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  • IMCL pares Hinduja Ventures PAT in FY-2014

    IMCL pares Hinduja Ventures PAT in FY-2014

    BENGALURU: Hinduja Ventures Limited (HVL) has reported consolidated PAT of just Rs.0.20 crore in FY-2014 as compared to the PAT of Rs 80.22 crore in FY-2013. On a standalone basis, HVL reported PAT of Rs 82.03 crore, 6.9 per cent more than the Rs 76.75 crore in FY-2013. Its media and communication segment reported a loss of Rs 197.33 crore in FY-2014 as compared to a profit after tax of Rs 46.88 crore in the previous fiscal. HVL’s diluted EPS (of face value Rs 10) went down to just Rs 0.10 in FY-2014 from Rs 39.03 in FY-2013.

     

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

     

    (2) This report focuses more on IMCL/HVL’s media and communication numbers.

     

    (3) All figures are consolidated unless stated otherwise.

     

    HVL operations and investments span over three segments namely media, real estate and treasury. The Company’s principal business investment is in media and communications via its valuable stake in IndusInd Media & Communications Limited (IMCL).

     

    Bad debts and hence HVL’s media and communications segment results have significantly reduced the company’s PAT in FY-2014.

     

    HVL’s media and communications segment

     

    HVL’s media and communications segment reported revenue of Rs 638.84 crore in FY-2014, which was 4.6 per cent more than the Rs 610.63 crore in FY-2013. The capital employed by the segment went up 7.9 per cent in FY-2014 to Rs 1242.12 crore from Rs 1151.12 crore in the previous year.

     

    IMCL, in which HVL owns 61.71 per cent stake, reported loss of Rs 118.84 crore in FY-2014 versus a profit of Rs 36.24 crore in FY-2013, and hence was a major contributor to the loss by HVL’s media and communications segment. IMCL consolidated EBIDTA for the year stood at R 26.07 crore as against R 141.15 crore in the previous year says the company.

     

    IMCL reported revenue of Rs 572.46 crore in FY-2014, which was 4.5 per cent more than the Rs 547.56 crore in FY-2013. The subsidiary’s paid-up capital more than doubled from Rs 73.91 crore to Rs 173.91 crore because of infusion of Rs 100 crore by HVL by way of purchase of 10 per cent, redeemable cumulative preference shares of Rs 10. HVL says that IMCL needs funds for consolidation in phase I and phase II and to digitise network in phase III and phase IV, and hence the fresh investment.

     

    IMCL’s reserves dropped 43.3 per cent to Rs 155.37 crore in FY-2014 versus Rs 274.20 crore in FY-2013. IMCL’s total assets jumped 9.3 per cent in FY-2014 to Rs 1178.50 crore from Rs 1078.62 crore reported last year. IMCL’s liabilities went up 16.3 per cent in FY-2014 to Rs 849.23 crore from Rs 730.51 crore in FY-2013.

     

    Let us look at the other numbers reported by HVL for FY-2014

     

    HVL consolidated revenue went up 10.2 per cent in FY-2014 to Rs 773.49 crore from Rs 701.96 crore in the previous year. 

     

    HVL’s reported 8.7 per cent increase in revenue from cable television transmission in FY-2014 to Rs 620.07 crore from Rs 570.36 crore in FY-2013. Its income from sale of set top boxes/modem’s fell to less than a seventh (fell by 7.28 times) to Rs 2.43 crore in FY-2014 from Rs 17.67 crore in FY-2013. HVL’s advertisement income fell 20.6 per cent in FY-2014 to Rs 4.02 crore from Rs 5.07 crore in FY-2013. The discount from broadcasters fell 37 per cent in FY-2014 to Rs 5.82 crore from Rs 9.24 crore in FY-2013.

     

    Its total expenditure went up 48.4 per cent to Rs 871.52 crore in FY-2014 from Rs 587.38 crore in FY-2013. The company’s depreciation and amortisation went up 80.7 per cent in FY-2014 to Rs 121.84 crore from Rs 67.41 crore in FY-2013. HVL has more than doubled (2.74 times) its provision for bad debts in FY-2014 at Rs 173.63 crore versus Rs 63.36 crore in FY-2013. The company has also made a provision for doubtful advances in FY-2014 at Rs 15.98 crore, versus nil in the previous year. HVL’s finance cost has almost tripled (went up 2.67 times) in FY-2014 to Rs 120.30 crore from Rs 45.14 crore in FY-2013.

