ITV

Category: Financials

  • FY-2015: ENIL PAT up 27% at Rs 105.97 crore

    FY-2015: ENIL PAT up 27% at Rs 105.97 crore

    BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL) reported 27 per cent increase in profit after tax (PAT) at Rs 105.97 crore (24.2 per cent of Total Income from Operations or TIO) in FY-2015 (year ended 31 March, 2015, current year) as compared to the Rs 83.45 crore (21.7 per cent of TIO) in the previous year. The company has entered the Rs 100 crore PAT club this year.

     

    PAT in Q4-2014 increased by 20.1 per cent to Rs 25.52 crore (20.5 per cent of TIO) as compared to the Rs 21.24 crore (18.6 per cent of TIO) in the corresponding year ago quarter, but was 22.3 per cent lower than the Rs 32.86 crore (28.1 per cent of TIO) in the immediate trailing quarter.

     

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

    (2) The numbers in this report are standalone unless stated other wise.

     

    ENIL’s TIO in FY-2015 increased 14 per cent to Rs 438.48 crore as compared to the Rs 384.49 crore in FY-2014. TIO in Q4-2015 increased 8.8 per cent to Rs 124.43 crore as compared to the Rs 114.42 crore in Q4-2014 and was 6.5 per cent more than the Rs 116.79 crore in Q3-2015.

     

    Let us look at some of the other numbers reported by ENIL:

     

    ENIL total expense (TE) in FY-2015 at Rs 326.02 crore (74.4 per cent of TIO) was 11.8 per cent lower than the Rs 291.64 crore (75.9 per cent of TIO) in FY-2014. TE in Q4-2015 at Rs 98.06 crore (78.8 per cent of TIO) was 7.9 per cent more than the Rs 90.87 crore (79.4 per cent of TIO) and was 21.8 per cent more than the Rs 80.53 crore (69 per cent of TIO) in the trailing quarter.

     

    ENIL paid 7.7 per cent higher license fee in FY-2015 at Rs 21.79 crore (five per cent of TIO) as compared to the Rs 20.24 crore (5.3 per cent of TIO) in the previous year. License Fee in Q4-2015 increased 5.1 per cent to Rs 4.23 crore (3.4 per cent of TIO) as compared to the Rs 4.03 crore (3.5 per cent of TIO) in the corresponding year ago quarter and was seven per cent more than the Rs 3.96 crore (3.4 per cent of TIO) in Q3-2015.

     

    The company’s marketing expense in FY-2015 at Rs 75.76 crore (17.3 per cent of TIO) was 24.6 per cent more than the Rs 60.82 crore (15.8 per cent of TIO) in FY-2015. Q4-2015 marketing expense at Rs 31.57 crore (25.4 per cent of TIO) was 4.1 per cent lower than the Rs 32.91 crore (28.8 per cent of TIO), but was 54.2 per cent higher than the Rs 20.47 crore (17.5 per cent of TIO) in Q3-2015.

     

    Employee Benefit Expense (EBE) in FY-2015 at Rs 82.76 crore (18.9 per cent of TIO) was 10 per cent more than the Rs 75.22 crore (19.6 per cent of TIO) in the previous year. EBE in Q4-2015 at Rs 20.98 crore (16.9 per cent of TIO) was 9.4 per cent more than the Rs 19.17 crore (16.8 per cent of TIO) in Q4-2014, but 1.1 per cent lower than the Rs 21.21 crore (18.2 per cent of TIO) in the immediate trailing quarter.

     

    ENIL managing director and CEO Prashant Panday said, “It’s a very happy feeling for all Mirchi folks that the company they created has entered the Rs 100 crore PAT club! Our sustained focus on cost management as well as better sales in our radio, TV properties, and activations businesses has helped reach this milestone. We see the future even brighter with Phase-3 auctions coming up next month. This opportunity to expand is coming after nearly 10 years and we plan to make the most of it. Overall, Mirchi remains the strongest brand in radio with a 33-35 per cent share of the revenue market in its cities and a listenership lead across most of its 32 cities.”

  • FY-2015: Emami marketing spends up 41%, PAT up 21%

    FY-2015: Emami marketing spends up 41%, PAT up 21%

    BENGALURU: Emami Limited spent 41.3 per cent more towards its Advertisement and Sales Promotion (ASP) in FY-2015 (year ended 31 March, 2015, current year) at Rs 391.19 crore (17.7 per cent of Total Income from Operations or TIO) as compared to the Rs 277.41 crore (1.5 per cent of TIO) in the previous year.

    The company’s profit after tax (PAT) increased 20.6 per cent in the current year to Rs 485.45 crore (21.9 per cent of TIO) from Rs 402.27 crore (22.1 per cent of TIO) in FY-2014. Emami’s TIO in FY-2015 at Rs 2217.25 crore increased 2.18 per cent from the previous year’s TIO of Rs 1820.77 crore.

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

    Among the brands in Emami’s portfolio are Zandu, Zandu Balm, Himani Navratna, BoroPlus, Fair and Handsome, Emami Vasocare, Emami Mentho Plus, Himani Fast Relief, Zandu Sona Chandi Chyawnprash Plus, Zandu Kesari Jivan, etc.

