FINANCIAL MANAGEMENT

INNOVATIVE PRACTICE

SUBMITTED BY: SUBMITTED TO:

TEAM1: DR. LAXMI PANDEY
AKASH NARAYAN
AVINASH CHAUBEY
ISHIKA GUPTA
RAGHAV MISHRA
SAUMYA BAJPAI
TANISHA SIDDHU
 Vedant
fashions
Vedant Fashions is a leading
Indian company specializing
In recent years, Vedant
Fashions has been expanding
in celebration wear, primarily its reach internationally,
catering to the wedding and opening stores in the United
festive market. Established in States, the United Arab
2002, it has rapidly grown to Emirates, and other countries.
become a household name, The company is also investing
synonymous with timeless in e-commerce, with a growing
elegance and cultural pride. online presence.
 Sector
The company operates in
various segments, Strong brand portfolio
including Apparels, with Manyavar, Mohey,
specifically Indian wedding Mebaz, Twamev, and
and celebration wear. Manthan.
Largest player in the
Indian men's wedding and Pan-India presence with
celebration wear segment over 850 exclusive brand
with a market share of outlets (EBOs).
over 20%.
Operating Financial Combined
Leverage Leverage Leverage
We can use the below formulae to We can use the below formulae to We can use the below formulae to
calculate Operating leverage. calculate Financial leverage. calculate Combined leverage.
Combined Leverage= Operating
Operating Leverage= % change in Financial Leverage = Leverage * Financial Leverage
EBIT / % change in Revenue 34.58% EBIT / EBT 1.24* 1.0542
/ 27.86% 607.30/ 575.84 = 1.3072 times
= 124.12% = 1.0542 times
=1.24 times

1.4 times
1.2 times
1 times
0.8 times
0.6 times
0.4 times
0.2 times
0 times
Operating Leverage Financial Leverage Combined Leverage
 EBIT EPS
Analysis
EBIT Analysis EPS
Analysis
E B I T = Reve n ue – C O G S – O pe rati ng E P S = Earning for Equity Shareholders
Expenses N o . o f Outstanding Shares
= ₹ 1309 - ₹162.70 - 0 = ₹ 429.11
= ₹ 1146.3 ₹ 24.27092
The calculated EBIT (Earnings Before = ₹ 17.68

Interest and Taxes) is ₹1146.3 A positive EPS indicates that

the
company is profitable and
signifying positive operating profits.
This amount reflects the company's generating returns for its
ability to cover both cost of goods shareholders. In this case, the EPS of
sold and operating expenses from its ₹17.68 is positive, which means that
revenue, indicating a healthy the company is making a profit.
operational performance. The higher the EPS, the more
profitable the company is.
Avinash Chaubey
BM-023013
Section A
 INTRODUCTION
• Welspun India, a part of USD 2.7 billion flagship- company of
Welspun Group, is amongst the largest home textile
manufacturers in the world with presence in Bed, Bath &
Flooring.
• It is the largest exporter of home textile products from India.
Welspun is supplier to 17 of Top 30 global retailers. It has
dominant presence in fifty countries across the world with a
distribution network in over 32 countries including USA,
Canada, UK and Australia.
• India has two world-class, state of the art textile
manufacturing facilities at Anjar (Gujarat) and Vapi. The
Company is a leading manufacturer of wide range of home
textile products, mainly terry towels, bed linen products and
rugs.The company started its operations as a small texturizing
unit under the name Welspun Winilon Silk Mills in the district
of Palghar in the year January 17th, 1985. Six years down the
line in 1991,
• . The company has amalgamated Glofame Cotspin Industries
Ltd with itself during May 2005. According to the scheme of
amalgamation, Welspun India will issue 10 Equity Shares of
Rs.10/- each for every 33 Equity Shares of Rs.10/- each held by
LEVERAGE RATIOS
CALCULATION
S
 ANALYSIS
• Operating Leverage
The degree of operating leverage is a method used to quantify a company’s operating risk. This risk arises due to the
structure of fixed and variable costs.A high DOL reveals that the company’s fixed costs exceed its variable costs. It indicates
that the company can boost its operating income by increasing its sales. In addition, the company must be able to maintain
relatively high sales to cover all fixed costs.
• Financial Leverage
The goal of DFL is to understand how sensitive a company's EPS is based on changes to operating income. A higher ratio will
indicate a higher degree of leverage, and a company with a high DFL will likely have more volatile earnings. Amplifies
winning investments, creating potential for big profits
• Combined Leverage
A degree of combined leverage (DCL) is a leverage ratio that summarizes the combined effect that the
degree of operating leverage (DOL) and the degree of financial leverage has on earnings per share (EPS), given a particular
change in sales.A firm with a relatively high level of combined leverage is seen as riskier than a firm with less combined
leverage because high leverage means more fixed costs to the firm.
• EBIT (Earnings before interest and taxes)
It indicate a company's profitability. EBIT is used to analyze the performance of a company's core operations. The larger your
EBIT number, the more profitable your business operations, and the happier prospective lenders are likely to be.
KEI
INDUSTRIES
ISHIKA GUPTA
BM-023025
SECTION A
 INDE
INTRODUCTIO
X
LEVERAGE
N RATIOS