     

    HVL’s direct cost and operating expense (DCOE) went up 20.3 per cent to Rs 293.47 crore in FY-2014 from Rs 235.21 crore in FY-2013. A break up of DCOE is: Cable Television Operating expenses went up 20.9 per cent in FY-2014 to Rs 284.46 crore from Rs 235.21 crore; It paid 17 per cent higher bandwidth charges in FY-2014 of Rs 4.4 crore versus Rs 3.76 crore in FY-2013; It paid 8.8 per cent lower lease rental-duct at Rs 4.62 crore in FY-2014 from Rs 5.05 crore in FY-2013.

     

    The HVL board has recommended a dividend payment of R 15/- per equity share (150 per cent dividend on face value of R 10/- per Equity Share) for financial year 2013-14. The dividend will result in a payout of R 36.07 crore including Dividend Distribution Tax, representing 43.98 per cent of the current year earnings says HVL.

     

    Click here to read the annual report

  • Hawkins ad spend flat in Q1-2015

    Hawkins ad spend flat in Q1-2015

    BENGALURU:  Indian pressure cooker manufacturer Hawkins Cookers Limited (Hawkins) spent Rs 3.37 core (34.1 per cent of Advertising and Sales Promotion or ASP) towards Advertising (Ad spend) in Q1-2015, 2.7 per cent lower than the Rs 3.46 crore (19.7 per cent of ASP) in Q4-2014 and 1.2 per cent more than the Rs 3.33 crore (39.4 per cent of ASP) in Q1-2014. Overall, ad spend was almost flat across the three quarters – Q1-2015, Q4-2014 and Q1-2014.

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

    The company’s ASP comprises ad spend and discounts. As per Fig 1 below, based on historical data over the nine quarter period starting Q1-2013 until Q1-2015 (current quarter), the company spends the maximum towards ads in Q3, the festive season in the country. In Q2 and Q4, it resorts more towards discounting.

    The company has been skewed more towards offering discounts as compared to advertising. Over the nine quarter period under consideration, the simple average ad spend in terms of percentage of ASP is 26.7 per cent, while the proportion of discount over the same period works out to 73.3 per cent of ASP.  This trend is likely to continue based on historical data across the nine quarters under consideration. The company in Q2-2015 is likely to resort significantly on offering discount and spend a lower towards advertising. Q3-2015 is likely to see the company’s ad spend go up significantly.

    The company’s highest ad spend over the nine quarters has been Rs 8.67 crore in Q3-2014 (49.3 per cent of ASP). Hawkins ad spend has been lowest in terms of rupees in Q4-2013 at Rs 0.35 crore (2.9 per cent of ASP), while the lowest in terms of percentage of ASP was in Q2-2013 at 2.8 per cent (Rs 0.37 crore).

    The company’s ASP in Q1-2015 at Rs 9.88 crore (10.2 per cent of Total Income from Operations or TIO) was 43.7 per cent lower than the Rs 17.55 crore (12.4 per cent of TIO) in Q4-2014 and 17 per cent more than the Rs 8.44 crore (11.2 per cent of TIO) in Q1-2014. ASP in terms of simple average in absolute rupees across the nine quarters under consideration is about Rs 13.01 crore.

    Hawkins TIO in Q1-2015 at Rs 97.20 crore was 31.5 per cent less than the Rs 141.87 crore in Q4-2014 and 29.1 per cent more than the Rs 75.31 crore in Q1-2014.

    While the company’s TIO across the nine quarters under consideration shows a linear upward trend, the company’s ASP seems to have flattened out linearly in terms of absolute rupees, and shows a slightly downward trend in terms of percentage of TIO. Please refer to Fig 1A below.

    Hawkins PAT for Q1-2015 at Rs 7.07 crore (7.3 per cent of TIO) was 46.1 per cent lower than the Rs 13.13 crore (9.3 per cent of TIO) in the immediate trailing quarter and 44.6 per cent more than the Rs 4.89 crore (6.5 per cent of TIO) in the corresponding year ago quarter. Please refer to Fig 2 below.

