Category: Brands

Q3-15: Marico marketing spends up 14%, PAT up 18%

BENGALURU: Indian consumer products company in the beauty and wellness space Marico Limited (Marico) spent 14.1 per cent more towards advertisement and sales promotion (ASP, marketing) in the quarter ended December 31, 2014 (Q3-2015, current quarter) at Rs 153.02 crore (10.5 per cent of net Total Income from Operations or TIO) as compared to the Rs 134.08 core (11.2 per cent of TIO) corresponding year ago quarter (Q3-2014), but 8.6 per cent lower than the Rs 167.47 crore (11.7 per cent of TIO) in the immediate trailing quarter (Q2-2015).

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

During the 12 quarter period starting Q4-2014 until the current quarter, the highest amount spent by the company towards ASP was in Q1-2015 at Rs 192.18 crore (11.8 per cent of TIO). The company’s highest ASP spend in terms of percentage of TIO was in Q3-2013 at 14.1 per cent (Rs 152.82 crore). While in absolute rupees, ASP shows a linearly increasing trend during the 12 quarters under consideration, in terms of percentage TIO, the trend declines linearly during the same period. Please refer to Fig A below.

Marico’s TIO in Q3-2015 at Rs 1452.23 crore was 21 per cent higher than the Rs 1200.69 crore in the year ago quarter and was 1.5 per cent more than the Rs 1431.17 crore in Q2-2015. The highest TIO reported by the company during the 12 quarters under consideration was in Q1-2015 at Rs 1623.13 crore. TIO shows an increasing linear trend during this period. Please refer to Fig B below.

PAT in Q3-2015 at Rs 159.88 crore (11 percent of TIO) was 18.1 per cent more than the Rs 135.37 crore in Q3-2014 and 35.2 percent more than the Rs 118.26 crore (8.3 percent of TIO) in the previous quarter. During the 12 quarters under consideration, PAT shows an increasing linear trend both in terms of absolute rupees and in terms of percentage of TIO.

February 24, 2015
Uber to leverage its platform for VAS

KOLKATA: San Francisco-based taxi aggregator, Uber, is planning to leverage its platform and provide value-added services (VAS) such as courier facilities, food-delivery options or even doorstep delivery of groceries.

In India, Kolkata has become the fastest growing market for taxi-hailing service Uber, after the US, a top official of the company said.

“India has a huge potential for value-added services and that might help the company tap the possibility of such services,” said Uber head expansion – India and the subcontinent Neeraj Singhal.

He, however, declined to confirm the time frame on bringing in such services in the country.

“Kolkata is the fastest market for us globally after America. The volume of business growth is unprecedented for us. It is the most important market for us,” he said, adding that the business in terms of the number of trips has been growing at a phenomenal rate ever since the service was launched here in last September.

“This means that the Kolkata market is growing faster than even London,” he said.

When being asked to comment on the growth from the country, he said that the India market for Uber had been growing by over 40 per cent, and Kolkata market has been doing better than the national average.

Reiterating that it is not merely a transport provider, Singhal further said that there is a need to get the “right kind” of regulatory framework under which it can operate as a technology-based company in India.

“The regulations to govern a taxi company should be very different to govern a technology company… If we can work together (with the government) to get the right sort of regulatory framework to operate as a technology company, then the scope is endless. Fundamentally, if the government restricts us to be a taxi company, then the scope is limited to provide technology,” he added.

Founded in 2009, Uber operates in over 200 cities across the globe.

February 23, 2015
Q3-2015: Sterling Holiday Resorts q-o-q sales promo spend up 6.2 per cent

BENGALURU: Sterling Holiday Resorts (India) Limited (Sterling Holidays) reported sales promotion spend (Sales Promo) in Q3-2015 at Rs 4.77 crore (10.4 per cent of net sales), which was 6.2 per cent more than the Rs 4.49 crore in the immediate trailing quarter and 65.1 per cent more than the Rs 2.89 crore (8.4 per cent of net sales) in the corresponding year ago quarter. YTD, (9 month period ended December 31, 2014, 9M-2015) the company’s Sales Promo spends at Rs 11.46 crore (9.1 per cent of net sales) was 12.3 per cent more than the Rs 10.21 crore (10.8 per cent of sales promo) for 9M-2014.