CALCULATIONS ANALYSIS
 INTRODUCTIO
N
KEI was founded in 1968 as a partnership corporation with a primary focus on the production of rubber cables for
house wiring. Today, it has transformed itself into a global empire that provides comprehensive wire & cable
solutions.
Through a vast network of over 30000+ channel partners, our products cater to clients in over 55+ countries across
the globe. The strength of its human resources has always been a core value for KEI Industries. Our family of 5385
employees serve in variety of capacities to efficiently provide services to our clients. Presently, we are
headquartered in New Delhi, with around 38 branch offices and 23 warehouses which are spread across nation. We
have been a catalyst of power for more than 50 years thanks to our devotion, tenacity, and dedication.

KEI provides a wide array of cabling solutions, we manufacture and market Extra-High Voltage (EHV), Medium
Voltage (MV) and Low Voltage (LV) power cables. As a one-stop shop for products and services that caters to both
the retail and institutional markets, KEI has established a strong foothold in the Engineering, Procurement and
Construction (EPC) services industry.

We are much more than just a cables and wires producer and supplier; we are an industry and market leader in
India and a chosen supplier for both private and public sector clients worldwide. We are an end-to-end solutions
provider with a product line-up that includes every type of cable and wire created to to meet the unique and niche
needs of our diverse clients in Retail, Institutional (EHV + EPC) and Exports segments.
LEVERAGE
RATIOS
in
millions
1
CALCULATIONS
Degree of operating
. leverage(DOL): Operating leverage
= Contribution
Earning before
interest and tax
= 16443.32
6767.54
2.Degree of= financial
2.42 leverage(DFL):
Financial leverage= Earning before interest and
tax
Earning before tax
= 6767.54
6420.48
=1.05

3. Degree of combined
leverage(DCL): Combined
leverage= Contribution
Earning before
tax OR
DOL*DFL
=2.42*1.05
 ANALYSIS
• Operating Leverage
The degree of operating leverage is a method used to quantify a company’s operating risk. This risk
arises due to the structure of fixed and variable costs.A high DOL reveals that the company’s fixed costs
exceed its variable costs. It indicates that the company can boost its operating income by increasing its
sales. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
• Financial Leverage
The goal of DFL is to understand how sensitive a company's EPS is based on changes to operating
income. A higher ratio will indicate a higher degree of leverage, and a company with a high DFL will likely
have more volatile earnings. Amplifies winning investments, creating potential for big profits
• Combined Leverage
A degree of combined leverage (DCL) is a leverage ratio that summarizes the combined effect that the
degree of operating leverage (DOL) and the degree of financial leverage has on earnings per share (EPS),
given a particular change in sales.A firm with a relatively high level of combined leverage is seen as
riskier than a firm with less combined leverage because high leverage means more fixed costs to the
firm.
• EBIT (Earnings before interest and taxes)
It indicate a company's profitability. EBIT is used to analyze the performance of a company's core
operations. The larger your EBIT number, the more profitable your business operations, and the
RAGHAV MISHRA