    Historically, Q3 (the festival season in India) of a financial year has been the best quarter for Emami in terms of TIO and PAT, which peak in Q3. The next best quarter has been the fourth quarter of a financial year before sales and profits dip to the lowest in a year in Q1 (the summer and the beginning of the educational holiday season in India) followed by a rise in Q2.

    Refer to Fig A below for ASP during the 16 quarter period starting Q1-2012 until the current quarter.ASP in Q4-2015 was 66.5 per cent more at Rs 82.47 crore (14.9 per cent of TIO) as compared to the Rs 49.53 crore (11.1 per cent of TIO) spent in the corresponding year ago quarter but 30.8 per cent lower than the Rs 119.25 crore (17.2 per cent of TIO ) in the immediate trailing quarter.

    During the 16 quarter period under consideration in this report, Emami’s ASP was the highest in absolute rupees in the immediate trailing quarter (Q3-2105) at Rs 119.25 crore (17.2 per cent of TIO), while in terms of percentage of TIO, it was 21.3 per cent (Rs 102.84 crore) in Q1-2015. The lowest ASP by Emami in both in absolute rupees terms and as percentage of TIO was in Q4-2013 at Rs 36.6 crore and 9.2 per cent respectively during the period under consideration.

    In Fig A, the slope of the graph represented by the broken maroon line indicates that ASP in terms of percentage of TIO shows a slight increasing trend, and intercepts the Q4-2015 ordinate at 16.26 per cent, as opposed the 14.9 per cent actually spent by the company. The slope of the broken maroon line indicates that the ASP in terms of absolute rupees intercepts the Q4-2015 ordinate at Rs 94.3336 crore as compared to the Rs 82.47 crore actually spent by the company.

    As mentioned above, the company’s TIO is generally the highest in Q3 and lowest in Q1 of a financial year. In Q4S-2015, Emami reported TIO of RS 553.66 crore, which was 24.2 per cent higher y-o-y as compared to Rs 445.71 crore, but declined 20 per cent as compared to the Rs 692.26 crore in Q3-2015. Please refer to figure B below, in which the quarter on quarter percentage change of TIO is indicated by the red line with yellow markers.

    During the 16 quarter period under consideration, Emami TIO was highest in Q3-2015 at Rs 692.26 crore and lowest in Q1-2012 at Rs 299.91 crore. The black broken trend line shows that the company’s TIO is increasing linearly. The slope of the trend line intercepts the Q4-2015 ordinate at Rs 574.948 crore, indicating that the company’s performance at 553.36 crore was lower than that indicated by the trend line.

    The company’s PAT follows the same trend of being the highest in Q3 and the lowest in Q1 during the period under consideration in this report. PAT in Q4-2015 at Rs 138.33 crore (25 per cent of TIO) was 21.9 per cent more than the Rs 111.15 crore (24.9 per cent of TIO) in Q4-2014, but declined 24.7 per cent from Rs 183.70 crore (26.5 per cent of TIO) in Q3-2015. Please refer to Fig C below.

    During the 16 quarter period under consideration, the highest PAT both in terms of absolute rupees as well as percentage of TIO was in the previous quarter at Rs 183.7 crore and 26.5 per cent respectively.The lowest PAT in terms of absolute rupees and percentage of TIO was in Q1-2012 at Rs 41.5 crore and 13.8 per cent respectively.

    The slope of the pink broken trend line indicates its intercept of Q4-2015 at 23.52 per centof TIO as compared to the actual 25 per cent of TIO achieved by Emami. The slope of the broken blue line shows its intercept with Q4-2015 atRs 134.6008 crore as compared to the Rs 138.33crore PAT actually achieved by the company. Both trend lines inclinedlinear increments. 

  • FY-2015: Hindustan Media Ventures revenue up 12%, PAT up 26.7%

    FY-2015: Hindustan Media Ventures revenue up 12%, PAT up 26.7%

    BENGALURU: Publisher of Hindi newspaper Hindustan, Hindi socio cultural magazine Kadambini and children’s Hindi magazine Nandan, Hindustan Media Ventures Limited (HMVL – not to be confused with HT Media Limited of Hindustan Times, Mint and Fever FM fame) reported 12.2 per cent increase in Total Income from Operations (TIO) in FY-2015 to Rs 818.58 crore as compared to the Rs 729.72 crore in FY-2014. TIO in Q4-2014 (quarter ended 31 March, 2015, current quarter) at Rs 199.3 crore grew 8.4 per cent from Rs 183.88 crore in Q4-2014, but declined 3.7 per cent from Rs 206.87 crore in the immediate trailing quarter.

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

    HMVL reported a 26.7 per cent hike in profit after tax (PAT) in FY-2015 at Rs 140.86 crore as compared to the Rs 111.121 crore in FY-2014. PAT in Q4-2015 improved 43.1 per cent to Rs 38.94 crore as compared to the Rs 27.21 crore in Q4-2014 and improved 6.5 per cent as compared to the Rs 36.58 crore in the immediate trailing quarter.