    Overall, on a linear basis, PAT seems to be moving upward both in terms of absolute rupees as well as percentage of TIO.

    Click here to read the financial result

  • GlaxoSmithKline healthcare Q2-2014 marketing spend down 24 per cent q-o-q

    GlaxoSmithKline healthcare Q2-2014 marketing spend down 24 per cent q-o-q

    BENGALURU: Nutritional products and OTC drug major GlaxoSmithKline Consumer Healthcare Limited (GCHL) spent 23.9 per cent less towards advertising and sales promotion (ASP) in the quarter ended 30 June 2014 (Q2-2014) at Rs 141.40 crore (14.6 per cent of Total income from operations or TIO) versus Rs 185.75 crore (16.6 per cent of TIO) in Q1-2014 and just 2.8 per cent more than the Rs 137.56 crore (15.5 per cent of TIO) in Q2-2013.

    The company’s nutritional product brands include Horlicks, Boost, Foodles , while its OTC drugs brands include Crocin, Eno and Iodex.

    Notes: (1) GCHL’s follows the calendar year and its fiscal ends on 31 December, hence quarter ended31 March is Q1, quarter ended 30 June is Q2, quarter ended 30 September is Q3 and quarter ended 31 December is Q4.

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

    GCHL’s TIO in Q2-2014 at Rs 965.97 crore was 13.7 per cent less than the Rs 1119.82 crore in Q1-2014 and 8.5 per cent more y-o-y than the Rs 890.30 crore in Q2-2013. The company’s TIO shows an upward trend over a nine month period commencing Q2-2012 and ending with the current fiscal Q2-2014.

    In terms of actual rupees spent, the company’s ASP shows a slightly upward simple linear trend, while in terms of percentage of TIO, ASP seems to have flattened out. The simple average ASP across the nine quarters under consideration is Rs 148.42 crore, which means that the current quarter’s ASP is 7.9 per cent below par when compared to the average of the nine quarters under consideration in this report. Please refer to Fig 1 below.

    GCHL’s PAT in terms of absolute rupee value shows an upward simple linear trend, while in terms of percentage of TIO, the linear trend is flat, tapering downwards slightly, a fact that could easily change with a slightly higher than average PAT  in percentage of TIO terms in the next few quarters. The company’s simple average PAT across the nine quarters under consideration is 13.4 per cent of TIO.

    GCHL reported PAT of Rs 130.12 crore (13.5 per cent of TIO) in Q2-2104, 24.2 per cent lower than the Rs 171.71 crore(15.3 per cent of TIO) in Q1-2014 and 8.5 per cent more than the Rs 119.96 crore (13.5 per cent of TIO)  reported in the year ago quarter Q2-2013.

    GCHL’s analyst presentation says that its domestic sales have grown 10 per cent despite an extremely challenging environment. It has witnessed a 24 per cent drop in export sales due to certain one-offs and slowdown in Bangladesh. Overall, domestic growth can be attributed to a 3 per cent growth in volume and 7 per cent due to increase in pricing.

    Strong innovation led re-launches of sub-brands – Mother’s Horlicks, Horlicks Lite and Chocolate Horlicks were re-launched during the quarter. GCHL says that it ran new impactful campaigns on Mother’s Horlicks and Chocolate Horlicks, and has added focus on digital marketing during the current quarter.

    Click here to read the financial report

    Click here to read the unaudited financial report

  • P&G Health halves q-o-q marketing spends in Q4-2014, ups 3.2 per cent in FY-2014

    P&G Health halves q-o-q marketing spends in Q4-2014, ups 3.2 per cent in FY-2014

    BENGALURU: Consumer goods company Procter & Gamble Hygiene and Health Care Limited (P&G Health) reduced its ad and sales promotion spends  (ASP) to less than half in the quarter ended 30 June 2014 (Q4-2014, current quarter) as compared to the immediate trailing quarter (Q3-2014). The company says that its focus on innovation and productivity continued to sustain growth momentum by delivering an increase in net sales.

