Home Marketing LTS Motorcycle Business Plan

LTS Motorcycle Business Plan

by admin
1897 views

Introduction

 The whole company is divided into ten departments with almost 1700 employees. LTS motors are the new made-up motorcycle company. LTS Company has much good connection with a much-reputed company. It has built up his own ultimate afford. Now it has 3 points in 3 districts. We have so many items, that means many brands of many model s motorbikes. Some remarkable products are given below.

Product Range of the LTS  Company Includes:

LTS Motorcycle Business Plan

Yamaha FZ

Yamaha r15

Palsure

  • CD Dawn
  • CD Deluxe
  • Pleasure
  • Passion Plus
  • Super Splendor
  • Glamour
  • Glamour PGM FI
  • Achiever
  • CBZ Extreme
  • Hunk
Parameter MAR’13
(₹ Cr.)
MAR’12
(₹ Cr.)

%Change
Balance Sheet:
Share Capital 39.94 39.94 0.00%
Total Non-Current Liabilities 464.73 1,257.65 -63.05%
Total Current Liabilities 4,170.68 4,341.44 -3.93%
Total Liabilities 9,641.65 9,888.92 -2.50%
Total Non-Current Assets 4,564.04 5,057.96 -9.77%
Currents Investments 3,009.36 3,290.30 -8.54%
Cash and Bank 181.04 76.82 135.67%
Total Current Assets Excluding Current Investments 2,068.25 1,540.66 34.24%
Total Assets 9,641.65 9,888.92 -2.50%
Profit and Loss:
Gross Sales 25,659.91 25,235.02 1.68%
Net Sales 23,768.11 23,579.03 0.80%
PBIDT (Excl OI) 3,191.03 3,535.32 -9.74%
PAT 2,118.16 2,378.13 -10.93%

Reasons for Investment

LTS Motors is looking at opportunities to cut prices in order to stay competitive. It also needs to create a more long-term revenue stream.

  • Gross profit=$60m-38m=$22m
  • Gross profit margin =(22/60)*100=36%
  • Net Profit=$22m-$10=$12
  • Net profit margin=(12m/60)*100=20%

Benefit is the sum of money left over after all expenses have been paid. There are two common benefit metrics. The disparity in sales income and direct manufacturing expenses is known as gross profit. These involve labor, equipment, and electricity costs at LTS Motors.

The other standard indicator of profit is net profit, which is obtained by subtracting fixed costs from gross profit. This capital provides a cash surplus that enables the corporation to acquire more capital while still providing a return to shareholders.

LTS Motors needs to open a storefront where they can offer their products. These would include alternate and long-term revenue streams. The expense of being out late, on the other hand, can vary.

LTS Motors needed to evaluate the expected financial benefits of both projects before the company could decide to proceed.

In the cash flow analysis of the three projects, the cash outflows are the initial investment (in year 0) and the maintenance costs (in years 1 to 3).

This cash flow represents that the new project will be helpful for the mother organization.

Investment Appraisal

A business needs to assess if an investment is worth doing – will it recover its costs, will it make savings, will it provide a profit on the original investment? Evaluating investment is very important for a business organization. If anyone makes any wrong decision in the acquisition, they will face big trouble. Now LTS Motors want to establish an out late for Bike in Bangladesh. If they set up it in Dhaka city, the initial cost will one corner. If Chittagong initial cost will 70 lacs, but if it is in Bogra, the initial cost will 50 lacs. And previous statistics says revenues of thies three out lates may differ we assume that

SL No Place Initial cost Revenue (Year1) Revenue (Year2) Revenue (Year3) Revenue

(year4)

1 Dhaka 10000000 4000000 4000000 4000000 4000000
2 Chittagong 7000000 3000000 3000000 3000000 3000000
3 Bogra 5000000 1800000 1800000 1800000 1800000

 There are several methods of analyzing an investment.