    Advertising and circulation revenues:

    The company’s advertising revenue in FY-2015 grew 12.5 per cent to Rs 596.50 crore as compared to the Rs 530 crore in the previous year. Ad revenue in Q4-2015 at Rs 146.6 crore was 10.3 per cent more than the Rs 132.9 crore in the corresponding year ago quarter, but declined 3.7 per cent as compared to the Rs 152.2 crore in Q3-2015.

    Circulation revenue in FY-2015 at Rs 200.70 crore improved 12.6 per cent from Rs 178.20 crore in FY-2014. Q4-2015 circulation revenue was 11.6 per cent higher at Rs 50.80 when compared to the Rs 45.5 crore in Q4-2014, but declined by 0.4 per cent as compared to the Rs 51 crore in Q3-2015.

    Let us look at the other numbers reported by HMVL:

    The company’s total expenditure (TE) in FY-2015 at Rs 676.41 crore was up 12.7 per cent from Rs 600.04 crore in FY-2014. TE in Q4-2015 at Rs 163.3 crore was five per cent more than the Rs 155.58 crore in Q4-2014, but 5.6 per cent lower than the Rs 172.91 crore in Q3-2014.

    A major component of HMVL’s TE is cost of raw materials (RM). In FY-2015, HMVL’s RM cost at Rs 337.40 crore was 12.3 per cent more than the Rs 300.44 crore in FY-2014. RM cost in Q4-2014 at Rs 79.14 crore was two per cent lower than the Rs 80.76 crore in the corresponding year ago quarter but 8.7 per cent lower than the Rs 86.69 crore in Q3-2015.

    The company’s employee benefit expense (employee cost) in FY-2015 at Rs 108.6 crore was 23.4 per cent more than the Rs 86.55 crore in FY-2014. In Q4-2015, employee cost at Rs 26.52 crore was 22.1 per cent more than the Rs 21.72 crore in Q4-2014, but 3.5 per cent lower than the Rs 26.52 crore in Q3-2015.

    Company Speak

    HMVL chairperson Shobana Bhartia said, “We are pleased to report that we grew faster than the industry in terms of both revenue and profits. We did this despite an increase in our structural costs and a difficult operating environment. The year also saw us cement our number two position in Uttar Pradesh and Delhi, even as we retained our leadership positions in Uttarakhand, Bihar and Jharkhand by a wide margin. Our robust performance, coupled with expected improvement in the macroeconomic environment, gives us confidence that we will continue to outperform the market in the coming year. Our established brand, increasing readership and a healthy balance sheet provide us with a strong grounding for the future.”

  • FY-2015: TV Today reports 22.4% income growth, PAT up 32.2%

    FY-2015: TV Today reports 22.4% income growth, PAT up 32.2%

    BENGALURU: TV Today Network Limited (TVTN) reported 22.4 per cent growth in Total Income from Operations (TIO) to Rs 476.58 crore as compared to the TIO of Rs 389.44 crore in the previous year. Profit after tax (PAT) for the current year grew 32.2 per cent to Rs 81.03 crore from Rs 61.32 crore in FY-2014. TIO for Q4-2015 at Rs 114.15 crore was 17.2 per cent more than the Rs 97.41 crore in the corresponding year ago quarter but 9.9 per cent lower than the Rs 126.68 crore in Q3-2015.

     

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

     

    TVTN PAT for Q4-2015 at Rs 8.69 crore declined 45.2 per cent as compared to the Rs 15.85 crore in Q4-2014 and was 67 per cent less than the Rs 13.21 crore in the immediate trailing quarter.

     

    Let us look at the other numbers posted by TVTN:

     

    TVTN reported other income of Rs 22.69 crore in FY-201; Rs 11.70 crore in FY-2014; Rs 10.97 crore in Q4-2015; Rs 5.01 crore in Q4-2014 and Rs 4.24 crore in Q3-2015.

     

    The company’s total expenses (TE) for FY-2015 increased 23.2 per cent to Rs 374.90 crore from Rs 304.35 crores in the previous year. TE in Q4-2015 at Rs 112.70 crore was 45.8 per cent more than the Rs 77.31 crore in Q4-2014 and 24.6 per cent more than the Rs 90.48 crore in the preceding quarter.

     

    Production cost in FY-2015 at Rs 54.46 crore was 32.5 per cent more than the Rs 41.09 crore in FY-2014. Q4-2015 production cost increased 37.7 per cent in Q4-2015 to Rs 17.94 crore as compared to the Rs 13.03 crore in Q4-2014 and was 50 per cent more than the Rs 11.96 crore in Q3-2015.

     

    The company’s advertisement, distribution and sales promotion expense (ad expense) in FY-2015 at Rs 101.75 crore was 18.7 per cent more than the Rs 85.74 crore in FY-2014. Ad expense for Q42015 was 80.3 per cent more at Rs 32.68 crore as compared to the Rs 18.12 crore in Q4-2014 and was 30.4 per cent more than the Rs 25.06 crore in Q3-2015.

