Mobile internet market in india 2014 - Sample

Mobile Internet Market – India

February 2014

2 MOBILE INTERNET MARKET IN INDIA 2014.PPT

Executive Summary

Drivers:

Market Overview

Drivers & Challenges

Market Trends

Competitive Landscape

Mobile internet subscriber base stood at x1 mn in India, as of month1 20--

As of 20--, x2% of the total internet usage originated from mobile devices

Reduction in Data Tariff

Abolition of Data Cap

Flexible Data Packs

Challenges:

Major Players

Bharti Airtel Ltd. Idea Cellular Ltd. Reliance Communications Ltd.

Bharat Sanchar Nigam Ltd. Tata Teleservices Ltd. Vodafone India Ltd.

Inferior or Inconsistent Services Low Smartphone & Tablet Penetration

in Rural Areas Affordability of Next Generation

Mobile Networks

Colossal Wireless Subscriber Base Soaring Adoption of Mobile Devices and

Reduction in their Prices Increase in Disposable Income and

Economic Advancement Growing Demand for Content-Rich

Applications & Services


•Macroeconomic Indicators

• Introduction

•Market Overview

•Drivers & Challenges

•Market Trends

•Competitive Landscape

•Market Opportunities

• Strategic Recommendations

•Consumer Insights

•Appendix

4

Economic Indicators (-/-)

11

12

13

14

15

d1 c1 b1

a1

INR tn

Q4

c4 b4

a4

Q3

c3 b3

Q1

a2 b2

a3

Q2

d2 c2

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

0.0

0.5

1.0

1.5

2.0

%

Aug 2013 - Sep 2013

r

Jul 2013 - Aug 2013

q

Jun 2013 - Jul 2013

p

Oct 2013 - Nov 2013

t

Sep 2013 - Oct 2013

s

MOBILE INTERNET MARKET IN INDIA 2014.PPT


Introduction

•Mobile internet provides access to an abundance of circumstantially appropriate information available on the World Wide Web through a number of mobile devices functioning across multiple wireless networks The concept incorporates data-optimized telecom networks and takes advantage of pre-establish web resources as an execution

platform Presentation schema of the readily-available web content adapts to multi-device communications enabled by wireless data gateways

•Variety of purposes such as smartphones, featurephones, tablets or USB modems can take advantage of mobile data services for web surfing, emails, media streaming, file download and upload, and mobile applications, among others

•Numerous Web-based technologies have emerged in recent times for delivery of mobile internet services efficiently They include modern web-based software and web 2.0 community-generated applications

•With the growing usage of mobile devices prompted by the busy modern-day lifestyles of consumers, there is an increasing need for on-the-go internet-based services

Mobile Internet – Overview

Internet Access Technologies

Technology Description

Internet via Phone Line Internet access via 56 Kbps modems connected to fixed phone connections using public switched telephone network (PSTN)

Internet via LAN (Local Area Network) Internet access via Ethernet cables using LAN by individual ISPs in the area

Internet Over Cable TV Line Cable TV service providers providing Internet access via the same line

Wireless Internet access via wireless frequency channels by various ISPs

Mobile Internet Internet access via cellular networks using 2G, 3G and 4G technology

6

•Mobile Internet market is expected grow at a CAGR of around a41% owning to increased use of service1 and service2

Service providers are offering service3 at better factor1 and in smaller factor2 leading to increased adoption of mobile broadband services

Services4, however, remain popular in area1 largely due to factor3 in the area2

• Tech1 subscriber base in India was around a42 mn in 201- and is expected to double by 201- •At present, mobile operators make around a43% of their total revenue from data services


Popularity of tech2 is largely restricted to area3, but is expected to gain traction in area4 with factor8

Market Overview – India (-/-)

Mobile Internet Access – Market Size

+a9%

INR bn

SAMPLE


Quarterly addition of wireless data subscribers has been falling in recent times due to factor1 within the sector

Market Overview – India (-/-)

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

TextText TextText TextText TextText TextText TextText


TextText


TextText TextText TextText TextText

Quarterly Mobile Internet Subscriber Base – Market Size and Growth

mn

X2%

Total Wireless Data Subscribers Quarterly Addition

SAMPLE


Drivers & Challenges – Summary

Drivers

Colossal Wireless Subscriber Base

Soaring Adoption of Mobile Devices and Reduction in their Prices

Increase in Disposable Income and Economic Advancement

Growing Demand for Content-Rich Applications & Services

Changing Demographics and Consumer Behaviour

Challenges

Inferior or Inconsistent Services

Low Smartphone & Tablet Penetration in Rural Areas

Affordability of Next Generation Mobile Networks


Market Trends (-/-)

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

x1

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

TextText TextText

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

TextText TextText

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

x2

Trend1

10

SAMPLE Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

0

%

Va Tech Wabag

d2

d1

Thermax

c2

c1

SPML

b2

b1

Ion Exchange

a2

a1

Net Margin Operating Margin

• Va Tech Wabag recorded operating margin of -%, higher than that of Ion Exchange, Thermax and SPML 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


11

SAMPLE Public: Domestic Company – Company 1 (1/4)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services Sectors (EPC)

Name Designation

Head Office


12

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• 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

Key Financial Performance Indicators

Indicators Value (17/01/2014) Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Particulars 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 Operating costs (% of Sales) Administration costs (% of

