ITV

Category: Financials

  • Vodafone revenue down 0.9%; India revenue up 6.9%, leads growth

    Vodafone revenue down 0.9%; India revenue up 6.9%, leads growth

    BENGALURU: The Vodafone Group reported resurgence in the Africa, Middle East and Asia Pacific region (AMAP), with Turkey showing a 15 per cent y-o-y organic growth followed by India with 6.9 per cent organic growth. The Group’s reported service revenue declined 2.9 per cent y-o-y to €9169 million, while growing organically by 2.9 per cent.

     

    Note: Organic growth presents performance on a comparable basis, both in terms of merger and acquisition activity and movements in foreign exchange rates.

     

    The Group’s India reported service revenue grew by 10.6 per cent to €1133 million in Q1-2016 as compared to the €1024 million in Q1-2015 on with continued customer base growth and acceleration in the take-up of 3G offsetting continued pressure on voice pricing.

     

    Also, data revenue in India grew 65 per cent supported by the addition of 3.1 million new data customers, taking the total to 66.8 million. Vodafone says that smartphone penetration in India is now 26 per cent across the country and 47 per cent in the four metro circles and now has 22 million 3G customers compared to 10 million a year ago.

     

    The Group says that while total voice traffic continues to grow, the outgoing rate per minute has continued to decline, reflecting increased competition. The average minutes of use per customer is lower than a year ago but has increased slightly compared to the previous quarter. Total mobile customers increased 1.6 million giving a closing customer base of 185.4 million.

     

    Further, the Group informs that the progress on Project Spring in India remains strong with 1,000 2G sites and 1,100 3G sites added in the quarter (14,000 2G and 21,000 3G since the build commenced), taking Vodafone India’s 3G outdoor population coverage in targeted urban areas to 91 per cent. Vodafone India is now trialing 4G services across selected areas and continues to expand its M-Pesa service and now has 501,000 active customers supported by 94,000 agents.

     

    Q-o-q, Vodafone India led subscriber base growth with an increase of 0.86 per cent to 185.384 million with net post-paid (contract) additions of 449,000 and net prepaid additions of 1.132 million as compared to the 183.803 million in Q4-2015.

     

    Overall, Vodafone Group’s subscriber base grew 0.75 per cent to 449.193 million with 1.296 million post-paid and 2.111 million prepaid customers as compared to the 445.836 million in Q4-2015.

     

    Vodafone Group’s AMAP region continues to grow strongly, with organic service revenue increasing 6.1 per cent (Q4: 5.8 per cent) with growth in all major markets. Excluding the impact of MTR (Mobile Termination rates are the charges which one telecommunications operator charges to another for terminating calls on its network) cuts, organic service revenue increased 7.7 per cent (Q4: 7.3 per cent). The region continues to see strong customer growth, with 4.3 million added in the quarter, and an increasing number of the Group’s customers are now using data, with 6.6 million active data users added in the quarter. Customer usage continues to grow throughout the region, with voice and data usage up 7 per cent and 97 per cent respectively. Total AMP revenue increased 5.5 per cent, including a 2.5 percentage point adverse impact from foreign exchange movements.

     

    Europe reported and organic revenues declined y-o-y by 6.2 and 1.5 per cent respectively. The Vodafone Group reported revenue declined 0.9 per cent in Q1-2016 (Quarter ended 30 June, 2015) to €10113 million, while organic revenue grew 3.3 per cent.

     

    Vodafone’s Europe reported revenue declined 3.1 per cent to €6501 million, but grew organically by 1.1 per cent as compared to the €6768 million in the corresponding year ago quarter. As mentioned above, Europe’s reported and organic service revenue declined by 6.2 and 1.5 per cent respectively to €5793 million in Q1-2016 as compared to the €6367 million in Q1-2015.

     

    Vodafone Group CEO Vittorio Colao said, “We have made a good start to the year. Our emerging markets have maintained their strong momentum and more of our European businesses are returning to growth, as customer demand for 4G and data takes off. We continue to hit our Project Spring build milestones and customers are beginning to value the improvement in service that is resulting: contract churn in Europe is now falling and mobile ARPU trends are stabilising in a number of key markets. Our other key growth areas – unified communications and enterprise – are performing strongly, benefiting from the increased capabilities and footprint that our higher levels of investment are delivering. However, our markets are, as always, highly competitive and we therefore have to remain very focused on efficiency, cost control, and excellent value and service to customers, while continuing to deliver a good return for shareholders.”

  • FY-2015: UFO Moviez revenue up 13%, EBIDTA up 21%

    FY-2015: UFO Moviez revenue up 13%, EBIDTA up 21%

    BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform, UFO Moviez Limited (UFO) reported a 12.78 per cent growth in consolidated revenue to Rs 479.34 crore for the year ended 31 March, 2015 (FY-2015), as compared to the Rs 425.03 crore in the previous year, by increase in advertising clients and higher Virtual Print Fees (VPF) revenues.  The company reported 20.75 higher operating profit or EBIDTA, for FY-2015 at Rs 160.83 crore (33.55 per cent margin) as compared to the Rs 133.12 crore (31.34 per cent margin) in the previous fiscal.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

     

    The company’s PAT in FY-2015 increased 2.42 per cent to Rs 48.81 crore (10.18 per cent margin) as compared to the Rs 47.66 crore (11.21 per cent margin in the previous year).  The company says that the increase in PAT has come about despite a FY-2014 tax expense having a deferred tax credit of Rs 10.946 crore, which is Rs 4.98 crore higher than FY-2015 deferred tax credit of Rs 5.966 crore.

     

    Further, despite lower expense towards purchase of digital cinema equipment and lamps, higher expenses towards advertisement revenue share, VPF share and depreciation eroded the profits of the company in FY-2015.

     

    UFO joint managing director Kapil Agarwal said, “Both Advertising and VPF delivered healthy growth during the fiscal. This can be attributed to improved utilisation of advertisement inventory coupled with higher number of movie releases. Our focus on delivering uninterrupted service on our technology platform to distributors and advertisers, with whom we have healthy relationship, has helped us maintain market leadership. We will continue to leverage our existing platform to drive growth. Overall, we will continue to strive to deliver strong operating performance in the Fiscal Year 2015-16.”

     

    Let us look at the other expense reported by the company:

     

    Total Expenses in FY-2015 at Rs 395.45 crore (83.11 per cent of TIO) was 10.66 per cent more than the Rs 357.35 crore (84.24 per cent of TIO) in FY-2014. The company’s expense towards purchase of digital cinema equipment and lamps in the current year dropped 16.46 per cent to Rs 40.59 crore (8.53 per cent of TIO) as compared to the Rs 48.59 crore (11.45 per cent of TIO) in the previous fiscal.

