Category: Brands

Kingfisher gets beer lovers inventing on International Beer Day

MUMBAI: This International Beer Day, which is celebrated worldwide on 7 August, saw a social trend where beer lovers uploaded creative inventions or gadgets with the ingredient Kingfisher Beer.

The hash tag #KFBeerInventions too caught on like wild fire. This unique online campaign was started by Indian liquor giant Kingfisher as part of its unique digital campaign on Twitter.

Kingfisher conceptualized a whacky initiative to enthuse fans on their digital platform, giving them an opportunity to showcase their inner creative genius. Lapping on to the opportunity to turn into innovators, the beer heads tweeted their most quirkiest and ingenious ideas using #KFBeerInventions.

From beer being sent via emails to machines that could turn Mondays to Sundays with beer, beer heads didn’t leave any stones unturned to showcase their whacky sides. Kingfisher then took upon themselves to go over the entries at their Good Times lab and gave life to the quirkiest ideas through GIFs. With over 200 entries received in less than two days, Kingfisher’s Twitter page was filled with quirky images, GIFs and vines.

August 10, 2015
Q1-2016: Sony income triples despite poor performance of mobile & movies

BENGALURU: Despite operating losses reported by Sony Corporation’s (Sony) mobile communications, pictures and all other segments, the company’s net attributable to its shareholders more than tripled (up 3.07 times) to ?82.4 billion in the quarter ended 30 June, 2015 (Q1-2016) as compared to the ?26.8 billion in Q1-2015.

Sony’s Mobile Communications (MC) segment reported a higher operating loss in the current quarter of ?22.9 billion as compared to the ?1.6 billion in the corresponding year ago quarter. Sony Pictures segment reported an operating loss in Q1-2016 of ?11.7 billion as compared to an operating profit of ?7.8 billion in Q1-2015. All others segment reported a lower operating loss in Q1-2016 of ?5 billion as compared to the ?20 billion in Q1-2015. However, Sony’s other segments- Games and Network Services (G&NS), Imaging Products & Solutions (IP&S), Home Entertainment & Sound (HE&S), Devices, Music, and Financial services reported growth in YoY operating income.

Sony’s sales and operating revenue (Sales) decreased by 0.1 per cent in Q1-2016 to ?1808.1 billion compared to ?1,809.9 billion in the corresponding quarter of last year. Sales were essentially flat YoY mainly due to a decrease in Mobile Communications segment sales reflecting a significant decrease in smartphone unit sales and a decrease in Home Entertainment & Sound (HE&S) segment sales reflecting a decrease in unit sales of mid-range LCD televisions, substantially offset by the impact of foreign exchange rates and a significant increase in Devices segment sales reflecting the strong performance of image sensors. On a constant currency basis, sales decreased seven per cent YoY.

Operating income increased ?27.1 billion YoY to ?96.9 billion). This increase was primarily due to an increase in operating income in the Music segment, reflecting the recording of a re-measurement gain, described below, and the impact of the increase in sales in the Devices segment. This increase was partially offset by the negative impact of foreign exchange rates in the MC segment and lower sales in the Pictures segment due to a decrease in theatrical and television licensing revenues for Motion Pictures.

Segment performance

Mobile Communications

Sony’s MC segment sales decreased 16.3 per cent YoY (an 18 per cent decrease on a constant currency basis) to ?280.5 billion in the current quarter as compared to the ?335 billion in Q1-2015. This decrease was due to a significant decrease in smartphone unit sales resulting from a strategic decision not to pursue scale in order to improve profitability.

The above mentioned operating loss increased because of the decrease in smartphone unit sales and an increase in restructuring charges were offset primarily by reductions in marketing and other expenses as well as an improvement in product mix. However, operating loss increased mainly due to the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs. During the current quarter there was a ?25.4 billion negative impact from foreign exchange rate fluctuations.

Game & Network Services (G&NS)

G&NS sales increased 12.1 per cent YoY (a seven per cent increase on a constant currency basis) to ?288.6 billion. This significant increase was primarily due to increases in PlayStation4 (PS4) software sales and PS4 peripheral device unit sales as well as the impact of foreign exchange rates, partially offset by a decrease in PlayStation3 (PS3) hardware and software devices.

Operating income increased ?15.1 billion YoY to ?19.5 billion in Q1-2016 as compared to the ?4.1 billion in Q1-2015. This increase was primarily due to PS4 hardware cost reductions, the above-mentioned increases in PS4 software sales and PS4 peripheral device unit sales, partially offset by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs and the decrease in PS3 software sales.