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

During the 12 quarter period starting Q4-2012 until the current quarter, sales promo spends show a linear increasing trend in terms of absolute rupees. However, in terms of percentage of net sales, the linear trend is reducing. The company’s highest sales promo spends in terms of absolute rupees as well as in terms of percentage of net sales was in Q2-2013 at Rs 5.10 crore and 21.7 per cent of net sales.

The company’s net sales in Q3-2015 at Rs 45.67 crore was 32.9 per cent more than the Rs 34.37 crore in Q3-2014 and was 21.9 per cent more than the Rs 37.41 crore in Q2-2015. For 9M-2015, net sales at Rs 125.97 crore was 32.9 per cent more than the Rs 94.78 crore in 9M-2014. The company’s net sales show a linear increasing trend during the period under consideration.

The company has in general been a loss making company. Please refer to Fig 2 above. However, for Q4-2015, the company has reported a profit of Rs 0.82 crore as compared to a loss of Rs 1.74 crore in Q3-2014 and a loss of Rs 3.73 crore in Q2-2015. For 9M-2015, loss was Rs 1.83 crore as compared to a loss of Rs 11.46 crore in 9M-2013.

In its earnings release, the company says that Total Operating Income (TOI) increased 29 per cent to Rs 49.71 crore in Q3-2015 from Rs 38.4 crore in Q3-2014. TOI in 9M-2015 increased 30 per cent to Rs 138.03.

Sterling Holidays says that income from sale of vacation ownership plans grew by 52.5 per cent to Rs 25.2 crore in the current quarter from Rs 15.5 crore in the year ago quarter. YTD, sales income from Vacation Ownership plans rose a whopping 54 per cent to Rs 65.44 crore in 9M-2015 as compared to the Rs 42.54 crore reported for corresponding period of last year.

Income from Resort operations grew by 12.3 per cent to Rs 16.22 crore in Q3-2015 from 14.44 crore in Q3-2014. YTD, Income from Resort operations increased by 17 per cent to Rs 49.31 crore in 9M-2015 from 42.13 crore in 9M-2014.

Sterling Holidays managing director Ramesh Ramanathan said, “The sustained growth of all our business verticals reflects a healthy trend that we are progressing in the right direction. With a fast expanding pan India resort network and multiple holiday offerings, Sterling is in a unique position to grow rapidly into India’s leading holiday company.”

With effect from 3 September, 2014, Sterling Holidays became a wholly owned subsidiary of Thomas Cook Insurances Services (India) Limited – (TCISL). As of 31 December, 2015, Thomas Cook (India) Limited through its subsidiaries hold 55.07 per cent of the equity shareholding of the company.

February 21, 2015
Godrej Properties looks to integrate offline events with social media via apps

KOLKATA: Seeing that digital world has changed the way people research for property, Godrej Properties Ltd (GPL), the real estate development arm of the Godrej Group, has taken steps to keep in touch with its customers and be available at all times. The company aims to fully integrate offline events with social media through apps connected to all its channels.

The company is presently working on building its presence on Facebook for a community page called ‘Spark of Imagination,’ which will be an interactive platform for customers to discuss various current and relevant topics such as ‘Brighter Living’ and ‘Green Design or Practices’.

“Based on customer feedback received, plans for future projects will be drawn keeping in mind the aspirations and requirements of customers,” said Godrej Properties EVP – sales and marketing Girish Shah.

“Godrej Properties has carried out several campaigns on social media. Connecting with customers on a real time basis helps in building trust and confidence in our brand. Through this channel we also aim to be more accessible to our customers and reach out to them quickly and effectively,” added Shah.

At Godrej Properties, the social media channel is a vehicle to augment the sales process, thus aiding the decision-making process. “There are instances of NRIs and residents from other cities directly booking apartments solely through digital interactions with the brand. The transparency maintained on social media platform has helped enhance our credibility and consequently increased conversion rates to a certain degree,” he said.

