MIS 10 min presentation

8/8/2019 MIS 10 min presentation

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Demographic Age Group

Wise

Psychographic- Attitude/Behavior

Wise

Main

Target

Segmentation & Targeting


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Financial Analysis

Basic Assumptions

Factory operates on a single shift basis, working 8hours a day and 6 days a week.

The working efficiency of the plant is 80% of the ratedcapacity 125 metric tonnes.

Interest on Capital 14%

Depreciation 10%

All costs incurred are calculated at upper end of the

band and incomes at lower end. The end product is being sold at 70 /- per kg which is

lower than the market rate.


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Financial Analysis ( Cont)

Expenses - I

Fixed Cost

Building Product Quantity Rate Total20 * 15ftSq 75 Rooms

= 22,500ft 10,000/Sq Ft 22,50,00,000

FSI City Limit 1.5

Other Amenities Restaurants 2 * 4000Sq Ft 10,000/Sq Ft 8,00,00,000

Laundry 1 * 1000 Sq Ft 10,000/Sq Ft 1,00,00,000

ConferenceRoom 2 * 2000 SqFt 10,000/Sq Ft 4,00,00,000

Parking 1 floors= 4000 10,0000/sq Ft 4,00,00,000

Storage &Generator Room 1000

ft

Addl Land 2,000 Sq ft 20,0000/Sq Ft 40,00,00,000

InfraFixed Cost 79,50,00,000


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Expenses- II

Fixed Cost

Services Product Quantity Rate Total

Air Conditioning 1 Centralized 2 Crores 2 ,00,00,000

Laundry 10 machines 10,00,000 10,00,000

Restaurant/ Bar - 2 Crores 2,00,00,000

Internet-Wifi - 5 Lakhs 5,00,000

Furniture - 1.5 Crore 1,50,00,000

Cabs 10 40 Lakhs 40,00,000

Swimming Pool 1 10 lakhs 10,00,000

Spa &

Gymnasium

1 Crore 1,00,00,000

ChildCareFacilities 2 Lakhs 2,00,000

others Installation cost 10 Lakhs 10,00,000

TotalServicesFixed

Cost

7,27,00,000

TotalFixedCost Total Services + Total Infra Cost = 86,77,00,000


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Expenses- III

VARIABLECOST Monthly

Product Quantity Rate Total

Admin+ Labour 1:3 1:5 12,00,000

Utilities Water ( S.Pool

+ Daily Use)

300Kl +

500Kl60 Rs/Kl 48,000

Electricity 1.5 Lakh units 9 Rs / Kwh 14,50,000

Fuel (Generator+Cab)

5 Lakhs 5,00,000

Website

Maintenance

25,000 25,000

Promotional

Costs

1% of sales 50,95,800 50,95,800

Other Costs 10,00,000

Total Var Cost 93,13,800

Total Cost Total fixedcost + Total Var Cost = 87,70,13,000


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Financing & Revenue Options

Revenues StreamsMonthly(M)

Day(D)

Monthly

Service Quantity Rate Total

Swimming 10 people/D 1200/-hr 3,50,000

Conference 20 /Month 20,000 4,00,000

GYM& SPA 10 people/D 250/- day 75,000

Restaurants 10 Lakhs/D 3,00,00,000

Pub 2 Lakhs/D 60,00,000

Room Tariff @ 50%

Occupancy

7000/- 78,75,000

Monthly TotalIncome 4,47,00,000

Yearly Total Income 53,64,00,000

Financing Options :

Debt To Equity : 2:1

Cost of Capital : 18%

Return on investment expected:1st year 10%

2nd Year 14%

3rd Year 18%

Weighted Average Cost ofCapital

!st Year 15.33%2nd year 16.67%

3rd Year 18 %


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Financial Analysis (Cont)Sales Realization Per Year

X Total Sales Amount 53,64,00,000

Y Sales Commission 5% of sale 2,68,20,000

Total Sale X Y 50,95,80,000

PROFIT

EBITD SALE EXPENDITURE 50,95,80,000

-87,70,13,000 = - 36,74,33,000

Interest on Capital At 18% 7,89,31,170

Depreciation At 10% 8,67,70,000

Taxes At 30% 0

Profit After taxes -53,31,34,170

II Year

EBITD Sale Prev Loss

Expenditure-Interest

50,95,80,000

53,31,34,170 93,13,800

-11,17,99,140


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Projected Break Even & ROI

A: SALES Sales 7,68,00,000B: Variable Cost + 3,10,20,000 +

Intereston Capital 71,42,800 =3,81,62,800

C: Contribution A B 3,86,37,200

BREAK EVEN = Fixed Cost / Contribution = 2,00,00,000/3,86,37,200

= 51.76% maximum

Return on Investment = PAT / Investment = 1,19,96,040/5,10,20,000

= 23.51% minimum

Break Even Analysis& Return on Investment


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Project Decisions ;

Based on the values given by considering the

attributes in the excel sheet:

Delhi has high return on investment and thebest place to setup the hotel.

Documents

MIS 10 min presentation