Sony says that operating income in the current quarter also includes ?4.7 billion of insurance recoveries related to losses incurred from the cyberattack on Sony’s network services including the PlayStation Network in the fiscal year ended 31 March, 2012. During the current quarter there was a ?15.6 billion negative impact from foreign exchange rate fluctuations.

Imaging Products & Solutions (IP&S)

IP&S sales increased 3.5 per cent YoY (a five per cent decrease on a constant currency basis) to ?170.4 billion in Q1-2016 as compared to the ?164.6 billion in Q1-2015, primarily due to the impact of foreign exchange rates and an improvement in the product mix of digital cameras reflecting a shift to high value-added models, partially offset by a decrease in unit sales of digital cameras reflecting a contraction of the market.

Operating income increased ?3.9 billion YoY to ?21.3 billion. This increase was mainly due to the improvement in digital camera product mix reflecting a shift to high value-added models, a YoY increase in insurance recoveries related to damages and losses incurred from the floods in Thailand in the fiscal year ended 31 March, 2012, and the positive impact of foreign exchange rates, partially by the impact of the decrease in unit sales of digital cameras. During the current quarter there was a ?2 billion positive impact from foreign exchange rate fluctuations.

Home Entertainment & Sound (HE&S)

Sony’s HE&S sales decreased 13.8 per cent YoY (a 21 per cent decrease on a constant currency basis) to ?253.1 billion yen ($2,075 million). This decrease was primarily due to a decrease in unit sales of LCD televisions, mainly in the mid-range, as well as a decrease in home audio and video unit sales reflecting a contraction of the market.

Operating income increased ?2.1 billion YoY to ?10.9 billion. This increase was primarily due to cost reductions and an improvement in product mix reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in LCD televisions and home audio and video unit sales, as well as the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs. During the current quarter there was a ?7.7 billion negative impact from foreign exchange rate fluctuations.

In Televisions, sales decreased 17.6 percent YoY to ?168.9 billion. This decrease was primarily due to a decrease in unit sales. LCD television unit sales decreased YoY in all areas other than North America mainly due to a strategic decision not to pursue scale in order to improve profitability. Operating income decreased ?0.9 billion YoY to ?7 billion. This decrease was primarily due to the impact of the decrease in unit sales and the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, partially offset by an improvement in product mix reflecting a shift to high value-added models and cost reductions.

Devices

Sony’s Devices segment sales increased 35.1 per cent YoY (an 18 per cent increase on a constant currency basis) to ?237.9 billion. This increase was primarily due to a significant increase in sales of image sensors reflecting higher demand for image sensors for mobile products, the impact of foreign exchange rates, as well as a significant increase in sales of camera modules. Sales to external customers increased 41.2 per cent YoY.

Operating income increased ?18.8 billion YoY to ?30.3 billion. This significant increase was primarily due to the impact of the above-mentioned increase in sales of image sensors and the positive impact of foreign exchange rates. During the current quarter there was an ?11 billion positive impact from foreign exchange rate fluctuations.

Pictures

Sales decreased 11.9 per cent YoY (a 26 per cent decrease on a US dollar basis) to ?171.5 billion. The decrease in sales on a US dollar basis was primarily due to significantly lower sales for Motion Pictures reflecting a decrease in theatrical and television licensing revenues. Theatrical revenues decreased due to the stronger worldwide theatrical performance of films released in the same quarter of the previous fiscal year which benefitted from the performances of The Amazing Spider-Man 2 and 22 Jump Street. Television licensing revenues were lower in the current quarter as the same quarter of the previous fiscal year benefitted from sales ofCloudy With A Chance of Meatballs 2 and Captain Phillips.

Sony’s deterioration in operating results was primarily due to the impact of the decrease in theatrical and television licensing revenues noted above.

Music

Sony’s Music segment comprised the Recorded Music, Music Publishing and Visual Media and Platform categories. Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for music and visual products and the production and distribution of animation titles.

Sales increased 8.5 per cent YoY (a three per cent decrease on a constant currency basis) to ?130.2 billion primarily due to the impact of the depreciation of the yen against the US dollar. The decrease in sales on a constant currency basis was primarily due to lower Recorded Music sales. Recorded Music sales decreased primarily due to the continued worldwide contraction of the physical music market. Best-selling titles included Meghan Trainor’s Title, Shogo Hamada’s Journey of a Songwriter and Francis Cabrel’s In Extremis.