     

    The company paid a 27.23 higher amount towards advertisement revenue share in FY-2015 at Rs 39.39 crore (8.28 per cent of TIO) as compared to the Rs 30.96 crore (7.3 per cent of TIO) in FY-2014.

     

    Further, the company paid 22.91 per cent more towards VPF share at Rs 63.31 crore (13.31 per cent of TIO) in FY-2015 as compared to the Rs 51.51 crore (12.14 per cent of TIO) in the previous year.

     

    The company reported higher depreciation in FY-2015 at Rs 79.64 crore (16.17 per cent of TIO) as compared to the Rs 65.52 crore (15.45 per cent of TIO) in Fy-2014.

     

    Advertisement and VPF revenues playout during the year

     

    UFO says that its in-cinema advertising platform comprised 3,784 screens with an average weekly seating capacity of approximately 5.2 crore as on 31 March, 2015, which engaged with about 1724 advertisers during the year and delivered advertisements across 1,951 locations. Its annual advertisement revenue per screen (average) stood at Rs 316,346 in FY-2015 compared to Rs 299,711 in FY-2014. The number of minutes sold per show per advertisement screen (average) stood at 3.36 in the current year compared to 3.25 in FY-2014, while the number of in-cinema advertising clients increased to 1724 in FY-2015 from 1056 in FY-2014.

     

    The company says that its digital cinema network in India comprised 5,032 screens with a seating capacity of approximately 22.2 lakh per show as on 31 March, 2015. (Note: Nepal forms a part of the Indian Film Territory, hence the number of digital screens includes Nepal screens). The company delivered approximately 1636 movies for 1830 distributors across 1,970 locations during the year.

     

    In India, annual gross VPF revenue / screen (average) on E-Cinema stood at Rs 259,171 in FY-2015 as compared to Rs 251,308 in FY-2014, while annual gross VPF revenue / screen (average) on D-Cinema stood at Rs 586,961 in FY-2015 as compared to the Rs 603,304 in FY-2014.

     

    Internationally, annual gross VPF revenue / Screen (average) on D-Cinema stood at Rs 750,764 in FY-2015 compared to Rs 812,102 in FY-2014.

     

    UFO managing director Sanjay Gaikwad said, “We are pleased to announce a healthy operating and financial performance during the fiscal year 2014-15. The growth prospects for UFO remain robust. We believe that there is a lot of headroom for growth in advertisement revenue, given that the number of minutes sold per show per screen on our network is significantly lower than multiplex chains. We expect this to improve gradually as advertiser engagements further deepen and as we attract new advertisers. We will continue to leverage our current base by also focusing on our synergetic business initiative Caravan Talkies – cinema on wheels, to drive incremental revenues. Our technology platform, differentiated service offering, clear strategic focus and experienced execution and management teams, give us a firm foundation to capture growth in the years to come.”

  • Q2-2015: Comcast reports 11% revenue growth, loses 69,000 video customers

    Q2-2015: Comcast reports 11% revenue growth, loses 69,000 video customers

    BENGALURU: Comcast Corporation (Comcast) reported 11.3 per cent growth in consolidated revenue in Q2-2015 (quarter ended 30 June, 2015) to $18,743 million as compared to the $16,844 million in the corresponding year ago quarter. 

     

    In Q1-2015, the company had reported consolidated revenue of $17,853 million. The company’s Cable Communications and NBCUniversal segments reported a y-o-y increase in revenue.

     

    Comcast consolidated operating income increased 7.9 per cent in Q2-2015 to $4105 million as compared to the $3804 million in Q2-2014 and was 5.5 per cent more than the $3890 million Q1-2015. Year to date (YTD, 6M-2015), the company’s consolidated revenue grew 6.8 per cent to $36,596 million from $34,252 in the corresponding year ago period. 

     

    Though the company’s Cable Communication segment reported a fall of 69,000 video customers in Q2-2015, video revenue grew 3.7 per cent in Q2-2015 to $5431 million from $5239 million during the corresponding year ago quarter. YTD, video revenue increased 3.3 per cent to $10,762 million as compared to $10,417 million in 6M-2014.

     

    Comcast Chairman and CEO Brian L Roberts said, “Our second quarter results, including 11.3 per cent revenue growth and eight per cent operating cash flow growth, demonstrate the strength and momentum we are seeing across our businesses. In Cable, high-speed Internet and business services continued to perform extremely well, and, significantly, this was the best second quarter video customer results we’ve had in nine years. Our focus on accelerating the deployment of our transformative X1 platform, as well as efforts to improve customer service, are clearly making a difference, with lower churn across all product categories. NBCUniversal had an exceptional quarter, led by the record-breaking box office performances of Jurassic World and Furious 7 and continued strong momentum in our theme parks. In addition, NBC won the 2014-2015 broadcast season for adults 18-49. Our teams are executing incredibly well across our strong and diversified portfolio, and I am excited for what we can deliver in the rest of 2015 and beyond.”

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Let us look at the numbers reported by Comcast

     

    Cable Communications

     

    Comcast’s Cable Communications segment has three products – video, high speed internet and voice.  Five streams add to the segment’s revenue – video, high speed internet, voice, business service and advertising.

     

    This segment’s revenue in Q2-2015 grew 6.3 per cent to $11,729 million as compared to the $11,029 million in Q1-2014. YTD also, the segment’s revenue increased 6.3 per cent to $23,159 million as compared to $21,786 million in 6M-2014. 

     

    Cable Communications customer relationships increased to 272.65 lakh in Q2-2015 as compared to 267.75 lakh in Q2-2014.

     

    Single product customer relationships declined in Q2-2015 to 83.43 lakh from 85.10 lakh in Q1-2014; double product customer relationships in Q2-2015 to 89.36 lakh from 85,74,000 in Q2-2014; triple product customer relationships increased in Q2-2015 to 99.87 lakh from 96.91 lakh in the corresponding year ago quarter.

     

    Operating Cash Flow for Cable Communications increased 5.1 per cent to $4798 million Q2-2015 compared to $4564 million in Q2-2014, reflecting higher revenue, partially offset by a 7.2 per cent increase in operating expenses primarily related to higher video programming costs, as well as an increase in technical and product support expenses driven by an acceleration in the deployment of X1 and investments to improve the customer experience. As a result, this quarter’s operating cash flow margin was 40.9 per cent compared to 41.4 per cent in the prior year period.

     

    For the six months ended 30 June, 2015, Cable operating cash flow increased 5.7 per cent to $9472 million compared to $8964 million in 6M-2014. YTD operating cash flow margin was 40.9 per cent compared to 41.1 per cent in 2014.

     

    Video 

     

    Video revenue has been mentioned above. The company lost 69,000 video customers in Q2-2015, much lower than the 144,000 customers it lost in Q1-2014. Total video customer relationships in Q2-2015 stood at 223.06 lakh as compared to the 224.57 lakh in the corresponding year ago quarter.