     

    Segment Results:

     

    TV Broadcasting

     

    TVTN’s TV Broadcasting segment reported 23.3 per cent operating revenue growth in FY-2015 to Rs 461.08 crore as compared to the Rs 374.06 crore in FY-2014. The segment’s operating revenue in Q4-2015 improved 22.5 per cent to Rs 114.54 crore as compared to the Rs 93.5 crore in the corresponding year ago quarter, but declined 9.6 per cent as compared to the Rs 126.68 crore in Q3-2105.

     

    The segment reported 22.1 per cent growth in operating profit to Rs 126.71 crore in FY-2015 as compared to the Rs 103.75 crore in FY-2015. In Q4-2015, operating profit declined 45.9 per cent to Rs 14.90 crore as compared to the Rs 27.55 crore in Q40-2014 and fell to less than the half (38 per cent) of the Rs 39.22 crore in the immediate trailing quarter.

     

    FM Radio Broadcasting

     

    TVTN’s FM Radio Broadcasting segment reported 0.6 per cent growth in operating revenue to Rs 15.48 crore in FY-2015 as compared to the Rs 15.38 crore in FY-2014. Operating revenue for the segment declined 0.3 per cent in Q4-2015 to Rs 3.90 crore as compared to the Rs 3.91 crore in Q4-2015 and declined fourper cent as compared to the Rs 4 crore reported in Q3-2015.

  • FY-2015: Tips reports PAT of Rs 2.7 crore

    FY-2015: Tips reports PAT of Rs 2.7 crore

    BENGALURU: Tips Industries Limited’s reported PAT of Rs 2.7 crore in FY-2015 as compared to a loss of Rs 16.24 crore in the previous financial year. The company’s Q4-2015 performance was marred by the operating loss by its film distribution and production segment that reported an operating loss of Rs 12.53 crore, hence wiping out completely and more the operating profit of Rs 7.63 crore reported by its other segment – Audio Products.

     

    The company reported a loss of Rs 7.67 crore in Q4-2015 as compared to a loss of Rs 0.70 crore in the corresponding year ago quarter and a loss of Rs 3.08 crore in Q3-2015.

     

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

     

    Let us look at the other numbers reported by Tips:

     

    Tips reported 1.3 per cent decline in total income from operations (TIO) in FY-2015 to Rs 102.35 crore from Rs 103.67 crore in FY-2014. Q3-2015 TIO increased 12.5 per cent to Rs 10.21 crore from Rs 9.08 crore in Q4-2014 and increased 70.8 per cent from Rs 5.98 crore in the immediate trailing quarter.

     

    Total Expenditure (TE) in FY-2015 declined 19.7 per cent to Rs 88.95 crore as compared to the Rs 110.80 crore in FY-2014. In Q4-2015, TE more than doubled (increased to 2.33 times) to Rs 17.24 crore as compared to the Rs 7.38 crore in Q4-2014 and was 2.38 times more than the Rs 7.23 crore in Q3-2015. Higher TE in Q4-2015 was due to higher cost of production/distribution of films, which is the major expense head for the company.

     

    Tips incurred more than fivefold (5.68 times) increase in cost of production/distribution of films at Rs 12.01 crore in Q4-2014 as compared to the Rs 2.11 crore in Q4-2014 and more than quadruple (4.03 times) the Rs 2.98 crore reported in Q3-2015.

     

    Segment numbers:

     

    Audio Products

     

    Audio Product sales/income in FY-2015 improved five per cent to Rs 32.22 crore from Rs 30.52 crore in FY-2015. In Q4-2015, sales/income from this segment at Rs 10.16 crore was 9.6 per cent higher than the Rs 9.27 crore in Q4-2014 and 69.9 per cent more than the Rs 5.98 crore in Q3-2015.

     

    Audio Product segment reported a 2.7 per cent decline in operating profit to Rs 22.01 crore in FY-2015 from Rs 22.72 crore in FY-2014. As mentioned above, Audio Products segment reported an operating profit of Rs 7.63 crore in Q4-2015, which was 5.7 per cent more than the Rs 7.22 crore in Q4-2014 and 66.9 per cent more than the Rs 4.57 crore in Q3-2015.

     

    Film Distribution/Production

     

    This segment reported 4.1 per cent decline in income to Rs 70.13 crore in FY-2015 from Rs 72.14 crore in FY-2014. Q4-2015 income was Rs 0.053 crore as compared to a negative Rs 0.19 crore in Q4-2014 and Nil in Q3-2015.

     

    As mentioned above, this segment reported operating profit of Rs 0.54 crore in FY-2015 as compared to a loss of Rs 17.53 crore in FY-2015. The segment reported higher loss in Q4-2014 at Rs 12.63 crore as compared to an operating loss of Rs 3.16 crore in the corresponding year ago quarter and an operating loss of Rs 3.45 crore in the immediate preceding quarter.

