Design and Animation: Financial Performance Review
ValueNotes has conducted a study of the financial performance of pure-play Design and Animation (D&A) service providers (their size, operating margins, solvency, and efficiency), principally in the Indian design and animation industry. Here are a few key findings from the study, which covers fiscal years 2007 through 2011:
The report includes service provider profiles of 13 design and animation firms, along with their service offerings, key financial ratios, shareholding patterns, and names of directors.
- Since 2007, the revenue of companies in the sample increased at a five year CAGR of 27%.
- The aggregated revenue per employee of companies in the sample was INR 1,321k in 2011, and increased at a CAGR of 10% from 2007 to 2011.
- While EBITDA margins of the companies in the sample remain attractive, they have declined from their highest level in 2007.
The report includes service provider profiles of 13 design and animation firms, along with their service offerings, key financial ratios, shareholding patterns, and names of directors.
RESEARCH METHODOLOGYI
EXECUTIVE SUMMARY
1 MACROECONOMICS
1.1 Global Economy
1.2 Major Economic Regions
1.3 National Economic Performance of Select Countries
1.4 Currency Movements
1.5 Global Capital Markets
2 INDUSTRY INSIGHTS
2.1 Indian IT-BPO Industry Revenue
2.2 IT-BPO Contribution Towards India’s GDP
2.3 IT-BPO Contribution Towards India’s Exports
3 OPERATING EARNINGS
3.1 Total Income
3.2 Revenue Per Employee
4 EXPENSES
4.1 Operating Cost
4.2 Employee Cost
4.3 Total Cost Per Employee
5 PROFITABILITY
5.1 EBITDA Margin
5.2 EBIT Margin
5.3 Net Profit Margin
5.4 Net Profit Per Employee
6 OPERATING EFFICIENCY
6.1 Debtor Days
6.2 Creditor Days
6.3 Debtor Days Versus Creditor Days
6.4 Net Operating Cycle
7 SOLVENCY
7.1 Quick Ratio
7.2 Debt Ratio
7.3 Debt/Equity Ratio
7.4 Interest Coverage
8 CAPITAL EFFICIENCY
8.1 Return On Capital Employed
8.2 Return on Equity
8.3 Return On Assets
9 SERVICE PROVIDER EVALUATION
10 COMPANY PROFILES
10.1 Anibrain
10.2 Crest Animation
10.3 Digient
10.4 Digikore
10.5 DQ Entertainment
10.6 Filaments
10.7 Fountain Pixel
10.8 Jump Games
10.9 Lakshya Digital
10.10 Prana Studios
10.11 Prasad Corp
10.12 Prime Focus
10.13 Toonz Animation
11 APPENDIX
EXECUTIVE SUMMARY
1 MACROECONOMICS
1.1 Global Economy
1.2 Major Economic Regions
1.3 National Economic Performance of Select Countries
1.4 Currency Movements
1.5 Global Capital Markets
2 INDUSTRY INSIGHTS
2.1 Indian IT-BPO Industry Revenue
2.2 IT-BPO Contribution Towards India’s GDP
2.3 IT-BPO Contribution Towards India’s Exports
3 OPERATING EARNINGS
3.1 Total Income
3.2 Revenue Per Employee
4 EXPENSES
4.1 Operating Cost
4.2 Employee Cost
4.3 Total Cost Per Employee
5 PROFITABILITY
5.1 EBITDA Margin
5.2 EBIT Margin
5.3 Net Profit Margin
5.4 Net Profit Per Employee
6 OPERATING EFFICIENCY
6.1 Debtor Days
6.2 Creditor Days
6.3 Debtor Days Versus Creditor Days
6.4 Net Operating Cycle
7 SOLVENCY
7.1 Quick Ratio
7.2 Debt Ratio
7.3 Debt/Equity Ratio
7.4 Interest Coverage
8 CAPITAL EFFICIENCY
8.1 Return On Capital Employed
8.2 Return on Equity
8.3 Return On Assets
9 SERVICE PROVIDER EVALUATION
10 COMPANY PROFILES
10.1 Anibrain
10.2 Crest Animation
10.3 Digient
10.4 Digikore
10.5 DQ Entertainment
10.6 Filaments
10.7 Fountain Pixel
10.8 Jump Games
10.9 Lakshya Digital
10.10 Prana Studios
10.11 Prasad Corp
10.12 Prime Focus
10.13 Toonz Animation
11 APPENDIX
TABLE OF EXHIBITS
Exhibit i: Service Provider Categories and Sample Size
Exhibit ii: Parameters Used for Service Provider Comparison
Exhibit iii: Legend Used for Service Provider Comparison
Exhibit iv: List of Abbreviations
Exhibit v: Leading Service Providers in the Design and Animation Segment in 2011
Exhibit 1: Global GDP Growth Rate from 2007 to 2013
Exhibit 2: European Union (EU) GDP Growth Rate from 2007 to 2013