     

    High speed Internet

     

    High speed internet revenue in Q2-2015 grew 10 per cent to $3101 million from $2819 million in Q2-2014. YTD, revenue from this stream grew 10.3 per cent to $6145 million from $5569 million in 6M-2014.

     

    High speed internet customer relationships in Q2-2015 improved by 180,000 as compared to the improvement of 203,000 in Q2-2014. The total number of high speed internet customer relationships in Q2-2015 stood at 225.48 lakh, in Q2-2015, the corresponding number was 212.71 lakh.

     

    Voice

     

    Voice revenue in the current quarter at $903 million declined 2.1 per cent as compared to the $921 million in Q2-2014. YTD, revenue from this stream declined 1.8 per cent to $1809 million as compared to the $1842 million in 6M-2014.

     

    Voice customer relationships increased to 113.19 lakh as compared to the 110.03 lakh in Q2-2014.

     

    Business services, Advertising and Other

     

    Business services revenue grew 20.4 per cent to $1161 million in Q2-2015 as compared to $961 million in Q2-2015. Business services revenue in 6M-2015 increased 20.9 per cent to $2275 million as compared to the $1883 million in 6M-2014.

     

    Advertising revenue in Q2-2015 declined by 0.9 per cent to $582 million from $589 million in Q2-2014, while for 6M-2015, revenue declined 0.8 per cent to $1086 million as compared to $1094 million in 6M-2014.

     

    ‘Other’ revenue in Q1-2015 increased 10.9 per cent to $551 million as compared to the $497 in the corresponding year ago quarter. YTD, ‘Other’ revenue increased 10.2 per cent to $1082 million as compared to the $982 million in 6M-2014.

     

    NBCUniversal 

     

    Cable Networks, Broadcast television, Filmed Entertainment and Themed Parks contribute to NBCUniversal segment’s revenues.

     

    NBCUniversal revenue in Q2-2015 at $7230 million increased 20.2 per cent as compared to the $6016 million in the corresponding year ago quarter. For 6M-2015, revenue from this segment increased 7.3 per cent to $13,834 million from $12,892 million in the corresponding year ago six month period.

     

    Operating cash flow increased 19.4 per cent to $1712 million in Q2-2015 as compared to the $1434 million in Q2-2014. During 6M-2015, operating cash flow from this segment improved 16.8 per cent to $3206 million as compared to the $2745 million in 6M-2014 driven by strong results at Filmed Entertainment and Theme Parks.

     

    Cable Networks

     

    Cable Networks revenue in Q-2015 declined 4.6 per cent to $872 million as compared to the $914 million in Q2-2014, reflecting a 26.3 per cent decrease in content licensing and other revenue due to the timing of content provided under licensing agreements and a three per cent decline in advertising revenue, partially offset by a 5.6 per cent increase in distribution revenue. Operating cash flow decreased 4.6 per cent to $872 million compared to $914 million in Q2-2014, reflecting lower revenue and modest increases in other operating and administrative expenses.

     

    For 6M-2015, revenue 2.2 per cent to $1170 million as compared to the $1809 million in 6M-2014. Operating cash flow decreased 2.2 per cent to $1.8 billion in 6M-2015.

     

    Broadcast Television

     

    Broadcast Television revenue increased 3.7 per cent in Q2-2015 to $240 million as compared to the $231 million in Q2-2014 reflecting a slight increase in advertising revenue and higher retransmission consent fees, which were offset by lower content licensing revenue. Operating cash flow decreased 3.7 per cent to $231 million compared to Q2-2014, primarily reflecting increases in other operating and administrative expenses, which were largely offset by a decrease in programming and production costs associated with the timing of the airing of certain shows in our primetime schedule.

     

    YTD, Broadcast Television revenue increased 14 per cent to $413 million as compared to $352 million in 6M-2014. Excluding $376 million of revenue generated by the NFL’s Super Bowl in the Q1-2015, as well as $846 million of revenue generated by the Sochi Olympics in Q1-2014, revenue increased 2.6 per cent. Operating cash flow increased 14 per cent to $413 million compared to $362 million in 6M-2014.

     

    Filmed Entertainment

     

    Filmed Entertainment revenue in Q2-2015 more than doubled (up 2.17 times) to $422 million as compared to the $195 million in Q2-2014 driven by higher theatrical revenue from the record performances of Furious 7 and Jurassic World. Operating cash flow increased $227 million to $422 million, reflecting higher revenue, partially offset by an increase in the amortization of film costs and higher advertising, marketing and promotion expense due to a larger film slate.

     

    For 6M-2015, revenue increased 48.1 per cent to $715 million as compared to $483 million in 6M-2014. Operating cash flow increased 48.1 per cent to $715 million compared to $483 million in 6M-2014.

     

    Themed Parks

     

    Themed Parks in Q2-2015 increased 44.9 per cent to $354 million as compared to the $244 million in Q2-2014 reflecting higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter – Diagon Alley. Q2-2015 cash flow increased 44.9 per cent to $354 million compared to $244 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support the new attractions.

     

    For 6M-2015, revenue increased 48.9 per cent to $616 million as compared to the $414 million in 6M-2014. Operating cash flow increased 48.9 per cent to $617 million compared to $414 million in 6M-2014.

  • Q1-2016: Subscription revenue growth, lower finance costs reduce Videocon d2h loss

    Q1-2016: Subscription revenue growth, lower finance costs reduce Videocon d2h loss

    BENGALURU: The addition of 6.1 lakh gross subscribers and 4.6 lakh net subscribers in Q1-2016 (quarter ended 30 June, 2015), coupled with higher average revenue per user (ARPU) for Q1-2016, resulted in a y-o-y 32.1 per cent growth in subscription revenue and 23.3 per cent growth in revenue from operations (TIO) in Q1-2016 for Videocon d2h.

     

    On a q-o-q basis, subscription revenue increased 3.7 per cent, while TIO increased six per cent. The company also reported a marked fall in finance costs and consequently, the company’s loss in the current quarter more than halved to Rs 24.4 crore as compared to the Rs 55.8 crore in Q1-2015 and was less than a third of the Rs 75.7 crore in Q4-015.

     

    Videocon achieved strong subscription revenue growth of 32.1 per cent to Rs 599.61 crore (90.5 per cent of TIO) in Q1-2016 as compared to the Rs 453.77 crore (84.4 per cent of TIO) in Q1-2015 and growth of 3.7 per cent as compared to the Rs 578.33 crore (92.5 per cent of TIO) in the immediate trailing quarter.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    TIO in Q1-2016 at Rs 662.83 crore was 23.3 per cent more than the Rs 537.65 crore in Q1-2015 and six per cent more than the Rs 625.27 crore in Q4-2015.

