Introduction of the Study
A Brief Introduction of the Organization
The Objective of the Study
Rational of the Study
Scope of the Study
Limitations of the Study
Data Design
- Primary Source
- Secondary Source
Websites, publications and testimonials are used in this study as secondary data, while personal interviews and statistical data are the study's primary sources of information. I spoke with employees and managers knowledgeable about the company to gather the primary sources of information. I also collected secondary sources of information from United Power Generation and Distribution (UPGD) official website, company annual reports, audit reports, newspapers etc.
This report is created to provide a general overview of United Power Generation and Distribution under United Group's operations, divisions and roles.
Sample Design
Analytical Tool
The license allowed the company to distribute electricity to more than 2.5 million customers in the area. It is calculated by dividing the company's current share price by its book value per share. It is calculated by subtracting the current share price from the company's annual dividend per share.
It is calculated by multiplying the company's current share price by the number of shares outstanding.
Industry Scenario
- Background of Industry
- Contribution in Economy
- Scope
United Power Generation & Distribution Company Limited (UPGDCL) is a company formerly known as Malancha Holdings Limited (MHL) and was incorporated on 15 January 2007 as a public limited company. From Malancha Holdings Limited, the company's name changed to United Power Generation & Distribution Company Ltd on 1 October 2009. The company's first power plant, located in the Dhaka Export Processing Zone, was where the company started operations on December 26, 2009. 2008.
United Power Generation & Distribution Company Limited (UPGD) is a Bangladesh-based power generation and distribution company established in 1997. UPGD has emerged as a major performer in the power sector of Bangladesh, a country with a growing demand for electricity due to its growing economy and population. The company's initial focus was on power generation, and it built its first power plant in the Dhaka Export Processing Zone in 1999, with a capacity of 57.5 MW.
In 2012, the company expanded its production capacity by building a second power plant in Narsingdi district, with a capacity of 200 MW. UPGD has invested in modern technologies and management practices to ensure efficient and sustainable energy production and distribution. The company has received several awards for its performance, including the "Best Generation Company" award at the Bangladesh Business Awards in 2020.
In summary, UPGD has grown into a leading player in the power sector of Bangladesh, with a focus on power generation and distribution. The economy of Bangladesh has grown rapidly in the last ten years and achieved performance benchmarks of 7.0 percent in FY 2015-16 and 8.0 percent in FY 2018.
Historical Background of Organization
- Vision
- Mission
- Management and Focus
Ensuring customer satisfaction by ensuring reliable and uninterrupted energy supply and maintaining a high level of service quality. Contributing to the development of the energy sector in Bangladesh through innovation and collaboration with other stakeholders. Being a socially responsible organization by implementing sustainable business practices and supporting the communities in which it operates.
Excellence: UPGD is committed to achieving excellence in all aspects of its operations, from power generation and distribution to customer service and employee development. The company constantly strives to improve its performance by adopting modern technologies and best practices, and by investing in the professional development of its workforce. Integrity: UPGD values honesty, transparency and ethical behavior in all dealings with stakeholders, including customers, suppliers, employees and shareholders.
Customer satisfaction: UPGD places a high priority on meeting the needs and expectations of its customers by providing reliable, safe and affordable electricity. The company is committed to listening to customer feedback and addressing their concerns quickly and efficiently. Social responsibility: UPGD is committed to being a socially responsible organization that contributes to the well-being of the communities in which it operates.
The company promotes a culture of open communication, mutual respect and shared responsibility between employees and stakeholders. Expand the country's power generation capacity and help achieve GoB's vision 2041 in a timely, safe and cost-effective manner while keeping up with the country's growing electricity demand.
Operational Activities of UPGDCL
- Subsidiaries of UPGDCL
- Financial Performances
It is one of the most important departments, and the team members are giving their all for sustainable management and long-term growth. This department ensures that the company's operations adhere to efficient financial management and control systems.
