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  • Lady M Case

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    Evelyn Monzon
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    The document outlines the fixed costs, revenue, costs of goods sold, and other financial details for a business over 5 years, including an initial investment of Rs. 9,99,994. It calculates the break-even point and required sales growth in year 1 of 20% to cover costs and the initial investment. Projected financial details for years 2 through 5 show continued revenue growth above the required 13.19% needed to fully recover the initial investment.

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    319100776_Lady M case

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    The document outlines the fixed costs, revenue, costs of goods sold, and other financial details for a business over 5 years, including an initial investment of Rs. 9,99,994. It calculates the break-even point and required sales growth in year 1 of 20% to cover costs and the initial investment. Projected financial details for years 2 through 5 show continued revenue growth above the required 13.19% needed to fully recover the initial investment.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    161 views8 pages

    Lady M Case

    Uploaded by

    Evelyn Monzon
    The document outlines the fixed costs, revenue, costs of goods sold, and other financial details for a business over 5 years, including an initial investment of Rs. 9,99,994. It calculates the break-even point and required sales growth in year 1 of 20% to cover costs and the initial investment. Projected financial details for years 2 through 5 show continued revenue growth above the required 13.19% needed to fully recover the initial investment.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 8

    Fixed Cost Y1 20% sales growth Y1

    Rent 310600 Revenue 1888000


    Utility 38644 CoGS 944000
    Labour 594750 Rent 310600
    Contribution / unit 40 Utility 38644
    BEP units 23600 Cash BEP Labour 594750
    Selling Price 80 Profit 6
    BEP Sales 1888000.00 Initial investment uncovered 999994

    Including setup cost 5 yrs depreciation


    Depreciation 200000 Non cash item 5% sales growth Y1
    New fixed cost 1143994 Revenue 1888000
    BEP units 28600 CoGS 944000
    Rent 310600
    Utility 38644
    Labour 594750
    Profit 6
    Initial investment uncovered 999994
    Y2 Y3 Y4 Y5 Required growth rate 13.19% Using Goal Seek
    2265600 2718720 3262464 3914956.8
    1132800 1359360 1631232 1957478.4 Sales growth reqd Y1 Y2
    319918 329516 339401 349583 Revenue 1888000 2137038
    39803 40997 42227 43494 CoGS 944000 1068519
    624488 655712 688497 722922 Rent 310600 319918
    148591 333135 561106 841479 Utility 38644 39803
    851403 518268 -42839 -884317 Labour 594750 624488
    Profit 6 84310
    Initial investment uncovered 999994 915684
    Y2 Y3 Y4 Y5
    1982400 2081520 2185596 2294875.8
    991200 1040760 1092798 1147437.9
    319918 329516 339401 349583
    39803 40997 42227 43494
    624488 655712 688497 722922
    6991 14535 22672 31438
    993003 978468 955795 924357
    Using Goal Seek Q3 2012 2013 Q4
    Sales Revenue 4132517 7491187 FCFF
    Y3 Y4 Y5 Growth rate 81.27% Opt 2
    2418924 2737994 3099150 Opt 3
    1209462 1368997 1549575
    So the shop should be opened because our
    329516 339401 349583 required growth rate to recover initial investment
    40997 42227 43494 is 13.19% only against observed growth of 81.27%
    655712 688497 722922
    183237 298871 433576
    732447 433576 0
    Financial Proje
    EBIT*(1-t)+D&A-Del Capex-Del NWC 2012 2013
    PAT+D&A-Del Capex-Del NWC Sales 4132517 7491187
    Line by line projections in IS (-)CoGS 1303416 1632722
    Gross Profit 2829101 5858465
    (-)SGA 2449200 4342500
    (-)R&D 0 0
    EBITDA 379901 1515965
    (-)D&A 41800 149007
    EBIT 338101 1366958
    (-)Tax 4421 74191
    PAT 333680 1292767
    %Change in Sales
    % of Sales
    CoGS 21.80%

    SGA 57.97%

    Capex
    Depreciation
    5% rise in Depreciation

    Delta Sales
    Delta NWC

    EBIT*(1-t)
    (+)D&A
    (-)Del Capex
    (-)Del NWC
    FCFF

    Terminal Value
    A perpetuity method g=4%
    WACC = 12%
    DCF discount 12%
    EV (taking PV of cashflows)
    Investor investment
    %stake
    Debt
    Equity Value
    %stake

    B EBITDA multiple
    Year 2014 Terminal Value
    PV
    EV
    Debt
    Equity Value
    %stake
    Financial Projection - IS projections - FCFF
    2014 2015 2016 2017 2018 2019
    11,000,000 13,200,000 18,480,000 23,100,000 28,875,000 36,093,750
    2,397,476 2,876,971 4,027,760 5,034,700 6,293,375 7,866,719
    8,602,524 10,323,029 14,452,240 18,065,300 22,581,625 28,227,031
    6,376,493 7,519,791 10,342,908 12,697,635 15,583,294 19,118,180
    - 13,200 18,480 23,100 28,875 36,094
    2,226,031 2,790,037 4,090,852 5,344,565 6,969,457 9,072,758
    24,750 800,000 47,124 62,370 82,294 108,281
    2,201,281 1,990,037 4,043,728 5,282,195 6,887,163 8,964,477
    770,448 696,513 1,415,305 1,848,768 2,410,507 3,137,567
    1,430,833 1,293,524 2,628,423 3,433,427 4,476,656 5,826,910
    0.4684 0.2000 0.4000 0.2500 0.2500 0.2500

    57.97% 56.97% 55.97% 54.97% 53.97% 52.97%

    33000 1000000 55440 69300 86625 108281


    24750 800000 47124 62370 82294 108281
    75 80 85 90 95 100

    3508813 2200000 5280000 4620000 5775000 7218750


    68800 43137 103529 90588 113235 141544
    1.96%

    1,293,524 2,628,423 3,433,427 4,476,656 5,826,910


    800,000 47,124 62,370 82,294 108,281
    1,000,000 55,440 69,300 86,625 108,281
    43,137 103,529 90,588 113,235 141,544
    1,050,387 2,516,578 3,335,909 4,359,090 5,685,366

    73,909,763

    Rs. 937,845.66 Rs. 2,006,200.81 Rs. 2,374,434.14 Rs. 2,770,280.31 Rs. 3,226,029.59
    Rs. 53,253,175.19
    10000000
    18.8%
    1017615
    52235560.1944798
    19.14%

    12
    26,712,373
    Rs. 15,157,317.72
    Rs. 26,472,108.23
    1017615
    Rs. 25,454,493.23
    39.29%
    Rs. 41,938,384.68

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