2. Executive Summary
Market
Overview
As per 20‐‐ ‐ ‐‐, telecom equipment worth INR x1 bn was consumed in India
Segment1 accounts for around x2% of the total telecom equipment industry in India
Telecom equipment import had grown at a CAGR of around x3% between 20‐‐ and 20‐‐
Drivers:
Currently segment2 generates maximum revenue, though future of segment3 looks promising
Challenges:
Security Concerns Growth in Wireless Subscriber Base
Drivers &
Challenges
High Telecom Equipment Imports Next Generation Voice and Data Services
Government Initiatives and Progressive
Reforms in the Industry
IPv4 to IPv6 Migration
Market Trends
Telecom Equipment Certification
Android Smartphones and Tablets
Strengthening of R&D
Competitive
L d
Infrastructure Sharing
Major Players
Company A Company B Company C
2TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
Landscape
Company D Company E Company F
4. Introduction
Telecom Equipment ‐ Overview
• Economic and social development of India is significantly influenced by its telecom industry
• Modern and robust telecommunication systems demand state‐of‐the‐art telecom equipmenty q p
• Cellular network technology such as 3G and 4G, broadband internet services, telephony services, network
requirements and other telecom products and services has led to increased demand for telecom equipment
• Telecom equipment can be broadly classified in carrier equipment enterprise equipment and user devices segments• Telecom equipment can be broadly classified in carrier equipment, enterprise equipment and user devices segments
• Alternatively, it can also be classified in two categories in terms of type of consumer
End‐user equipment are meant for general consumers and telecom network equipment find its takers amongst industrial and
institutional consumers
• In telecom network equipment category fixed and mobile switches base stations routers & transmissionIn telecom network equipment category, fixed and mobile switches, base stations, routers, & transmission
equipment largely represent active equipment, whereas towers, shelters & cables falls under passive equipment
Category1
Segment1
Telecom
Equipment
Category1
Segment3
Segment2
4TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
Category2 Segment4
Segment5
5. Majority of the countries are import‐dependent excepting
few which supply telecom equipment to the rest
Market Overview – Global
•Global telecom equipment market is expected to be affected by aspect1 in the coming years
Spending on element1 will be around INR x1 in 20‐‐, as compared to INR x2 in 20‐‐
•The country1, country2, country3 are the few countries distinctively leading in global telecom equipment production
•Country4, country5, country6 and country7 are the major countries driven by exports
•Majority of the other countries including country8 country9 country10 country11 and country12 are largely import•Majority of the other countries including country8, country9, country10, country11 and country12 are largely import
dependent
Telecom Equipment Import‐Export, Production and Usage Levels – Global
Country Imports Exports Production Consumption
China Low/Medium/High Low/Medium/High Low/Medium/High Low/Medium/High
France Low/Medium/High Low/Medium/High Low/Medium/High Low/Medium/High
Germany Low/Medium/High Low/Medium/High Low/Medium/High Low/Medium/High
Japan Low/Medium/High Low/Medium/High Low/Medium/High Low/Medium/High
South Korea Low/Medium/High Low/Medium/High Low/Medium/High Low/Medium/High
5TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
UK Low/Medium/High Low/Medium/High Low/Medium/High Low/Medium/High
US Low/Medium/High Low/Medium/High Low/Medium/High Low/Medium/High
6. Significant demand exists for telecom equipment in India
but they are being catered by element1
Market Overview – India (‐/‐)
G th i t l t h bl d t l i t i t fl i h i I di dl f 1•Growth in telecom sector has enabled telecom equipment companies to flourish in India, regardless of segmen1,
segment2 or segment3
• While majority of the domestic telecom equipment companies started off as entity1, the focus is gradually shifting to element2
•As per 20‐‐ ‐ ‐‐, telecom equipment worth INR x1 bn was consumed in India
•Segment1 accounts for around x2% of the total telecom equipment industry in India
•Country1 and Country2 telecom equipment products dominate the market in India at present