To tap buyers, GPL has been providing ample resources to buyers including helpful information, FAQs and an option to chat with experts, who aid in decision making for such investors, he further explained.

GPL has launched various platforms in the past including its YouTube channel where an exhaustive repository of information and videos of the company’s projects and services are uploaded and shared. “The videos range from advertisements to project walks through, to mock ups of apartments which highlight various amenities and facilities that the project will provide,” Shah said, adding that this gives viewers an opportunity to get a virtual experience of the project.

GPL has also launched its Flickr Gallery, which streamlines information and images of the company’s various upcoming and current properties across the country.

Continuing with customer centric engagements, GPL follows a “Call to Action” model where customers are provided several touch points like live-chat, toll free numbers, enquiry forms and even free calling from India and abroad.

“As real estate is a high involvement purchase, customers spend a considerable amount of time going through all the information that is shared,” Shah explained.

Through various social media platforms, the company is constantly engaging with customers in real time across the globe, he concludes.

February 20, 2015
Lionsgate launches ‘insurgent’ virtual reality experience with Samsung

MUMBAI: Lionsgate and Samsung Electronics America, Inc have teamed up to create the exclusive virtual reality (VR) experience – “Insurgent – Shatter Reality.”

The four-minute visual work of art is a fully-immersive, 360-degree narrative experience set in the world of the upcoming feature film The Divergent Series: Insurgent and features stars from the film including Kate Winslet, Miles Teller and Mekhi Phifer.

Beginning 27 February, fans can experience the VR content for themselves exclusively through Samsung Gear VR powered by the Galaxy Note 4 as “Insurgent – Shatter Reality” goes on tour in New York, Chicago, Los Angeles, Austin and San Francisco prior to going live across all platforms and app stores.

The experience will also be available exclusively on Samsung’s Milk VR service from 1 March. Fans outside the tour markets will have an opportunity to view the experience on Samsung Gear VR over the weekend of 7-8 March at select Best Buy stores across the US.

“Virtual reality elevates the world of Divergent to a whole new level by creating a uniquely exciting and immersive experience for our fans. The ‘Insurgent – Shatter Reality’ experience reflects our commitment to partner with leading technology companies like Samsung to remain at the cutting edge of VR and other innovations that expand the worlds of our franchises and extend our storytelling in exciting new directions,” said Lionsgate chief marketing officer Tim Palen.

“As we push new boundaries in the world of technology and virtual reality, we are excited to continue our relationship with Lionsgate and bring Divergent fans a one-of-a-kind experience through Gear VR and Milk VR. This partnership will bring fans closer than ever to the action in this blockbuster series,” added Samsung Electronics America vice president and general manager – Immersive Products & Virtual Reality Nick DiCarlo.

By putting on the Gear VR headset, consumers are immersed in the role of “Divergent” members of society who have been captured by Jeanine Matthews (Kate Winslet) and her Erudite faction and are subjected to a series of mental “simulations” in order to determine the full extent of their divergence. As the VR technology simulates Jeanine and her faction cohorts testing them with experimental serums, they experience two distinct, intensely gripping and realistic fearscapes, transporting them from the frightening heights of a crumbling Chicago skyscraper to the intimidating challenge of a massive, fast-approaching locomotive.

Created by virtual reality innovators Kite & Lightning with assistance from the film’s VFX team, the experience was built using stereoscopic 4K video of the actors, with effects and environment built in Unreal Engine 4 and then rendered into an immersive 3D/360-degree experience. It was scored by The Divergent Series: Insurgent composer Joe Trapanese.

The Divergent Series: Insurgent, the second installment of the Divergent franchise, will be released in theaters worldwide on 20 March. The first Divergent film grossed nearly $300 million at the global box office, and the Divergent trilogy has sold more than 30 million books around the world.

