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Tag: Financial

  • Q1-2015: Bajaj Corp ad and sales promo spend up 7 per cent

    Q1-2015: Bajaj Corp ad and sales promo spend up 7 per cent

    BENGALURU:  Note: (1) Bajaj Corp’s  Advertisement and Sales Promotion (ASP) expense comprises  two parts – Advertisement (AdSp) and Sales Promotion (SPSp). The ASP figures have been obtained from the Company’s investors’ presentations over various quarters and the Ad Exp from its financial results. SP results have been obtained by deducting the Ad Exp from the ASP Exp. The figures in the investors’ presentations have been rounded off by the company and hence are assumed as approximate. Consequently the SP figures are assumed to be approximate.

    (2) Bajaj Corp Limited is a subsidiary of Bajaj Resources Limited (BRL) and is an exclusive licensee of the brands owned by BRL for a period of 99 years starting 2008.

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

    Bajaj Corp spent Rs 30.53 crore (15.8 per cent of total income from operations or TIO) towards advertising and sales promotion (ASP) in Q1-2015, which was 7 per cent more than the Rs 28.54 crore (15.5 per cent of TIO) in the immediate trailing quarter and also 7 per cent more than the year ago quarter Q1-2015’s Rs 28.53 crore (16.8 per cent of TIO). Over 10 quarters starting Q4-2012 until Q1-2015, Baja Corp’s ASP shows an upward linear trend in rupee terms, with Q1-2015 registering the highest amount of ASP spend.

    In terms of percentage of TIO also, Bajaj Corp’s ASP shows a linear upward trend over the 10 quarters under consideration.  However, the highest ASP in percentage of TIO terms was in Q3-2014 at 17.9 per cent. Please refer to

    In terms of percentage of TIO as well as rupee terms, the company’s AdSp in Q1-2015 at Rs 13.17 crore (6.9 per cent of TIO) was 28.7 per cent more than the Rs 10.23 crore (5.5 per cent of TIO) in Q4-2014, but was 12.1 per cent lower than the Rs 14.98 crore (8.8 per cent of TIO) in Q1-2014.

    Bajaj Corp’s SPSp in Q1-2015 at Rs 17.36 crore (8.9 per cent of TIO) was 5.2 per cent lower than the Rs 18.31 crore (9.9 per cent of TIO) in Q4-2014 and was 28.2 per cent more than the Rs 13.55 crore (8 per cent of TIO) in Q1-2014.

    Bajaj Corp’s Q1-2015 TIO at Rs 191.32 crore is the highest reported across the 10 quarters under consideration. Q1-2015 TIO was 3.7 per cent more than the Rs 184.13 crore in Q4-2014 and was 12.4 per cent more than the Rs 170.23 crore in Q1-2014.

    Since Q1-2014, Bajaj Corp’s PAT has shown a downward trend, from a peak value of Rs 49.16 crore (26.7 per cent of TIO) in Q4-2013. In Q1-2014, the company’s PAT at Rs 47.01 crore though lower was higher in terms of percentage of TIO at 27.6 per cent because of lower TIO in that quarter.

    However, the downward PAT trend across the three quarters – Q1-2014, Q2-2014 and Q3-2014 seems to have reversed. In Q4-2014, the company’s PAT was Rs 38.31 crore (20.8 per cent of TIO). In the current quarter Q1-2015, PAT was higher by 3.4 per cent at Rs 39.62 crore (20.7 per cent of TIO) as compared to Q4-2014, was 15.7 per cent lower than the year ago Q1-2014 PAT of Rs 47.01 crore (27.6 per cent of TIO).

    Bajaj Corp’s mother brand is Bajaj with sub brands/products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan, and creams, soaps, face washes and face scrubs under the brand name Nomarks.

    The company had earlier announced that it was focussing on rural penetration to tap the increase in disposable income of rural India and to convert rural consumers from unbranded to branded products by providing them with an appropriate value proposition. The initiative seems to be working.  In its investor presentation for Q1-2015, Bajaj Corp says that in Q1 FY 15 its Bajaj Almond Drops Hair Oil got 39.9 per cent of its sales from rural India.  The company reports volume growth in rural India by 4.4 per cent (Urban + Rural = {-2.7} per cent, hence showing a decline in the urban market) and claims a market share in rural India of 63.5 per cent (urban + rural = 58.5 per cent).

