ITV

Category: Financials

  • Q3-2015: HUL marketing spends up 5 per cent at Rs 977 crore

    Q3-2015: HUL marketing spends up 5 per cent at Rs 977 crore

    BENGALURU: Indian FMCG giant Hindustan Unilever Limited’s (HUL) Advertisement and Promotions expense (ASP) in Q3-2015 at Rs 977.12 crore (12.6 per cent of Total Income from operations or TIO) was 5.1 per cent more than the Rs 929.46 crore (12.9 per cent of TIO) in the corresponding quarter of last year and 5.6 per cent more than the Rs 925.05 crore (12.1per cent of TIO) in Q2-2015.

    During the nine month period ended 31 December 2014 (9M-2015) the company’s ASP at Rs 2807.05 crore (13.3 per cent of TIO) was 2.7 per cent more than the Rs 2773.26 crore (12.5 per cent of TIO) during 9M-2014.

    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 company reported a 7.6 per cent y-o-y jump in TIO in Q3-2015 to Rs 7774.32 crore from Rs 7223.35 crore in Q3-2014 and just a meagre 1.8 per cent increase from the Rs 7639.33 crore in Q2-2015. YTD, HUL’s TIO at Rs 23129.98 crore was 10.5 per cent more than the Rs 20925.03 crore in 9M-2014.

    Fig A below shows the ASP trend of the company over an eleven quarter period starting Q1-2013 until the current quarter Q3-2015. In terms of absolute rupees, ASP shows an upward linear trend with the current quarter’s ASP being the highest. ASP in Q2-2013 (Quarter ended 30 September 2012) at Rs 768.98 crore (12.2 per cent of TIO).  ASP in terms of per centage of TIO was highest in Q2-2014 at 13.8 per cent (Rs 954.02 crore), while the lowest ASP in terms of per centage of TIO was in Q4-2014 at 11.8 per cent (Rs 944.88 crore). The company’s ASP in terms of per centage of TIO shows a declining trend.

    Fig B below indicates HUL’s TIO and PAT trends during the above mentioned eleven quarter period. The company’s TIO shows an upward linear trend with the current quarter’s TIO highest and TIO during Q2-2013 being the lowest at Rs 6318.81 crore. During the period under consideration, TIO in Q1-2015 registered the highest q-o-q growth at 8.8 per cent to Rs 7716.34 crore from Rs 7094.10 crore in Q4-2014. TIO in Q4-2014 registered the sharpest drop at 1.8 per cent from Rs 7223.35 crore in Q3-2014 during the same eleven quarter period.

    HUL recorded an increase of 17.9 per cent in PAT to Rs 1252.17 crore (16.1 per cent of TIO) in Q3-2015 from Rs 1062.31 crore (13.3 per cent of TIO) in Q3-2014 and a 26.7 per cent increase from Rs 988.16 crore (12.9 per cent of TIO) in Q2-2015. During 9M-2015, PAT grew 10.1 per cent to Rs 3297.17 crore (14.3 per cent of TIO) from Rs 2995.36 in 9M-2014. In terms of per centage of TIO,  as well as in absolute rupees, HUL’s PAT was highest in Q1-2013 at 20.9 per cent and Rs 1331.19 crore. While PAT shows a slight linear decline in absolute rupees during the period under consideration, in terms of per centage of TIO, the linear decline is more marked.

    Kotak Securities FMCG analyst Ritwik Rai said, “HUL’s Q3-2015 results disappointed as volume growth (3 per cent, y-o-y) missed our estimates (5 per cent estimate). The company has reported that its volume and value growth remains ahead of the sector. Gross margins expanded in line with expectations. Excluding one-time provisions in employee expenses, the reported EBITDA came in 5 per cent below our estimates. We would expect that sales growth of the company shall pick up in the coming quarters, as lower inflation, improved sentiment help lift volume growth. Benefits of lower commodity prices are visible in the quarter, and will continue to be a useful tailwind for the company. The stock could see some near-term pressure, given sharp run-up in recent sessions and disappointing Q3-2015 results. However, our medium-term view on the stock remains constructive.”

