Mobile Commerce Market – India November 2014
Executive Summary
Market Overview
Drivers & Challenges
M-commerce market is in a nascent stage in India but rapid adoption is expected with revenues from segment1 of around INR x1 bn by 20- M-commerce is also closely related to product1 for revenue generation in India, especially in rural areas No. of transactions have increased from around x2 mn in 20-- to x3 mn in 20-- and x4 mn in 20Drivers:
Challenges:
Rising Mobile Device Adoption and Colossal Wireless Subscriber Base Increase in Disposable Income and Economic Advancement Introduction and Availability of Next Generation Cellular Networks Increasing Availability of Credit Soaring Enterprise Mobility
Low Penetration of Advanced Mobile Devices in Rural Areas Low Awareness and Lack of Interest Security and Privacy Concern
Key Players
Competitive Landscape
Geodesic Ltd.
OnMobile Global Ltd.
ACL Mobile Ltd.
Altruist Technologies Pvt. Ltd.
Comviva Technologies Ltd.
Spice Digital Ltd.
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•Macro Economic Indicators •Introduction •Market Overview •Drivers and Challenges •Competitive Landscape
•Market Opportunities •Strategic Recommendations •Appendix
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Economic Indicators (-/-) GDP at Factor Cost: Quarterly INR tn c4 b4 a4
15 14 d1 c1 13 b1
c3 b3 a3
d2 c2 b2 a2
12 a1 11 Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly
% 2.0
p
1.5
s q
1.0
t r
0.5 0.0
Jun 2013 - Jul 2013
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
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Oct 2013 - Nov 2013 4
Introduction Mobile Commerce (M-Commerce) – Overview •Mobile Commerce is the activity of commencing commercial transactions between both B2C and B2B entities via mobile devices It is a part of the broader, e-commerce market which accommodates any commercial transaction via internet • Increasing tendency to save time and energy, especially amongst the working population will further intensify the e-Commerce market by a large extent
Mobile Commerce (m-Commerce) is a segment of Mobile Value Added Services (MVAS) • MVAS are the services provided by telecom operators directly or indirectly, beyond standard voice calls
Mobile Commerce Search Facility for Consumers
Product Offering
• Multiple search options • Extended sorting options • Products catalogued in detailed categories • Visual preview for search
• Wide variety of goods and services when service area is nationwide • Products specific to needs and demands when service area is specific region
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Product Price, Payment & Shipping • Appealing product price • Easy installment payment options • Hassle free and easy to follow payment process • Rapid shipping with easy follow-up 5
Mobile commerce market is expected to multiply1 between 20-and 20-Market Overview – India (-/-) Mobile Banking Transactions – Growth by Volume mn a6
+y% a1
20--
a2
20--
a3
20--
a5 a4
20--
20--
20--
• Rapid growth can be seen in the area of mobile banking transaction due to higher penetration of smartphones and increased adoption of mobile internet services • No. of transactions have increased from around x2 mn in 20-- to x3 mn in 20-- and x4 mn in 20- As of month1 20--, around x1 mn mobile banking transactions have taken place in India
• Growing number of service1 and ease of service2 will further boost mobile banking transactions MOBILE COMMERCE MARKET IN INDIA 2014.PPT
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Drivers & Challenges – Summary Drivers Rising Mobile Device Adoption and Colossal Wireless Subscriber Base Increase in Disposable Income and Economic Advancement
Challenges
Introduction and Availability of Next Generation Cellular Networks
Low Penetration of Advanced Mobile Devices in Rural Areas
Increasing Availability of Credit
Low Awareness and Lack of Interest
Soaring Enterprise Mobility
Security and Privacy Concern
Changing Demographics and Consumer Behaviour Growing Demand for Rich Digital Contents
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Porter’s Five Forces Analysis
SAMPLE
Threat of New Entrants • Text text text text text text text text text text text text text text text text text text text text text text text text text Impact Medium Bargaining Power of Suppliers • Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact Medium
Impact Medium
Competitive Rivalry • Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Threat of Substitutes • Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact High Bargaining Power of Buyers • Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact Low
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Competitive Benchmarking (-/-) Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)
Operating Margin
% b1
SAMPLE Net Margin d1
c1 c2
a1 a2
d2
b2
0 company1
company2
company3
company4
• Company1 recorded operating margin of -%, higher than that of company2, company3 and company4 which recorded operating margin of -%, - and -% respectively • Thermax however recorded the highest net margin of -% higher than that of Ion Exchange, SPML and Va Tech Wabag which recorded net margins of -%, -% and -% respectively
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Public: Domestic Company – Company 1 (1/4) Company Information
SAMPLE Offices and Centres – India
Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange
Head Office
Products and Services Category Sectors (EPC)
Products/Services
Key People Name
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Designation