  • Den Network reports 11.5% growth in FY-2015 cable subscription revenue; posts loss

    Den Network reports 11.5% growth in FY-2015 cable subscription revenue; posts loss

    BENGALURU: Den Networks Ltd reported that its cable business subscription revenues net off LCO share grew 11.5 per cent to Rs 966 crore in FY-2015 from Rs 866 core in FY-2014. In the current quarter, cable business subscription revenues net off LCO share grew 13 per cent to Rs 252 crore from Rs 223 crore in Q4-2014.

     

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

     

    Including LCO share, Den Networks cable business subscription revenues grew 3.6 per cent to Rs 1093 crore in FY-2015 from Rs 1055 crore in FY-2014. Cable business subscription revenues including LCO share in Q4-2015 declined seven per cent to Rs 265 crore from Rs 285 crore in Q4-2014.

     

    In FY-2015, Den Networks reported loss of Rs 144.01 crore as compared to a profit of Rs 38.40 crore in the previous year. Loss in Q4-2015 was Rs 61.15 crore as compared to a profit of Rs 10.05 crore in the corresponding year ago quarter. Loss in Q3-2015 was slightly higher Rs 62.60 crore

     

    Den Networks says that it added 10 lakh set top boxes (STB) in FY-2015, taking the total STBs deployed to approximately 70 lakh. It says further that its current digital subscriber base in Phase 1 and 2 stood at approximately 51 lakh.

     

    Let us look at the other numbers reported by Den Networks

     

    Den Networks TIO in FY-2015 at Rs 1129.64 crore was 1.2 per cent more than the Rs 1116.69 crore in FY-2014. TIO in Q4-2015 at Rs 270.30 crore was 10.5 per cent lower than the Rs 301.86 crore in Q4-2014, but 0.6 per cent more than the Rs 268.81 crore in Q3-2015.

     

    Total expense (TE) in FY-2015 at Rs 1223.18 crore was 27.2 per cent more than Rs 961.92 crore in FY-2014. TE in Q4-2015 at Rs 323.79 crore was 20.3 per cent more than the Rs 269.18 crore in Q4-2014 and was 2.2 per cent more than the Rs 316.75 crore in Q3-2015. 

     

    The company’s content cost in FY-2015 at Rs 454.52 crore was 22.3 per cent more than the Rs 371.73 crore in FY-2014. Content cost in Q4-2014 at Rs 139.13 crore was 38 per cent more than the Rs 100.85 crore in Q4-2014 and 26.4 per cent more than the Rs 110.06 crore in Q3-2015.

     

    Den’s EBIDTA (without considering other income) in FY-2015 at Rs 92.41 crore was much lower than the Rs 302.17 crore in FY-2014. Q4-2015 EBIDTA was negative Rs 5.97 crore in Q4-2015 as compared to an EBIDTA of Rs 73.18 crore in Q4-2014 and EBIDTA of Rs 0.28 crore in the immediate trailing quarter.

     

    Company Speak

     

    Den Networks CEO Pradeep Parameswaran said, “We are laying the foundation of building a powerful consumer franchise in broadband, cable television and television shopping. Significant investments are being made to bring disruptive consumer offerings to the market. We are augmenting our historical strength in cable operations with high quality talent in all functions. Besides focus on internal changes, I am also hopeful of a stronger collaboration with LCOs’ and other industry partners to take steps for successful execution of digitisation process thus supporting the government push towards digital India. Our excitement in the scale of opportunities and our ability to capture it continues to remain strong.”

     

    “We have seen positive results on subscription revenues and collections in Q4 of the current year. The profitability has been impacted because of the new business initiatives of the company including broadband, TV Shop and Football as we build Den Networks for the future,” added Parameswaran.

  • Dish Network Q1-2015 revenue up 5.3%; income doubles despite losing subscribers

    Dish Network Q1-2015 revenue up 5.3%; income doubles despite losing subscribers

    BENGALURU: US subscription Pay TV service company Dish Network Corporation reported 5.3 per cent growth in revenue for the quarter ended 31 March, 2015 (Current quarter, Q1-2015) at $3724.23 million as compared to the $3594.20 million in the corresponding year ago quarter.

    Dish Network’s income almost doubled (up 99.8 per cent) to $358.49 million in the current quarter as compared to the $175.93 million in Q1-2014. Consequently diluted earnings per share (diluted EPS) doubled to $0.76 from $0.38.
     

    The company activated approximately 554,000 gross new Pay-TV subscribers compared to approximately 639,000 gross new Pay-TV subscribers in the prior year’s first quarter. Net Pay-TV subscribers declined by approximately 134,000 or 21.8 per cent in Q1-2015. The company closed the current quarter with 13.844 million Pay-TV subscribers, compared to 14.097 million Pay-TV subscribers in Q1-2014.
     

    Pay-TV ARPU (average revenue per user) for the first quarter totalled $86.01, 4.4 per cent higher as compared to Q1-2014 Pay-TV ARPU of $82.36. The company reveals that Pay-TV subscriber churn rate was higher at 1.65 per cent versus 1.42 per cent for Q1-2014.
     