    HUL chairman Harish Manwani added, “We have delivered another quarter of competitive growth and margin improvement. We continue to strengthen the core of our business and drive the competitiveness of our brands in the market. At the same time, we are leading market development in relatively nascent categories such as packaged foods  and premium personal care with strong results. Given the fast changing external environment, we are managing our business dynamically for sustained volume led growth and margin improvement.”

  • Q3-2015: Shemaroo reports 17% q-o-q PAT growth; on course to improved EPS in FY-2015

    Q3-2015: Shemaroo reports 17% q-o-q PAT growth; on course to improved EPS in FY-2015

    BENGALURU: For the second quarterly results (Q3-2015) since its listing after its initial public offering (IPO) in September 2014, Shemaroo Entertainment Limited (Shemaroo) has reported a 16.9 per cent growth in PAT at Rs 10.02 crore (11.5 per cent of Total Income from Operations or TIO) in Q3-2015 from Rs 8.57 crore (10.1 per cent of TIO) in Q2-2015, but almost flat (0.6 per cent growth) as compared to the Rs 9.96 crore (11.6 per cent of TIO) in Q3-2014. During 9M-2015, PAT at Rs 28.30 crore (12 per cent of IO) was 38.8 per cent more than the Rs 20.39 crore (9.6 per cent of TIO) in 9M-2014.

     

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

    All numbers in this report are consolidated numbers

     

    The company’s Earnings per Share (EPS) in Q3-2015 at Rs 4.6 was lower than the Rs 5.01 in Q3-2014, but higher than the Rs 3.94 in the immediate trailing quarter. 9M-2015 EPS was 12.93 versus the Rs 10.27 in 9M-2014. During FY-2014, (before IPO and listing) Shemaroo’s EPS was Rs 14.08, and the company should exceed this figure if things continue as they have been so far.

     

    The company’s TIO in Q3-2015 at Rs 87.28 crore was 1.9 per cent more than the Rs 85.65 crore in Q3-2014 and 2.7 per cent more than the Rs 84.96 crore in Q2-2015. In 9M-2015, Shemaroo’s TIO at Rs 236.73 crore was 12 per cent more than the Rs 211.33 crore in 9M-2014.

     

    Shemaroo’s total expenditure (TE) in Q3-2015 at Rs 68.5 crore (78.5 per cent of TIO) was 1.9 per cent lower than the Rs 69.82 crore (81.5 per cent of TIO) and 5.5 per cent more than the Rs 64.91 crore (76.4 per cent of TIO) in Q2-2015. TE in 9M-2015 increased 7.6 per cent to Rs 179.31 crore (75.7 per cent of TIO) from Rs 166.58 crore (78.8 per cent of TIO) in 9M-2014.

  • Reliance Retail reports 3.5 times y-o-y operating profit; revenue up 19 per cent

    Reliance Retail reports 3.5 times y-o-y operating profit; revenue up 19 per cent

    BENGALURU: Reliance Industries Limited’s (RIL) retail segment – Reliance Retail (RR) is a tiny fraction of the Rs 434,460 crore revenue that India’s largest private corporate reported in FY-2014. However, this segment has been growing consistently, quarter on quarter.

     

    For the quarter ended 31 December, 2014 (Q3-2015), RR reported an 18.9 per cent growth in revenue to Rs 4686 crore from Rs 3941 crore in the corresponding quarter of the previous year. Q-o-Q, the segment reported a 12.5 per cent revenue growth from Rs 4167 crore reported in Q2-2015. For the nine month period ended December 31, 2014 (9M-2015), RR reported 17.9 per cent growth in revenue to Rs 12852 crore from Rs 10903 crore in 9M-2014.

     

    RR reported 3.5 times y-o-y operating profit (Earnings before interest and tax – EBIT) in Q3-2015 to Rs 133 crore compared to the Rs 38 crore in Q3-2014 and 34.3 per cent growth from Rs 99 crore in Q2-2015. For 9M-2015, RR reported EBIT of Rs 313 crore, a growth of 232.9 per cent from Rs 94 crore in 9M-2014.