Sales) Interest costs (% of Sales)

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios 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 Decline

Net Profit/Loss Total Income

0

2010

s1

t1

INR bn INR bn

2013

t4

s4

2012

s3

t3

2011

s2

t2

Public: Domestic Company – Company 1 (2/4)


13

SAMPLE Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview

•Operates as a civil engineering construction company in India • Involved in x1, x2, x3, x4, x5 • Engages in oil exploration and realty development businesses • Has initiated talks with investors to sell up to x6 • Intends to amalgamate its x7 • Creditors have approved a x8

Certifications • It is the only Indian Construction Company to have been accredited with ISO 9001 certification for all fields of Civil Engineering Works, including design

0%

g1

2013

Construction and Engineering

0%

2013

f4

e4

2012

f3

e3

2011

f2

e2

2010

f1

e1

Overseas India

Public: Domestic Company – Company 1 (3/4)


14

SAMPLE Public: Domestic Company – Company 1 (4/4)

T O

W S


15

SAMPLE Private: Domestic Company – Company 2 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Water and Wastewater Management Name Designation

Ahmedabad

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation Head Office


16

SAMPLE Shareholders of the Company as on 28.09.2012 Ownership Structure

Name No. of Shares held

Doshion Private Ltd.

Veolia Water Solutions & Technologies

Total

30%

70%

Corporate Bodies Foreign holdings

Private: Domestic Company – Company 2 (2/5)


17

SAMPLE Financial Snapshot Key Ratios

Improved Decline

Financial Summary

• 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 reported total income of INR - mn in FY 2013, registering an increase of -% over FY 2012

• The company earned an operating margin of -% in FY 2013, an increase of - percentage points over FY 2012

• The company reported debt to equity ratio of - in FY 2013, a decrease of -% over FY 2012

Net Profit/Loss Total Income

0 v3

u3

2011 2013

v4

u4

2012

INR mn INR mn

v2

2010

u1

v1

u2


Particulars 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 Operating costs (% of Sales) Administration costs (% of

Sales) Interest costs (% of Sales)

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios 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


18

SAMPLE Business Highlights

Description News

Overview

• Company 2 aims at executing small, medium & large size EPC Projects for Water & Waste Water

Management facilities in Municipal, Infrastructural and Industrial projects

• It is a joint venture between t1 and t2

Network

• It has five manufacturing bases in India, four in Ahmedabad and the fifth in Gandhidham

• It is based out of t3

• Has a strong network of experts spread across t4 nad t5

Awards • Bagged the award for t6

•Was conferred with the t7



19

SAMPLE Private: Domestic Company – Company 2 – SWOT Analysis (5/5)

T O

W S



Enterprise mobility is witnessing major growth in India leading to enhanced scope for mobile broadband players

Opportunities in the Enterprise segment

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Text text text text text text text text text text text text text text text text text texttext text text text text text text text text text text text text text text text text text text text text

Enterprise Mobility – Market Size

•Text text text text text text text text text text text text text text text text text texttext text text text text text text text text text text text text text text text text text

Text text text text text text text text text text text text text text text text text texttext text text text text text text text text text text text text text text text text text text text text

mn

Y1%

Mobile Workforce – India (Growth and Size)

X1%

INR bn


SWOT Analysis of Mobile Internet Market

SWOT Analysis

Strengths

•Text text text text text text text text text •Text text text text text text text text text •Text text text text text text text text text •Text text text text text text text text text

Opportunities


Weaknesses


Threats



Strategic Recommendations (-/-)

•Companies need to focus on specific1 and specific2 early to leverage on specific3

Recommendation1 Recommendation2


Consumer Insights – Mobile Internet Usage Survey (-/-)

Data Service Selection Criteria

Mobile Internet Usage and Preferences – Introduction & Methodology

Sample Size x1

Sample Sources Social Media Websites and

Technology Forums

Survey Duration Jan 2014 to Feb 2014

Quantitative Representation Used

Percentage

Response Options:

1) R1

2) R2

3) R3

4) R4

Q: What are the criteria considered when selecting a mobile data service?

• Survey on mobile internet usage & preferences was conducted across multiple social media websites

• The survey has been kept mostly close ended with specific open-ended responses to capture common areas of user interest

• The survey has been conducted among a small group of people comprising home users, gamers, information technology professionals & other segments of the workforce

0

20

40

60

80

R3 R2 R1 R4

24

Appendix

Ratio Calculations

Operating Margin (Operating Income/Revenues)*100

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin (Income Before Tax / Revenues *100

Return on Equity (ROE) (Net Income / Shareholders Equity)*100

Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100

Return on Working Capital (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

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Interest Costs (% of Sales) (Interest Expenses / Sales) *100

Ratio Calculations

Current Ratio Current Assets / Current Liabilities

Cash Ratio {(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

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

Capital Employed Turnover Sales / (Shareholders Equity + Total Debt)


25

Sources of Information

Open Sources

Premium Databases

Company Websites Annual Reports of Companies

Online Water Sector Magazines Magazines and Journals

Water Associations in India Leading Newspapers

Electronic Media Print Media

SECONDARY RESEARCH

PRIMARY RESEARCH

Interviews

Leading Industry Experts



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