INR bn
b1
Telecom Equipment – Market Size & Growth Telecom Equipment – Domestic Consumption
b1
a5
a4
a3
a2a1
6TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
2016e2015e2014e2013e2012 c2c1
13. SAMPLE Public: Domestic Company – company1 (1/4)
Company Information Offices and Centres – India
Corporate Address Company Address
Tel No. +91‐xx‐ yyyyyyyyy
Fax No. +91‐ww‐zzzzzzzz
Website www.companyA.com
Year of Incorporation 19‐‐
Products and Services
p
Ticker Symbol ‐‐‐‐‐‐
Stock Exchange Exchange Name
Head Office
Key People
Products and Services
Category Products/Services
• Product 1 N D i ti
Service
Product 1
• product 2
• product 3
Name Designation
Person 1 Designation
Person 2 Designation
Person 3 Designation
13
Note: The list of products and services is not exhaustive
TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
14. SAMPLE Public: Domestic Company – company1 (2/4)
i i l S h K iFinancial Snapshot Key Ratios
Net Profit/LossTotal Income
j
kia
Revenue
INR mn
Profit
INR mn
d
Particulars
y‐o‐y change
(2011‐10)
2011 2010 2009 2008
Profitability Ratios
Operating Margin ‐2.99 35.05% 38.03% 47.29% 49.95%
20‐‐ 20‐‐20‐‐
h
g
f
b
c
e
20‐‐
Net Margin ‐3.81 30.66% 34.47% 39.25% 45.23%
Profit Before Tax Margin ‐2.07 31.01% 33.08% 38.38% 49.98%
Return on Equity ‐0.50 23.82% 24.33% 38.05% 31.21%
Return on Capital Employed 1.34 17.73% 16.39% 23.84% 16.70%
Return on Working Capital 0.41 18.62% 18.21% 24.31% 19.18%
Return on Assets ‐0.53 12.87% 13.40% 18.29% 14.25%
Financial Summary
• The company earned a net profit of INR x4 mn in FY 20‐‐, as
compared to net profit of INR x3 mn in FY 20‐‐
• The company reported total Income of INR y4 mn in FY 20‐‐
registering an increase of x% over FY 20
Return on Fixed Assets 156.69 296.80% 140.10% 232.55% 173.54%
Cost Ratios
Operating costs (% of Sales) 7.62 17.84% 10.22% 16.89% 16.51%
Administration costs (% of
Sales)
‐1.24 11.68% 12.93% 8.55% 5.13%
Interest costs (% of Sales) ‐1.67 4.27% 5.93% 6.09% 2.32%
registering an increase of x% over FY 20‐‐
• The company earned an operating margin of p% in FY 20‐‐, a
decrease of y percentage points over FY 20‐‐
• The company reported debt to equity ratio of q in FY 20‐‐, an
increase of r% over FY 20‐‐
Interest costs (% of Sales) 1.67 4.27% 5.93% 6.09% 2.32%
Liquidity Ratios
Current Ratio ‐40.67% 5.05 8.52 10.97 13.98
Cash Ratio 1.02% 3.54 3.51 5.06 11.04
Leverage Ratios
Debt to Equity Ratio 4.39% 0.85 0.82 1.08 1.19
b l
Key Financial Performance Indicators
Indicators Value (dd/mm/2013)
Market Capitalization (INR bn) z1
Total Enterprise Value (INR bn) z2
EPS (INR)
Debt to Capital Ratio ‐10.53% 0.35 0.39 0.48 0.52
Interest Coverage Ratio 28.66% 8.40 6.53 8.02 22.36
Efficiency Ratios
Fixed Asset Turnover 137.15% 9.47 3.99 5.74 3.69
Asset Turnover 7.52% 0.41 0.38 0.45 0.30
Current Asset Turnover 4.02% 0.48 0.46 0.55 0.38
14
EPS (INR) z3
PE Ratio (Absolute) z4
Improved Decline
Working Capital Turnover 14.45% 0.59 0.52 0.60 0.41
Capital Employed Turnover 9.64% 0.76 0.69 0.94 0.66
TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
15. SAMPLE Public: Domestic Company – company1 (3/4)
Key Business Segments Key Geographic Segments
i j kh
xyzabcabc
Company filed revenue e
f
g
n
i
m
j
p
kh
ld
c
a
b
Company filed revenue
under single business
segment
Key Information
g
20‐‐20‐‐20‐‐20‐‐20‐‐
c
Description Details
Overview
• Company1 engages in the manufacture and sale of telecommunication equipment
primarily in India
Extended Product
Portfolio
• It offers a range of telecom products and solutions, including switching, transmission,
access, and subscriber premises equipment
• The company offers global system for mobile products, such as Base Trans‐Receiver
Station (BTS), BTS Shelter, roof top towers, transceivers, code division multiple access
15
products based on digital wireless technology to provide mobile communication
TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
16. Public: Domestic Company – company1 – SWOT Analysis
(4/4)
•Strength 1 •Weakness 1
S W
•Strength 2
•Strength 3
•Weakness 2
•Weakness 3
S W
TO TO
•Threat 1
•Threat 2
•Opportunity 1
•Opportunity 2
SAMPLE
•Threat 3•Opportunity 3
16
SAMPLE
TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
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18TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT
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