     

    Comparatively, RIL reported a 20.4 per cent drop in consolidated revenue in Q3-2015 to Rs 96330 crore from Rs 121077 crore in Q3-2014 and a 15.5 per cent drop from Rs 113396 crore in Q2-2015. For 9M-2015, RIL reported a 6.6 per cent drop in consolidated revenue to Rs 317631 crore from Rs 340131 crore in 9M-2014.

     

    RIL consolidated net profit decreased 4.5 per cent to Rs 5256 crore in Q3-2015 from Rs 5502 crore in Q3-2014 and a 12 per cent drop from Rs 5972 crore in Q2-2015. For 9M-2015 consolidated operating profit rose 3.4 per cent to Rs 17185 crore from Rs 16612 crore in 9M-2014.

     

    RIL chairman and managing director Mukesh Ambani said, “Our focus on operational efficiency and the superior configuration of assets helped us deliver an industry-leading performance in the refining and petrochemicals business despite sharp decline in crude and feedstock prices. The performance also highlights the robustness of our risk management and proficiency of people and processes across the integrated chain. We continued to advance our refining and petrochemicals business capital investments, which will come to fruition over the next 4-6 quarters. These investments demonstrate our commitment to creating value through the business cycle. During the quarter, Reliance Retail registered Y-o-Y growth of 19% in turnover with improved margins and profitability.”

     

    Company Speak

     

    Reliance Retail now operates 2,285 stores across the country. RIL, in its press release, says that RR saw net addition of 279 stores during the quarter accelerating the pace of store opening to over three stores a day. The value formats added 15 new Reliance Fresh stores to its network in the quarter and further consolidated its position as the largest grocery retailer in the country. Strong private label offering continued to attract consumers thereby becoming a favored option against established national brands. Reliance Fresh Direct, home delivery of fresh grocery currently being piloted in a limited territory is showing encouraging response.

     

    Reliance Market continued to expand and further consolidate its position as the largest Cash and Carry operator in the country. Reliance Market continued additions to its store network, reaching out to more and more kiranas, traders and institutions as partners across the country. Reliance Market serves over 15 lakh registered members.

     

    Digital format sector kept up the pace of expansion through Digital Xpress Mini, a format that is positioned towards serving communication and mobility needs. In a short period, the format has established itself as the largest mobile phone retail chain in the country. During the quarter, the sector added 231 stores taking the total store count of the sector to 920.

     

    The Fashion and Lifestyle sector witnessed strong growth during the quarter owing to a relentless focus on providing customers with fashionable, high quality products at great value. During this period, Reliance Trends crossed the milestone of operating stores in over 100 cities thereby extending their reach to fashion seeking customers.

     

    Reliance Retail grew its presence through its partnerships during this period. Its partnerships with Marks and Spencer and Grand Vision continued expansion and witnessed strong sales growth from existing stores. Reliance Brands partnered with ABG Juicy Couture, LLC for a distribution agreement for the brand, Juicy Couture in India.

     

  • DB Corp Q3-2015 PAT up 54%; Radio segment posts 44% improvement in op results

    DB Corp Q3-2015 PAT up 54%; Radio segment posts 44% improvement in op results

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar, reported a 54.3 per cent increase in PAT at Rs 105.11 crore in Q3-2015 from Rs 68.11 crore in the immediate trailing quarter and 11.3 per cent more than the Rs 94.46 crore in Q3-2014. Year-to-date (YTD) for 9M-2015, the company’s PAT at Rs 252.34 crore was 9.4 per cent more than the Rs 230.72 crore in the corresponding period of the previous year. The company says that PAT grew in 9M-2015 after factoring forex loss of Rs 4.41 crore and incremental depreciation of Rs 17.25 crore, as per new Companies Act, 2013
     
    DB Corp’s radio segment (MyFM) reported a 43.8 per cent growth in operating result in Q3-2015 at Rs 9.44 crore versus the Rs 6.57 crore in Q2-2015 and 11 per cent more than the Rs 8.51 crore in the corresponding quarter of 2014. For 9M-2015, the radio segment’s operating result improved 59.1 per cent to Rs 21.28 crore from Rs 13.37 crore in 9M-2014.
     