February 19, 2015
December quarter: P&G Healthcare marketing spends down 10 per cent, PAT up 18.4 per cent

BENGALURU: Consumer goods company Procter & Gamble Hygiene and Health Care Limited (P&G Healthcare) reduced its ad and sales promotion spends (ASP, marketing spends) by 10 per cent in the quarter ended 30 December, 2014 (DQ-2014, current quarter) to Rs 87.85 crore (13.5 per cent of net Total Income from Operations or TIO) from Rs 97.56 crore (17.1 per cent of TIO) in the year ago quarter (DQ-2013) and reduced by 16.2 per cent as compared to the Rs 104.88 crore (18.2 per cent of TIO) in the immediate trailing quarter SQ-2014.

Notes: (1) The company’s financial year ends on June 30, hence results for the quarter ended June 30, 2014 are JQ-2014, for the quarter ended September 30, 2013 are SQ-2014; for the quarter ended December 31, 2013 are DQ-2014 and for the quarter ended March 31, 2014 are MQ-2014. Similar nomenclature is applicable for other years.

(2) 100,00,000 = 100 Lakhs = 10 million = 1 crore.

Across 12 quarters starting MQ-2012 until the current quarter (DQ-20140, P&G Healthcare’s ASP spends both in terms of absolute rupees and as percentage of TIO were the lowest at Rs 37.99 crore and 7.8 per cent of TIO respectively in JQ-2014.

Though in terms of absolute rupees, P&G Health’s ASP shows an upward linear trend, in terms of percentage of TIO, the linear trend is downwards. The company’s highest ASP in absolute rupees was in the previous quarter at Rs 104.88 crore (18.2 per cent of TIO), while the highest in terms of percentage of TIO was in DQ-2012 at 20.1 per cent of TIO (Rs 94.58 crore). Although in terms of absolute rupees, P&G Healthcare’s ASP shows an upward linear trend, in terms of percentage of TIO, the linear trend is downwards.

P&G Healthcare’s ASP is made up of two components – advertisement (ad) and trade incentives (incentive) spends. From FY-2008 (year ended June 30, 2008) until FY-2013, the company’s ASP is split has shifted towards increasing incentive spends – the company’s incentive spend has moved from about 20 per cent of ASP to 44 per cent in FY-2013, with a slight dip to 42.1 per cent in FY-2014.

Ad spends proportionately moved downwards from 80 per cent in FY-2008 to 56 per cent in FY-2013, moving upwards slightly to 57.9 per cent of ASP in FY-2014. This does not mean that the company has been spending lower amount of money towards ad spends, it’s just that with higher budgets, the skew is more towards spending more on trade incentives. Please refer to Fig -1 below.

The company’s TIO in DQ-2014 at Rs 644.51 crore was 12.8 per cent more than the Rs 571.27 crore in DQ-2013 and 11.8 per cent more than the Rs 576.49 crore in SQ-2014. TIO shows an upward linear increase trend over the 12 quarters under consideration.

Profit After Tax (PAT)

P&G’s PAT in the current quarter at Rs 90.66 crore (14.1 per cent of TIO) was 18.4 per cent more than the Rs 76.57 crore (14.1 per cent of TIO) in the corresponding year ago quarter DQ-2013 and was a whopping 47.4 per cent more than the Rs 61.50 crore (10.7 per cent of TIO) in the preceding quarter SQ-2014.

During the 12 quarter period under consideration in this report, the company’s highest PAT in absolute rupees has been during the current quarter, while in terms of percentage of TIO, the highest was in JQ-2014 at 18.5 per cent (Rs 89.92 crore). While PAT shows an upward linear trend in terms of absolute rupees and percentage of TIO during the past 12 quarters, over the past seven years starting FY-2008 until FY-2014, PAT in terms of percentage of TIO shows a declining linear trend.

P&G Healthcare attributes the improvement in PAT to its continued focus on brand fundamentals and that both its feminine and healthcare businesses continued to deliver double digit growth in a competitive market environment behind superior products, strong innovation and strength of product portfolio.

February 19, 2015
Q3-2015: Godrej Consumer Products marketing spends down 4.2 per cent; all categories grow

BENGALURU: Following a strong turnaround in the last quarter, Godrej Consumer Products Limited (GCPL) reported 12.8 per cent y-o-y growth in consolidated Income from Operations (TIO) to Rs 2235.71 crore from Rs 1982.27 crore and an 8.5 per cent q-o-q growth from Rs 2060.12 crore. For the nine month period ended 31 December, 2014 (9M-2015), the company’s TIO increased 9.1 per cent to Rs 6184.34 crore from Rs 5670.89 crore in 9M-2014.

