Download - Working Capital _ Group 6
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8/12/2019 Working Capital _ Group 6
1/40
Sugar Industry
Analysis ofWorking Capital CycleSubmitted by:
Ankit Srivastava (P301312CMG518)
Master Govind Agarwal (P301312CMG548)Saurabh Agarwal (P301312CMG581)
Tanuj Khanna (P301312CMG588)
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8/12/2019 Working Capital _ Group 6
2/40
2
Agenda
Introduction to WCC
Industry Cash Conversion Cycle
Liquidity Ratios
Build up of Current Assets for Industry
Peer to Peer Comparison
Individual Industry Analysis
Conclusion
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8/12/2019 Working Capital _ Group 6
3/40
3
Agenda
Introduction to WCC
Industry Cash Conversion Cycle
Liquidity Ratios
Build up of Current Assets for Industry
Peer to Peer Comparison
Individual Industry Analysis
Conclusion
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8/12/2019 Working Capital _ Group 6
4/40
Introduction to WCC
Working capital refers to companys current/short-
term assets which includes cash, receivables,
inventory and marketable securities.
Plays a vital role in business productivity.
A means to measure companys efficiency in
managing its operational costs.
Two ways of interpretation
Balance Sheet Concept
Operating Cycle Concept
The annual economic contribution of the sugar industry to
the exchequer through principal indirect taxes 2013
amounts to more than INR 2800 crores .
4
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8/12/2019 Working Capital _ Group 6
5/40
5
Agenda
Introduction to WCC
Industry Cash Conversion Cycle
Liquidity Ratios
Build up of Current Assets for Industry
Peer to Peer Comparison
Individual Industry Analysis
Conclusion
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8/12/2019 Working Capital _ Group 6
6/40
Industry Cash Conversion Cycle
6
84.27
90.43
74.27
41.78
0.46
-8.80
-13.63
39.35
66.1761.97
-20.00
0.00
20.00
40.00
60.00
80.00
100.00
FY2013FY2012FY2011FY2010FY2009FY2008FY2007FY2006FY2005FY2004
No.O
fDays
Financial Year
Cash Conversion Cycle (days)
Cash Conversion Cycle (days)
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8/12/2019 Working Capital _ Group 6
7/407
Agenda
Introduction to WCC
Industry Cash Conversion Cycle
Liquidity Ratios
Build up of Current Assets for Industry
Peer to Peer Comparison
Individual Industry Analysis
Conclusion
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8/40
Liquidity Ratios
8
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY 2006 FY 2005 FY 2004
Industry Liquidity Ratio
Current Ratio (CA/CL)
Quick Ratio {(CA-Inventory)/CL}
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8/12/2019 Working Capital _ Group 6
9/409
Agenda
Introduction to WCC
Industry Cash Conversion Cycle
Liquidity Ratios
Build up of Current Assets for Industry
Peer to Peer Comparison
Individual Industry Analysis
Conclusion
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8/12/2019 Working Capital _ Group 6
10/40
Build up of Current Assets for
Industry
10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY 2013FY 2012FY 2011FY 2010FY 2009FY 2008FY 2007FY 2006FY 2005FY 2004
Build up of Current Asset as a % of TCA
Loans & Advances
Cash
Receivables
Inventories
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8/12/2019 Working Capital _ Group 6
11/40
Build up of Current Liabilities as a %
Of TCL
11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2013
FY2012
FY2011
FY2010
FY2009
FY2008
FY2007
FY2006
FY2005
FY2004
Build up of Current Liabilities as a % of TCL
Other Current Liabilities
Provisions
Sundry Creditors
Bank Borrowings
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12/40
Industry Working Capital Gap
12
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13/4013
Agenda
Introduction to WCC
Industry Cash Conversion Cycle
Liquidity Ratios
Build up of Current Assets for Industry
Individual Company Analysis
Peer to Peer Comparison
Conclusion
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8/12/2019 Working Capital _ Group 6
14/40
Individual Company Analysis
14
EIP Parry
Bannari Amman
Dhampur Sugar
Dalmia Bharat Sugar Ltd
Bajaj Hindustan Balrampur Chini
Shri Renuka Sugars
Shakti Sugars
Shimbaoli Sugars
Triveni Sugars
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8/12/2019 Working Capital _ Group 6
15/40
EIP Parry
15
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16/40
EIP Parry
16
Cash Conversion Cycle
171.23
76.53
52.78
18.39
38.19
56.6960.32
23.67
33.01
77.14