    Advertising Revenues

     

    The company said that advertising revenues grew by 7.8 per cent in 9M-2015 to Rs 1162.3 crore as against Rs 1077.8 crore during corresponding period last year. Revenues from advertising reported a growth of 6.2 per cent y-o-y to Rs 428.3 crore in Q3-2015 from Rs 403.5 crore in Q3-2015, which had a high base of the third quarter of last year, benefitting from state election impact in Madhya Pradesh, Chattisgarh and Rajasthan.

     

    The company added that radio advertising revenues grew by 7.8 percent to Rs 25.7 crore in Q3 -2015 against Rs 23.9 crore in Q3-2014 on a high base of last year, mixed with state election impact.

     

    Let us look at the other results reported by DB Corp:

     

    DB Corp’s consolidated income from operations in Q3-2015 increased 15.5 percent to Rs 554.57 crore from Rs 480.21 crore in Q2-2015 and was 7 percent more than the Rs 518.20 crore in Q3-2014. For 9M-2015, income from operations at Rs 1523.97 crore was 8.4 percent more than the Rs 1405.56 crore in 9M-2014.

     

    The company’s total expenditure (TE) in Q3-2015 at Rs 392.19 crore was 3.9 percent more than the Rs 377.53 crore in Q2-2015 and 3.4 percent more than the Rs 379.21 crore in Q3-2014. In 9M-2015, TE at Rs 1144.71 crore was 8.2 percent more than the Rs 1057.70 crore in 9M-2014.

    Raw Material consumption (RMC) in Q3-2015 at Rs 167.90 crore was 3.6 percent more than the Rs 162.09 crore in Q2-2015 and 2.6 percent lower than the Rs 172.41 crore in Q1-2014. RMC in 9M-2015 at Rs 495.87 crore was 6.3 percent more than the Rs 466.36 crore in 9M-2015.

     

    Segment Revenue

     

    Printing segment: Printing and publishing of newspaper and periodicals’ revenue at Rs 518.9 crore was 15.5 percent more than the Rs 449.32 crore in Q2-2015 and 6.2 percent more than the Rs 488.63 crore in Q3-2014. In 9M-2015, printing segment revenue at Rs 1429.29 crore was 7.1 percent more than the Rs 1333.95 crore in 9M-2014.

     

    Printing segment reported operating result of Rs 157.76 crore in Q3-2015, which was 57.7 percent more than the Rs 100.07 crore in Q2-2015 and 11.7 percent more than the Rs 141.23 crore in Q3-2014. In 9M-2015, the segment reported operating result of Rs 375.78 crore, 3.4 percent more than the Rs 363.39 crore in 9M-2014.

     

    Radio segment: The company’s radio segment operating results have been mentioned above. The segment’s revenue in Q3-2015 at Rs 25.69 crore was 12.8 percent more q-o-q versus Rs 22.77 crore and 11 percent more y-o-y compared to Rs 23.82 crore in Q3-2014. In 9M-2015, radio segment’s revenue increased 19.1 percent to Rs 69.19 crore from Rs 58.07 crore in 9M-2014.

     

    Digital segment: DB Corps’s digital business revenue grew by 75 per cent to Rs 9.2 crore in Q3-2015 from Rs 5.25 crore in Q3-2014 while incurring EBITDA loss of Rs 2.17 crore.

     

    DB Corp managing director Sudhir Agarwal said, “This quarter we diligently focused on three core areas: product, content and distribution, which demanded all our hard work and efforts. Through an exciting mix of a high quality product led by innovative content, focus on better local news coverage in each region, various ground activation initiatives to intensify reader engagement, events to welcome greater corporate partnerships, have all contributed to improving our reach to readers across our legacy and emerging markets. We continue to progress well through Jharkhand, Bihar and Maharashtra making good headway in the readership profiles of SEC A and B categories, particularly Bihar and Maharashtra, even on the back of a higher cover price. In Jharkhand, we are working doubly hard to move towards our break-even target in this fiscal. Our focus on stronger internal operating efficiencies has ensured our financial health through better expense management while newsprint costs have also seen a correction, which has contributed to the strong bottom line.”