    P&G Health spent Rs 37.99 crore (7.8 per cent of Operating Income or TIO) towards ASP in Q4-2014 versus Rs 83.16 crore (16.6 per cent of TIO) in the quarter ended 31 March 2014 (Q3-2014) and was 33.1 per cent lower y-o-y than the Rs 56.75 crore (13.4 per cent of TIO).

    Across 10 quarters starting Q4-2012 until the current quarter, its Q4-2014 APS spends both in terms of absolute rupees and as percentage of TIO were the lowest. 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.

    Notes: (1) The company’s financial year ends on30  June, hence results for the quarter ended30 June  2014 are Q4-2014, for the quarter ended 30 September 2013 are Q1-2014; for the quarter ended31 December 2013 are Q2-2014 and for the quarter ended 31 March 2014 are Q3-2014. Similar nomenclature is applicable for other years.

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

    P&G Health’s ASP is made up of two components – advertisement (ad) and trade incentives (incentive) spends. From FY-2008 (year ended 30 June 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-2014, with ad spends proportionately moving downwards from 80 per cent in FY-2008 to 56 per cent in FY-2013. 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.

    P&G Health’s ASP in FY-2014 at Rs 294.49 crore was just 3.2 per cent more than the Rs 285.27 crore in FY-2013, again, the lowest percentage growth over the last 7 financial years starting FY-2008 until FY-2014.

    The company’s TIO in Q4-2014 was down 2.9 per cent to Rs 486.1 crore versus the Rs 500.67 crore in Q3-2014 and was 14.9 per cent more than the Rs 423.08 crore in Q1-2014. P&G Health’s FY-2014 TIO at Rs 205.09 crore was 21.6 per cent more than the Rs 168.68 crore in the preceding financial year. Please refer to Fig 1 below.

    P&G Health’s PAT in Q4-2014 at Rs 89.92 crore (18.5 per cent of TIO) was 11.3 per cent more than the Rs 80.76 crore (16.1 per cent of TIO) in Q3-2014 and was 73.4 per cent more than the Rs 51.87 crore (12.3 per cent of TIO) in Q4-2013.

    In FY-2014, PAT at Rs 302.02 crore (14.7 per cent of TIO) was 48.6 per cent more than the Rs 203.22 crore (12 per cent of TIO) in FY-2013.

    P&G Health, in its earnings release says that both its feminine and healthcare businesses continued to deliver double digit growth in a competitive market environment behind superior products, strong initiatives and product portfolio strength. It says further that the launch of Old Spice is delivering in line with its expectations. Among its product portfolio, the company has brands such as Whisper (feminine hygiene) and Vicks (healthcare), and Old Spice.

    Click here to read the audited financial result

  • Prime Focus disappoints for quarter ended 30 June, 2014

    Prime Focus disappoints for quarter ended 30 June, 2014

    BENGALURU: Prime Focus Limited (PFL) has posted disappointing results for the quarter (Q5-2014). The company also posted results for the extended 15 month period ended 30 June, 2014 (15M-2014). The company reported a PAT of Rs 24.26 crore or about 2.3 per cent of Total Income from operations (TIO)  for 15M-2014 as compared to the extrapolated loss of Rs 20.31 crore against TOI of Rs 762.16 crore during the equivalent period of 15 months ended 30 June, 2013(15M-2013). The reported TIO for 15M-2014 is Rs 1032.72 crore, an increase of 35.5 per cent as compared 15M-2013.

     

    Earlier, for the four quarter period ended 31 March, 2014 (FY-2014), the company had posted a PAT of Rs 33.04 crore (4 per cent of TIO) against a TIO of Rs 834.89 crore. For FY-2013, the company had reported loss of Rs 16.85 crore. During FY-2014, PFL had reported a net forex gain of Rs 29.21 crore and for FY-2013 an exchange gain of Rs 6.75 crore. During 15M-2014 the company has reported forex gain of Rs 38.07 crore, 5.6 times the Rs 6.75 crore in 15M-2013.

     

    Click here to read more

  • Titan q-o-q advertising spend up 13.6 per cent in Q1-2015

    Titan q-o-q advertising spend up 13.6 per cent in Q1-2015

    BENGALURU: Titan Company Limited (Titan) increased its advertising spend (ASP) in Q1-2015 (current quarter) at Rs 99.25 crore (3.4 per cent of Total Income from Operations or TIO) by 13.6 per cent as compared to the Rs 87.37 crore (3.1 per cent of TIO) in the immediate trailing quarter,but was 5.2 per cent lower than the Rs 104.67 crore (3.4 per cent of YIO) in Q1-2013.