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
NoofDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
17/40
Bannari Amman
17
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8/12/2019 Working Capital _ Group 6
18/40
Bannari Amman
18
217.46
198.02
246.72
87.69
134.00
184.16
79.25 82.31
125.48
185.36
0.00
50.00
100.00
150.00
200.00
250.00
300.00
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
NoofDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
19/40
Dhampur Sugar
19
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8/12/2019 Working Capital _ Group 6
20/40
Dhampur Sugar
20
Cash Conversion Cycle
255.335
95.072
43.669
89.012
122.623
-52.951
-20.884
27.128 26.037 31.368
-100.000
-50.000
0.000
50.000
100.000
150.000
200.000
250.000
300.000
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
NoOfDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
21/40
Dalmia Bharat Sugar Ltd
21
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22/40
Dalmia Bharat Sugar Ltd
22
Cash Conversion Cycle
-600.00
-500.00
-400.00
-300.00
-200.00
-100.00
0.00
100.00
200.00
300.00
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
NoofDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
23/40
Bajaj Hindustan
23
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8/12/2019 Working Capital _ Group 6
24/40
Bajaj Hindustan
24
Cash Conversion Cycle
-80.000
-60.000
-40.000
-20.000
0.000
20.000
40.000
60.000
80.000
100.000
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004NoOfDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
25/40
Balrampur Chini
25
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8/12/2019 Working Capital _ Group 6
26/40
Balrampur Chini
26
Cash Conversion Cycle
-50.000
0.000
50.000
100.000
150.000
200.000
250.000
300.000
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
NoOfDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
27/40
Shri Renuka Sugars
27
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28/40
Shri Renuka Sugars
28
-100.00
-80.00
-60.00
-40.00
-20.00
0.00
20.00
40.00
60.00
80.00
100.00
120.00
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004NoOfDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
29/40
Shakti Sugars
29
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30/40
Shakti Sugars
30
Cash Conversion Cycle
-200.000
-180.000
-160.000
-140.000
-120.000
-100.000
-80.000
-60.000
-40.000
-20.000
0.000
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
NoOfDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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Shimbaoli Sugars
31
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Shimbaoli Sugars
32
Cash Conversion Cycle
-150.000
-100.000
-50.000
0.000
50.000
100.000
150.000
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004NoofDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
33/40
Triveni Sugars
33
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Triveni Sugars
34
Cash Conversion Cycle
0.000
50.000
100.000
150.000
200.000
250.000
300.000
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
NoofDays
Financial Year
Cash Conversion Cycle (Days)
Cash Conversion Cycle (Days)
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8/12/2019 Working Capital _ Group 6
35/40
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8/12/2019 Working Capital _ Group 6
36/40
Cash Conversion Cycle
36
-600.00
-500.00
-400.00
-300.00
-200.00
-100.00
0.00
100.00
200.00
300.00
400.00
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
EID Parry
Bannari Amman
Dhampur Sugar
Dalmia Bharat Sugar Ltd
Bajaj Hindustan
Balrampur ChiniShri Renuka Sugars
Shakti Sugars
Shimbaoli Sugars
Triveni Sugars
Industry Average
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8/12/2019 Working Capital _ Group 6
37/40
Current Ratio
37
0.000
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004
EID Parry
Bannari Amman
Dhampur Sugar
Dalmia Bharat Sugar Ltd
Bajaj Hindustan
Balrampur ChiniShri Renuka Sugars
Shakti Sugars
Shimbaoli Sugars
Triveni Sugars
Industry Average
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8/12/2019 Working Capital _ Group 6
38/40
38
Agenda
Introduction to WCC
Industry Cash Conversion Cycle
Liquidity Ratios
Build up of Current Assets for Industry
Individual Company Analysis
Peer to Peer Comparison
Conclusion
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8/12/2019 Working Capital _ Group 6
39/40
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8/12/2019 Working Capital _ Group 6
40/40
Thank you