    Higher ARPU meant that subscriber revenue increased 3.7 per cent to $3688.92 million in Q1-2015 from $3556.19 million in the previous year. Equipment related revenue was almost flat at $22.47 million in Q1-2015 as compared to the $22.24 million in the corresponding quarter of last year. Echo Star revenue (Equipment sales, services and other revenue) declined 18.6 per cent in Q1-2015 to $12.84 million as compared to the $15.77 million in Q1-2014.
     

    Subscriber related expenses rose 4.5 per cent to $2162.77 million in Q1-2015 from $2069.13 million in the corresponding year ago quarter. Satellite and transmission costs in the current quarter rose 25 per cent to $186.84 million from $149.5 million in Q1-2014. Subscriber acquisition cost declined 11.6 per cent to $396.92 million in Q1-2015 as compared to $449.15 million in the year ago quarter.

  • FY-2015: HUL marketing spends up 7.2%; Q4-2015 marketing spends cross Rs 1000 crore

    FY-2015: HUL marketing spends up 7.2%; Q4-2015 marketing spends cross Rs 1000 crore

    BENGALURU: Indian FMCG giant Hindustan Unilever Limited (HUL) Advertisement and Promotions expense (marketing spends, ASP) in FY-2015 was 7.2 per cent more at Rs 3874.94 crore (12.6 per cent of Total Income from operations or TIO, approximately $590 million) than the Rs 3613.609 crore in FY-2014.

    For the fourth quarter ended 31 March, 2015 (Q4-2015, current quarter), the company exceeded the Rs 1000 crore (approx. $156 million) mark to clock Rs 1027.89 crore (13.4 per cent of TIO, approx. $160 million). ASP in the current quarter was 22.3 per cent more than the Rs 840.34 crore (11.8 per cent of TIO) in the corresponding year ago quarter and was 5.2 per cent more than the Rs 977.12 crore (12.6 per cent of TIO) in Q3-2015.

    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 Q4-2015 and FY-2015.

    (3) The US dollar figures are approximately based on a conversion rate of 1$= Rs 64.The converted numbers have been rounded off.

    HUL chairman Harish Manwani said, “We have delivered another year of strong performance with broad based growth ahead of the market and sustained margin improvement. Our strategy remains focused on strengthening the core of our business through innovation, leading market development and continuous improvement of our executional capabilities. Despite market challenges, our strategic agenda remains unchanged as we continue to manage our business even more dynamically for growth that is consistent, competitive, profitable and responsible.”

    As a matter of fact, HUL’s ASP in Q4-2015 is the highest over a 12 quarter period starting Q1-2013 until the current quarter in terms of absolute rupee spends at Rs 1027.89 crore. In terms of percentage of TIO, during the period under consideration, ASP was 13.8 per cent of TIO in Q2-2014 at Rs 954.02 crore. Please refer to Fig A below.

    HUL’s ASP in absolute rupees shows a linear increasing trend during the 12 quarter period under consideration. The blue broken trend line intercepts Q4-2015 at Rs 995.876 crore, showing that the company has spent Rs 32.014 crore more than indicated by the trend line’s slope.

    HUL’s ASP in terms of percentage of TIO in Q4-2015 at 13.4 per cent is in excess of the 12.6839per cent represented by the slope of the orange broken trend line during the period under consideration.

    HUL TIO in FY-2015 at Rs 30805.62 crore (approx. $4.8 billion) was 9.9 per cent more than the Rs 28019.13 crore in the previous year. In Q4-2015, TIO at Rs 7675.63 crore was 8.2 per cent more than the Rs 7094.10 crore in Q4-2014, but was 1.3 per cent lower than the Rs 7774.32 crore in the immediate trailing quarter. Please refer to Fig B below. The orange broken trend line indicates that TIO has a linear increasing trend during the 12 quarter period under consideration in this report.The slope of the line indicates that HUL should have had a higher TIO of Rs 7856.14 crore and hence underperformed by Rs 180.51 crore (about $28 million).

    HUL PAT in FY-2015 at Rs 4315.26 crore (14 per cent of TIO, approx. $675 million) was 11.6 per cent more than the Rs 3867.49 crore in FY-2014. For Q4-2015, PAT at Rs 1018.08 crore (13.3 per cent of TIO) was 16.7 per cent more than the Rs 873.13 crore (12.3 per cent of TIO) in Q4-2014, but was 18.7 per cent less than the Rs 1252.17 crore(16.1 per cent of TIO) in Q3-2015.

    In Fig B below, the maroon broken line indicates that PAT in absolute rupees shows a linear increasing trend during the period under consideration. The slope of the line indicates that the HUL should had have had a higher PAT of Rs 1131.504 crore in Q4-2015 and hence underperformed by Rs 113.42 million ($18 million)

    In terms of percentage of TIO, the green broken line indicates a linear decreasing trend. The slope of the line indicates that HUL’s actual PAT as percentage of TIO of Q4-2015 at 13.3 per cent is higher than the calculated 13.12 per cent.