    Click here to read investor presentation

    Click here to read full financial report

  • Q1-2015: TV Today q-o-q PAT doubles; radio segment continues disappointing run

    Q1-2015: TV Today q-o-q PAT doubles; radio segment continues disappointing run

    BENGALURU: Driven by a good performance by its television segment,  TV Today Network Limited (TVTN), a part of the India Today group, reported more than double (2.06 times) the PAT in Q1-2015 at Rs 32.79 crore (23.9 per cent of Income from Operations or Op Inc) as compared to the Rs 15.85 crore (16.3 per cent of Op Inc)) in Q4-2014 and 2.74 times the Rs 11.98 crore (13.5 per cent of Op Inc) in Q1-2014.

     

    The company reported a respectable 40.6 per cent growth in Op Inc in Q1-2015 to Rs 137.01 crore as compared to the Rs 94.71 crore in Q4-2014 and 54.1 per cent more than the Rs 88.9 crore in Q1-2014.

     

    Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million.

     

    Two segments – TV Broadcasting (TV) and FM Radio Broadcasting (Radio) contribute to TVTN’s revenues. TVTN’s Radio Broadcasting segment (Oye! FM) under the brand Oye! FM reported a lower operating loss in Q1-2015 at Rs 2.56 crore as compared to the Rs 4 crore in the immediate trailing quarter, but higher than the Rs 2.33 crore in the year ago quarter Q1-2014. The segment reported 14 per cent lower q-o-q operating revenue at Rs.3.37 crore in Q1-2015 as compared to the Rs 3.91 crore in Q4-2014, but 11.6 per cent more than Rs 3.02 crore in Q1-2014.

     

    Let us look at the other Q1-2015 numbers reported by TVTN

     

    As mentioned above, TVTN’s TV Broadcasting (TV) segment has performed well. Op Inc of the TV segment in Q1-2015 at Rs 133.64 crore was 42.9 per cent more than the Rs 93.5 crore in Q4-2014 and 55.6 per cent more than the Rs 85.89 crore in Q1-2014. The segment reported a positive operating result of Rs 51.43 crore, which was 86.7 per cent more than the Rs 27.55 crore in Q1-2014 and more than double (2.43 times) the Rs 21.18 crore in Q1-2014.

     

    TVTN’s total expenditure in Q1-2015 at Rs 89.31 crore (65.2 per cent of Op Inc) was 15.5 per cent more than the Rs 77.31 crore (79.4 per cent of Op Inc) in Q4-2014 and 25.3 per cent more than the Rs 71.27 crore (80.2 per cent of Op Inc) in Q1-2014.

     

    The company’s Production cost at Rs 13.45 crore (9.8 per cent of Op Inc) in the current quarter was 4.2 per cent higher than the Rs 12.91 crore(13.3 per cent of Op Inc) in Q4-2014 and 48.9 per cent more than the Rs 9.03 crore (10.2 per cent of Op Inc) in Q1-2014.

     

    TVTN’s Employee Benefit Expense (EBE) in Q1-2015 at Rs 29.29 crore (26.5 per cent of Op Inc) was 35.2 per cent more than the Rs 21.67 crore (22.3 per cent of Op Inc)) in Q4-2014 and 24.1 per cent higher than the Rs 23.6 crore (26.6 per cent of Op Inc) in Q1-2014.

     

    Other Expense at Rs 17.43 crore (12.7 per cent of Op Inc) in Q1-2015 was 9.6 per cent less than the Rs 19.27 crore (17.3 per cent of Op Inc) in Q4-2014 and 38.2 per cent more than the Rs 12.61 crore (14.2 per cent of Op Inc) in Q1-2014.

  • Q1-2015: Sony Corp reports 5.8 per cent top line, mobile communications segment disappoints

    Q1-2015: Sony Corp reports 5.8 per cent top line, mobile communications segment disappoints

    BENGALURU: Global behemoth Sony Corporation reported a growth of 5.8 per cent in its sales and operating revenue to JPY1.8909 billion (USD 17,920 million) for the quarter ended 30 June  2014 (Q1-2015) as compared to the year ago quarter’s  (Q-2014) JPY 1,711.40 billion.

     

    Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million.

     

    (2) JPY = Japanese Yen

     

    (3) 31 Jul 2014 02:40 UTC – 1 Aug 2014 02:44 UTC

     

    JPY/INR close:0.59061 low:0.58542, high:0.59272

     

    The company’s operating income before taxes went up by 50.6 per cent to JPY68.4 billion in Q1-2015 as compared to the JPY 45.4 billion in Q1-2014. Sony’s net income attributable to its stockholders in Q1-2015 increased over seven fold (7.6 times) to JPY 26.8 billion in Q1-2015 as compared to the JPY 3.1 billion reported for the quarter ended 30 June 2014.