Operating income increased ?20.1 billion YoY to ?31.8 billion. This increase was primarily due to the $151 million (?18.1 billion) gain on the re-measurement to fair value of SME’s 51 per cent equity interest in The Orchard, which had previously been accounted for under the equity method, as a result of SME increasing its ownership interest to 100 per cent and the positive impact of foreign exchange rates.

Financial Services

The segment results include Sony Financial Holdings Inc. (SFH) and SFH’s consolidated subsidiaries such as Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. and Sony Bank Inc. (Sony Bank). The results of Sony Life discussed in the Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

Financial services revenue increased 13.1 per cent YoY to ?279.4 billion primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 15.7 per cent YoY to ?250.9 billion mainly due to an increase in insurance premium revenue reflecting an increase in policy amount in force, as well as an improvement in investment performance in the separate account resulting mainly from a larger rise in the Japanese stock market during the current quarter than in the same quarter of the previous fiscal year.

Operating income increased ?2.2 billion yen YoY to ?46.0 billion. This increase was mainly due to an increase in operating income at Sony Life. Operating income at Sony Life increased ?3.7 billion YoY to ?40.9 billion primarily due to an improvement in investment performance in the general account.

All Other

All Other included the PC business in the previous fiscal year. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating loss of All Other of the comparable prior period have been reclassified to conform to the current presentation.

Sales decreased 22.9 per cent YoY to ?79.3 billion. This significant decrease in sales was primarily due to the recording of sales in the same quarter of the previous fiscal year from the PC business which was sold in July, 2014.

Operating loss decreased ?15 billion YoY to ?5 billion. This decrease was primarily due to the absence of the operating loss from the PC business in Q1-2015.

August 8, 2015
Philips doubles ad budget for kitchen appliances; appoints chef Ranveer Brar as ambassador

NEW DELHI: Even as the advertising and promotions budget is being doubled from last year for its kitchen appliances category in India, Phillips India has taken on chef Ranveer Brar to promote its products.

In an interview with Indiantelevision.com, Philips India director marketing and business head – domestic appliances Gulbahar Taurani said that the increase in marketing budget had been done in view of the rate at which the kitchen appliances business for Philips India had been growing. “The growth at Philips India has been three to four times faster than the rate at which the kitchen appliances market is growing in India,” he said.

Philips India will be taking a 360 degree approach to marketing the kitchen appliances products. “There will be television commercials, radio and print ads, outdoor hoardings and road shows, apart from social media and the digital space with interactive features,” Taurani informed.

Speaking about taking on board Brar as the brand ambassador, Taurani said, “He is someone who knows about food and can communicate well to the women at home. His programme Thank God its Fryday season 2 presents the magic of Philips AirFryer, transforms the experience of fried food and makes it a guilt free indulgence, to consumers across India.”

Additionally Taurani was also of the opinion that Brar could encourage the Indian woman to cook easily and spend more time with the family. “Brar will help consumers draw a closer connect with the brand and its products, which enable Healthy Living. Philips India being a health and well-being company is the only brand that offers a cohesive, integrated and dedicated Healthy Living Portfolio,” he added.

Some of the popular products from its Healthy Living Portfolio range are AirFryer, SoupMaker, Pre Clean Juicer and Food Steamer.

Taurani said that the association with Brar was not just a simple endorsement agreement, “but a partnership between two like-minded entities that have joined hands together to empower consumers to get more out of their appliances. Together, we intend to provide our consumers with holistic solutions for their lifestyle nutritional needs.”

Talking about his association with Philips, Brar said, “From the time I was growing up, Philips as a brand always stood for reliability and cutting edge technology. I strongly believe that in terms of reliability, durability and being current Philips is, was and will always be the brand to look out for. Philips Kitchen Appliances offer a range of intelligent devices that are designed to help you stay healthy and eat whatever you want without the guilt and without worrying about taste. I am privileged to be representing the brand and the product range that I personally believe in.”

August 6, 2015
Dulux Paints ropes in Shraddha Kapoor as brand ambassador

NEW DELHI: Actor Shraddha Kapoor has joined Farhan Akhtar as the brand ambassador for Dulux and its range of interior and exterior products.

Akzo Nobel India Decorative Paints director Rajiv Rajgopal said, “Drawing from our in-depth understanding of consumer needs, Dulux aims to enrich people’s lives by bringing visual delight and lasting care to their surroundings by offering complete painting solutions. Together with Farhan Akhtar, Dulux’s new brand ambassador Shraddha Kapoor will be supporting our efforts at increasing the market for this iconic and truly international brand.”