     

    Average revenue per user (ARPU) in Q1-2016 at Rs 205.30 was 9.7 per cent more than the Rs 187.14 in the corresponding year ago quarter and was 1.5 per cent more than the Rs 202.17 in Q4-2015. (Conversion rate from 1 dollar = 62.59 Indian rupee for all the three quarters).

     

    The company’s finance costs in Q1-2016 reduced 26.8 per cent to Rs 76.5 crore (11.5 per cent of TIO) as compared to the Rs 104.5 crore (19.4 per cent of TIO) in the corresponding year ago quarter and was an impressive 41.2 per cent lower than the Rs 130.1 crore (20.8 per cent of TIO) in Q4-2015. 

     

    Videocon d2h executive chairman Saurabh Dhoot said, “We are pleased to declare a strong set of results for the quarter ended 30 June, 2015 and are on track to achieve the guidance provided for fiscal 2016. With a strong subscriber growth outlook, DTH sector gaining market share over cable and an improving ARPU scenario; we believe we are just at the beginning of a multi-year strong growth opportunity.”

     

    During this quarter, Videocon d2h added three proprietary channels and also set up an advertising team to sell ad inventory for the same. These channels are d2h nursery rhymes, d2h Cinema HD and a music channel. Additionally, it also added three Active services, namely, Active Kids, Active Games and Active Learning during the quarter, which have started getting traction from customers.

     

    Dhoot added, “I am happy to share that we recently set up an advertising team to sell ad inventory on our own proprietary channels. We are beginning to see an encouraging response from multiple advertisers.”

     

    Issuance of bonus shares

     

    The board of directors of the company, at their meeting held on 22 July, 2015, determined that the Initial Performance Hurdle has been achieved and satisfied and hence has approved, subject to approval of Ministry of Information and Broadcasting and such other approvals and consents as may be required under the applicable regulations, the issuance of 23,360,000 equity shares (equivalent to 5,840,000 ADSs) to the shareholders of the company as of the date of the Contribution Agreement and the issuance of 3,999,984 equity shares (equivalent to 999,996 ADSs) to the sponsor by way of a bonus issue, in accordance with the terms of the Contribution Agreement and the Articles of Association of the Company. Further, Saurabh Dhoot also becomes entitled to receive 1,400,000 (equivalent to 350,000 ADSs) equity shares of the Company.

     

    The Initial Performance Hurdle was that the last sales price of the Videocon d2h ADSs on NASDAQ (converted into Indian rupees on each such day at the Indian Rupee/U.S. Dollar Exchange Rate on such date) for 20 trading days in a 30-trading day period equals or exceeds 125 per cent of the Listing Price (i.e. price per ADS issued to the SEAC Distribution Record Holders converted into Indian rupees at the Indian Rupee/U.S Dollar Exchange Rate prevailing on the Closing Date, March 31, 2015).

     

    Let us look at the other numbers reported by Videocon d2h

     

    The company’s EBIDTA (operating profit) in Q1-2016 increased 26.3 per cent to Rs 187.43 crore (28.3 per cent margin) from Rs 148.45 crore (27.6 per cent margin) in Q1-2015 and increased 15.9 per cent from Rs 161.77 crore (25.9 per cent margin) in Q4-2015.

     

    Videocon d2h total expenditure (TE) in Q1-2016 increased 20.3 per cent to Rs 618.1 crore (93.3 per cent of TIO) as compared to the Rs 513.7 crore (95.5 per cent of TIO) in Q1-2015 and increased 2.2 per cent as compared to the Rs 604.5 crore (96.7 per cent of TIO)

     

    Videocon d2h’s operating expense in Q1-2016 at Rs 379.1 crore (57.2 per cent of TIO) was 22.7 per cent more than the Rs 309 crore (57.5 per cent of TIO) in Q1-2015 and was 4.2 per cent more than the Rs 363.7 crore (58.2 per cent of TIO) in Q4-2015.

     

    The company says that its content cost as percentage of revenue in Q1-2016 was 37 per cent as compared to 32.7 per cent in Q1-2015 and 38.4 per cent in the immediate trailing quarter.

     

    Videocon d2h’s selling and distribution expense in the current quarter increased 17.8 per cent to Rs 50.9 crore (7.7 per cent of TIO) as compared to the Rs 43.2 crore (8 per cent of TIO) in Q1-2015 and increased 10.4 per cent as compared to the Rs 46.1 crore (7.4 per cent of TIO) in Q4-2015.

     

    Administrative and other expense in Q1-2016 increased 15 per cent to Rs 14.6 crore (2.2 per cent of TIO) as compared to the Rs 12.7 crore (2.4 per cent of TIO) in Q1-2015, but reduced by 42.3 per cent as compared to the Rs 25.3 crore (four per cent of TIO) in Q4-2015.

     

    Employee Benefit Expense in Q1-2016 increased 26.6 per cent to Rs 30.9 crore (4.7 per cent of TIO) as compared to the Rs 24.4 crore (4.5 per cent of TIO) in Q1-2015 and was 8.4 per cent more than the Rs 28.5 crore (4.6 per cent of TIO) in Q4-2015.

     

    Videocon d2h CEO Anil Khera said, “We believe around 10 crore homes will be up for grabs by digital cable and DTH operators in the next four – five years. DTH should gain higher market share in Phase III and IV of the Government of India digitization plan in comparison to the prior phases. We are excited and prepared to take on the significant subscriber growth opportunity ahead of us, as we approach the Phase III digitization deadline. While actual implementation could take time, we continue to believe the government has a strong intent to switch off analogue cable as per the plan.”

  • Q1-2016: Pressman Advertising revenue up 67.8%

    Q1-2016: Pressman Advertising revenue up 67.8%

    BENGALURU: Pressman Advertising Limited (Pressman) reported 67.8 per cent growth in revenue for the quarter ended 30 June, 2015 (Q1-2016) at Rs 14.72 crore as compared to Rs 8.77 crore in Q1-2015 and a 31.4 per cent growth as compared to Rs 11.21 crore in Q4-2015.

     

    Note: 100,00,000 = 100 lakh =10 million = 1 crore

     

    The company’s profit after tax (PAT) in the current quarter increased 7.7 per cent to Rs 1.34 crore (9.1 per cent of TIO) in Q1-2016 as compared to the Rs 1.25 crore (14.2 per cent of TIO) in Q1-2015. Pressman had reported a loss of Rs 0.11 crore in the immediate trailing quarter.

     

    Pressman’s simple EBIDTA excluding other income in Q1-2016 was more than double (2.6 times more) at Rs 1.934 crore (13.1 per cent of TIO) as compared to the Rs 0.745 crore (8.5 per cent of TIO) in the corresponding year ago quarter and was 50.4 per cent more than the Rs 1.3 crore (11.5 per cent of TIO) in the immediate trailing quarter.