    HUL’s board of directors at its meeting held on Monday, 8 May, 2015 recommended a final dividend of Rs 9 per share of Re1 each, for the financial year ended 31 March, 2015. Together with the interimdividend of Rs 6 per share paid on 3 November, 2014, the total dividend for the financial year ended 31 March, 2015 works out to Rs 15 per share of Re 1 each. Final dividend, subject to approval of shareholders, will be paid on or after Friday, 3 July, 2015.

  • FY-2015: Dabur’s Real becomes Rs 1000 crore brand; PAT crosses Rs 1000 crore

    FY-2015: Dabur’s Real becomes Rs 1000 crore brand; PAT crosses Rs 1000 crore

    BENGALURU: Dabur India Limited’s brand ‘Real’ fruit juice crossed sales of Rs 1000 crore in FY-2015 in India, Nepal and a few other markets, the company revealed in its investor presentation.

    Dabur spent 12.5 per cent more towards advertising and publicity expenses (ASP) in FY-2015 at Rs 1124.38 crore (14.4 per cent of Total Income from Operations or TIO) as compared to the Rs 999.67 crore (14.1 per cent of IO) in FY-2014. Also, for the first time, the company has crossed the Rs 1000 crore mark by clocking profit after tax (PAT) of Rs 1068.47 crore (13.7 per cent of TIO) in FY-2015. In FY-2014, Dabur had reported PAT of Rs 916.45 crore (13 per cent of TIO).

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

    Dabur’s products

    Dabur’s products include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin hara fizz; OTC and ethicals such as Lal Tail, Honitus Syrup; haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine marks; toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem natural fairness, Gold Bleach, Gulabari; homecare brands such as Odomos, Odonil and Sanifresh; food brands such as Real and Real Active.

    “The gradual improvement in the consumption environment has helped our business perform well on all operating parameters. Our robust business model and our ability to efficiently manage the external challenges have helped us report a strong and consistent performance even in the face of intensifying competitive pressures. Our India FMCG business ended the fourth quarter with a 12 per cent growth, led by 8.1 per cent volume growth. Our EBIDTA margin saw a 17 per cent growth during the quarter,” Dabur India CEO Sunil Duggal said. 

    “Going forward too, our focus will be on pursuing an aggressive and profitable growth strategy. We will continue to invest behind our brands and on market expansion programmes while stepping up on innovation with a series of new product launches in the coming quarter,” Duggal added.

    Trends

    The company’s ASP in the quarter ended 31 March, 2015 (Q4-2015, current quarter) at Rs 265.39 crore (13.6 per cent of TIO) was 16.2 per cent more than the Rs 228.38 crore (12.9 per cent of TIO) in the corresponding quarter of last year, but was 16.9 per cent lower than the Rs 319.38 crore (15.362 per cent of TIO) in the immediate trailing quarter. Over the ten quarter period starting Q3-2014, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO  both show a linear increasing trend.

    Please refer to Fig 1 below. It may be noted that when calculated, the brown trend line for ASP in terms of percentage of TIO actually shows a figure of 14.25 per cent of TIO (Rs 277.838 crore), and the blue trend line for ASP in absolute rupees shows a figure of Rs 289.902 crores (14.9 per cent of TIO) for Q4-2015.

    During the ten quarter period under consideration, Dabur‘s ASP was highest in absolute rupees in immediate trailing quarter at Rs 319.38 (15.362 per cent), while and in terms of percentage of TIO, it was highest in Q1-2014 at 15.385 per cent (Rs 254.22 crore).

    Dabur TIO in FY-2015 at Rs 7827.20 crore was 10.6 per cent more than the Rs 7075.31 crore in FY-2014. In Q4-2015, the company reported TIO of Rs 1949.74 crore, which was 9.9 per cent more than the Rs 1774.41 crore in Q4-2014, but 6.2 per cent lower than the Rs 2079.02 crore in Q3-2015. The company’s TIO shows a linear increasing trend during the ten quarter period under consideration in this report.

    Dabur PAT for Q4-2015 at Rs 284.86 crore (14.6 per cent of TIO) was 21.1 per cent more than the Rs 235.29 crore (13.3 per cent of TIO) and 0.7 per cent more than the Rs 282.78 crore (13.6 per cent of TIO) in Q4-2014. PAT in abslute rupees as well as in terms of percentage of TIO show linear increasing trends.

    The company in its earnings release says that the Foods category for Dabur – riding on strong demand for its packaged juices – posted a near 20 per cent growth during the fourth quarter of 2014-15, while the Skin Care business ended with a near 17 per cent growth. The Toothpaste business, led by strong demand for Dabur Red Paste and Meswak, reported an over 14 per cent growth. The Health Supplements Business grew by 13 per cent, while the Home Care category grew by over 12 per cent.

  • FY-2015: Titan revenue up 9%, ad spends down 5.5%

    FY-2015: Titan revenue up 9%, ad spends down 5.5%

    BENGALURU: Titan Company Limited reported nine per cent increase in Total Income from Operations (TIO, revenue) in FY-2015 to Rs 11913.41 crore as compared to the Rs 10927.39 crore in FY-2014. The company’s profit after tax (PAT) for the year increased 11.1 per cent to Rs 816.26 crore from Rs 734.94 crore in the previous year.