Payback

The most straightforward test to understand if an investment will pay for itself is to calculate its payback period. This is the time it will take for the original investment to pay for itself through savings.

The highest cost of most projects occurs at set-up. From assuming the cash flow examples, at the end of year 3, How much time they will take to reach the break down point.

Dhaka

  • PB=(10000000*4)/16000000=2 years and 6 months

Chittagong

  • PB=(7000000*4)/12000000=2years 4 month

Bogra

  • PB=(5000000*4)/7200000=2 years and 9 months

Payback simple

Payback is a simple measure. It does help assess risk but does not consider the value of cash flows after the payback period. Financial forecasts are more uncertain the further they are projected into the future.

The Average Rate of Return

LTS Motors also looks for any investment to pay for itself and contribute to its profitability. One method of calculating this is the average rate of return (ARR). This shows the expected average return over the project’s life as a percentage of the original investment.

The ARR values help LTS Motors to decide if the projects will give sufficient return.

Dhaka

  • ARR=(1500000/100000000)=15%

Chittagong

  • ARR=(1250000/7000000)=17.86%

Bogra

  • ARR=(800000/5000000)=16%

LTS Motors

Discounted Cash Flow

A company must determine if the value of investing in one project outweighs the profit it would lose from not investing in other projects. This is referred to as “opportunity fee.”

Discounted cash flow allows a company to estimate how much capital it will earn in the future is worth now. It accounts for the impact of time on expenditure. It also demonstrates the impact of interest rates on the current valuation of potential earnings.

For eg, if a company invests £100 in a savings plan that pays 10% interest, the money would rise to be worth £110 in a year. In other words, £110 in a year is now worth £100. A comparable estimate shows that £100 over the course of a year is worth £90.90 (100 x 100/110). This is the current market price.

The discount factor for year 1 is 0.909 at a 10% discount rate.

£100 in two years has a current value of 100 x (100/110)2 = £82.60 at a 10% discount rate. Year two’s discount factor is 0.826.

The discount variables for future years are measured in the same way.

The net present value (NPV) represents the return on investment minus the project’s expenses. This will assist McCain in determining if each project is worthwhile.

At a 10% Discount Rate, the Net Present Value

Since discounting the estimated cash flows, the NPV of both schemes is equal and profitable. When designing a project, though, a company will weigh some critical considerations, such as the importance of social or environmental effects.

Internal Cost of Return on Investment

Discounted capital balance is often included in the internal cost of return (IRR). A company must determine the rate of return for which the net present value (NPV) is negative. This is contrasted to the market interest rate to see whether the investment would yield a higher return than, say, a bank deposit.

In certain cases, the IRR is measured using a calculator. Using trial and error, though, an estimate can be found. The net present value of the Dhaka, Chittagong, and Bogra scheme, for example, is barely positive when a discount rate of 12% is applied. This implies that the IRR must be slightly higher than 12%. The turbine projects’ net present value is calculated using a discount rate of 12%.

Sustainability Investment

A long-term strategy is needed for a successful enterprise. Customers, government stakeholders, like lenders, and environmental pressure organizations, such as Friends of the Earth, are among the challenges that companies must react to.

LTS Motors is still on the lookout for opportunities to cut expenses without sacrificing service for its consumers.

LTS Motors will control industry practices as a market leader. It employs corporate activities that go above what is required by law. For both the government and conservation organisations, the organization is dedicated to enhancing its environmental efficiency. It has devised a strategy to achieve all of these objectives.

Final Thoughts

A company must guarantee that the expenditures can yield a positive return. Any company’s primary aim is to maximize profits.