BM-023037
FINOLEX
CABELS
INDEX

• INTRODUCTION
• COMPANY’S ANNUAL REPORTS
• LEVERAGE RATIOS
• CALCULATION
• ANALYSIS
 INTRODUCTION

• Finolex
Cables is India’s largest and leading manufacturer of electrical and telecommunication cables, with a turnover of over Rs.26 Billion
(about US $ 400 million) in FY231
2.
• The company was established in 1958 by Pralhad Chhabria, and is the flagship company of the Finolex Group23.
• The company also manufactures polyvinyl chloride (PVC) sheets for roofing, signage and interiors, as well as electrical products lik
e lighting, water heaters, fans, switches, switch gear, and electrical conduits2
4.
• The company has manufacturing facilities in Pune, Goa and Roorkee, and is IS/ISO 9001 certified12.
• The company has several subsidiaries, such as Finolex Technologies, Finolex Wire Products Ltd, Finolex
Finance Ltd, and Creole Holdings Company Ltd.
• The company is expanding its product portfolio and capacity, and aims to more than double its turnover to Rs 11,000 crore by
FY25 .
EBIT &
EPS
ANALYSIS
 RATIO
CALCULATION
DEGREE OF OPERATING LEVERAGE
= CONTRIBUTION / EBIT

=567/405
= 1.4 TIMES
 RATIO
CALCULATION
DEGREE OF FINANCIAL LEVERAGE
= EBIT / EBT

=405/527
= 0.76 TIMES
 RATIO
CALCULATION
DEGREE OF COMBINED LEVERAGE
= CONTRIBUTION / EBT

=567/527
=1.07 TIMES
 RESULTS AS PER
THIS DATA
PROS
• Company is almost debt free.
• Company has been maintaining a healthy dividend payout
of 24.6%
• Company's working capital requirements have reduced
from 160 days to 120 days
CONS
• Company has a low return on equity of 12.6% over last 3
years.
• E a r n i n g s i n c l u d e a n o t h e r i n c o m e o f R s . 1 9 8 C r.
 Zee
entertainment

F R O M G I V I N G I N D I A I T S F I R S T P R I VAT E
S AT E L L I T E T V C H A N N E L I N 1 9 9 2 , T O
REACHING 1.3 BILLION VIEWERS AROUND
THE WORLD THROUGH LINEAR AND
D I G I TA L P L AT F O R M S . Z E E , T O D AY, I S T H E
G L O B A L E N T E RTA I N M E N T G O - T O , W I T H
A N I N T E G R AT E D T E A M C R E AT I N G A N D
S E RV I N G E X T R A O R D I N A RY C O N T E N T.
 PVR

BY
S A U M YA B A J PA I
BM-023048
 INTRODUCTION OF PVR
PVR: REVOLUTIONIZING CINEMA IN INDIA
P V R D O E S N ' T J U S T S T A N D F O R A C O M PA N Y, I T S T A N D S F O R A
T R A N S F O R M AT I O N I N T H E I N D I A N M O V I E - G O I N G E X P E R I E N C E .
HERE'S AN INTRODUCTION TO THIS LEADING CINEMA CHAIN:

P I O N E E R I N G T H E M U LT I P L E X R E V O L U T I O N :

F O U N D E D I N 1 9 9 7 , P V R WA S T H E F I R S T T O I N T R O D U C E T H E
M U LT I P L E X C O N C E P T I N I N D I A , C H A N G I N G T H E S I N G L E - S C R E E N
LANDSCAPE.
T H E Y B R O U G H T M U LT I P L E X E S W I T H M U LT I P L E S C R E E N S , D I V E R S E
S E AT I N G O P T I O N S , A N D P R E M I U M F O R M AT S L I K E I M A X , D O L B Y
AT M O S , A N D P V R I N O X I N S I G N I A .
THIS OFFERED CONVENIENCE, L U X U R Y, AND AN ENHANCED
MOVIE-GOING EXPERIENCE, AT T R A C T I N G MORE PEOPLE TO
CINEMAS.
I N C O M E S TAT E M E N T S
 COMMENTS
• FY 2022-23 saw significant improvement in operating
performance compared to the base year affected by
pandemic restrictions.
• Revenue increased by 157% while EBIT grew by 136%.
• However, net profit declined due to higher depreciation
and finance costs.
• Combined leverage remains moderate, indicating a
healthy balance between debt and equity.
Thank
You