SWOT Analysis
To get a true picture of the company's financial success and stability, it should be used in conjunction with other financial metrics and indicators. However, in 2021 and 2022, the company's liquidity declined significantly, likely due to the impact of COVID-19. Although the company is stable in this situation, revenue generation is lower than in previous years.
It is important to note that what constitutes high or low debt can vary depending on the industry and the specific circumstances of the company. Therefore, when analyzing a company's debt ratio, it is important to compare it to other companies in the same industry or industry and to consider other factors such as the company's cash flow, profitability, and ability to pay off its debt. to solve. A high P/E ratio can indicate that investors are optimistic about the company's future earnings potential and are willing to pay more for the stock.
However, it is important to note that the P/E ratio should not be used in isolation and should be considered in the context of other factors such as the company's financial health, growth prospects and competitive position before making investment decisions. The company's reputation is built on the hard work, discipline and strategic leadership of its management team. COVID-19 impacts must be overcome as soon as possible so that the company's profitability increases more than in previous years.
Although the company's sales are increasing, profits are not increasing at the same rate. I also had the opportunity to observe how the company interacted with other businesses to make contracts.
Summary of Financial Statement
Ratio Analysis
- Liquidity Ratio
- Profitability Ratio
- Activity Ratio
- Debt Ratio
- Market Ratio
It helps to determine whether a company's management has used the company's resources effectively to increase investor wealth while ensuring a fair return to the owners and the best possible use of the company's resources. It is important that the company is vigilant and takes appropriate measures to prevent the current ratio from falling below 1, which could lead to serious liquidity problems within the company. A financial measure called gross profit margin is used to evaluate how profitable a company is compared to sales revenue.
Operating profit margin is the profit generated by its operations relative to its revenue. In general, operating profit margin is an important financial metric that can help investors and analysts assess a company's profitability. A financial ratio called return on total assets (ROA) measures a company's profitability in relation to its total assets.
While a low ratio indicates that the company may be inefficient in the use of its resources, a high ratio indicates that the organization is using its resources effectively to generate revenue. It indicates the number of times a company's average inventory is sold and exchanged during a given period, or the number of cycles of a company's inventory during a given period. Total asset turnover is an activity ratio that measures how efficiently a company uses its assets to generate revenue.
The total asset turnover ratio is calculated by dividing a company's net sales by its total assets. However, a very high total asset turnover ratio can also indicate that a company has low levels of assets, which can negatively impact its ability to support operations and growth. On the other hand, a low total asset turnover ratio may indicate that a company is inefficient in using its assets to generate income.
Therefore, it is important to compare a company's total asset turnover ratio to the industry average and to its historical performance to better understand the efficiency of using its assets to generate income.
Common Size Analysis
- Horizontal Analysis
- Vertical Analysis
A financial analysis technique called vertical analysis, also known as common size analysis, involves expressing each line item on a company's financial statements as a percentage of a base item. Definition: Vertical analysis is a technique used to evaluate a company's financial performance and health by expressing each line item on its financial statements as a percentage of a base item. Base item: The base item used for vertical analysis varies depending on the financial statement being analyzed.
For example, the base item for vertical analysis of an income statement is typically revenue, while the base item for vertical analysis of a balance sheet is typically total assets or total liabilities and equity. Percentage Calculation: To perform vertical analysis, the percentage of each line item is calculated by dividing the line item amount by the base item amount and multiplying by 100. Limitations: Vertical analysis has certain limitations, including that it does not take into account changes in the base item or overall financial statement.
Ultimately, the success of UPGDCL will be determined by the commitment, dedication and dynamic leadership of its management team, and I believe they will continue to thrive in the future and energize the masses with pride. As a prominent conglomerate in Bangladesh, United Group has significant influence and its subsidiary, United Power Generation and Distribution (UPGDCL), plays a crucial role in the power industry. While UPGDCL is currently performing well, it is essential to assess debt management to mitigate potential future financial risks.
To ease the burden of debt in the long run, UPGDCL being a progressive company should consider investing in more profitable ventures. The ratio analysis indicates that there is a decrease in the gross profit margin of UPGDCL after the COVID-19 pandemic.