     

    “Our non-print business continues to make steady strides. The environment within the digital, mobile and radio world in Tier 2 and 3 cities is exciting and there’s much to explore and study in consumption behaviour and trends in regional language in these areas, which we have already undertaken very actively. Our digital properties have been gaining larger viewership numbers due to real time region specific coverage, our mobile app has been developed with best-in-class engineering to serve audiences struggling with slow connectivity issues in 2 and 3 Tier cities and we expect good response from it. Several initiatives are in progress to enable us to take advantage of future growth opportunities,” he added.

     

    “The government has been working towards speeding up the needed reform implementations required to boost industrial and economic growth and we expect to observe some visible impact on better GDP numbers over the next two years. We are confident of our operating strengths and continue to execute to plan while maintaining stability in our profitability outlook,” Agarwal concluded.

     

  • TV18 Q3-2015 consolidated operating results improve 40 per cent

    TV18 Q3-2015 consolidated operating results improve 40 per cent

    BENGALURU: TV18 Broadcast Limited’s (TV18) Board of Directors has approved the appointment of Rohit Bansal as an additional non-executive director on the board of the company. This was decided at the meeting held on 14 January 2015.

     

    Declaring the financial results, the company reported a 40 per cent improvement in operating profit (PBDIT – Profit before depreciation, interest and tax) in Q3-2015 at Rs 79.4 crore versus the Rs 56.7 crore in the immediate trailing quarter and 2.5 per cent more than the Rs 77.4 crore in the corresponding year ago quarter.

     

    The company reported a healthy 9.7 per cent and 15.6 percent growth in Income from Operations in Q3-2015 at Rs 607.2 crore as compared to the Rs 553.7 crore and the Rs 525.5 crore in Q2-2015 and Q3-2014 respectively.

     

    Year to date (9M-2015), the company’s Income from operations went up 20.2 per cent to Rs 1688.6 crore from Rs 1404.8 crore during 9M-2014. Operating PBDIT in 9M-2015 at Rs 183.8 crore was 30.8 per cent more than the Rs 140.6 crore in 9M-2014.

     

    Let us look at the other figures reported by TV18:

     

    Total Expense (TE) in Q3-2015 at Rs 542.3 crore was 6.8 per cent more than the Rs 508 crore in Q2-2015 and 17.9 per cent more than the Rs 460.1 crore in Q3-2014. TE in 9M-2015 at Rs 1559.8 crore was 20 per cent more than the Rs 1299.4 crore in 9M-2014.

     

    Programming cost was up 19.3 per cent in Q3-2015 at Rs 203.8 crore from Rs 170.9 crore in Q2-2015 and 42.9 per cent more than the Rs 142.6 crore in Q3-2014. Programming cost for 9M-2015 jumped 53 per cent to Rs 540.4 crore from Rs 353.3 crore in 9M-2014.

     

    TV18’s depreciation and amortisation (depreciation) at Rs 14.4 crore in Q3-2014 was 30.9 per cent more than the Rs 11.0 crore in Q2-2015 and was 19 per cent more than the Rs 12.1 crore in Q3-2014. The company’s depreciation expense in 9M-2015 at Rs 55 crore was 56.25 per cent more than the Rs 35.2 crore in 9M-2014.

     

    According to the company, CNBC-TV18 maintained its leadership as the No.1 channel in its genre with a market share of 55 per cent in Q3-2015. CNBC Awaaz also maintained its position as the No.1 channel in the Hindi business news genre with a market share of 61 per cent in the quarter and CNBC Bajar showed consistent and accelerated growth in viewership with a 182 percent increase in Q3-2015 over Q2-2015. CNN-IBN stood at No.2 position in the English General News category in Q3-2015 with a market share of 25 percent. Its Hindi GEC Colors was number two with a market share of 19 percent in this quarter. The company added that its regional news and entertainment group of channels under the ETV umbrella also performed well.
     