    The company spent 5.5 per cent lower amount at Rs 382.13 crore (3.21 per cent of TIO) towards advertising in FY-2015 as compared to the Rs 404.43 crore in FY-2014.

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

    Businesses and Brands

    Titan has three revenue segments – watches comprising brands namely Titan, Xylus, Nebula, Sonata and Fastrack and Zoop; Jewellery with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

    During the current quarter, sales value of World of Titan grew 11 per cent; Tansihq sales value declined 21 per cent, Goldplus declined 4 per cent, Helios declined 3 per cent, Fastrack grew 1 per cent, LFS and Titan Eye+ grew 10 and 14 per cent respectively.

    Watches

    The watch segment saw an increment of two per cent in volumes in FY-2015 as compared to FY-2014. Net sales for the segment grew 7.3 per cent to Rs 1921 crore in the current year from Rs 1791 crore in FY-2014.

    Though Q4-2015 saw a fall of six per cent in volume as compared to Q4-2014, revenue increased 1.8 per cent to Rs 511 crore from Rs 502 crore in the corresponding year ago quarter on the back of increment of prices.

    Jewellery

    Titan’s jewellery distribution brands are Tanishq and Goldplus from Tata. Jewellery contributes about 80 per cent to Titan’s TIO. The segment’s sales grew eight per cent (excluding coins) in volumes in FY-2015 as compared to FY-2014. Sales revenue grew 9.2 per cent to Rs 9240 crore in FY-2015 from Rs 8632 crore in FY-2014. During the year the company witnessed a grammage growth of eight per cent, (including coins) and six per cent excluding coins. Also, the share of studded jewellery increased to 32 per cent from 30 per cent in FY-2015. The company says that it saw a customer growth of 13 per cent in the jewellery segment during the year.

    Q4-2014 was a quarter of falls for Titan’s jewellery segment. For Q4-2015, volumes witnessed a fall of 16 per cent as compared to Q4-2014, while sales of jewellery fell 15.3 per cent to RS 1828 crore from Rs 2157 crore in Q4-2014. Customers declined seven per cent in the quarter. While studded jewellery witnessed an 18 per cent decline during the quarter, it retained the same share of 37 per cent as last year.

    Others

    The ‘Others’ segment reported 12.9 per cent revenue growth to Rs 565 crore in FY-2015 from Rs 500 crore in Q4-2014. Eyeware witnessed a growth of 24 per cent and returned an operating profit of Rs 4 crore. For Q4-2015, the segment reported 12.8 per cent increase in revenue to Rs 165 crore from Rs 146 crore in Q4-2014.

    Trends

    Titan’s ASP declined 8.1 per cent in Q4-2015 to Rs 80.30 crore (3.22 per cent of TIO) from Rs 87.37 crore (3.12 per cent of TIO) in Q4-2014 and was 17 per cent lower than the Rs 96.75 crore (3.31 per cent of TIO) in Q3-2015. Please refer Fig A below. During a 13 quarter period starting Q4-2012, Titan’s ASP was highest in terms of absolute rupees in Q3-2014 at Rs 118.04 crore (4.41 per cent of TIO). It was highest in terms of per centage of TIO in Q1-2013 at 4.69 per cent of TIO (Rs 103.44 crore).

    Though ASP shows a declining trend both in terms absolute rupees and in terms of per centage of TIO, on calculation, the brown trend line actually indicates ASP as 3.15 per cent of TIO, while the actual amount spent by the company was 0.07 per cent more as mentioned above for Q4-2015. On calculation, the blue trend line indicates ASP in absolute rupees as Rs 96.48 crore as opposed to the actual Rs 80.30 crore spent by the company in Q4-2015.

    TIO and PAT

    Please refer to Figure B below. The company’s TIO in Q4-2015 fell 11 per cent to Rs 2496.19 crore from Rs 2803.38 crore in Q4-2014 and was 14.6 per cent lower than the Rs 2922.51 crore in the immediate trailing quarter. During the thirteen quarter period under consideration in this report, TIO shows a linear increasing trend.

    PAT in Q4-2015 at Rs 215.09 crore (9.6 per cent of TIO) was 4.3 per cent more than the Rs 190.73 crore (7.4 per cent of TIO) in Q4-2014 and was 12.8 per cent more than the Rs 190.73 crore (7.1 per cent of TIO) in Q3-2015. PAT shows a linear increasing trend during the 13 month period under consideration.

    Company speak

    Titan managing director Bhaskar Bhat said, “The economic outlook for the year 2014-15 was quite good but improvement in consumer demand has been quite lukewarm. Our jewellery business was also adversely impacted due to regulatory changes and termination of the consumer friendly Golden Harvest Scheme. All our brands witnessed good growth during the first half but post Diwali season we have seen tapering of growths. The Company will however continue to invest in strategic initiatives taking into account our long term and sustainable growth plans.”