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Tag: Financial

  • Q3-2015: Zeel PAT up 44.5%; income up 14.8%; ad revenue up 8.5%

    Q3-2015: Zeel PAT up 44.5%; income up 14.8%; ad revenue up 8.5%

    BENGALURU: The Subhash Chandra-led content and broadcast player Zee Entertainment Enterprises Limited (Zeel) reported a 44.5 per cent hike in y-o-y PAT to Rs 308.61 crore (22.6 per cent of Total Income from Operations or TIO) in Q3-2015 from Rs 213.59 crore (18 per cent of TIO) in Q3-2014 and a 36 per cent increment from the Rs 227 crore (20.3 per cent of TIO) reported in the previous quarter. The company’s year to date (YTD) PAT at Rs 746.73 crore was 10.7 per cent higher than the Rs 674.5 crore during 9M-2014.

     

    Zeel reported 14.8 per cent higher TIO in Q3-2015 at Rs 1363.72 crore as compared to Rs 1188.36 crore in the corresponding quarter of last year and 22 per cent more than the Rs 1117.82 crore in Q2-2015. TIO for 9M-2015 at Rs 3536.60 was 8.4 per cent more than the Rs 3262.89 crore in 9M-2014.

     

    The company’s advertisement revenue in Q3-2015 at Rs 742.6 crore (54.5 per cent of TIO) was 8.5 per cent more than the Rs 683.41 crore (57.6 per cent of TIO) in Q3-2014 and 18.6 per cent more than the Rs 625.94 crore (56 per cent of TIO) in the immediate trailing quarter. During 9M-2015, ad revenue increased 10.7 per cent to Rs 1990.64 crore (56.3 per cent of TIO) from Rs 1797.69 crore (55.1 per cent of TIO) in 9M-2015.

     

    Let’s look at the other results reported by Zeel:

     

    Zeel reported a 2.3 per cent drop in subscription revenue to Rs 446.13 crore (32.7 per cent of TIO) from Rs 456.49 crore (38.4 per cent of TIO) in Q3-2014, but reported 5.1 per cent higher subscription revenue than the Rs 424.45 crore (38 per cent of TIO) in the immediate trailing quarter. Zeel says that due to a change in arrangements with various operators across international territories, the reporting of subscription revenue for the current year has undergone a change and is not comparable to the with the figures of previous years.

     

    The company’s other income in Q3-2015 more than tripled (up 3.68 times) to Rs 174.99 crore from Rs 47.56 crore in the corresponding quarter of last year and more than doubled (up 2.6 times) the Rs 67.43 crore in Q2-2015. Other Income in 9M-2015 at Rs 263.25 crore more than doubled (up 2.1 times) as compared to the Rs 126.52 crore in 9M-2015.

     

    Zeel’s Total Expenditure (TE) in Q3-2015 at Rs 1027.36 crore (75.3 per cent of TIO) grew 12.8 per cent from Rs 911.10 crore (76.7 per cent of TIO) in Q3-2014 and was 26.7 per cent more than the Rs 810.75 crore (72.5 per cent of TIO) in Q2-2015. 9M-2015 TE at Rs 2603.57 crore (73.6 per cent of TIO) was 8.4 per cent more than the Rs 2401.39 crore (73.6 per cent of TIO) in 9M-2014.

     

    Operation cost in Q3-2015 at Rs 645.57 crore (47.3 per cent of TIO) was 5.9 per cent more than the Rs 609.50 crore in Q3-2014 and 32.3 per cent more than the Rs 470.30 crore (42.1 per cent of TIO) in Q2-2015. Operation cost in 9M-2015 at Rs 1519.25 crore (43 per cent of TIO) was 0.3 per cent lower than the Rs 1524.37 crore (46.7 per cent of TIO) in 9M-2014.

     

    Zeel’s Employee Benefit Expense (EBE) in Q3-2015 at Rs 109.27 crore (8 per cent of TIO) was 14 per cent more than the Rs 95.86 crore (8.1 per cent of TIO) in Q3-2014 and was 1.2 per cent more than the Rs 107.96 crore (9.7 per cent of TIO) in Q2-2015. EBE during 9M-2015 at Rs 328.94 crore (9.3 per cent of TIO) was 13.2 per cent more than the Rs 290.68 crore (8.9 per cent of TIO) in 9M-2014.

     

    Zeel chairman Subhash Chandra said, “Our quarterly performance reflects the investments that Zee is making to grow its business and market share. We will continue to pursue growth opportunities, which would enhance long term shareholder value.”

