Thursday, 10 October 2013

An EPS Calculator for Engro - With Assumptions!

Ok last time I published an EPS calculator for Engro Fertilizers that spelled the impact of various factors like urea prices, gas supply situation, gas prices and so on, on EPS. However, as a friend noted , it would make much more sense if some assumptions could be incorporated. This would serve to make the model more credible.

 So here are some of the assumptions underlying the model.

  •  Gas consumption metrics are very important for the model. So I list em here.

  • Finance Costs, Depreciation, Salaries part of the COGS, have been assumed as same for last quarter. 
  • Selling costs have been taken as a proportion of revenue. The proportion being same as for the first half. Admin costs are pretty much constant. 
  • Packaging Price per bag is Rs. 25.
  • Sales Tax rate 17%.
  • Income Tax rate at 35% and all that jazz.
Rest is pretty much common knowledge I think. I hope I have not given away the model. :P

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