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Public: Domestic Company – Company 1 (2/4)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Net Profit/Loss
Particulars
INR bn
INR bn s1
t1
s2 t2
s4 s3 t3 t4
0 2010
2011
2012
2013
Financial Summary
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios • The company incurred a net loss of INR - bn in FY 2013, as compared to net profit of INR - bn in FY 2012 • The company reported total income of INR - bn in FY 2013, registering a decrease of -% over FY 2012 • The company earned an operating margin of -% in FY 2013, a decrease of percentage points over FY 2012 • The company reported debt to equity ratio of - in FY 2013, an increase of % over FY 2012
Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Key Financial Performance Indicators Indicators
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Value (17/01/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Decline
11
Public: Domestic Company – Company 1 (3/4)
SAMPLE
Key Business Segments
Key Geographic Segments
Construction and Engineering
India
e1
e2
e3
e4
f1
f2
f3
f4
2010
2011
2012
2013
g1 0%
0% 2013
Overseas
Business Highlights
Description
News • Text text text text text text text text text text text text text text text text text text text text text text text
Overview
text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
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SAMPLE
Public: Domestic Company – Company 1 (4/4)
S
W
O
T
MOBILE COMMERCE MARKET IN INDIA 2014.PPT
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SAMPLE
Private: Domestic Company – Company 2 (1/5) Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Ahmedabad
Year of Incorporation
Head Office Products and Services Category Products
Products/Services Key People Name
MOBILE COMMERCE MARKET IN INDIA 2014.PPT
Designation
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SAMPLE
Private: Domestic Company – Company 2 (2/5) Shareholders of the Company as on 28.09.2012
Name
Ownership Structure
No. of Shares held
Corporate Bodies
Foreign holdings
X X
30% Total
70%
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SAMPLE
Private: Domestic Company – Company 2 (3/5) Financial Snapshot
Key Ratios
Total Income
Particulars
Net Profit/Loss
INR mn
INR mn u4 u2 u1
v4
v1
v2
u3 v3
2010
2011
2012
0
2013
Financial Summary
2011
2010
Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios
• The company reported total income of INR - mn in FY 2013, registering an increase of -% over FY 2012
Leverage Ratios
• The company reported debt to equity ratio of - in FY 2013, a decrease of -% over FY 2012
2012
Profitability Ratios
• The company earned a net profit of INR - mn in FY 2013, as compared to net loss of INR - mn in FY 2012
• The company earned an operating margin of -% in FY 2013, an increase of - percentage points over FY 2012
y-o-y change 2013 (2013-12)
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
MOBILE COMMERCE MARKET IN INDIA 2014.PPT
Decline
16
SAMPLE
Private: Domestic Company – Company 2 (4/5) Business Highlights
Description
News • Text text text text text text text text text text text text text text text text text text text text text text text
Overview
text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
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Private: Domestic Company – Company 2 – SWOT Analysis (5/5)
SAMPLE
S
W
O
T
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Market Opportunity – Potential Verticals (-/-) • text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text
Apparel & Accessories
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Business to Business (B2B)
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Consumer Electronics
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
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Strategic Recommendations (1/3) • Text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text
Recommendation1
Recommendation2
• Text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text
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Appendix Ratio
Calculations
Ratio
Calculations
Operating Margin
(Operating Income/Revenues)*100
Current Ratio
Current Assets / Current Liabilities
Net Margin
(Net Profit / Revenues) *100
Cash Ratio
Profit Before Tax Margin
(Income Before Tax / Revenues *100
{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity
Total Liabilities / Shareholders Equity
Debt to Capital Ratio
{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio
EBIT / Interest Expense
Fixed Asset Turnover
Sales / Fixed Assets
Asset Turnover
Sales / Total Assets
Return on Equity (ROE) Return on Capital (ROCE) Return on Working Capital
(Net Income / Shareholders Equity)*100 EBIT / (Total Assets – Current Liabilities)*100 (EBIT / Working Capital) *100
Return on Assets
(EBIT / Total Assets)*100
Return on Fixed Assets
(EBIT / Fixed Assets) *100
Operating Costs (% of Sales)
(Operating Expenses / Sales) *100
Current Asset Turnover
Sales / Current Assets
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Working Capital Turnover
Sales / Working Capital
Interest Costs (% of Sales)
(Interest Expenses / Sales) *100
Capital Employed Turnover
Sales / (Shareholders Equity + Total Debt)
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Sources of Information
PRIMARY RESEARCH Interviews Leading Industry Experts
SECONDARY RESEARCH Print Media
Electronic Media
Leading Newspapers
Regulatory Websites
Magazines and Journals
Telecommunication & Technology Magazines
Annual Reports of Companies
Company Websites Premium Databases Open Sources
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