     

    Total Expenses (TE) in Q1-2016 increased 58.9 per cent to Rs 12.80 crore (87 per cent of TIO) as compared to the Rs 8.06 crore (91.8 per cent of TIO) in Q1-2015 and was 28.8 per cent more than the Rs 9.94 crore (88.7 per cent of TIO) in Q4-2015.

     

    Cost of services (COS) is a major expense head in TE declared by the company in its results filed at the bourses. COS in Q1-2016 at Rs 11.73 crore (79.7 per cent of TIO) was 71.3 per cent more than the Rs 6.85 crore (78 per cent of TIO) in Q1-2015 and was 32.6 per cent more than the Rs 8.84 crore (78.9 per cent of TIO) in Q4-2015.

     

    Employee benefit expense in Q1-2015 at Rs 0.55 lakh was 13.4 per cent lower than the Rs 0.63 crore in Q1-2015 but was almost flat (0.3 per cent higher) than the Rs 0.548 crore in Q4-2015.

  • Q1-2016: Network18, TV18 report y-o-y revenue growth

    Q1-2016: Network18, TV18 report y-o-y revenue growth

    BENGALURU: Network18 Media & Investments Limited (Network18) reported 12 per cent growth in consolidated income from operations (TIO) to Rs 793.65 crore in the quarter ended 30 June, 2015 (Q1-2016) as compared to the Rs 708.39 crore in Q1-2015. TIO in Q1-2016 was however 5.7 per cent lower than the Rs 841.43 crore in Q4-2015. 

     

    The company reported a consolidated loss of Rs 5.96 crore in the current quarter as compared to the massive onetime adjustment loss of Rs 1156.50 crore after the Mukesh Ambani led Reliance Industries Limited took over the company. Network18 had reported a profit after tax (PAT) of Rs 45.33 crore in Q4-2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    The company’s Media Operations segment, TV18 Broadcast Ltd, in which Network18 has holdings, reported a 3.5 per cent growth in revenue to Rs 718.79 crore in Q1-2016 from Rs 694.08 crore in Q1-2015, but reported a decline of 13.7 per cent from the Rs 832.63 crore in the immediate trailing quarter. The segment reported a lower operating loss of Rs 15.80 crore in the current quarter as compared to an operating loss of Rs 83.72 crore in Q1-2015 and an operating profit of Rs 58.64 crore in Q4-2015.

     

    Network18’s Film Production and Distribution (Film) segment reported more than threefold increase (3.67 times) in revenue to Rs 52.61 crore in Q1-2016 as compared to the Rs 14.32 crore in Q1-2015 and an almost eleven fold increase from the Rs 4.8 crore in Q4-2015. The film segment reported an operating profit of Rs 1.34 crore in Q1-2016 as compared to a loss of Rs 0.95 crore in Q1-2015 and a loss of Rs 2.44 crore in Q4-2015.

     

    The company’s Earnings before interest, taxes, depreciation and amortisation (EBIDTA, includes other income) in Q1-2016 at Rs 49.1 crore (6.2 per cent margin) was almost double (1.99 times) the Rs 24.7 crore (3.5 per cent margin) in Q1-2015, but was less than half again as much (49.3 per cent) of the Rs 99.6 crore in Q4-2015.

     

    Network18 reported 10.7 per cent increase in total expenditure to Rs 811.9 crore (102.3 per cent of income from operations) in Q1-2016 as compared to the Rs 733.5 crore (103.5 per cent of income from operations) in Q1-2015 and 2.9 per cent more than the Rs 789 crore (93.8 per cent of income from operations) in Q4-2015.

     

    Network18 employee benefit expense in Q1-2016 at Rs 159.8 crore (20.1 per cent of income from operations) was 8.9 per cent more than the Rs 146.8 crore (20.7 per cent of income from operations) in Q1-2015 and was 11.3 per cent more than the Rs 143.6 crore (17.1 per cent of income from operations) in Q4-2015.

     

    Network18 programming cost in Q1-2016 at Rs 206.3 crore (26 per cent of income from operations) was 21.7 per cent more than the Rs 169.5 crore (23.9 per cent of income from operations) in Q1-2015 and was almost flat (0.8 per cent lower) than the Rs 208 crore (24.7 per cent of income from operations) in the immediate trailing quarter.

     

    TV18 Broadcast Limited

     

    TV18 reported a 13.1 per cent growth in consolidated income from operations to Rs 596.7 crore in Q1-2015 as compared to the Rs 527.7 crore in Q1-2015, but a 5.2 per cent decline as compared to the Rs 629.7 crore in Q4-2015. TV18 reported a loss of Rs 4.2 crore in the current quarter as compared to the onetime adjustment loss of Rs 214.2 crore in Q1-2015 and a profit of Rs 86.3 crore in the immediate trailing quarter.

     

    TV18’s EBIDTA (including other income) in Q1-2016 at Rs 20 crore (3.4 per cent margin) was a little more than one third (37.4 per cent) of the Rs 53.5 crore (10.1 per cent margin) and less than one-fifth (15.6 times) the Rs 111.3 crore (17.7 per cent margin) in Q4-2015.

     

    TV18’s total expenditure in Q1-2016 increased 17 per cent to Rs 595.9 crore (99.9 per cent of income from operations) from Rs 509.5 crore (96.6 per cent of income from operations) and increased 7.4 per cent from Rs 555.1 crore (88.2 per cent of income from operations) in Q4-2015. 

     

    A major expenditure increase was TV18’s marketing, distribution and promotional expense in Q1-2016 by 33 per cent to Rs 135.9 crore (22.8 per cent of income from operations) from Rs 102.2 crore (19.4 per cent of income from operations) in Q1-2015 and an increase of 19.7 per cent as compared to the Rs 113.5 crore (18 per cent of income from operations) in the immediate trailing quarter.

     

    Click here to read unaudited financial of Network 18

     

    Click here to read investor presentation of TV18

  • Q1-2016: PVR PAT improves more than sevenfold; to raise Rs 500 crore

    Q1-2016: PVR PAT improves more than sevenfold; to raise Rs 500 crore

    BENGALURU: Indian motion picture exhibition, production and distribution house PVR Limited (PVR) reported more than sevenfold increase in profit after tax (PAT) in the quarter ended 30 June, 2015 (Q1-2016) as compared to the corresponding year ago quarter. 

     

    PVR’s PAT for Q1-2015 was Rs 58.45 crore (12 per cent of Total Income from Operations or TIO), while in Q1-2015, it was Rs 7.66 crore (2.1 per cent of TIO). The company had reported a loss of Rs 35.66 crore in the immediate trailing quarter (Q4-2015) citing impact by poor movie content and World Cup Cricket towards the end of FY-2015. 