Exhibit 3: BRIC (Brazil, Russia, India, China) GDP Growth Rate from 2007 to 2013
Exhibit 4: India GDP Growth Rate from 2007 to 2013
Exhibit 5: USA GDP Growth Rate from 2007 to 2013
Exhibit 6: UK GDP Growth Rate from 2007 to 2013
Exhibit 7: Indian Currency Movements from 2007 to 2011
Exhibit 8: Capital Market Performance from 2007 to 2011
Exhibit 9: Indian IT-BPO Revenue from 2007 to 2012
Exhibit 10: Indian IT-BPO Contribution to the National GDP
Exhibit 11: Indian IT-BPO Contribution to the National Exports
Exhibit 12: Revenue and Growth Over Five Years
Exhibit 13: Revenue by Service Provider Type
Exhibit 14: Revenue Change (YoY) by Service Provider Type
Exhibit 15: Revenue of Design & Animation Segment by Service Provider in 2011
Exhibit 16: Revenue Per Employee (RPE) Over Five Years
Exhibit 17: RPE by Service Provider Type
Exhibit 18: RPE Change (YoY) by Service Provider Type
Exhibit 19: Operating Expense as a Percent of Revenue For Five Years
Exhibit 20: Operating Expense as a Percent of Revenue by Service Provider Type
Exhibit 21: Employee Cost as a Percent of Operating Expense Over Five Years
Exhibit 22: Employee Cost as a Percent of Revenue Over Five Years
Exhibit 23: Employee Cost as a Percent of Revenue by Service Provider Type
Exhibit 24: Total Cost Per Employee Over Five Years
Exhibit 25: Total Cost Per Employee by Service Provider Type
Exhibit 26: EBITDA Margin Over Five Years
Exhibit 27: EBITDA Margin by Service Provider Type
Exhibit 28: EBIT Margin Over Five Years
Exhibit 29: EBIT Margin by Service Provider Type
Exhibit 30: NPM Over Five Years
Exhibit 31: NPM by Service Provider Type
Exhibit 32: Net Profit Per Employee Over Five Years
Exhibit 33: Net Profit Per Employee by Service Provider Type
Exhibit 34: Debtor Days Over Five Years
Exhibit 35: Debtor Days by Service Provider Type
Exhibit 36: Debtor Days Change (YoY) by Service Provider Type
Exhibit 37: Creditor Days Over Five Years
Exhibit 38: Creditor Days by Service Provider Type
Exhibit 39: Debtor Days Versus Creditor Days
Exhibit 40: Net Operating Cycle Over Five Years
Exhibit 41: Net Operating Cycle by Service Provider Type
Exhibit 42: Quick Ratio Over Five Years
Exhibit 43: Quick Ratio by Service Provider Type
Exhibit 44: Quick Ratio Change (YoY) by Service Provider Type
Exhibit 45: Debt Ratio Over Five Years
Exhibit 46: Debt Ratio by Service Provider Type
Exhibit 47: Debt Ratio Change (YoY) by Service Provider Type
Exhibit 48: Debt/Equity Ratio Over Five Years
Exhibit 49: Debt/Equity Ratio by Service Provider Type
Exhibit 50: Debt/Equity Ratio Change (YoY) by Service Provider Type
Exhibit 51: Interest Coverage Over Five Years
Exhibit 52: Interest Coverage by Service Provider Type
Exhibit 53: Return On Capital Employed (ROCE) Over Five Years
Exhibit 54: ROCE by Service Provider Type
Exhibit 55: Return On Equity (ROE) Over Five Years
Exhibit 56: ROE by Service Provider Type
Exhibit 57: Return on Assets (ROA) Over Five Years
Exhibit 58: ROA by Service Provider Type
Exhibit 59: Consolidated Ranking of Top Five Service Providers
Exhibit 60: Revenue Ranking of Top Five Service Providers
Exhibit 61: RPE Ranking of Top Five Service Providers
Exhibit 62: Total Cost Per Employee Ranking of Top Five Service Providers
Exhibit 63: EBITDA Margin Ranking of Top Five Service Providers
Exhibit 64: Net Profit Per Employee Ranking of Top Five Service Providers
Exhibit 65: Net Operating Cycle Ranking of Top Five Service Providers
Exhibit 66: Quick Ratio Ranking of Top Five Service Providers
Exhibit 67: Debt/Equity Ratio Ranking of Top Five Service Providers
Exhibit 68: ROCE Ranking of Top Five Service Providers
Exhibit 69: ROE Ranking of Top Five Service Providers
Exhibit i: Service Provider Categories and Sample Size
Exhibit ii: Parameters Used for Service Provider Comparison
Exhibit iii: Legend Used for Service Provider Comparison
Exhibit iv: List of Abbreviations
