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Financial Modelling Day 2

The document outlines financial assumptions and projections for a bus operation, including costs, revenues, and debt repayment over a four-year period. Key figures include a bus cost of 7.5 million, a debt financing structure of 75% with a 15% interest rate, and projected revenues escalating from approximately 12.78 million in Year 1 to 17 million by Year 4. The income statement, balance sheet, and cash flow statement are detailed, showing profitability and cash flow trends throughout the operational period.

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51 views3 pages

Financial Modelling Day 2

The document outlines financial assumptions and projections for a bus operation, including costs, revenues, and debt repayment over a four-year period. Key figures include a bus cost of 7.5 million, a debt financing structure of 75% with a 15% interest rate, and projected revenues escalating from approximately 12.78 million in Year 1 to 17 million by Year 4. The income statement, balance sheet, and cash flow statement are detailed, showing profitability and cash flow trends throughout the operational period.

Uploaded by

poorvatakle333
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Debt is to be

repaid in 4
equal
Assumptions - Bus Assumptions - Financing annual Assumptions - General
installments
at the end
Cost of Bus 7,500,000 Debt 75% Taxevery
of Rate 33%
Maintenance / year 10% Equity 25% year
Escalation Rate - Maintenance 15% Interest on Debt 15% Interest Income 5%
Life of Bus (years) 4 Tenure of loan (years) 4 Diesel rate (Rs./Lit) 95 31
Deprecation Rate 25% SLM Cost of Equity 20% Diesel Price escalation 15% 2945
Inflation 10% 11780
Assumptions - Operating Revenues Assumptions - Operating Costs Assumptions - Operating General 4299700

Seating Capacity 35 Fuel Efficiency ( Km / L ) 5 Route Mumbai - Pune


Load Factor 50% Driver Cost (Rs./ Trip) 500 Distance (Kms) 155
Tariff (Rs./Ticket) 500.00 Miscellaneous (Rs. / Trip) 500 Estimated Time Hours/Trip 3
Escalation Rate - Tariff 10% Toll Amount (Rs. / Trip) 500 Trips / Day 4

Income Statement
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4
Flag 0 1 2 3 4
Revenue 12,775,000 14,052,500 15,457,750 17,003,525 Escalation Rate - Tariff
Other Income - 131,780 277,717 437,851 All inflation/escalation happens from year 2
Fuel Costs 4,299,700 4,944,655 5,686,353 6,539,306 Diesel Price escalation
Maintenance Expenses 750,000 862,500 991,875 1,140,656
Driver Costs 730,000 803,000 883,300 971,630 Increase at inflation rate
Miscellaneous Costs 730,000 803,000 883,300 971,630 Increase at inflation rate
Toll Amount 730,000 730,000 730,000 730,000 Toll amount remains constant
Cost of Revenues 7,239,700 8,143,155 9,174,828 10,353,222
Gross Profit / (EBITDA) 5,535,300 6,041,125 6,560,638 7,088,153
Depreciation 1,875,000 1,875,000 1,875,000 1,875,000
Interest Expense 843,750 674,776 480,456 256,988
Profit Before Tax 2,816,550 3,491,349 4,205,182 4,956,165
Income Taxes 929,462 1,152,145 1,387,710 1,635,535
Profit After Tax 1,887,089 2,339,204 2,817,472 3,320,631

Balance Sheet
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 Debt Schedule
Assets Year - 0 Year - 1 Year - 2 Year - 3 Year - 4
Cash BOP - Debt 5,625,000 4,498,507 3,203,041 1,713,254
PPE, Gross 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 Int Expense 843,750 674,776 480,456 256,988
Acc Depreciation - 1,875,000 3,750,000 5,625,000 7,500,000 EAI 1,970,243 1,970,243 1,970,243 1,970,243
PPE, Net 7,500,000 5,625,000 3,750,000 1,875,000 - EOP - Debt 5,625,000 4,498,507 3,203,041 1,713,254 -
Total Assets 7,500,000 5,625,000 3,750,000 1,875,000 -
Principle Repaid
Liabilities
Debt 5,625,000 4,498,507 3,203,041 1,713,254 -
Equity 1,875,000 1,875,000 1,875,000 1,875,000 1,875,000
Retained Profit - 1,887,089 4,226,292 7,043,764 10,364,395
Total Liabilities 7,500,000 8,260,596 9,304,333 10,632,019 12,239,395
Checksum - 2,635,596 5,554,333 8,757,019 12,239,395

Cash Flow Statement


Year - 0 Year - 1 Year - 2 Year - 3 Year - 4

Net Income (PAT) - 1,887,089 2,339,204 2,817,472 3,320,631


Depreciation - 1,875,000 1,875,000 1,875,000 1,875,000
Cash Flow From Operations - 3,762,089 4,214,204 4,692,472 5,195,631
Capex (7,500,000) - - - -
Cash Flow from Investing (7,500,000) - - - -
Debt (Repayment)/Issuance 5,625,000 (1,126,493) (1,295,466) (1,489,786) (1,713,254)
Equity Addition 1,875,000 - - - -
Cash Flow from Financing 7,500,000 (1,126,493) (1,295,466) (1,489,786) (1,713,254)
Net change in Cash - 2,635,596 2,918,737 3,202,686 3,482,376
Cash - BOP - - 2,635,596 5,554,333 8,757,019
Cash - EOP - 2,635,596 5,554,333 8,757,019 12,239,395
Checksum

Free Cash Flow - Equity


Year - 0 Year - 1 Year - 2 Year - 3 Year - 4

Net Income - 1,887,089 2,339,204 2,817,472 3,320,631


+ Depreciation - 1,875,000 1,875,000 1,875,000 1,875,000 Financing Debt (%) - For Neutral Case
- Capital Expenses (7,500,000) - - - - 145% 10% 25% 40% 55% 95%
Interest Rate (%)

- Debt Repayment/+ raised 5,625,000 (1,126,493) (1,295,466) (1,489,786) (1,713,254) 12%


Cash Flow to Equity (1,875,000) 2,635,596 2,918,737 3,202,686 3,482,376 13%
14%
15%
Returns Analysis - Equity 16%
Year - 0 Year - 1 Year - 2 Year - 3 Year - 4 17%

FCFE (1,875,000) 2,635,596 2,918,737 3,202,686 3,482,376

Cost of Equity 20.0%


NPV 5881023.46
IRR 145.11%
Loan 4000000

Life of loan 5

Interest rate 12%

1 2 3
Opening loan 4000000 3370361 2665165
Interest 480000 404443 319820
EAI 1109639 1109639 1109639
Closing Loan 3370361 2665165 1875346
4 5
1875346 990749
225042 118890
1109639 1109639
990749 0

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