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1 MANAGING BOTTOM LINE IN THE FAST CHANGING BUSINESS SITUATION 11 th JANUARY, 2015 PPL Plant Reservoir RK Nanda, CFO, PPL.

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Presentation on theme: "1 MANAGING BOTTOM LINE IN THE FAST CHANGING BUSINESS SITUATION 11 th JANUARY, 2015 PPL Plant Reservoir RK Nanda, CFO, PPL."— Presentation transcript:

1 1 MANAGING BOTTOM LINE IN THE FAST CHANGING BUSINESS SITUATION 11 th JANUARY, 2015 PPL Plant Reservoir RK Nanda, CFO, PPL

2 2 BOTTOM LINE  Total Revenue Less Operation Expenses, Interest, Depreciation and Taxes.  Profit Before Tax (PBT)  Profit After Tax (PAT)

3 3 Revenue from Salesxxxxxx Other Incomexxxxxx Total Revenuexxxxxx Less: Cost of sales :-xxxxxx Cost of Raw Materialsxxxxxx Conversion Costxxxxxx Ex-Factory costxxxxxx General overheadsxxxxxx Interestxxxxxx Depreciationxxxxxx Profit Before Taxxxxxxx Taxesxxxxxx Profit After Taxxxxxxx DERIVATION OF BOTTOM LINE

4 4 Particulars Turn Over EBIDT PBT (134) PAT (126) Interest Exchange Impact (79) Marketing Rebate on Sales (Rs. / crore) Financial Data for Last 5 years Sundry Debtors

5 5 TAX PLANNING SectionParticulars 32 AC Investment Allowance 15% for investment exceeding Rs.25 crore, allowed upto 31 st March, (2) AB R&D Expenses - Relief varies from 100% to 200% for the in-house R&D – both in Revenue & Capital Expenditures 35 AD Capacity Expansion - Relief of 150% of Expenses for Fertilizer Sector & 100% for other Specified Sectors 35 CCC Agriculture Extension program – Relief of150% on the related expenses 35 CCB Skilled Development – Relief of 50% on expenditure incurred

6 6 Some Operational Tools a)Capacity Management b)Lead –Time and Supply Chain Management c)Funds Management and relationship with Banker / Lender d)E-Procurement / Sales

7 7 Favourite Sectors 1.Mining 2.Beverages 3.Oil & Gas Distribution 4.Dairy & Milk Products 5.Micro Finance / Banking 1.Power 2.Sugar 3.Fertilizer Difficult Sectors

8 8  Free Market – it is a Laissez Faire economic concept, where Commercial decisions like buying and selling of product and services are made without any regulation / restriction.  All market players get equal opportunity [level playing field] in making Commercial decisions.  Globalization.

9 9 Month Rate (Rs./USD) April May”56.50 June”59.70 July”61.12 August”66.27 September”62.78 October”61.41 November”62.39 December”61.90 January February”62.07 March”60.10 RUPEE DOLLAR EXCHANGE RATE Mean60.94 Median61.65 Mode62.43 Standard Deviation3.15 % difference between low and high 22.79%

10 10 We are passing through “VUCA” time  Volatility- Commodity price, Currency Rate  Uncertainty- Climate condition, Economic Environment  Complexity - Regulatory condition  Ambiguity - Government Rules, Tax Laws

11 11 Sales-Top Line Market Share-Vanity Profit-Sanity To conduct business in sensible manner- Liquidity (known as Reality)

12 12 Important factors having the impact on Bottom Line : -  Revenue Recognition  Stock Valuation  Interest  Exchange Rate  View on the Liabilities

13 13 Good Profit - Earned with satisfaction of customer & other stakeholders Bad Profit - Earned with dissatisfaction of customer and other stakeholders

14


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