Suggestion For the Future Report

Although this is a good subject, if someone wants to work on this subject, our suggestion is to take all the information in our style and make sure that this is correct information. We think that this is the easiest solution to complete the report. 

related articles

60 comments

Cbd vape cartridge October 24, 2022 - 3:24 pm

%%

My webpage – Cbd vape cartridge

Reply
Drcamisasblog.Com October 25, 2022 - 6:31 pm

%%

my webpage; Online (Drcamisasblog.Com)

Reply
Angelica October 26, 2022 - 1:10 am

%%

Stop by my page; casino; Angelica,

Reply
cbd vape carts October 26, 2022 - 12:57 pm

%%

Look at my website – cbd vape carts

Reply
Mbpworkshops.Com October 26, 2022 - 4:56 pm

%%

Also visit my web site gamble online – Mbpworkshops.Com

Reply
Topscosmetics October 27, 2022 - 12:30 pm

%%

Here is my homepage: Topscosmetics

Reply
https://hauntideakit.com October 29, 2022 - 7:22 pm

%%

Also visit my web blog … Cbd vape carts (https://hauntideakit.com)

Reply
Cbd Hash shop October 30, 2022 - 11:34 pm

%%

My web page – Cbd Hash shop

Reply
Cbd Uk Hash November 1, 2022 - 5:57 pm

%%

Visit my webpage :: Cbd Uk Hash

Reply
strong Cbd hash November 2, 2022 - 3:15 pm

%%

Look into my web site; strong Cbd hash

Reply
Cory November 3, 2022 - 5:32 am

%%

Also visit my website experience (Cory)

Reply
https://flpta.org/ November 3, 2022 - 5:37 am

%%

My homepage: gambling addiction (https://flpta.org/)

Reply
fortunedentalclinic-thailand.Com November 3, 2022 - 8:34 am

%%

My web site; online gambling (fortunedentalclinic-thailand.Com)

Reply
Clemmie November 3, 2022 - 9:18 am

%%

my blog … gambler [Clemmie]

Reply
Seo Packages Pricing November 3, 2022 - 6:46 pm

%%

Feel free to surf to my site: Seo Packages Pricing

Reply
hemp Hash November 4, 2022 - 5:12 am

%%

My homepage; hemp Hash

Reply
cbd Prefilled carts November 4, 2022 - 9:18 am

%%

Stop by my web-site; cbd Prefilled carts

Reply
Hemp Hash Uk November 4, 2022 - 12:30 pm

%%

My homepage: Hemp Hash Uk

Reply
search engine Optimization pricing November 4, 2022 - 1:35 pm

%%

Here is my homepage: search engine Optimization pricing

Reply
Vape cart November 4, 2022 - 3:27 pm

%%

Check out my webpage Vape cart

Reply
seo pricing November 4, 2022 - 5:11 pm

%%

Feel free to visit my webpage … seo pricing

Reply
Cbd hash uk Legal November 4, 2022 - 5:43 pm

%%

Take a look at my web blog – Cbd hash uk Legal

Reply
seo services price November 4, 2022 - 8:29 pm

%%

Visit my site – seo services price

Reply
Search engine optimization Pricing November 5, 2022 - 3:22 am

%%

Here is my homepage :: Search engine optimization Pricing

Reply
Repair electrician near me November 5, 2022 - 3:44 am

%%

Visit my homepage; Repair electrician near me

Reply
Real Doll Blowjob November 5, 2022 - 3:48 am

%%

Here is my homepage: Real Doll Blowjob

Reply
Private Psychiatrist Online November 5, 2022 - 3:52 am

%%

Also visit my webpage … Private Psychiatrist Online

Reply
Glaziers watford November 5, 2022 - 3:53 am

%%

My homepage Glaziers watford

Reply
Motorcycle injury November 5, 2022 - 3:58 am

%%

My web page – Motorcycle injury

Reply
Window Repairs Manchester November 5, 2022 - 4:00 am

%%

My web site – Window Repairs Manchester

Reply
cbd oil Cork November 5, 2022 - 4:01 am

%%

my homepage :: cbd oil Cork

Reply
car accident attorney dothan al November 5, 2022 - 4:01 am

%%

Also visit my site; car accident attorney dothan al

Reply
chn.Chahongcosmetic.com November 5, 2022 - 4:02 am

%%

Feel free to surf to my web blog … hk prize (chn.Chahongcosmetic.com)