    Click here to read the review report

     

  • 2015: ICC World Cup, IPL: Airtel’s ad and marketing expenses likely to increase in FY-2015-16

    2015: ICC World Cup, IPL: Airtel’s ad and marketing expenses likely to increase in FY-2015-16

    BENGALURU:  With the 11th edition of the ICC Cricket World Cup (World Cup) around the corner and IPL season soon thereafter, it is quite obvious that most major media planners must have already booked or are in the process of booking spots on anything and everything that has something to do with cricket. Bharati Airtel Limited (Airtel) has been increasing its advertising and marketing spends (A&M exp) during each edition of the game along with other communication players in the country.

    Notes: (1) All figures mentioned in this report are standalone and NOT consolidated, unless stated otherwise.

    (2) 100,00,000 = 1000,000 = 100 lakh = 10 million = 1 crore

    In 2003, the year of the 8thedition of the World Cup, the company had more than doubled its A&M exp to Rs 166 crore (5.43 per cent of standalone Total Income or TI) from Rs 82.88 crore (5.51 per cent of TI) in FY-2002. In both FY-2002 and FY-2003, Airtel reported loss of Rs 180.53 crore and Rs 176.42 crore respectively. TI in FY-2003 was more than double (up 2.03 times) at Rs 3054.44 crore versus the Rs 1504.12 crore in FY-2002.

    In FY-2004 the company continued its growth path and reported 64.9 per cent increase in TI to Rs 5036.94 crore, A&M exp of Rs 198.77 crore (3.95 per cent of TI) and a PAT (Profit After Tax) of Rs 584.91 crore (11.6 per cent of TI). The company has always been in the black since then, with PAT growing in absolute value as well as in terms of percentage of TI to peak to Rs 9426.15 crore (26.5 percent of TI) in FY-2010.

    Circa 2007, the year of the 9th edition of the World Cup, which started towards the fag end of fiscal 2007 and overlapped to the beginning of fiscal 2008, Airtel’s A&M exp in FY-2007at Rs 402.47 crore (2.26 per cent of TI) was just 0.5 per cent more than the Rs 400.33 crore (3.55 per cent of TI) it had spent in FY-2006. But then 2008 was also the first season of the Indian Premiere League (IPL) Cricket and the company’s A&M exp hiked by 40.7 per cent in FY-2008 to Rs 566.47 crore (2.2 per cent of TI).

    In FY-2007 and FY-2008, Airtel reported PAT of Rs 4033.23 crore and Rs 6244.19 crore respectively. TI in FY-2008 at Rs 25703.51 crore was 44.4 per cent more than the Rs 17944.34 crore in FY-2007.

    In FY-2011, the year of the 10th edition of the World Cup, Airtel spent its highest A&M within a 10 year period starting FY-2005 (FY-05) till FY-2014 (FY-14) at Rs 721.50 crore (1.88 per cent of TI). Corresponding TI and PAT numbers were Rs 38338.90 crore and 7716.90 crore (20.1 per cent of TI) respectively.

    Growth in TI which was in single digits at just 4.7 per cent in FY-2010 versus the previous year, and 7.7 per cent in FY-2011 versus FY-2010, spurted by 10.1 per cent in FY-2012 to Rs 42285.00 crore.

    FY-2014 has again witnessed single digit growth of 8.5 per cent to Rs 50771.90 crore, but that could be attributed to huge 70 per cent mobile subscription penetration attained in the country with 88.63 crore subscriptions (The Telecom Regulatory Authority of India -TRAI claims 93.3 crore mobile subscriptions) against a population of 125.58 crore reported in July 2014.

    Though Fig 1 above indicates that Airtel’s A&M exp has been going up in absolute rupees, it shows a declining trend in A&M exp in terms of percentage of TI.

    Further, as mentioned above, Airtel reported its highest PAT in FY-2010 at Rs 9426.15 crore (26.5 per cent of TI). Since then, PAT dropped steadily to Rs 5096.30 crore (10.9 per cent of TI) in FY-2013, before registering an increase of 29.5 per cent to reach Rs 6600.20 crore (13 per cent of TI) in FY-2014 (Please refer to Fig 2 above).