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

GCPL‘s advertising and publicity spends (ad) in the current quarter reduced 4.2 per cent to Rs 217.87 crore (9.7 per cent of TIO) from Rs 227.53 crore (11.5 per cent of TIO) in the corresponding year ago quarter, but increased 3 per cent from the Rs 211.69 crore (10.3 per cent of TIO) in the preceding quarter. In 9M-2015, the company’s ad spend was 1.1 per cent lower at Rs 6709.78 crore (11 per cent of TIO) than the Rs 687.19 crore (12.1 per cent of TIO) in 9M-2014.

During the 11 quarter period starting Q1-2013 until Q3-2015, GCPL’s simple average ad spends was 10.8 per cent of TIO. Consequently, the current quarter’s ad spends were 1.1 per cent lower than average. GCPL’s ad spend shows an increasing linear trend in terms of absolute rupees, but a liner dip in terms of percentage of TIO during the period under consideration. GCPL’s highest ad spends in terms of absolute rupees and percentage of TIO was in Q1-2014 at Rs 239.06 and 13.8 per cent of TIO respectively. The company’s lowest ad spend in terms of absolute rupees and percentage of TIO was in Q4-2014 at Rs 145.78 crore and 7.5 per cent of TIO.

GCPL’s TIO in the current quarter was the highest. TIO shows an increasing linear trend during the period under consideration.

The company’s profit after tax (PAT) in the current quarter increased 20.3 per cent to Rs 263.7 crore (11.8 per cent of TIO) from RS 195.77 crore (9.9 per cent of TIO) and was 12.4 per cent more than the Rs 243.53 crore (11.4 per cent of TIO) in Q2-2015. For 9M-2015, PAT at Rs 641.55 crore (10.4 per cent of TIO) was 22.6 per cent more than the Rs 523.44 crore (9.2 per cent of TIO) in 9M-2014.

GCPL’s PAT was highest, both in terms of absolute rupees and percentage of TIO at Rs 334.14 crore and 19.4 per cent of TIO in Q4-2013. While PAT shows an increasing linear trend in absolute rupees during the 11 quarters under consideration, in terms of percentage of TIO, the linear trend is downward.

GCPL says in its earnings release that all categories have grown.

Household Insecticides

Household insecticides growth momentum has returned to normal levels and GCPL says that it clocked a growth of 16 per cent, well ahead of category growth. The company’s focus on improving market share continues and GCPL exited December 2014 with highest ever market share in this category. It launched a Neem Low Smoke Coil variant, to premiumise its coil franchise and aid market share gains. Good knight Fast card continues to see strong demand and the company plans to leverage its distribution strength for next level of growth.

Soaps

In Soaps, the company says that it continued double-digit growth momentum and outperformed the category (where growth recovered to low single digits) with a value growth of 11 per cent. GCPL says that it recorded strong growth across its key brands. This was aided by focused marketing campaigns, consumer offers and localised activation programmes. Gross margins during the quarter benefited from lower palm oil prices and have improved significantly.

Hair Colours

GCPL sustained strong growth momentum in Hair Colours and clocked a volume led sales growth of 10 per cent, despite a significantly higher base from last year. It says that it outperformed the category and gained further market share. Godrej Expert Rich Cr?me continues to gain market share, backed by a strong build-up in distribution and large-scale activation programmes.

Air Fresheners

Air Freshener brand, Godrej aer, continues to do well, aided by GCPL’s innovative gel format technology and consumer engagement initiatives. In little over two years of launch, it now features among the top 3 players in the car air care and home spray categories claims GCPL. The company recently launched a unique vehicle PUC renewal campaign to create awareness about air pollution.

Health and Wellness

GCPL’s recently launched Health and Wellness portfolio of hand washes, a hand sanitiser and anti-mosquito spray, under Godrej Protekt, is being well received in modern trade says the company.