     

    Zeel managing director and chief executive officer Punit Goenka added, “We had a good quarterly performance reflecting the industry wide trend. On the domestic subscription front, we grew in low double digit figures during the quarter. On a sustained basis, we are growing in high single digits on domestic subscription revenues. Implementation of digitization in the remaining parts of the country will push the growth momentum further.”

  • 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.

     

  • Q3-2015: Network18 reports improved results

    Q3-2015: Network18 reports improved results

    BENGALURU: Network18 Media & Investments Limited (Network18) reported better results in Q3-2015 as compared to Q2-2015. Improved performances by its media operations, web and publishing operations helped buoy the company’s topline. Q2-2015 was a bad quarter overall for the media and entertainment (M&E) industry in India. Is the Ambani habit of reporting good results rubbing on to its newly-taken over companies – TV18 and Network18; minnows when compared to the giant that the Mukesh Ambani run Reliance Group of Industries is? Only time will tell.

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

     The company reported 11.7 per cent growth in Income from Operations at Rs 839.1 crore in Q3-2015 from Rs 744.8 crore in Q2-2014 and 14.3 per cent more than the Rs 727.6 crore in Q3-2014. During 9M-2015, Network18 Income from Operations improved 16.9 per cent to Rs 2285.1 crore from Rs 1954.1 crore in 9M-2014.

     Network18’s Profit Before Tax and Exceptional Items (PBT) improved to Rs 22.4 crore in Q3-2015 from a loss of Rs 14.8 crore in Q2-2015 and 15.7 per cent more than the Rs 19.3 crore in Q3-2014. For 9M-2015, loss at Rs 36.4 per cent was lower than the loss of Rs 65.6 crore in 9M-2014.

     Let us look at the other numbers reported by Network18:

     The company’s operating profit (Profit before depreciation, interest and tax – PBDIT) in Q3-2015 at Rs 67.1 crore was almost quadruple (up 3.8 times) than the Rs 17.4 crore in Q2-2015 and 12.7 per cent higher than the Rs 59.5 crore reported in the corresponding quarter of the previous year. For 9M-2015, PBDIT at Rs 97.2 crore was 2.5 times the Rs 39 crore reported for 9M-2014.

     Network18 reported 5.6 per cent higher Total Expense (TE) at Rs 788.5 crore in Q3-2015 versus the Rs 746.9 crore in Q2-2015 and 14.7 per cent more than the Rs 687.6 crore in Q3-2014. In 9M-2015, the company’s TE at Rs 2268.9 crore was 15.2 per cent more than the Rs 1969.5 crore in 9M-2015.

    Programming cost in Q3-2015 at Rs 202.1 crore was 13 per cent more than the Rs 178.8 crore in the immediate trailing quarter and 30.8 per cent more than the Rs 154.5 crore in Q3-2014. In 9M-2015, programming cost at Rs 546.5 crore was 37.8 per cent more than the Rs 396.5 crore in 9M-2014.

     Network18’s distribution, advertising and business (DAB) expense in Q3-2015 at Rs 214 crore was 3 per cent lower than the Rs 220.7 crore in Q2-2015 and 3.3 per cent less than the Rs 221.3 crore in Q3-2014. In 9M-2014, the company reported 5.2 per cent lower DAB expense at Rs 626.6 crore versus the Rs 660.7 crore in 9M-2014.
     
    Depreciation and amortisation cost (depreciation) in Q3-2015 at Rs 23.8 crore was 22.7 per cent lower than the Rs 19.4 crore in Q2-2015 and 22 per cent less than the Rs 19.5 crore in Q3-2014. Depreciation in 9M-2015 at Rs 80.9 crore was 48.7 per cent more than the Rs 54.4 crore in 9M-2014.

     Network18 says that its digital content operations – moneycontrol.com, Ibnlive.com, Firstpost.com and News18.com and its digital commerce operations bookmyshow.com and Homeshop 18 performed well in the current quarter with a monthly average reach of approximately 25 million visitors for first two months in this quarter.

    Its television business also performed well. The company said that its business news operations (CNBC-TV18, CNBC Awaaz, CNBC Bajar and CNBC-TV18 Prime HD) sustained their leadership position in the genre. CNBC Bajar showed accelerated growth in viewership with a 182 per cent 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 per cent. In the entertainment segment, Colors was the No.1 channel on weekend prime time with a market share of 28.3 per cent in Q3-2015. History TV18 ended the year 2014 with No.1 position in December 2014 with a market share of 25 per cent in 6 Metros and garnered the maximum time spent per viewer at 178 minutes in 6 Metros and 132 minutes in all India. The company’s regional news and entertainment group of channels under the ETV umbrella also performed well.