    Considering the scenario, – sagging PAT and a very aggressive competition in a market place that is reaching saturation in subscription, it is inevitable that the company increase its A&M spends, and the coming World Cup followed by IPL in the early part of fiscal 2016 seem to be the most obvious vehicles for a resurrection of sorts.

    Also post Cricket World Cup years (2003, 2007, 2011), the company’s A&M spends have increased, so FY-2017, FY-2018 should show the company spending more towards A&M.

    In Q2-2015 results, Airtel has indicated a growth of 10.1 per cent in consolidated TI for H1-2015 versus H1-2015. In case the company maintains the same growth rate in H2-2015, extrapolating the 10.1 per cent growth to standalone TI, Airtel’s FY-2015 TI should be in the range of Rs 56,000 crore. Assuming that it maintains A&M spends at 1.2 per cent of TI, its A&M exp for FY-2015 should be at least Rs 670 crore.

  • Hawkins Ad spends in Q2-2015 up 10%; marketing spends likely to rise in Q3-2015

    Hawkins Ad spends in Q2-2015 up 10%; marketing spends likely to rise in Q3-2015

    BENGALURU: Hawkins Cookers Limited (Hawkins) reported a 10.3 per cent quarter on quarter (q-o-q) increase in advertisement (ad) spends in Q2-2015 at Rs 3.72 crore (2.5 per cent of Total Income from Operations or TIO) as compared to the Rs 3.37 crore (3.5 per cent of TIO) in Q1-2015 and almost 6.5 times more year on year (y-o-y) versus the Rs 0.58 crore (0.4 per cent of TIO) in Q2-2014. Going by the trends during the preceding two years, (in Q3-2013 and Q3-2014 ad spends were significantly higher than Q2-2013 and Q2-2014 ad spends respectively) the company’s ad spends are likely to be higher in Q3-2015.

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

    Over a 10 quarter period starting Q1-2013 until Q2-2015, the company’s ad spends show an increasing trend in absolute rupees as well as in terms of percentage of TIO.

    Hawkins advertisement and sales promotion spends (ASP) in this report comprises advertisement expenses and discounts. In Q2-2015, Hawkins ASP at Rs 14.12 crore (12.1 per cent of TIO) was 80.6 per cent more than the Rs 9.88 crore (10.2 per cent of TIO) in Q2-2015 and 37.1 per cent more than the Rs 13 crore (10.1 percent of TIO) in the corresponding year ago quarter. The company’s ASP shows a linear increasing trend over the 10 quarter period under consideration in this report.

    The company’s ‘discounts’ in Q2-2015 at Rs 14.12 crore (9.6 per cent of TIO) was more than double (2.17 times) the Rs 6.51 crore (6.7 per cent of TIO) in Q1-2015 and 13.6 per cent more than the Rs 12.43 crore in Q2-2014. Since the period in Q3 of a year has the Indian festivals season that has most brands offering huge festival price reductions and freebies, it is likely that the ‘discounts’ by company will be higher in Q3-2015. Overall, discounts’ shows an increasing linear in terms of percentage of TIO and in absolute rupees. Please refer to Fig 1 below.

    Hawkins TIO in Q2-2015 at Rs 147.5 crore was 51.7 per cent more than the Rs 97.2 crore in the immediate trailing quarter and 14.8 per cent more than the Rs 128.46 crore in Q2-2014. Over the 10 quarter period under consideration in this report, the company’s TIO shows an increasing linear trend. It’s Q2-2015 TIO has been the highest across the 10 quarters.

    Hawkins reported 74.3 per cent increase in PAT at Rs 12.32 crore (8.4 per cent of TIO) from Rs 7.07 crore (7.3 per cent of TIO) in Q1-2015, but a 10.3 per cent decline from the Rs 13.75 crore (10.7 per cent of TIO) in Q2-2014. Over the 10 quarter period under consideration, the company’s PAT shows a linear increasing trend both in terms of absolute rupees and in terms of percentage of TIO. Please refer to Fig 2 below.

    Click here to read the full financial report

  • Chrome Data: Week 50 sees a little hike

    Chrome Data: Week 50 sees a little hike

    MUMBAI: The week 50 of opportunity to see (OTS) collated by Chrome Data Analytics & Media breathed a little sigh of relief as genres saw an upward trend.