Exhibit v: Leading Service Providers in the Design and Animation Segment in 2011
Exhibit 1: Global GDP Growth Rate from 2007 to 2013
Exhibit 2: European Union (EU) GDP Growth Rate from 2007 to 2013
Exhibit 3: BRIC (Brazil, Russia, India, China) GDP Growth Rate from 2007 to 2013
Exhibit 4: India GDP Growth Rate from 2007 to 2013
Exhibit 5: USA GDP Growth Rate from 2007 to 2013
Exhibit 6: UK GDP Growth Rate from 2007 to 2013
Exhibit 7: Indian Currency Movements from 2007 to 2011
Exhibit 8: Capital Market Performance from 2007 to 2011
Exhibit 9: Indian IT-BPO Revenue from 2007 to 2012
Exhibit 10: Indian IT-BPO Contribution to the National GDP
Exhibit 11: Indian IT-BPO Contribution to the National Exports
Exhibit 12: Revenue and Growth Over Five Years
Exhibit 13: Revenue by Service Provider Type
Exhibit 14: Revenue Change (YoY) by Service Provider Type
Exhibit 15: Revenue of Design & Animation Segment by Service Provider in 2011
Exhibit 16: Revenue Per Employee (RPE) Over Five Years
Exhibit 17: RPE by Service Provider Type
Exhibit 18: RPE Change (YoY) by Service Provider Type
Exhibit 19: Operating Expense as a Percent of Revenue For Five Years
Exhibit 20: Operating Expense as a Percent of Revenue by Service Provider Type
Exhibit 21: Employee Cost as a Percent of Operating Expense Over Five Years
Exhibit 22: Employee Cost as a Percent of Revenue Over Five Years
Exhibit 23: Employee Cost as a Percent of Revenue by Service Provider Type
Exhibit 24: Total Cost Per Employee Over Five Years
Exhibit 25: Total Cost Per Employee by Service Provider Type
Exhibit 26: EBITDA Margin Over Five Years
Exhibit 27: EBITDA Margin by Service Provider Type
Exhibit 28: EBIT Margin Over Five Years
Exhibit 29: EBIT Margin by Service Provider Type
Exhibit 30: NPM Over Five Years
Exhibit 31: NPM by Service Provider Type
Exhibit 32: Net Profit Per Employee Over Five Years
Exhibit 33: Net Profit Per Employee by Service Provider Type
Exhibit 34: Debtor Days Over Five Years
Exhibit 35: Debtor Days by Service Provider Type
Exhibit 36: Debtor Days Change (YoY) by Service Provider Type
Exhibit 37: Creditor Days Over Five Years
Exhibit 38: Creditor Days by Service Provider Type
Exhibit 39: Debtor Days Versus Creditor Days
Exhibit 40: Net Operating Cycle Over Five Years
Exhibit 41: Net Operating Cycle by Service Provider Type
Exhibit 42: Quick Ratio Over Five Years
Exhibit 43: Quick Ratio by Service Provider Type
Exhibit 44: Quick Ratio Change (YoY) by Service Provider Type
Exhibit 45: Debt Ratio Over Five Years
Exhibit 46: Debt Ratio by Service Provider Type
Exhibit 47: Debt Ratio Change (YoY) by Service Provider Type
Exhibit 48: Debt/Equity Ratio Over Five Years
Exhibit 49: Debt/Equity Ratio by Service Provider Type
Exhibit 50: Debt/Equity Ratio Change (YoY) by Service Provider Type
Exhibit 51: Interest Coverage Over Five Years
Exhibit 52: Interest Coverage by Service Provider Type
Exhibit 53: Return On Capital Employed (ROCE) Over Five Years
Exhibit 54: ROCE by Service Provider Type
Exhibit 55: Return On Equity (ROE) Over Five Years
Exhibit 56: ROE by Service Provider Type
Exhibit 57: Return on Assets (ROA) Over Five Years
Exhibit 58: ROA by Service Provider Type
Exhibit 59: Consolidated Ranking of Top Five Service Providers
Exhibit 60: Revenue Ranking of Top Five Service Providers
Exhibit 61: RPE Ranking of Top Five Service Providers
Exhibit 62: Total Cost Per Employee Ranking of Top Five Service Providers
Exhibit 63: EBITDA Margin Ranking of Top Five Service Providers
Exhibit 64: Net Profit Per Employee Ranking of Top Five Service Providers
Exhibit 65: Net Operating Cycle Ranking of Top Five Service Providers
Exhibit 66: Quick Ratio Ranking of Top Five Service Providers
Exhibit 67: Debt/Equity Ratio Ranking of Top Five Service Providers
Exhibit 68: ROCE Ranking of Top Five Service Providers
Exhibit 69: ROE Ranking of Top Five Service Providers