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

    Titan has three revenue segments – watches having five major brands –Titan, Xylus, Nebula, Sonata and Fastrack; 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.

    While the company’s ASP in terms of absolute rupee value shows an icreasing linear trend, in terms of percentage of TIO, the trend is downwards across 10 quarters starting with Q4-2012 until the current quarter. Refer to figure 1 below.

    The company has seen a drop in PAT on both y-o-y and q-o-q basis.  PAT in Q1-2015 at Rs 177.27 crore (6.13 per cent of Total Income from operations  or TIO), which was 14.1 per cent lower than the PAT of Rs 206.44 crore (4.8 per cent of TIO) in the immediate trailing quarter and 2.9 per cent lower than the Rs 182.48 crore (5.9 per cent of TIO) reported for the corrseponding quarter of last year.

    The company has seen a 3.1 per cent increase in its TIO in Q1-2015 at Rs 2891.44 crore versus Rs 2903.38 crore in Q4-2014 and 7 per cent lower than the Rs 3107.67 crore in Q1-2014.

    Titan managing director Bhaskar Bhat explains thelower y-o-y TIO, “The consumer discretionary spend in the current quarter was far more stable than what we witnessed in the past few quarters. With stability in the policitcal environment, the market mood has been positive. However, due to extraordinary first quarter witnessed by jewellery business last year, the topline growth in this quarter was tough. Regulatory pressures faced by jewellery business have amplified the challenge.”

    Titan, in its earnings press release, says that it has put together exciting plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches.

    As per figure 2 below, Titan’s TIO shows an upward linear trend across the 10 quarters under consideration, as does PAT in absolute rupee terms. In terms of PAT as percantage iof TIO, the linear trend is almost flat, with a slight dip.

    The company says that its watches business witnessed a growth of 10.4 per cent from Rs 389.68 crore in the year ago quarter to Rs 439.95 crore in Q1-2015. Its jewellery business, which contributes majorly to TIO, declined 10.1 per cent to Rs 2325.27 crore in the current quarter versus Rs 2586.61 crore in Q1-2014. The company’s other businesses –Eyewear, Precision Engineering and accessories grew 3.8 per cent 123.18 crore to Rs 127.83 crore this year.

    Click here to read the standalone unaudited/audited result

    Click here to read the press release

  • Britannia Industries Q1-2015 marketing spend down 6 per cent, PAT up 27 per cent y-o-y

    Britannia Industries Q1-2015 marketing spend down 6 per cent, PAT up 27 per cent y-o-y

    BENGALURU: Britannia Industries Limited (Britannia) spent 5.9 per cent less towards Advertisement and Sales Promotion (ASP) in Q1-2015 at Rs 138.43 crore (7.7 per cent of Net total Income from Operations or TIO) versus Rs 147.11 crore (9.5 per cent of TIO in the year ago quarter and 5.3 per cent less than the Rs 146.19 crore (8.1 per  cent of TIO) in the immediate trailing quarter.

    As a matter of fact, the company’s ASP in terms of percentage of TIO at 7.7 per cent was the lowest spend by the company over a 9 quarter period staring Q1-2013 till the current quarter Q1-2015. In terms of rupee value, Britannia’s ASP in Q1-2013 was the lowest over the nine quarter’s under consideration at Rs 112.96 crore, but was 8.3 per cent of TIO in that quarter. The company’s highest spend in terms of percentage of TIO was in Q1-2014 at 9.5 per cent (Rs 147.11 crore). The company’s highest spend in absolute rupees was in Q3-2014 at Rs 155.28 crore (8.7 per cent of TIO) during the nine quarters under consideration in this report.

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

    Britannia’s TIO in Q1-2015 was up 15.2 per cent at Rs 1786.99 crore versus Rs 1551.51 crore in Q1-2014 and 1.4 per cent lower than the Rs 181.44 crore in Q4-2014.