Liquid Detergents

GCPL claims that Liquid Detergents sales have increased by 13 percent, despite the late onset of the winter and that Ezee continues to do well aided by the Ezee ‘Rahaat Ek Abhiyaan’ campaign.

Company Speak

Commenting on the financial performance of Q2-2015, Godrej group chairman Adi Godrej said, “After a few quarters of sluggish growth, consumer demand in India started to show early signs of a recovery in the third quarter of FY 2015. Our business has delivered strong, competitive double-digit growth across categories. We have also further strengthened our leadership positions across our core categories.

Consolidated organic constant currency sales increased by 16 per cent, ahead of the market. Organic constant currency operating earnings growth was even stronger at 28 per cent, led by prudent cost management, benign raw material costs and our efforts to effectively leverage our brand platforms.

In organic constant currency terms, our international business registered a robust top-line growth of 20 per cent and an operating earnings growth of 43 per cent.

After a challenging few quarters, the growth prospects of the Indian economy are looking more favourable. We expect the economy to pick up pace in FY 2016. We are beginning to see improved consumer sentiment on the ground and are hopeful that this will translate into better consumer demand in the quarters ahead. With our relentless focus on innovation, we are in a good position to capitalise on the uptick in demand and growth. We will continue to focus on sustaining and extending leadership in our core categories. We are becoming operationally more efficient, while investing for the longer term.

We expect growth in the second half of this fiscal year should be better than the first half. Consequently, our intent is to deliver a stronger performance overall this year, compared to the previous year.

The medium and long-term growth prospects in India and our other emerging markets remain robust. I am confident that with our clear strategic focus, differentiated product portfolio, superior execution and top-notch team, we will continue to deliver industry-leading results in the future.”

Click here to read the unaudited financial statement

February 18, 2015
Q3-2015: HT Media Radio segment reports 42.2% higher operating result

BENGALURU: HT Media Limited’s (HT Media) radio segment reported a 42.2 per cent q-o-q growth in operating result for Q3-2015 at Rs 9.44 crore versus the Q2-2015 operating profit of Rs 6.64 crore and was 21.2 per cent more than the Rs 7.79 crore in the corresponding quarter of 2014. The segment’s 9M-2015 operating result at Rs 20.65 crore was 27.9 per cent more than the Rs 16.15 crore in 9M-2014.

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

(2) The figures mentioned in this report are consolidated figures unless stated otherwise.

HT Media’s radio segment reported revenue of Rs 25.81 crore, six per cent more than the Rs 24.35 crore in Q2-2014 but 3.2 per cent lower than the Rs 26.67 crore in Q3-2014. The company operates four radio stations in the country under the brand Fever 104 FM.

Let us look at the other Q3-2015 and 9M-2015 figures reported by HT Media:

HT Media reported eight per cent higher total income from operations (TIO) at Rs 605.50 crore as compared to the Rs 560.88 crore in Q2-2015 and 4.2 per cent more than the Rs 533.53 crore in Q3-2014. For 9M-2015, HT Media reported TIO of Rs 1712.79 crore, which was 3.4 per cent more than the Rs 1656.86 crore in 9M-2014.

The company’s PAT for Q3-2015 at Rs 63.97 crore (10.6 per cent of TIO) was 45.8 per cent more than the Q2-2015 PAT of Rs 43.89 crore (7.8 per cent of TIO) but 4.6 per cent lower than the Rs 67.02 crore (11.5 per cent of TIO) in Q3-2014. For 9M-2015, HT Media reported PAT of Rs 140.53 crore (8.2 per cent of TIO), which was 18.6 per cent lower than the Rs 172.69 crore (10.4 per cent of TIO) in 9M-2014.

Three segments contribute to HT Media’s revenue – (1) Printing and publishing of newspapers and periodicals (Publishing), (2) Radio and (3) Digital.