“India with a large and young population has a great demographic advantage. The average age of the 1.25 billion – strong Indian population will be 29 years in 2020. Shraddha Kapoor is a perfect fit as the brand ambassador to connect with this set of next gen consumers,” he added.

Kapoor said, “I am excited about my association with a brand as versatile and vibrant as Dulux. Its philosophy of ‘Let’s Colour’ by way of expressing through their range of products has struck a chord with me. Dulux has been constantly evolving and offering consumers more to experiment with while decorating their homes. Home decoration is a significant medium of expressing one’s individual style and Dulux helps consumers in finding that style along with great performance.”

August 6, 2015
Frontline and CCube invest in Wetravelsolo.com

MUMBAI: CCube Angels, a Singapore based angel investors community, and Frontline Strategy Limited, a Mauritius based investment company have acquired a minority stake in Delhi based Kulmin Trocializing, the company behind Wetravelsolo.com.

Wetravelsolo is an unique online platform, which focuses on combining online and real time travelling at pocket-friendly prices, where trips are hand crafted for a solo traveller. Wetravelsolo was founded with a vision to enable and support the solo traveler, and hone the ‘traveler’ in every individual.

Wetravelsolo.com founder and CEO Shefali Walia said, “Wetravelsolo is a simple yet revolutionary idea – born out of our desire to explore the world. Wetravelsolo will empower every individual to finally leave behind their inhibitions and travel the world solo but not alone, that is in the company of like-minded as well as diverse travelers who share the same passion and Trocialize in a safe and jovial environment. We are the first movers in the space of Solo Travel Community in India and we will keep surprising and changing lives of our audience with the beauty of our concept.”

“We are really excited to have Frontline Strategy as our seed investors who have not just invested in us but have given us new directions with their experience and fine thought-line. To accept something as revolutionary as strangers traveling together in India needs faith, and a very fine observation. We are very glad to have our investors’ faith in us and we intend to build the space and our product better with the investment,” she added.

Frontline Strategy director Atim Kabra said, “We are very happy to be associated with this exciting concept which brings like-minded people together through a highly customizable and repeat revenue generating category like travel. We hope to assist Shefali and team to translate their vision into reality.”

August 6, 2015
Q1-2016: Britannia Industries ad and sales promo spends up 16%

BENGALURU: Britannia Industries Limited (Britannia) spent 16 per cent more towards Advertisement and Sales Promotion (ASP) in Q1-2016 (quarter ended 30 June, 2015) at Rs 160.52 crore (eight per cent of Net total Income from Operations or TIO) versus Rs 138.43 crore (7.7 per cent of TIO) inQ1-2015, butspent 20.9 per cent lower than the company’s ASP in Q4-2015 at Rs 202.89 crore (9.8 per cent of TIO). Please refer to Fig 1 below.

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

Company speak

Britannia managing director Varun Berry said,”Our results are a reflection of our focus on driving consumer off-take and operational efficiencies to generate sustainable and profitable growth, despite the slowdown that is being witnessed in the FMCG sector. We have passed off the benefits of benign commodity prices and made our brands more affordable to the consumers. We continued our efforts to expand our distribution footprint and ensure efficiency in operations through reduction in wastages and tight management of fixed costs. We move ahead on our innovation journey with the launch of ‘Pure Magic Chocolush’ during the quarter.”

TIO and Ad & Sales Promotion spends

In Q1-2015, Britannia’s TIO increased 13 per cent to Rs 2018.60 crore as compared to the 1786.99 crore inQ1-2015, but declined 2.2 per cent as compared to the Rs 2063.64 crore in the immediate trailing quarter. TIO in the previous quarter (Q4-2015) was the highest during a 13 quarter period starting Q1-2013 until the current quarter. The broken grey trend line indicates that the company’s TIO has a linear increasing trend during the period under consideration.

Also, during the period under consideration in this report, Britannia’s ASP in Q4-2015 was the highest, both in terms of absolute rupees as well as in terms of percentage of TIO. The lowest ASP in absolute rupees was in Q1-2013 at Rs 112.96 crore (8.3 per cent of TIO), while in terms of percentage of TIO, it was 7.3 per cent (Rs 143.48 crore) in Q2-2015. The maroon broken line shows a slight decline in ASP in terms of percentage of TIO, while the blue broken trend line indicates a linear increasing trend for ASP in absolute rupees.