    Overall, across the nine quarters’ though the ASP spend in absolute rupee shows an upward linear trend. However, in terms of percentage of TIO, the ASP linear trend shows a decline. Britannia’s TIO shows an increasing linear trend. Please refer to Fig 1 below.

    Britannia’s PAT in Q1-2015 at Rs 113.66 crore was the highest in terms of absolute rupees as well as percentage of TIO at 6.4 per cent. In the year ago quarter, (Q1-2014) PAT at Rs 89.49 crore (5.8 per cent of TIO) was 27 per cent lower than the current quarter PAT (Q1-2015).  The current quarter PAT was also 5.6 per cent higher than the Rs 107.66 crore (5.9 per cent of TIO) in Q4-2014. Overall, Britannia’s PAT seems to be moving upwards both in terms of absolute rupees and percentage of TIO (Linear trends not shown in Fig 2 below).

    Overall, the FMCG, Food and Biscuit industries have shown declining growth over 18 months starting January 2013 (Q4-2013) from about 15-16 per cent for each industry to about 6 to 8 per cent in June 2014 (Q1-2015) says the company in an analyst meet/investor’s presentation. The company’s simple average TIO growth across the nine quarters under consideration is 3.6 per cent, and across the six quarters starting Q4-2013, it is 1.8 per cent, indicating a lower than industry average growth, hence overall reduction in share in a market that is growing.  

    Please refer to figure 3 below. Q1 of three years (2013, 2014 and 2015) have shown low growth or de-growth in terms of q-o-q growth of TIO. Generally Q2 over the years has shown higher growth, maybe, if the trend continues this year, the company may show double digit TIO growth in the coming quarter, and, with the upward trend in PAT both in terms of absolute rupees as well as in terms of percentage of TIO, PAT in Q2-2015 could be a new record?

    Click here to read the Consolidated paper.

  • Gillette India ups Ad exp 40 per cent in FY-2014

    Gillette India ups Ad exp 40 per cent in FY-2014

    BENGALURU: Gillette India Limited (Gillette) reported a 40.2 per cent higher advertisement and sales promotion (ASP) spend for its year ended 30 June 2014 (FY-2014) at Rs 419.40 crore (24 per cent of net Total Income from Operations or TIO) as compared to the Rs 299.16 crore (20.8 per cent of TIO) in the year ended 30 June 2013 (FY-2013).

    ASP in the quarter ended 30 June 2014 (Q4-2014) was 10.7 per cent lower at Rs 110.56 crore (23 per cent of TIO) versus Rs 123.84 crore (27.2 per cent of TIO) in the immediate trailing quarter (Q3-2014) and was 39.8 per cent more than the Rs 79.06 crore(20.1 per cent of TIO) in the year ago quarter Q4-2013.

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

    (2) Gillette financial year closes of 30 June, hence, the quarter ended30  June is Q1, while the quarter ended 30  September is Q2; quarter ended31  December is Q2 and quarter ended 31 March is Q3.

    Across 10 quarters starting Q3-2012 (quarter ended 31 March 2014) until Q4-2014 (quarter ended 30 June 2014), the company ASP shows an upward linear trend both in terms of absolute value as well as percentage of TIO.

    The company’s TIO has also been moving steadily upwards. In FY-2014, TIO at Rs 1749.49 crore was 21.7 per cent more than the Rs 1437.72 crore in FY-2013. TIO in Q4-2014 at Rs 479.72 crore was 5.3 per cent more q-o-q and 22.1 per cent more y-o-y.

    Please refer to Fig 1 below.

    Gillette’s ASP is made up of two components – advertisement and trade incentives. Please refer to figure 1A below for the breakup and the ratio. As is evident, the company’s ad spend ratio has gone to 1.41 and 1.42 times as compared to trade incentives in FY-2012 and FY-2013 respectively. In both FY-2010 and FY-2011 ratio of advertisement to Trade Incentives was 1.2.