     

  • 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

     

  • 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.

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  • Colgate-Palmolive Q-2015 marketing spends at Rs 201 crore

    Colgate-Palmolive Q-2015 marketing spends at Rs 201 crore

    BENGALURU: Q2-2015 has witnessed probably what has been Colgate-Palmolive (India) highest advertisement and sales promotion spend (marketing or ASP) in a quarter at Rs 201 crore (20.1 per cent of Total Income or TI) based on the data over the last 10 quarters starting Q1-2013 until Q2-2015. Q2-2015 ASP was 11.3 per cent more than the Rs 180.55 crore (18.7 per cent of TI) in the immediate trailing quarter (Q1-2015) and 68.2 percent more than the Rs 119.47 crore in the corresponding year ago quarter Q2-2014.

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

    Colgate-Palmolive’s brands include Colgate for oral care, Palmolive, Charmis and Halo for personal care, and Axion for household care.

    Please refer to figure A below. Over the 10 quarter period under consideration, Q2-2015 ASP is also the highest in terms of percentage of TIO, with the previous highest being 18.7 percent of TI in Q1-2015.

    Across seven financial years starting FY-2008 until FY-2014, 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-2014 at Rs 688.66 crore (19.2 per cent of TIO).

    In H1-2015 (six month period ended September 30, 2014), Colgate-Palmolive’s ASP at Rs 381.55 crore (19.5 percent of TI) was 72.8 percent more than the Rs 220.86 crore (12.3 percent of TI) in H1-2014 and was more than double (2.21 times) the ASP of Rs 172.64 crore (11 percent of TI) in H1-2013.

    Similarly, across the 10 quarters under consideration in this report, TI, ASP and ASP as percentage of TI show an upward linear trend. Colgate-Palmolive’s TI in Q2-2015 at Rs 1000.52 crore was 3.9 percent more than the Rs 956.90 crore in Q1-2015 and 9.5 percent higher y-o-y than the Rs 913.75 crore.

    Colgate-Palmolive’s TI in Q2-2015 at Rs 1000.52 was 3.9 percent more than the Rs 963.55 crore in Q1-2015 and 9.5 percent more than the Rs 913.75 crore in Q-2014. For H1-2015, Colgate-Palmolive’s TI improved 9.5 percent to Rs 1957.42 crore from Rs 1790.56 crore in H1-2014. The company had reported TI of Rs 3578.81 crore for FY-2014.

    Colgate-Palmolive’s Advertisement spends to increase in Q3-2015?

    Colgate-Palmolive’s ASP comprises of two components – (a) Advertising, and (b) Sales promotion. Data for 3 financial years – FY-2012, FY-2013 and FY-2014 show the breakup of ASP into these two components. Please refer to Fig A1 below. If one were to assume the lowest percentage in figure A1- 63.8 of ASP, as component of ad spend, the company’s advertisement spend in Q2-2015 works out to about Rs 128 crore. The simple average of the ad spends for the three years works out to 66.8 percent or about Rs 134 crore.

    Going by the company’s trends in FY-2013 and FY-2014, ASP has been higher in Q3 than in Q2, hence the chances of the company spending at least the same, if not higher amounts towards marketing in Q3-2015 are quite high.

    PAT

    Colgate-Palmolive’s PAT in Q2-2015 was 4 percent lower at Rs 129.58 crore (13 percent of TI) than Rs 134.91 crore (14.1 percent of TI) in Q1-2015, but was 18.3 percent more than the Rs 109.52 crore (12.2 percent of TI) in the corresponding quarter of last year. YTD, in fiscal 2015, Colgate-Palmolive’s PAT at Rs 264.49 crore (13.5 percent of TI) was 10.3 down as compared to the Rs 294.74 crore (16.5 percent of TI) in H1-2014.

    On an annual basis, the company’s PAT shows an upward linear trend in terms of absolute rupees, but a downward linear trend in terms of percentage of TI. During the 10 quarters under consideration, the company’s PAT shows almost flat to downward linear trend in terms of absolute rupees and a downward trend in terms of percentage of TI.

