Gammon India Limited
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Gammon India Limited Financial Snapshot
Operating Performance
Fast Facts
The company reported revenues of US$1,554.81
Headquarters Address Gammon House, Mumbai, 400 025,India
million during 2010, with a CAGR of 36.18% during
2006–2010. Its revenue grew at an annual rate of
Telephone + 91 22 6113000
43.88% over the previous fiscal year. In 2010, the
company recorded an operating margin of 2.44%, as
Fax + 91 22 24300221 against 2.86% in 2009.
Website www.gammonindia.com
Revenue and Margins
GAMMONIND, National Stock Exchange of
Ticker Symbol, Stock Exchange
India
Number of Employees 3,547
Fiscal Year End March
Revenue (in US$ million) 1,554.81
Revenue (in INR million) 71,428.10
SWOT Analysis Return on Equity
Strengths Weaknesses The company recorded a return on equity (ROE) of
3.12% for 2010, as compared to its peers, Jaiprakash
Composite area of specialization Declining margins Associates Limited (Ticker: 532532), IVRCL
Infrastructures & Projects Limited (Ticker:
IVRCLINFRA) and GMR Infrastructure Limited
Increasing revenue and order book Limited Geographic Diversification (Ticker: 532754), which recorded ROEs of 13.10%,
8.71% and 2.31% respectively. The company
Research and development activities Limited liquidity position reported an operating margin of 2.44% in 2010.
Operational shortcomings Return on Equity
Opportunities Threats
Government expenditure on irrigation
Contract bidding
projects
Impact of Construction Material Prices
Railway expansion initiatives in India
on Project
Rising demand for nuclear power
Road development in India
Liquidity Position
The company reported a current ratio of 1.49 in 2010,
as compared to its peers, Jaiprakash Associates
Limited, IVRCL Infrastructures & Projects Limited and
GMR Infrastructure Limited, which recorded current
ratios of 3.38, 2.23 and 2.11 respectively. As of March
2010, the company recorded cash and short-term
investments of worth US$120.41 million, against zero
current debt. The company reported a debt to equity
ratio of 2.48 in 2010 as compared to its peers,
Jaiprakash Associates Limited, IVRCL Infrastructures
& Projects Limited and GMR Infrastructure Limited,
which recorded debt to equity ratios of 4.15, 1.23 and
3.03 respectively.
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Gammon India Limited - SWOT Profile Page 1
Gammon India Limited
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
2.2 Key Financial Performance Indicators .................................................................................................................11
2.2.1 Revenue and Operating Profit .........................................................................................................................11
2.2.2 Asset, Liabilities and Capex .............................................................................................................................12
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................13
2.2.4 Operational Efficiency ......................................................................................................................................14
2.2.5 Solvency ..........................................................................................................................................................15
2.2.6 Valuation ................................................