Please refer to Fig 2 below. In Q1-2016, Britannia reported PAT of Rs 189.58 crore (9.4 per cent of TIO), which was 66.8 per cent more than the Rs 113.66 crore (6.4 per cent of TIO) in Q1-2015 and was 38.2 per cent more than the Rs 167.25 crore (8.1 per cent of TIO) in Q4-2015. During the period under consideration in this report, the company’s PAT shows a linear increasing trend both in absolute rupees as was well as in terms of percentage of TIO.

During the thirteen quarter period under consideration, PAT in Q2-2015 was the highest recorded by the company, both in terms of absolute rupees as well as in terms of PAT as percentage of TIO at Rs 270.46 crore and 13.7 per cent of TIO respectively.The lowest PAT reported by the company in absolute rupees as well as in terms of percentage of TIO was in Q1-2013 at Rs 46.48 crore and 3.4per cent of TIO during the same period.

“We remain committed to tap new sources of growth and focus on commercializing consumption opportunites across our product portfolio. We are confident that our team of passionate and motivated Britannians shall take the business to greater heights,” added Berry.

August 4, 2015
Q1-2016: Adlabs revenue gets boost as theme park footfalls triple

BENGALURU: Adlabs Entertainment Limited (Adlabs) reported almost three times (2.98 times) the footfalls at its two theme parks Adlabs Imagica and Adlabs Aquamagica-Water Park in the quarter ended 30 June, 2015 (Q1-2016) at 5.392 lakh as compared to the 1.81 lakh in Q1-2015.

Consequently, the company’s operating revenue (total income from operations, TIO) was 2.34 times in this quarter at Rs 85.01 crore as compared to the Rs 36.37 crore in Q1-2015 and 72 per cent more than the Rs 49.43 crore in Q4-2015.

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

(2) All numbers in this report are standalone unless stated otherwise.

Four segments namely ticket sales, food and beverages (F&B); merchandise; and other operations contribute to Adlabs revenue.

The largest segment by far in terms of percentage of TIO, ticket sales, reported an operating profit of Rs 1.05 crore in Q1-2016 as compared to a y-o-y operating loss of Rs 16.13 crore in Q1-2015 and a q-o-q operating loss of Rs 18.89 crore in Q4-2015. All other segments also showed healthy growth and reported operating profits during the current quarter.

The company’s loss in Q1-2016 has almost halved at Rs 14.81 crore as compared to the loss of Rs 28.67 crore in the corresponding quarter of last year and was less than half the Rs 31.16 crore in Q4-2015.

EBIDTA in Q1-2016 was positive Rs 24.74 crore (29.1 per cent margin) as compared to the negative EBIDTA of Rs 2.25 crore in Q1-2015 and the positive EBIDTA of Rs 3.78 crore (7.7 per cent margin) in Q4-2015. Adlabs EBIDTA in the current quarter has already surpassed the EBIDTA of Rs 20.51 crore for FY-2015.

Segment details

Ticket Sales

Ticket sales revenue more than doubled (2.21 times) in Q1-2016 at Rs 61.91 crore (72.8 per cent of TIO) as compared to the Rs 28.05 crore (77.1 per cent of TIO) in the corresponding year ago quarter and was 76.1 per cent more than the Rs 35.16 crore (71.1 per cent of TIO) in the immediate trailing quarter. Results of this segment have been mentioned above.

Food & Beverages (F&B)

Adlabs F&B segment revenue more than doubled (2.4 times) in Q1-2016 at Rs 13.28 crore (15.6 per cent of TIO) as compared to the Rs 5.59 crore (15.4 per cent of TIO) in Q1-2015 and was 53.9 per cent more than the Rs 8.63 crore (17.5 per cent of TIO) in Q4-2015.

F&B reported operating profit of Rs 3.83 crore in Q1-2016 as compared to an operating loss of Rs 0.13 crore in Q1-2015 and an operating profit of Rs 1.72 crore in the immediate trailing quarter.

Merchandise

Merchandise segment reported more than triple (3.3 times) revenue at Rs 7.31 crore (8.6 per cent of TIO) in Q1-2016 as compared to the Rs 2.27 crore (6.2 per cent of TIO) in Q1-2015 and was 66.4 per cent more than the Rs 4.39 crore (8.9 per cent of TIO) in Q4-2015.

The segment reported an operating profit of Rs 1.07 crore in Q1-2016 as compared to an operating loss of Rs 0.18 crore in Q1-2015 and an operating loss of Rs 0.14 crore in the prior quarter Q4-2015.

Other Operations

Other operations’ revenue more than quintupled (5.4 times) in Q1-2016 at Rs 2.51 crore as compared to the Rs 0.46 crore in Q1-2015 and was more than double (2.02 times) the Rs 1.24 crore in Q4-2015.