Reply
Hyde windows November 5, 2022 - 4:08 am

%%

Take a look at my web blog Hyde windows

Reply
real Doll Blow Job November 5, 2022 - 4:11 am

%%

Stop by my web-site; real Doll Blow Job

Reply
Local Window Fitters Near Me November 5, 2022 - 4:11 am Reply
accident injury lawyers syracuse November 5, 2022 - 4:14 am Reply
Psychiatry Online November 5, 2022 - 4:17 am

%%

Here is my web page – Psychiatry Online

Reply
stockton car accident attorney November 5, 2022 - 4:23 am

%%

Here is my homepage :: stockton car accident attorney

Reply
long Bomber jacket November 5, 2022 - 4:28 am

%%

my web page … long Bomber jacket

Reply
aluminium doors milton keynes November 5, 2022 - 4:29 am

%%

Feel free to surf to my homepage … aluminium doors milton keynes

Reply
How to Become an avon rep November 5, 2022 - 4:29 am

%%

Also visit my blog post :: How to Become an avon rep

Reply
truck injury Attorney November 5, 2022 - 4:29 am

%%

My website … truck injury Attorney

Reply
auto accident Attorney in bellevue November 5, 2022 - 4:29 am

%%

Have a look at my web-site auto accident Attorney in bellevue

Reply
windows and doors halesowen November 5, 2022 - 4:30 am Reply
Nanumiwelfare.com November 5, 2022 - 4:31 am

%%

Have a look at my web-site – Manchester Locksmith (Nanumiwelfare.com)

Reply
Mqljma December 1, 2022 - 11:35 am

buy levaquin 250mg levofloxacin price

Reply
Xrrwrg December 2, 2022 - 7:59 pm

order avodart 0.5mg without prescription celebrex 200mg pills ondansetron online buy

Reply
Ghjnko December 4, 2022 - 3:44 am

buy aldactone 25mg order generic fluconazole diflucan 200mg usa

Reply
game boxes December 5, 2022 - 1:38 am

There may be noticeably a bundle to know about this. I assume you made certain nice points in features also.

Reply
Lgxaop December 5, 2022 - 10:58 am

ampicillin 500mg oral ampicillin 500mg oral order erythromycin 250mg pills

Reply
zmozeroteriloren December 6, 2022 - 10:27 am

It is in reality a great and helpful piece of info. I am satisfied that you shared this helpful information with us. Please stay us up to date like this. Thank you for sharing.

Reply
Kulzsh December 6, 2022 - 6:16 pm

buy sildenafil online robaxin 500mg generic order robaxin 500mg generic

Reply
game boxes uk December 7, 2022 - 2:23 am

Fantastic beat ! I wish to apprentice whilst you amend your web site, how can i subscribe for a blog web site? The account aided me a appropriate deal. I were tiny bit acquainted of this your broadcast provided brilliant clear idea

Reply
Rbpntm December 8, 2022 - 1:44 am

order sildenafil pills order generic estrace 1mg estradiol drug

Reply
online dating in thailand December 9, 2022 - 1:15 am

hey there and thank you for your information – I’ve certainly picked up something new from
right here. I did however expertise a few technical issues using this web site, since I experienced to reload the website a lot of times previous to I could get it to load correctly.
I had been wondering if your web host is OK? Not that I’m complaining,
but slow loading instances times will often affect your placement in google and
could damage your quality score if ads and marketing with Adwords.
Well I am adding this RSS to my e-mail and could look out for much more of your respective exciting content.
Make sure you update this again very soon.
geocraft.xyz
My favourite saying – “Thai women will be awesome”

Reply
Euuddj December 9, 2022 - 7:27 am

order lamictal 200mg without prescription minipress 2mg sale retin gel canada

Reply

Leave a Comment