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.
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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