market research report : telecom equipment market in india 2013 sample

Telecom Equipment Market IndiaTelecom Equipment Market ‐ India

July 2013

Executive Summary

MarketOverview

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 ConcernsGrowth in Wireless Subscriber BaseDrivers & Challenges

High Telecom Equipment ImportsNext Generation Voice and Data ServicesGovernment 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

LandscapeCompany D Company E Company F

•Economic Indicators•Economic Indicators

•Introduction

•Market Overview•Market Overview

•Drivers and Challenges

•Market Trends•Market Trends

•Competitive Landscape

St t i I i ht•Strategic Insights

•Appendix


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

Category1Segment1

Telecom Equipment

Category1

Segment3

Segment2


Category2 Segment4

Segment5

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


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

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 bnb1

Telecom Equipment – Market Size & Growth Telecom Equipment – Domestic Consumption

b1a5

a4a3a2a1


2016e2015e2014e2013e2012 c2c1

Drivers & Challenges

Drivers

Growth in Wireless Subscriber Base

Next Generation Voice and Data

Challenges

Security Concerns

Next Generation Voice and Data Services

Government Initiatives and Progressive Reforms in the Industry

High Telecom Equipment Imports

IPv4 to IPv6 Migration


SAMPLEMarket Trends (‐/‐)SAMPLE Mobile Battery

• Finding 1 Sub‐finding 1

• Finding 2

• Finding 3

Telecom Equipment Certification

• Finding 4

Fi di 5Strengthening of

• Finding 5

• Finding 6

g gR&D

• Finding 7• Finding 8

• Sub‐finding 2

• Finding 9

8

• Finding 9

TELECOM EQUIPMENT MARKET IN INDIA 2013.PPT

SAMPLEPorter’s Five Forces AnalysisSAMPLE Threat of New Entrants

Impact

Impact

Impact

Impact

Competitive Rivalry Bargaining Power of BuyersBargaining Power of Suppliers

ImpactThreat of Substitutes

Impact


Competitive Benchmarking (‐/‐)

Public Trading Comparables (FY 20‐‐)

Company1 Company2 Company3

Market Capitalization (INR mn) X1 Y1 Z1

SShare Price (INR) X2 Y2 Z2

SAMPLE EV/EBITDA (x) X3 Y3 Z3

/EV/Revenue (x) X4 Y4 Z4

PE Ratio X5 Y5 Z5

10

Note: Top 3 Public companies based on the Market Capitalization; Market Capitalization and product segments, Share Price and PE ratio is as of ‐‐/‐‐/20‐‐


Competitive Benchmarking (‐/‐)

Key Ratios of Top 3 Companies – Operational Basis (FY 20‐‐) (‐/‐)

a

%

a

d

c

b

e

• Finding 1• Finding 1

• Finding 2

• Finding 3

• Finding 4

11

g


Major Public Companies – Summary

Profit/Loss (INR mn)

Size of the Bubble represents Market Capitalization in INR mn

Total Income(INR mn)

12

The list is not exhaustive

company1 company2 company3 company4


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



13

Note: The list of products and services is not exhaustive



i i l S h K iFinancial Snapshot Key Ratios

Net Profit/LossTotal Income

jkia

RevenueINR mn

ProfitINR mn

d

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin ‐2.99 35.05% 38.03% 47.29% 49.95%

20‐‐ 20‐‐20‐‐

h

g

fb

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 RatiosOperating 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 RatiosCurrent Ratio ‐40.67% 5.05 8.52 10.97 13.98

Cash Ratio 1.02% 3.54 3.51 5.06 11.04

Leverage RatiosDebt to Equity Ratio 4.39% 0.85 0.82 1.08 1.19

b lKey Financial Performance Indicators

Indicators Value (dd/mm/2013)Market Capitalization (INR bn) z1Total Enterprise Value (INR bn) z2EPS (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 RatiosFixed 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) z3PE 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



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


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

Strategic Insights (‐/‐)

•Finding 1

• Finding 2

• Finding 3

Recommendation1

Finding 3

• Finding 4

• Finding 5

Finding 6

Finding 7

Finding 8


Finding 9

Thank you for the attentionThe Telecom Equipment Market – India 2013 report is a part of Netscribes’ Telecom Series.For more detailed information or customized research requirements please contact:

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