Company Studied - Adani Ports

1. ADANI PORTS & SEZ LTD
AN ANALYSIS
Course: Accounting for
Decision Making

2. INTRODUCTION
India’s largest private multi-port Operator
Operates in 8 national and 4 international
ports.
Services handled at Adani ports
Dry Bulk Cargo, Break Bulk Cargo, Liquid
Cargo, Container Cargo ,Dredging & Marine
Services
Turnover for FY-2015 47401.50Mn

3. 1.
COMPARATIVE
ANALYSIS

4. FORMULAE APPLIED
COGS= OPERATING INCOME – GROSS MARGIN
BREAKEVEN SALES= FIXED COSTS + VARIABLE SALES
P/V RATIO = (OPERATING INCOME – VARIABLE COSTS)
OPERATING INCOME
SALES TURNOVER = COST OF GOODS SOLD / AVERAGE INVENTORY

5. In INR Million 2013 2014 2015
Operating Income (Sales) 35642.90 50322.90 47401.50
COGS 8765.70 15518.80 12284.40
Gross Margin 26877.20 34804.10 35117.10
Fixed Costs 18285.10 28426.70 31038.60
Variable Costs 4746.50 12986.00 8273.20
Breakeven Sales 23031.60 41412.70 39311.80
P/V Ratio 0.87 0.74 0.83
Sales Turnover 4.07 3.24 3.86

6. The change in OI in 2014 is 0.41 percent and in
2015 is -0.06 ,the reason is the turbulent time in
global economy.
The change in COGS are 0.77 and -0.21 in year
2015, the decrease in COGS is the increasing
debt.
There is the positive increase in the amount sale
done.
INFERENCE

7. 2.
FLEXIBLE BUDGET
2015

8. FLEXIBLE BUDGET
In INR Million 2015
Operating Income
(Sales) 44696.40
COGS 4190.37
Gross Margin 40506.03
Fixed Costs 38670.30
Variable Costs 12195.27
Breakeven Sales 50865.57
P/V Ratio 0.73
Sales Turnover 10.67

9. VARIANCE ANALYSIS
Mar 15 (Actual) Variance Mar 15 (Budgeted)
Net Revenue 47401.50 2705.10 44696.40
Less: Variable
Expense
8273.20 3922.07 12195.27
Contribution Margin 39128.30 6627.17 32501.13
Less: Fixed
Manufacturing costs
31038.60 7631.70 38670.30
Operating Income 8089.70 14258.87 -6169.17

10. Thanks!
Any questions?