    With 1.6 per cent hike, English News in the eight metros led the path. Times Now, continuing its reign in the genre, gained 80.7 per cent OTS.

    Business News in eight metros and Infotainment channels across India saw 1.1 per cent and 0.5 per cent jump. CNBC Awaaz with 81 per cent OTS and Discovery with 85.5 per cent topped their respective genres.

    As for the top loser, in the eight metros, English Entrainment channel saw a drop of 3.5 per cent. AXN with 63.4 per cent OTS gained the most in the category.

    Sports channels across India too saw a drop of 1.6 per cent with DD Sports topping the genre with 73 per cent OTS.

    English Movies in the eight metros and Hindi News in the Hindi speaking market (HSM) witnessed a drop of 0.8 per cent OTS and 0.6 per cent OTS, respectively.

    Movies Now with 68.3 per cent OTS and ABP News with 95.3 per cent OTS gained in their respective genres.

     

  • Reliance Media Works files revised dates draft letter for acquiring 26% of Prime Focus

    Reliance Media Works files revised dates draft letter for acquiring 26% of Prime Focus

     BENGALURU: Reliance Media Works Limited (RMW, acquirer) has filed a draft letter of offer (LOF) with revised dates on the bourses for acquisition of a 26 per cent voting stake in Prime Focus Limited (Prime Focus, target company). RMW is acting in concert with Reliance Land Private Limited, Namit Malhotra, Narseh Malhotra and Monsoon Studio Private Limited (Monsoon Studios).  

     

    RMW will make a cash offer at Rs 52 per Equity Share to acquire up to 7,77,08,534 Equity Shares of face value of Re 1 each representing 26 per cent of the emerging voting capital (EVC) of Prime Focus. The target company’s EVC  comprises the paid-up equity share capital of Rs 29,88,78,974 divided into 29,88,78,974 equity shares, being the paid-up equity share capital of the target company after the allotment of the preferential allotment – 11,34,61,538 Equity Shares to the acquirer and Monsoon Studios on a preferential allotment basis.

     

    The offer shall open on 19 December 2014 and will remain open until 2 January 2015. All owners (registered or unregistered) of Equity Shares, regardless of whether he/she/it held Equity Shares on the identified date 5 December 2014), are eligible to participate in the offer any time before the closure of the tendering period.

     

    Click here to read the offer letter

  • Maxis-Aircel deal plunges Sun TV 8.55 per cent

    Maxis-Aircel deal plunges Sun TV 8.55 per cent

     BENGALURU:  Reports that both the Maran brothers were questioned by the enforcement directorate (ED) under the provisions of the money laundering act early this week brought down the share price of Sun TV Network (Sun TV) on the bourses today. The ED questioned the Maran brothers – Dayanadhi and Kalanithi about the Aircel-Maxis deal, according to media reports.

     

    The script closed 8.55 per cent down (down by Rs 32.15) at Rs 343.75 per equity share having face value of Rs 5 on the BSE. There was a spurt in traded volumes by 1.46 times and the stock had breached the 338.35 circuit to reach a low of Rs 335.65 on the BSE. The stock on 12 December opened at Rs 376 after it had closed on 11 December at Rs 375.90. The intraday high for Sun TV was Rs 379.60. The Total Traded Quantity (TTQ) on the BSE was 2.59 lakh shares with a turnover of Rs 9 crore, against a 2 week TTQ average of 1.49 lakh shares per day. The S&P BSE Sensex fell 0.91 per cent (down 251.33 points) to Rs 27350.68 today.

     

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

     

     On the NSE, the stock fell 7.88 per cent (down Rs 29.65) to Rs 346.70 from its previous close of Rs 376.35. It opened at Rs 379.35 on the NSE with a High/Low of Rs 379.35/Rs 320.55. The traded volume of Sun TV shares on the NSE was 21,50,608 at a traded value of Rs 7,485.19 lakh. The NSE CNX Nifty fell 0.8.3 per cent (68.8 points) to 8224.10 at close of trading day today.