HT Media’s publishing segment reported revenue of Rs 553.2 crore (91.4 per cent of TIO) for the current quarter, which was eight per cent more than the Rs 510.75 crore (91.1 per cent of TIO) in Q2-2015, and 3.7 per cent more than the Rs 533.53 crore (91.8 per cent of TIO) in Q3-2014. In 9M-2015, the publishing segment reported revenue of Rs 1565.49 crore (91.4 per cent of TIO), which was 2.1 per cent more than the Rs 1533.96 crore (92.6 per cent of TIO) in 9M-2014.

HT Media’s publishing segment reported an increase in operating profit of 17.1 per cent to Rs 78.49 crore in Q3-2015 as compared to the Rs 67.04 in Q2-2015, but was 8.7 per cent lower than the Rs 85.93 crore in the corresponding year ago quarter. The segment reported a 7.4 per cent fall in operating profit to Rs 210.08 crore in 9M-2015 versus Rs 226.97 crore in 9M-2014.

The company’s digital segment reported 6.9 per cent higher revenue at Rs 26.65 crore in Q3-2015 as compared to the Rs 24.93 crore in Q2-2015 and 36.4 per cent more than the Rs 19.54 crore in Q3-2014. For 9M-2015, HT Media’s digital segment reported a 38.4 per cent growth in revenue to Rs 74.13 crore versus the Rs 54.40 crore in 9M-2014. This segment has been regularly reporting operating loss (loss). Its loss in Q3-2015 was Rs 14.42 crore; Q2-2015 was Rs 14.7 crore; for Q3-2014 loss was Rs 7.6 crore. For 9M-2015, HT Media’s digital segment reported loss of Rs 41.31 crore versus Rs 34.73 crore in 9M-2014.

The company, in its investor presentation, says that advertising revenue in the current quarter grew 12 per cent to Rs 496.7 crore from Rs 444.4 crore in the immediate trailing quarter and grew four per cent as compared to the Rs 478.3 crore in the corresponding year ago quarter.

Circulation revenues in Q3-2015 at Rs 73.4 crore grew two per cent q-o-q from Rs 71.7 crore in Q2-2015 and grew 10 per cent from Rs 66.5 crore in Q3-2014.

Other revenue increased one per cent in Q3-2015 to Rs 79.8 crore from Rs 78.7 crore in Q2-2015 and was 10 per cent more than the Rs 72.3 crore in Q3-2014 further informs HT Media.

HT Media chairperson and editorial director Shobhana Bhartia said, “We are happy to report revenue growth across all our core businesses on the back of higher advertising in the festive season. We increased our circulation in the Hindi belt, strengthening our position in Uttar Pradesh and Bihar; Mumbai is growing steadily; and we remain the most read English daily in Delhi and the national capital region. Our digital businesses continue to show traction and radio remains highly profitable.”

“Raw material costs show a downward trend and we will benefit from the same in coming quarters. The announcement of Phase III expansion in FM Radio is a positive development and we believe we will be able to add to our portfolio of stations. We expect to close the year on a strong note and carry the momentum into the next year. The company is well positioned to seize any opportunity that comes its way,” she added.

February 16, 2015
Q3-2015: United Spirits marketing spends up 15.8 per cent

BENGALURU: United Spirits Limited (USL) spent 229.75 crore (9.9 per cent of Total Income from Operations or TIO) in Q3-2015 (quarter ended December 31, 2015, current quarter) towards Advertising and Sales Promotion (ASP, marketing). This was 15.8 per cent more than the Rs 198.40 crore (9.1 per cent of TIO) that the Vijay Mallya led UB group company had spent in the immediate trailing quarter (previous quarter, Q2-2015, q-o-q) and 2.3 per cent more than the Rs 225.06 crore (also 9.9 per cent of TIO) in the corresponding year ago quarter (Q3-2014).

During the nine month period ended 31 December, 2014 (YTD, 9M-2015), USL spent Rs 647.98 crore (10.1 per cent of TIO) towards ASP, which was three per cent more than the Rs 629.15 crore (9.8 per cent of TIO) in the corresponding nine month period of the previous year.

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

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

(3) The UB group owns Indian Premier League (IPL) cricket team Royal Challengers (RCB) Bangalore and the I-League teams (I-League is an Indian professional league for Men’s Association football clubs) Mohun Bagan A. C and the East Bengal F. C. and is the co-owner of the Formula One team Sahara Force India. Mallaya is a member of the World Motor Sport Council representing India in the FIA (Fédération Internationale de l’Automobile).