     

     Note:  100,00,000 = 100 lakh = 10 million = 1 crore

    All numbers are consolidated unless stated otherwise.

     

    Additionally, PVR’s board of directors has also approved to raise a sum of Rs 500 crore by issuing Non Convertible Debentures (NCD) subject to approval by the members of the company in the forthcoming Annual General Meeting.

     

    The board also approved the scheme of merger of PVR Leisure Limited and Lettuce Entertain You Limited with the Company.

     

    Approval was also given for the allotment of 50,00,000 equity shares priced at Rs 700 per share of face value Rs 10 each equity share at a premium of Rs 690 per share aggregating to Rs 350 crore on preferential basis to Plenty Cl Fund I Limited, Multiples Private Equity Fund II LLP and Plenty Private Equity Fund I Limited.

     

    Box Office performance

     

    This quarter has seen the release of some hits and super hits like Tanu Weds Manu Returns (Gross Box Office or GBO Rs 46.9 crore, 25 lakh admits, Average Ticket Price or ATP Rs 185); Piku (GBO Rs 27.7 crore, 15 lakh admits, ATP Rs 186); Fast and Furious 7 (GBO Rs 26.6 crore, 15 lakh admits, ATP Rs 174); ABCD2 (GBO Rs 23.4 crore, 13 lakh admits, ATP Rs 183); and Avengers-Age of Ultron (GBO Rs 24.4 crore, 13 lakh admits, ATP Rs 182) that have driven the resurgence in revenue as well as PAT.

     

    Net Box Office (NBO) collections in the current quarter increased 34.96 per cent to Rs 274.19 crore from Rs 203.16 crore in Q1-2015. Q1-2016 saw admits increasing by 25 per cent to 1.9 crore with an occupancy of 38 per cent as compared to 1.52 crore with an occupancy of 32 per cent in Q1-2015. ATP in the current quarter also improved to Rs 183 from Rs 176 in Q1-2015.

     

    While the share of NBO as percentage of TIO has gone up fractionally in Q1-2016 to 59.3 per cent (Rs 249.12 crore) from 59.2 per cent (Rs 197.61 crore) in Q1-2015, Food and Beverage (F&B) share has gone up to 28 per cent (Rs 117.87 crore) from 25.9 per cent (87.04 crore) in Q1-2015, advertising share has dropped in percentage terms but increased in value terms to Rs 41.62 crore (9.9 per cent) in the current quarter from Rs 35.2 crore (10.2 per cent) and others contribution has dropped to 2.8 per cent (Rs 12 crore) from Rs 14.95 crore (4.5 per cent).

     

    Let us look at the other numbers reported by PVR

     

    The company has reported positive results in Q1-2015 from all its revenue generating segments, which include movie exhibition, movie production and distribution as well as ‘Others,’ which includes bowling, gaming and restaurant services, etc. As a matter of fact, the ‘Others’ segment has returned an operating profit of Rs 0.82 crore in Q1-2016 as compared to operating losses of Rs 2.46 crore and Rs 1.46 crore in Q1-2015 and Q4-2015 respectively.

     

    TIO in Q1-2016 at Rs 486.02 crore was 34.2 per cent more than the Rs 362.26 crore in the corresponding year ago quarter and was 62.3 per cent more than the Rs 299.55 crore in Q4-2015.

     

    Net F&B revenue increased by 45.9 per cent in Q1-2016 to Rs 129.79 crore from Rs 88.97 crore in the corresponding year ago quarter. Spend per head has increased 16 per cent to Rs 74 in Q1-2016 from Rs 63 in Q1-2015. The company says that it has managed to lower the cost of goods and sold (COGS) by 4.1 per cent in Q1-2016 to 24.9 per cent from 29 per cent in Q1-2015.

     

    PVR’s sponsorship revenue has gone up 27.5 per cent to Rs 45.69 crore in Q1-2016 from Rs 35.84 crore in Q1-2015. The company says that eight blockbusters in the quarter helped maximizing revenues namely Tanu Weds Manu Returns, Fast & Furious 7, Piku, Avengers, ABCD2, Jurassic World, Dil Dhadakne Do and Gabbar is Back.

     

    Total expense in Q1-2016 at Rs 402.77 crore (82.9 per cent of TIO) was 19.6 per cent more than the Rs 336.68 crore (92.9 per cent of TIO) in Q1-2015 and was 28.2 per cent more than the Rs 314.12 crore (104.9 per cent of TIO) in the immediate trailing quarter.

     

    The company’s film exhibition cost increased 30 per cent to Rs 113.69 crore (23.4 per cent of TIO) in Q1-2016 as compared to the Rs 87.48 crore (24.1 per cent of TIO) in Q1-2015 and increased a massive 80.6 per cent as compared to the Rs 62.96 crore (21 per cent of TIO) in Q4-2015.

     

    F&B and other cost in Q1-2016 increased 25.2 per cent to Rs 34.59 crore (7.1 per cent of TIO) as compared to the Rs 27.63 crore (7.2 per cent of TIO) in Q4-2015. 

     

    Other expense in Q1-2016 increased 33.8 per cent to Rs 37.72 crore (7.8 per cent of TIO) as compared to the Rs 28.20 crore (7.8 per cent of TIO) in Q1-2015, but was 16.9 per cent lower than the Rs 45.38 crore (15.1 per cent of TIO) in the immediate trailing quarter.

  • Q1-2016: Bajaj Corp marketing spends up 33%

    Q1-2016: Bajaj Corp marketing spends up 33%

    BENGALURU: Bajaj Corp Limited spent Rs 40.60 crore (18.5 per cent of Operating Revenue or Total Income from Operations or TIO) in the quarter ended 30 June, 2015 (Q1-2016), which was 33 per cent more than the Rs 30.53 crore (16 per cent of TIO) in the corresponding quarter of the previous year and almost flat (less by 0.8 per cent) as compared to the Rs 40.92 crore (17.3 per cent of TIO) in Q4-2015. Please refer to Fig A below.

    Note:

    (1) Bajaj Corp’s Limited (Bajaj Corp) Advertisement and Sales Promotion (ASP) expense comprises of two parts – Advertisement Spends and Sales Promotion Spends. The ASP figures have been obtained from the Company’s investors’ presentations over various quarters and the Ad Exp from its financial results. Sales Promotion results have been obtained by deducting the Ad Expenses from the ASP. The figures in the investors’ presentations have been rounded off by the company and hence are assumed as approximate. Consequently the Sales Promotion figures are assumed to be approximate.

    (2) Bajaj Corp Limited is a subsidiary of Bajaj Resources Limited (BRL) and is an exclusive licensee of the brands owned by BRL for a period of 99 years starting 2008.

