to -1.08% in 2020 which means that these companies
were more efficient in converting the sales into actual profit in 2017 as compared to
2020. Interest Coverage ratio was greater than 1, which means that it can pay it’s
interest payments 1.11 times with it’s operating profit in 2020. We can see that the Total
debt/TNW ratio is more than 1,hence the creditors can expect receiving all the amount
in full but it will take a lot of time. For Inventory days ratio, it takes 20 days for the
company to sell its stock of inventory in 2017 and the number has been decreased to 17
in 2020, which is a good sign. The debtor days ratio has been increased from 182 in
collect the money owned by its debtors.
66
CONCLUSION:
Based on my study the following conclusions have been drawn: Identified the ratios
which are important indicators of the EPC sector they are: Increase in turnover,
EBITDA margin, Net profit margin, Interest coverage ratio, Total debt/ TNW, Long
term debt/ TNW, Term debt/ Cash profit, Inventory Days, Debtor Days, Creditor Days,
Working capital cycle and Fixed Asset Turnover Ratio.
From our study we can conclude that Dilip Buildcon Ltd, PNC Infratech Ltd, KNR
Construction Ltd, Techno Electric and Engineering Ltd, Ashoka Buildcon Ltd and H.G
Infra Engineering Ltd are doing good. On the other hand NCC ltd, PSL Ltd, Hindustan
Construction Co. Ltd are not doing good as they witness a decline in operating profit as
well as Profit After Tax.
67
MANAGERIAL IMPLICATIONS:
 With the help of this report we are finding the financial performance of the
companies and how well they are doing in terms of their major factors like
revenue, Operating profit, PBT and PAT.
 Sensitivity analysis is done to get a more clearer and firm position about the
companies.
 The EPC Sector contributes to 7.9% to GDP.
 Market Capitalisation and top-line plays a significant role while choosing the
companies for the analysis.
 Financial Statement Analysis is the most important and effective method to find
out the performance of the companies.
 Annual Reports, Equity research report and Investor presentations plays an
important role while projecting the future financials.
68
REFERENCES
 Benninga, Simon Z., and Oded H. Sarig. 2003, Corporate Finance: A Valuation
Approach. 2nd Edition New York:McGraw-Hill.
 William H. Beaver. 1996, Financial Ratios as Predictors of Failure. Journal of
Accounting Research, Vol. 4, pp. 71- 111.
 K. Battacharyya Asish. 2009, Introduction to Financial Statement Analysis.
Elsevier.
 D. H. Kantilal. 2012, Financial Analysis of Selected Pharmaceutical companies
in India with Special Reference to Gross Profit to Sales Ratio. Indian Journal of
Applied Research, Vol. 2, No. 2, pp. 5-6.
 Ibn-Homaid N. T., Tijani I. A. 2015, Financial Analysis of a Construction
Company in Saudi Arabia. International Journal of Construction Engineering and
Management, 4(3): 80-86.
 E.F. Brigham’s and J.F. Houston’s. 2009, Fundamentals of Financial
Management. 12th Edition, South Western College Pub.
 SREI Equipment Finance Ltd. (2006, June 13). Retrieved May 10, 2020, from
https://www.srei.com/
 Capitaline databases.(2006). Retrieved April 15, 2020, from
https://www.capitaline.com/
 EMIS(1994). Retrieved April 20, 2020, from https://www.emis.com/
 Dilip Buildcon Ltd. (1987). Retrieved May 27, 2020, from
http://www.dilipbuildcon.com/
69

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SUMMER INTERNSHIP

FINAL PROJECT REPORT

Study on the Financial Performance Evaluation

Study on the Financial Performance Evaluation of top EPC Companies

Under the guidance of

Prof. Preeti Sharma

Assistant Professor(Analytics & IT)

Mr. Amit Roy

No part of this report may be reproduced, distributed or transmitted by any means or in

“Institute of Management Technology,

I am ineffably grateful to Dr. M. Venkateshwarlu Director, Institute of Management

I am also grateful to my Faculty guide, Prof. (Dr.) Preeti Sharma whose contribution

I extend my gratitude to Institute of Management Technology, Hyderabad for giving

NEED OF THE STUDY

ABOUT THE COMPANY

The analysis of financial statements is an important step of financial analysis. They

ABOUT THE EPC SECTOR

Srei Equipment Finance Limited is Public incorporated on 13 June 2006.

Social & Commercial Infrastructure

According to Brigham and Houstan, (2009)

According to William H. Beaver, (1966)

According to D.H. Kantilal, (2002)

According to Moyer et al. (2011):-

Financial Statement Analysis

1. Increase in turnover: It is calculated by using the revenue of the company.

3. Net Profit margin: It is one of the most critical indicators of a company’s

5. Total debt/TNW ratio: It indicates the level of creditors’ protection in case of

11. Fixed Asset Turnover Ratio: It is used to measure operating performance.

Serial No. Company Name Market Capital(Cr.) Topline(Cr.)

Steps to financial Forecasts:

 Historical forecasting: In this method, we use our past financial records to

assumptions based on the pattern of the growth and different government

 Research based forecasting: This method is used when we are considering

Formula used: (EV/BV)1/N -1

EV: Ending Value

BV: Beginning Value

Assumptions taken for all the Companies:

3. Tax Rate is assumed to increase by 25%.

Dilip Buildcon Ltd:

Order Book Composition of FY19(%)

Year/ RS CR FY17 FY18 FY19 FY20 FY21 FY22 FY23

Interpretation: In 2020 we have seen a decrease in revenue of -1.13% which means

They provide end-to-end infrastructure implementation solutions which include

Interpretation: We are seeing a decreasing trend in the revenue in 2020 of 57.51%. It

KNRCL was incorporated in 1995. It is a multi-domain infrastructure project

Order Book Composition of FY19(%)

Roads Power T&D

Year FY17 FY18 FY19 FY20 FY21 FY22 FY23

Generation Transmission Distribution

Ratio Analysis of Techno Electric Engineering Ltd.:

Nagarjuna Construction Company Limited (NCCL) is a construction and infrastructure

Order Book Composition

Year / Rs Cr. FY17 FY18 FY19 FY20 FY21 FY22 FY23

Ratio Analysis of Ashoka Buildcon Ltd.

Ratio Analysis of PSL Ltd.

H.G Infra Engineering Ltd.

Ratio Analysis of H.G Infra Engineering Ltd.

Hindustan Construction Co. Ltd.