Over the previous eight quarters starting Q4-2013 until Q3-2015, ULS’s ASP spend had been the highest in terms of absolute rupees in the current quarter. As mentioned above the company had spent approximately the same per centage of TIO in Q3-2014. During the eight quarters under consideration, the highest spends by the company in terms of per centage of TIO is 11.4 per cent (219.83 crore) in Q1-2015, while lowest has been in the previous quarter.

During the eight quarters under consideration in this report, USL’s ASP shows a sharp upward linear trend in absolute rupees and a slight linear downward gradient to flat in terms of per centage of TIO. Please refer to Fig 1 below.

The company reported TIO of Rs 2318.23 crore in Q3-2015, which was 6.4 per cent more than the Rs 2178.58 crore in the immediate trailing period and was 2.3 per cent more than the Rs 2266.26 crore in the year ago quarter. During 9M-2015 USL’s TIO at Rs 6420.71 crore was almost flat (lower by 0.3 per cent) than the Rs 6441.93 crore in 9M-2015. Refer Fig 2 below For the 8 quarter period under consideration, TIO shows an upward linear trend.

USL reported PAT for Q3-2015 at Rs 78.81 crore, which was 21.4 per cent more than the Rs 64.92 crore in Q3-2014. The company had reported a loss of Rs 27.83 crore in the immediate trailing quarter.

The company’s Earnings before interest, depreciation, tax and amortization (EBIDTA) for Q3-2015 was Rs 238.1 (10.3 per cent of TIO), which was 2.1 per cent more than the Rs 233.29 crore (10.7 per cent of TIO) in Q2-2015 and 7.3 per cent more than the Rs 222.07 crore (9.7 per cent of TIO) in Q3-2014. For 9M-2015, EBIDTA at Rs 616.49 crore (9.6 per cent of TIO) was 16.6 per cent more than the Rs 739.18 crore (11.5 per cent of TIO) in 9M-2014.

February 16, 2015
ITC to acquire J&J’s Savlon, Shower To Shower; expand FMCG portfolio

KOLKATA: Kolkata-headquartered cigarettes-to-hotels conglomerate ITC has entered into an agreement with Johnson & Johnson (J&J) to acquire Savlon and Shower To Shower trademarks and other intellectual property (IP) primarily for use in India in order to expand its FMCG portfolio.

Savlon is an antiseptic brand while Shower To Shower is a personal care product brand.

It should be noted that this acquisition, which will be ITC’s first purchase in the personal care segment, is in line with the company’s growing focus on its non-cigarette FMCG business.

“The company has entered into asset purchase agreements with Johnson & Johnson, India & Johnson & Johnson, Singapore on 12 February for purchase of Savlon and Shower To Shower trademarks and other intellectual property, respectively, primarily for use in India,” ITC said in a BSE filing.

These agreements are subject to customary closing conditions and regulatory permissions as may be necessary, the filing further reveals.

A senior official on the condition of anonymity said that the company has used inorganic route to expand and strengthen its business earlier. “We acquired juice brand B Natural for our entry into fruit beverages market,” he said.

When being asked to comment on the revenues ITC is looking at, he said that the current acquisition is in line with ITC’s aim for a revenue of approximately Rs 1,00,000 crore from the new FMCG businesses alone by the end of year 2030.

ITC had acquired Bangalore-based Balan Natural Food’s B Natural brand last year to strengthen its portfolio.

When asked to comment, ITC declined to divulge the size of the deal for purchasing the two brands from Johnson & Johnson.

However when some analysts tracking FMCG firms were contacted to comment on the probabilities of the deal, they assume that the size of the current acquisition would be small compared to ITC’s total size of the business.

After this acquisition, the company’s topline in FMCG segment may go up by a small amount of about one per cent, said a Kolkata based analyst.

ITC’s non-cigarette FMCG revenue stood at around Rs 8,122 crore during the financial year 2013-14.

February 14, 2015