The segment reported an operating profit of Rs 0.09 crore as compared to an operating loss of Rs 0.97 crore in Q1-2015 and an operating loss of Rs 0.03 crore in Q4-2015.

Let us look at the other numbers reported by Adlabs

The company’s total expenditure in the current quarter at Rs 81.05 crore (95.3 per cent of TIO) was 47.4 per cent more than the Rs 54.97 crore (151.2 per cent of TIO) in Q1-2015 and was 18.7 per cent more than the Rs 62.87 crore (138.1 per cent of TIO).

The company’s advertising costs in Q1-2016 almost doubled (up 97.6 per cent) at Rs 19.13 crore (22.5 per cent of TIO) as compared to the Rs 9.68 crore (26.6 per cent of TIO) in Q1-2015 and was 60.4 per cent more than the Rs 11.93 crore (24.1 per cent of TIO) in the previous quarter.

Other expense in Q1-2016 declined 8.5 per cent to Rs 6.15 crore (7.2 per cent of TIO) as compared to the Rs 6.72 crore (18.5 per cent of TIO) in the corresponding year ago quarter and declined 39.2 per cent as compared to the Rs 10.12 crore (20.5 per cent of TIO) in the immediate trailing quarter.

Employee Benefits Expense in Q1-2016 at Rs 15.47 crore (18.2 per cent of TIO) was 40.3 per cent more than the Rs 11.03 crore (30.3 per cent of TIO) in Q1-2015 and was 18.7 per cent more than the Rs 13.04 crore (26.4 per cent of TIO) in Q4-2015.

Company Speak

Adlabs CEO Kapil Bagal said, “As envisaged the theme park and the waterpark are complimenting each other and working extremely well as a combination. Imagica is focused on attracting children, families, groups and corporate and Aquamagica is focused on attracting the youth and college segments and together both parks covering all segments of customers. We are seeing great response from our promotional marketing activities and new properties of Happy Tuesdays and Lazy Sundays. All our sales channels activation is looking promising with a multi-city expansion of sales agents with expansion of our reach across India. Further, we have pre-paid approximately Rs 250 crore of debt with the funds in our IPO and we now have comfortable debt to equity ratio and our interest outgo has also reduced.”

“Our hotel Novotel Imagica Khopoli is on the verge of launching in August and we are already seeing encouraging advance bookings by corporate for their MICE and social events. Once the hotel is operational, we will become a complete integrated holiday destination in India,” he added.

August 3, 2015
Q1-2016: Colgate-Palmolive marketing spends up 11%

BENGALURU: Colgate-Palmolive (India) Limited (Colgate-Palmolive) spent 11 per cent more towards advertisement and sales promotion (ASP) in Q1-2016 (quarter ended 30 June, 2015) at Rs 200.50 crore (19.8 per cent of Total Income or TI) as compared to the Rs 180.55 (18.7 per cent of TI) in Q1-2016 and 29.8 per cent more than the Rs 154.49 crore (15 per cent of TI) in the immediate trailing quarter.

The company’s marketing or ASP spends are made up of two components – Advertisement spends; and Sales Promotion spends. The company does not share the breakup of these two spends in its quarterly financials. The breakup is mentioned on an annual basis in the company’s annual report (Fig A1 below).

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

Colgate-Palmolive’s major brands include Colgate for oral care, Palmolive, Charmis and Halo for personal care, and Axion for household care. Some of the other other brands/prodcuts are Active Salt Neem, Max Fresh, Total Charcoal, Sensitive Pro-Relief Enamel Repair, Zig Zag Black, Colgate Dental Cream.

Please refer to Fig A below. Over a thirteen quarter period starting from Q1-2013 until the current quarter (Q1-2016), Colgate-Palmolive’s ASP shows a linear increasing trend both in terms of percentage of TI as well as in absolute rupees.

In Q2-2015, Colgate-Palmolive spent the highest amount towards ASP in terms of absolute rupees as well as percentage of TI in a quarter at Rs 201 crore and 20.1 per cent of TI during the period under consideration. The company’s ASP in the current quarter was just a little less than the ad spends in Q2-2015. The lowest ASP by the company during the thirteen quarters was in Q4-2013 at Rs 82.1 crore and 9.7 per cent of TI.

Colgate-Palmolive’s TI in Q1-2016 at Rs 1010.15 crore was 4.8 per cent more than the Rs 963.35 crore in Q1-2015, but was 1.8 per cent lower than the Rs 1028.51 in Q4-2015. The company’s TI shows a linear increasing trend during the thirteen quarter period under consideration in this report.