    (3) 100,00,000 = 100 lakh = 10 million = 1 crore

    Marketing Expenses

    The company’s Ad spends in the current quarter at Rs 15.28 crore (seven per cent of TIO) was 16 per cent more than the Rs 13.17 crore (6.9 per cent of TIO) in Q1-2015 and 0.9 per cent more than the Rs 15.15 crore (6.4 per cent of TIO) in Q4-2015. 

    Bajaj Corp’s Sales Promotion spends in Q1-2016 at Rs 25.32 crore (11.6 per cent of TIO) was 45.8 per cent more than the Rs 17.36 crore (9.1 per cent of TIO) in Q1-2015 and was 1.75 per cent lower than the Rs 25.77 crore (10.9 per cent of TIO) in the immediate trailing quarter.

    During the fourteen quarter period starting Q4-2012 until Q1-2016 (current quarter), Bajaj Corp’s ASP has been the highest in terms of absolute rupees in the previous quarter (Q4-2015) at Rs 40.92 crore (17.6 per cent of TIO).  The company’s highest ASP during the period under consideration in terms of percentage of TIO was in Q3-2015 at 19.6 per cent of TIO (Rs 40.24 crore). The lowest ASP during the period under consideration in terms of absolute rupees as well as percentage of TIO was in Q1-2013 at Rs 17.36 crore and 12.6 per cent of TIO.

    Bajaj Corp’s highest Ad spends in absolute rupees during the period under consideration was in Q3-2015 at Rs 17.56 crore (8.5 per cent of TIO), while the highest Ad spends in terms of percentage of TIO was in Q1-2014 at 8.8 per cent (Rs 14.98 crore).

    The company’s highest Sales Promotion spends in terms of absolute rupees during the period under consideration was Rs 25.77 crore(10.9 per cent of TIO) in the previous quarter, while the highest Sales Promotion spends in terms of percentage of TIO was in Q3-2014 at 12.4 per cent (Rs 19.70 crore).

    During the fourteen quarter period under consideration, both ASP and Sales Promotion spends show a linear increasing trend in terms of percentage of TIO, while Ad spends in terms of percentage of TIO shows a slight declining trend.

    Revenue, profits

    Bajaj Corp TIO in Q1-2016 at Rs 219.1 crore was 14.5 per cent more than the Rs 191.32 crore in Q1-2015, but was 7.2 per cent lower than the TIO in Q4-2015 at Rs 236.17.

    Profit after Tax (PAT) in Q1-2016 at Rs 47.51 crore (21.7 per cent of TIO) was 19.9 per cent more than the Rs 39.62 crore (20.7 per cent of TIO) in Q1-2015 but was 12.7 per cent lower than the PAT in Q4-2015 at Rs 54.42 crore (23 per cent of TIO). PAT in the previous quarter was the highest in absolute rupees during the period under consideration. PAT in terms of percentage of TIO was highest at 28.5 per cent (Rs 42.20 crore) in Q3-2013.

    During the fourteen quarter period under consideration, both TIO and PAT in absolute rupees show a linear increasing trend, while PAT in terms of percentage of TIO shows a linearly declining trend.

    Brands

    Bajaj Corp’s mother brand is Bajaj with sub brands/products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan, and creams, soaps, face washes and face scrubs under the brand name Nomarks.

    Market Share of Hair Oils

    The company is a market leader in the light hair oil and the almond drop hair oil categories in India as per its investor presentation. Bajaj Corp claims a market share in the country of 58.9 per cent in terms of volume Q1-2016, same as the market share in FY-2015 in the light hair oil category. In value terms the company claims a 60.9 per cent, up 20 basis points as compared to the 60.7 per cent during fiscal 2015. On an all India basis, Bajaj Corp reports proportion of 62.8 per cent urban market share and a 37.8 per cent rural market share for light hair oil in terms of volume.

    In the previous fiscal, the company’s market share had improved by 100 basis points in terms of volume from the 57.9 per cent in FY-2014. In value terms, the company’s market share had increased 120 basis points as compared to the 59.5 per cent in FY-2014.

    Light hair oil category in India has grown by 6.9 per cent in volume and has grown by 10.2 per cent in value Q1-2016 as compared to the corresponding year ago quarter.

    In the Almond drop hair oil category, the company claims an urban market volume share of 59 per cent in the country with an urban/rural market share of 56.5 per cent and 63.1 per cent respectively. Growth rates for the current period for almond drop hair oil have not been mentioned by the company in its investor presentation for Q1-2016.

    Click here to read unaudited financial results

    Click here to read investor presentation 

  • Raj TV y-o-y revenue up 3.4%: PAT down 60.5%

    Raj TV y-o-y revenue up 3.4%: PAT down 60.5%

    BENGALURU: South Indian television network Raj TV Limited reported 3.4 per cent higher net Total Income from Operations (TIO) in the quarter ended 30 June, 2015 (Q1-2016) at Rs 19.76 crore as compared to Rs 19.11 crore in Q1-2015, but 14.1 per cent lower than Rs 22.99 crore in Q4-2015.

     

    The company’s profit after tax (PAT) in Q1-2016 declined by a massive 60.5 per cent to Rs 1.15 crore (5.8 per cent of TIO) as compared to the Rs 2.92 crore (15.3 per cent of TIO) in Q1-2015 and declined 56.3 per cent as compared to the Rs 2.64 crore (11.5 per cent of TIO) in the immediate trailing quarter.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Raj TV’s simple EBIDTA without considering other income in Q1-2016 declined nine per cent to Rs 4.47 crore (22.6 per cent margin) as compared to the EBIDTA of Rs 4.92 crore (25.7 per cent margin) in the corresponding quarter of the previous year and was almost half (down 49.7 per cent) the EBIDTA in Q4-2015 of Rs 8.89 crore (38.7 per cent of TIO).

     

    The company’s Total Expenditure (TE) in Q1-2016 at Rs 16.90 crore (85.2 per cent of TIO) was 14.2 per cent more than the Rs 14.80 crore (77.4 per cent of TIO) in Q1-2015 and 23.3 per cent more than the Rs 13.70 crore (59.6 per cent of TIO) in Q4-2015.

     

    Raj TV’s cost of revenues in Q1-2016 increased 17.3 per cent to Rs 7.30 crore (37 per cent of TIO) as compared to the Rs 6.22 crore (32.6 per cent of TIO) in Q1-2015 and was almost quadruple (3.82 times) the Rs 1.90 crore (8.3 per cent of TIO) in Q4-2015.