  • Jewellery leads Titan’s 54.3 percent Op Inc 29 per cent PAT growth in Q2-2015

    Jewellery leads Titan’s 54.3 percent Op Inc 29 per cent PAT growth in Q2-2015

    BENGALURU:  For the past few quarters, Titan Company (Titan) jewellery business has been pulling down the company’s numbers. This quarter (Q2-2015 which ended 30 September 2014), this business under its jewellery distribution brands Tanishq and Goldplus from Tata showed an upsurge in retail sales by as much as 75 per cent and 84 per cent, respectively. Overall, as per Titan’s investor presentation, jewellery business witnessed y-o-y growth in net income of 64.8 per cent from Rs 1,777 crore in Q2-2014 to Rs 2,929 crore in the current quarter.

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

    The company’s Total Income from Operations (TIO) went up 54.3 per cent in TIO to Rs 3593.07 crore in Q2-2015 from Rs 2328.97 crore in the corresponding year ago quarter and grew 24.3 per cent from Rs 2891.44 crore in the immediate trailing quarter Q1-2015.

    Titan has three revenue segments – watches having the brands –Titan, Xylus, Nebula, Sonata and Fastrack and Zoop; Jewellery (the largest segment in terms of revenue and consequently profits) 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.

    Titan MD Bhaskar Bhat said, “This was an extra-ordinary quarter for the company and we witnessed an income growth of over 55 percent on account of an encouraging performance by all divisions, especially the jewellery business where the accounts of our Golden Harvest Scheme customers had to be closed based on regulatory changes. We have also seen an improvement in consumer sentiment in the second quarter and many of our brands ran successful activations to build on this sentiment and the festive mood. Gold prices have been stable and inflation is falling which would help in providing a lift to the economy. However, the coming quarter will have to be observed and tackled appropriately as some channels are beginning to report lower walk-ins. All our brands will invest in new campaigns in this quarter to improve our connect with the consumer.”

    Titan’s Watches division has also done well in the quarter backed by successful activations for both Titan and Fastrack brands, says the company in its press release. A new brand campaign on ‘gifting of time’ went on air for Titan watches. The income for watches was Rs 527.46 crore in Q2-2015 as compared to Rs 439.07 crore in the corresponding quarter last year.

    Other businesses of the company comprising Precision Engineering, a B2B business, the Eyewear business and accessories grew by 20.9 percent in Q2-2015 versus Q2-2014. The combined income of these businesses was Rs 137.90 crore in the current qaurter. Their last year income for Q2-2014 was Rs 114.03 crore.

    The company has spent higher amount towards advertising (ASP) in Q2-2015 at Rs 105.83 crore (2.9 percent of TIO), which was 12.2 percent higher than the Rs 94.35 crore (4.1 percent of TIO) in Q2-2014 and 6.6 percent more than the Rs 99.25 crore (3.4 percent of TIO) in Q1-2015.

    Over the 11 quarter period starting Q4-2012, Titan’s ASP shows an increasing trend in absolute rupee terms, but in terms of ASP as percentage of TIO, the trend shows a decline. Please refer to Fig A below.
    During the period under consideration, the company’s highest ASP in absolute rupee terms was in Q3-2014 at Rs 118.04 crore (4.4 percent of TIO). This was the highest ASP in FY-2014. Q3-2013 ASP was also the highest in FY-2013 at Rs 108.76 crore (3.6 percent of TIO).

    Also, during the period under consideration, the company’s highest ASP in terms of percentage of TIO was in Q1-2013 at 4.7 percent (Rs 103.44 crore). Historically, during the period under consideration, though Titan’s Q2-2013 TIO was higher than the TIO in Q1-2013, the company’s ASP had gone up in absolute rupee terms in Q3-2013, but was lower in terms of percentage of TIO as compared to both Q1-2013 and Q2-2013.

    In Q1-2014, the company’s ASP was higher in absolute rupees at Rs 104.67 crore as compared to the Rs 94.35 crore in Q2-2014. However, in terms of percentage of TIO, Titan’s Q1-2014 ASP at 3.4 percent was lower than the 4.1 percent in Q2-2014 or the 4.4 percent in Q3-2014.

    If the company wants to push towards record sales and profits in FY-2015, the chances of the company spending more towards advertising spends in Q3-2015 are quite high going by what Bhat has said in the company’s earnings release.

    Y-o-y the company’s PAT improved 28.6 percent to Rs 239.98 crore in Q2-2015 from Rs 186.65 crore and went up by 35.4 percent from Rs 177.27 crore in Q1-2015. Please refer to Fig B below.

    During the 11 quarter period under consideration, Titan’s PAT shows an upward trend in absolute rupee terms, but seems to have flattened out at about 7.2 percent of TIO, maybe could even decline fractionally.