Further, across eight financial years starting FY-2008 until FY-2015, the company’s TI, ASP and ASP as percentage of TI show an upward linear trend, with the company’s marketing spends being the highest both in terms of absolute rupees and percentage of TI in FY-2015 at Rs 714.25 crore (17.9 per cent of TI). Fig A1 below indicates the breakup of Colgate-Palmolive’s advertising and sales promotion across three financial years for which data is available.

Figure A1 below shows the split of ASP into advertising and sales promotion spends for four financial years starting FY-2012 until FY-2015.

Please refer to Fig B below. PAT in Q4-2015 at Rs 114.28 crore (11.4 per cent of TI) declined 15.3 per cent as compared to the Rs 134.91 crore (14.1 per cent of TI) in Q1-2015 and declined 30.2 per cent as compared to the Rs 163.63 crore (16 per cent of TI) in Q4-2015. During the thirteen quarter period under consideration, PAT shows a linear increasing trend in absolute rupees.

The slope of the broken blue trend line indicates that the company’s PAT in terms of percentage of TI shows a decline. This is likely to change over the next few quarters, if the company’s PAT continues to buck the trend as it has in Q4-2015.

Colgate-Palmolive’s PAT has been the highest at Rs 185.22 crore (21.5 per cent of TI) in Q1-2014 during the twelve quarter period under consideration, while the lowest PAT in absolute rupees and in terms of percentage of TI was in Q2-2013 at Rs 109.52 crore and 12.2 per cent of TI.

Colgate-Palmolive says that it has continued to enhance its leadership position in the Toothpaste category by registering a volume market share of 57.9 per cent during the January-June 2015 period, an increase of 90 basis points over the same period of the prior year. It says that its flagship brands Colgate Dental Cream, Active Salt and Max Fresh have majorly contributed to this growth. Further, the company says that it has maintained its leadership in the Toothbrush category by registering a volume market share of 42.7 per cent in the period January-June 2015.

Colgate-Palmolive’s board of directors at its meeting held on 30 July, 2015 has considered and recommended a bonus issue of one equity share for every equity share held, as on the record date to be determined by the board.

August 3, 2015
Q1-2016: Titan ad spends up 30% at Rs 128.84 crore

BENGALURU: Titan Company Limited (Titan) spent the highest amount in absolute rupees and in terms of per centage of Total Income from operations (TIO) towards advertisements in the quarter ended 30 June, 2015 (Q1-2016), during a 14 quarter period that has been considered in this report. The company‘s ad spend in the current quarter at Rs 128.84 crore (4.8 per cent of TIO) was 29.8 per cent more than the Rs 99.25 crore (3.4 per cent of TIO) in Q1-2015 and 60.4 per cent more than the Rs 80.30 crore (3.2 per cent of TIO) in the immediate trailing quarter.

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

Businesses and Brands

Titan has three revenue segments – watches comprising the brands –Titan, Xylus, Nebula, Sonata, 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.

Segment Performance

Titan’s watches business in Q1-2016 recorded a growth of 9.1 per cent with income of watches business growing from Rs 444.19 crores to Rs 484.54 crores. The Jewellery income in Q1-2016 was Rs 2072.03 crores as against Rs 2325.27 crores, a decline of 10.9 per cent. The company says that jewellery business continues to face regulatory pressures that have an adverse impact on sales. Titan’s Eyewear business grew by 19.7 per cent from Rs 89.21 crores last year to Rs 106.77 crores in Q1-2016. The company’s other businesses including Precision Engineering grew by 36.3 per cent, to Rs 46.85 crores in the current quarter.

The companys says that it has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters.

Retail expansion continued with a net addition of 22 stores across all its businesses in Q1-2016, ending the period with a retail area of over 16.2 lakh square feet nationally. Titan’s retail chain is now 1223 stores strong, as on 30 June, 2015 and is expanding with growth plans in place for all its retail businesses – watches, jewellery and eyewear.

Advertisement spend trends

Please refer to Fig A below. As mentioned above, during the fourteen quarter period starting Q4-2014 until Q1-2016, Titan’s ad spends were the highest in the current quarter, both in absolute rupees and in terms of percentage of TIO. Lowest ad spends in absolute rupees and in terms of percentage of TIO was in Q4-2103 at Rs 66.63 crore and 2.5 per cent of TIO respectively during the same period.