     

    The company’s administrative expense in Q1-2016 was up 7.1 per cent to Rs 2.72 crore (13.8 per cent of TIO) as compared to the Rs 2.54 crore (13.3 per cent of TIO) in Q1-2015 and was less than half (57 per cent lower) than the Rs 6.33 crore (27.5 per cent of TIO) in the immediate trailing quarter.

     

    Raj TV’s employee benefit expense (EBE) in Q1-2016 at Rs 5.26 crore (26.6 per cent of TIO) was 3.1 per cent lower than the Rs 5.43 crore (28.4 per cent of TIO) in Q1-2015 and 10.3 per cent lower than the Rs 5.87 crore (25.5 per cent of TIO) in Q4-2015.

     

    Raj TV’s tax expense in the current quarter Rs 0.57 crore was 43.2 per cent lower than the Rs 1.01 crore in Q1-2015 and a little more than one-ninth (1/8.8 times) the Rs 5.09 crore in Q4-2015.

     

    Click here to read unaudited financial result

  • Q1-2016: HUL y-o-y marketing spends up 22%

    Q1-2016: HUL y-o-y marketing spends up 22%

    BENGALURU:  Indian FMCG giant Hindustan Unilever Limited’s (HUL) Advertisement and Promotions expense (marketing spends, ASP) in Q1-2016 (quarter ended 30 June, 2015) was 22.1 per cent more at Rs 1153.39 crore (14.2 per cent of Total Income from operations or TIO, approximately $181.4 million) than the Rs 944.88 crore (12.2 per cent of TIO) in Q1-2015 and was 12.2 per cent more than the Rs 1027.89 crore (13.4 per cent of TIO) in Q4-2015.

    Note: (1) 100 lakh = 100,00,000 = 1 crore = 10 million.

    (2) All figures in this report are standalone figures filed by the company. The trends are based on the numbers submitted by the company or picked up from the company’s website. For performance of HUL’s various product lines please refer to the attached earnings release for Q1-2016.

    (3) The US dollar figures are approximately based on a conversion rate of 1US$ = Rs 63.57.The converted numbers have been rounded off.

    HUL chairman Harish Manwani said, “In a subdued market environment, the business delivered another quarter of healthy volume led growth and strong improvement in operating margin. We are particularly pleased with the stepped up momentum in personal products and the sustained double digit performance in packaged foods. With the near term outlook largely dependent on pickup in rural markets and commodity costs expected to remain benign with little or no price growth across select categories, our focus will be to drive market development and simultaneously deliver cost efficiencies to sustain profitable volume led growth.”

    Advertising and Sales Promotion trends

    As a matter of fact, HUL’s ASP in Q1-2016 is the highest during a 13 quarter period starting Q1-2013 until Q1-2016, both in terms of percentage of TIO and in absolute rupees. During the period under consideration in this report, ASP in absolute rupee spends shows a marked linear increasing trend, while ASP in percentage of TIO terms shows a slight linear increasing trend, though more marked than until the previous quarter. The company’s lowest ASP was in Q2-2013 at Rs 768.98 crore  (12.2 per cent of TIO) in absolute rupee spends during the period under consideration, while the lowest in terms of percentage of TIO was in Q4-2014 at 11.8 per cent of TIO (Rs 840.34 crore). Please refer to Fig A below.

    If the company follows the trends of the past three fiscals, at least one or more quarter in FY-2016 will see higher ASP in terms of absolute rupees than Q1-2016.

    HUL Revenue and PAT

    HUL reported five per cent growth in TIO in Q1-2016 at Rs 8105.13 crore as compared to the Rs 7716.34 crore in Q1-2015 and reported 5.6 per cent growth as compared to the Rs 7094.01 crore in the immediate trailing quarter. The company’s TIO shows a linear increasing trend as indicated by the broken blue trend line in Fig B below. TIO in Q1-2016 is the highest reported by the company during the 13 quarter period under consideration in this report.

    HUL’s PAT in Q1-2016 was almost flat (higher by 0.2 per cent) at Rs 1059.14 crore (13.1 per cent of TIO) as compared to the Rs 1056.85 crore (13.7 per cent of TIO) in the corresponding quarter of last year and was four per cent more than the Rs 1018.08 crore (13.3 per cent of TIO) in Q4-2015. During the period under consideration, HUL’s highest PAT was in Q1-2013 at Rs 1331.19 crore (20.9 per cent of TIO), both in terms of absolute rupees and in percentage of TIO. While PAT in absolute rupees shows a linear increasing trend as indicated by the broken pink trend line in Fig B below, while in terms of percentage of TIO, the linear trend is declining as indicated by the broken yellow line below.

    HUL Speak: Category and brand growth 

    HUL says that during Q1-2016, its domestic consumer business grew at five per cent, with six per cent underlying volume growth. The growth in the quarter was impacted by the phasing out of excise duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers.

    Soaps and Detergents

    In Skin Cleansing, the performance was driven by the premium segment, with Dove and Lifebuoy Handwash delivering strong growth.

    In Laundry, Surf maintained its strong volume led growth momentum with broad based double digit growth. Rin did well on the bars portfolio, while Comfort Fabric Conditioners delivered another quarter of high growth on sustained market development.

    In Household Care, Vim delivered double digit volume growth, driven by the tubs and liquids formats.

    The quarter witnessed further price deflation across these categories given benign input costs.

    Personal Products

    Skin Care delivered broad based volume led growth across Fair and Lovely, Pond’s, Lakme and Vaseline. Fair and Lovely saw an encouraging response to the newly launched BB cream. Pond’s performance was led by premium skin lightening and facewash while Lakme’s growth was buoyed by CC Cream, Perfect Radiance and new innovations.

    Hair Care maintained its strong volume led growth momentum. Dove growth accelerated further, while Clinic Plus, Sunsilk and TRESemmé continued to deliver robust growth.

    In Oral Care, Close Up grew in double digit, supported by impactful market activation. In Pepsodent, the Gum Care and Clove & Salt variants continued to do well, with the latter been extended nationally during the quarter.

    In Colour Cosmetics, Lakme sustained its strong innovation led performance across the core, Absolute and 9 to 5 ranges.

    Beverages

    Tea delivered double digit growth with healthy volumes, led by Red Label and another strong quarter on Lipton Green Tea. In Coffee, Bru Gold sustained its robust growth momentum.

    Packaged Foods

    Market development continues to be the key driver of growth in this segment says HUL. Kissan delivered one of its strongest quarters as growth accelerated across both ketchups and jams. Knorr grew despite a sharp market slowdown in the quarter, led by instant soups. Ice creams registered double digit growth, driven by sharper in-market execution on Kwality Walls and the extension of Magnum to new cities.

    Water

    Pureit sustained its growth ahead of a slowing durables market, with premium devices delivering another quarter of double digit growth. The category performance continued to be led by modern trade, ecommerce and Perfect Stores

    Click here to read the unaudited financial statement