    Gillette PAT has been steadily going down. In FY-2014, Gillette reported PAT of Rs 51.42 crore (2.9 per cent of TIO) as compared to the Rs 87.16 crore in FY-2013, though  in Q4-2014, the company’s PAT at Rs 16.76 crore (3.5 per cent of TIO) was almost double (1.98 times) the PAT of Rs 8.48 crore (1.9 per cent if TIO) in Q3-2014 and was 1.8 per cent more than the Rs 16.47 crore (4.2 per cent of TIO) in Q4-2013. PAT has been showing a downward linear trend across five years starting FY-2010 to FY-2014 and across the 10 quarters under consideration, both in terms of absolute value as well as in terms of percentage of TIO. Please refer to Fig 2 below.

    Three segments contribute to the company’s Income from operations (TIO) – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power includes batteries and oral care includes toothbrushes, toothpaste and oral care products. Gillette India’s products are sold under the brand Gillette with sub-brands like Fusion and Mach 3. Gillette India caters to Men’s personal care products such as razors, blades, shaving creams, gels, men’s skincare products, among others in India.

    The company says that sale of the grooming segment was up 19 per cent in FY-2014 versus FY-2013, oral care saw a growth of 31 per cent in FY-2014 as compared to last year and portable power saw a growth of 21 per cent in the current year as compared to previous year.

    Click here to read the unaudited financial statement

  • Q1-2015: Saregama reports higher q-o-q results

    Q1-2015: Saregama reports higher q-o-q results

    BENGALURU:  Indian Custodians of music company Saregama Limited (Saregama) reported 18.2 per cent higher y-o-y results for the quarter ended June 30, 2014 (Q1-2015, current quarter).Income from operations (TIO) in Q1 2015 was Rs 42.31 crore as compared to the same quarter of 2014, which was Rs 35.81 crore and 2.4 per cent lower than the Rs 43.35 crore q-o-q. The company’s PAT for the current quarter at Rs 3.36 crore (7.9 per cent of TIO) was 47.5 per cent more than the Rs 1.83 crore (5.1 per cent of TIO) in Q1-2014, but was less than half (0.49 times) the Rs 6.75 crore (15.6 per cent of TIO) in Q4-2014.

     

    Saregama’s Net sales (net of excise duty) at Rs 15.07 crore (35.6 per cent of TIO) in Q1-2015 was 17.6 per cent higher than the Rs 12.82 crore (35.8 per cent of TIO) in Q1-2014 and 11.3 per cent higher than the Rs 12.82 crore (35.8 per cent of TIO) in Q4-2014.

     

    License fee income in Q1-2015 at Rs 27.12 crore (64.1 per cent of TIO) was 18.1 per cent more than the Rs 22.96 crore (64.1 per cent of TIO) in Q1-2014, but was 8.6 per cent lower than the Rs 29.68 crore (68.5 per cent of TIO) in Q4-2014.

     

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  • Q1-2015: Loss due to commissioning delay, own project delivery recognition for DQ Entertainment

    Q1-2015: Loss due to commissioning delay, own project delivery recognition for DQ Entertainment

    BENGALURU: The Tapas Chakravarti led DQ Entertainment (International) Limited (DQEIL) reported consolidated loss of Rs 12.06 crore in the quarter ended 30 June, 2014 (Q1-2015, current quarter) as compared to a profit of Rs 6.63 crore (21.8 per cent of consolidated net income from operations or Total Income from Operations) in the corresponding quarter of last year (Q1-2014) and against a profit of Rs 14.66 crore (14.4 per cent of TIO) in the immediate trailing quarter Q4-2014).

     

    The company says that it is facing a financial strain on account of high receivables, but at the operational level it is cash positive. DQEIL claims that the current total contract value for the service/co-production projects signed and in discussions is about USD 63 million to be executed over the next 18 months. Also, the total contract value for the licensing and distribution deals signed is USD 10 million for FY-2015.

     

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

     

    The company explains that due to seasonality of its business, the first and third quarter results are generally lower than the results of the second and fourth quarters.  It attributes the decline in production revenues to two reasons – (1) DQEIL had completed and delivered a number of projects by March 2014, and final deliveries were done in April 2014. Commissioning of new projects did not get completed by April 2014, as has been the global trend. However, DQEIL assures that the commissioning of new projects has commenced and invoicing of the same will be done only on completion of milestones. (2) Out of DQEIL’s current on-going projects, four are in-house IP, for which distribution revenue would be recognised on milestone delivery basis.

     

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