During the fourteen quarter period under consideration in this report, Titan’s ad spends show a linear increasing trend in terms of absolute rupees as indicated by the broken blue trend line, while ad spends in terms of percentage of TIO show a slow linear decline as indicated by the broken maroon line in Fig A.

Please refer to Figure B below. The company’s TIO in Q1-2016 fell 6.3 per cent to Rs 2708.59 crore as compared to the Rs 2891.44 crore in Q1-2015 but was 8.5 per cent more than the Rs 2496.19 crore in Q4-2015. During the fourteen quarter period under consideration in this report, TIO shows a linear increasing trend a indicated by the broken orange trend line in the figure below.

PAT in Q1-2016 at Rs 151.06 crore (six per cent margin) declined 14.8 per cent as compared to the Rs 177.27 crore (6.1 per cent margin) and was 29.8 per cent lower than the Rs 215.09 crore (9.6 per cent of TIO) in Q4-2015. PAT in absolute rupees and in terms of percentage of TIO (margin) show a linear increasing trend as indicated by the broken military green and broken grey trend lines in the figure below.

Company speak

Titan managing director Bhaskar Bhat said, “The first quarter this year has been an extremely challenging one. Retail sales for both our core businesses watches & jewellery, have been below expectations due to reduced walk-ins. May and June, in particular were poor months. Rural demand too was affected due to lower realizations and monsoon conditions. With good monsoon in sight and festive season ahead, we look forward to a better year ahead. ”

August 1, 2015
Q1-2016: Shemaroo revenue up 20% at Rs 78 crore, PAT up 88%

BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 20.4 per cent higher consolidated Total Income from Operations (TIO) for the quarter ended 30 June, 2015 (Q1-2016) at Rs 77.63 crore as compared to the Rs 64.49 crore in Q1-2015. However, q-o-q, Shemaroo’s TIO in the current quarter was 10.6 per cent lower than the Rs 86.82 crore in Q4-2015.

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

(2) All numbers are consolidated unless stated otherwise.

Shemaroo’s PAT for the current quarter improved 88 per cent at Rs 11.75 crore (15.1 per cent margin) as compared to the Rs 6.25 crore (9.7 per cent margin) in Q1-2015, but eight per cent lower than the Rs 12.77 crore (14.7 per cent margin) in the immediate trailing quarter.

Shemaroo’s EBIDTA including other income at Rs 24.48 crore (31.5 per cent margin) in Q1-2016 was 23.9 per cent more than the Rs 19.75 crore (31.1 per cent margin), but 9.2 per cent lower than the Rs 26.97 crore (31.1 per cent margin) in Q4-2015.

Two Business Divisions contribute to Shemaroo’s numbers – New media and Traditional Media and Services. On a standalone basis, New Media revenue increased by 83.5 per cent to Rs 13.40 crore in Q1-2016 as compared to the Rs 7.30 crore in Q1-2015, while Traditional Media and Services revenue improved by 12.3 per cent to Rs 64.23 crore in Q1-2016 as compared to the Rs 57.19 crore in Q1-2015.

The company’s Total Expenditure (TE) in Q1-2016 at Rs 54.50 crore (70.2 per cent of TIO) was 18.8 per cent more than the Rs 45.89 crore (71.2 per cent of TO) in Q1-2015, but was 10.9 per cent lower than the Rs 61.17 crore (70.5 per cent of TIO) in Q4-2015.

The company’s cost of Raw Materials consumed went up by 16.2 times in Q1-2016 to Rs 92.65 crore (119.3 per cent of TIO) as compared to the Rs 5.73 crore (8.9 per cent of TIO) in Q1-2015 and was 3.1 per cent more than the Rs 89.86 crore (103.5 per cent of TIO) in Q4-2015. The company would have incurred a heavy loss, but for the fact that changes in inventories of finished goods and work in progress (inventory) had a negative impact and hence reduced TE to the extent of Rs 47.09 crore in the current quarter and Rs 39.18 crore in Q4-2015. Inventory had increased TE by Rs 32.25 crore in Q1-2015.

Employee Benefit Expense (EBE) in Q1-2015 increased 11.4 per cent to Rs 4.58 crore (5.9 percent of TIO) as compared to the Rs 4.11 crore (6.4 per cent of TIO) in the corresponding year ago quarter, but was almost flat (down 0.4 per cent) as compared to the Rs 4.60 crore (5.3 per cent of TIO) in Q4-2015.

Basic and undiluted EPS in Q1-2016 was Rs 4.29, whereas in Q1-2015, it was Rs 5.41 and for Q4-2015, it was Rs 4.82.

July 30, 2015