     

    One of the biggest disappointments for the company this quarter is the performance of its Mobile Communications (MC) segment which reported an operating loss of JPY2.7 billion as compared to an Op Inc of JPY12.6 billion in Q1-2014. (Please refer to Additional notes 1 and 2 below). The company attributes the loss primarily to an increase in marketing and R&D expenses which did not yield the expected increase in unit sales, primarily in the midrange handsets. For the full year, Sony has lowered unit sales forecast from 50 million units to 43 million units. 

     

    Of the nine segments that add to Sony’s numbers, major contributions to its bottomline in Q1-2015 were made by Financial Services (Operating Income or Op Inc of JPY 43.8 billion) followed by  Imaging Products and Solutions (Op Inc JPY 17.4 billion) Devices (Op Inc JPY 12.5 billion), and Music (Op Inc JPY 11.4 billion). Of note is the turnaround of the company’s Game and Network Services (GNS) segment which returned an Op Inc of JPY 4.3 billion in Q1-2015 as compared to an operating loss reported in Q1-2014 of JPY 16.4 billion.

     

    The company’s Home Entertainment & Sound (HE&S) segment reported improved Op Inc of JPY 7.7 billion from JPY 3.4 billion in Q1-2014. Sony’s Pictures segment also reported an improvement in its Op Inc in Q1-2015 to JPY 7.8 billion, which was more than double the JPY 3.7 billion in the corresponding quarter of last fiscal.

      

    The recently realigned All Other segment reported operating loss of JPY 18.4 billion in Q1-2015 (JPY 16.9 billion in Q1-2014). Sales of the All Other segment decreased 33.8 per cent year-on-year (a 39 per cent decrease on a constant currency basis) to JPY 128.8 billion. Sony says this decrease was primarily due to a significant decrease year-on-year in unit sales of PCs reflecting Sony’s exit from the PC business.  The operating loss of this segment increased primarily due to the recording of PC exit costs, partially offset by an improvement in equity in net income (loss) for Intertrust Technologies Corporation.

     

    Additional notes:

     

    (1) Sony realigned its business segments from the first quarter of the fiscal year ending 31 March 2015 (the current quarter) to reflect modifications to its organisational structure as of 1 April 2014, primarily repositioning the operations of the previously reported Game and Mobile Products & Communications (MP&C) segments.

     

    (2) In connection with this realignment, the previously-reported operations of the  network business which were included in All Other have been integrated with the previously-reported Game segment and are now reported  as the Game & Network Services  “G&NS”) segment. The previously reported Mobile Communications category which was included in the MP&C segment has been reclassified as the newly established Mobile Communications (MC) segment, while the other categories in the previously reported MP&C segment are now included in All Other. This includes the reclassification of the PC business into All Other.

     

    (3) In addition, as of the current quarter, the power supply business, which was previously included in the Devices segment, has been integrated into All Other to reflect modifications Sony made to its organisational structure as of 1 June 2014.

     

    (4) In connection with these realignments, the sales and operating revenue (sales) and operating income (loss) of each segment in the fiscal year ended 31 March 2014 have been reclassified to conform to the presentation of the fiscal year ending 31 March 2015.

  • Q1-2015: PVR posts higher q-o-q revenue: F&B grows 20%: Board moots Rs 500 crore issue

    Q1-2015: PVR posts higher q-o-q revenue: F&B grows 20%: Board moots Rs 500 crore issue

    BENGALURU:  Last fiscal (FY-2014), Indian motion picture exhibition, production and distribution house PVR Limited (PVR) entered the Rs 1000 crore club by posting operating income (TIO) of Rs 1351.23 crore for the year. In Q1-2015, the company posted an 8.1 per cent increase in consolidated TIO at Rs 362.26 crore as compared to the year ago TIO of Rs 335.19 crore and 15.3 per cent more than the Rs 314.23 crore in the immediate trailing quarter (Q4-2014).

     

    Note: Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million.

     

    Though the company reported a more than 10-fold (10.35 times) PAT in Q1-2015 at Rs 7.66 crore as compared to the Rs 0.74 crore in Q4-2014, PVR’s Q1-2015 PAT was 43.7 per cent lower than the Rs 13.6 crore in Q1-2014.

     

    PVR reported just 0.4 per cent q-o-q increase in footfalls in its cinemas in Q1-2015 at 1.52 crore, because it says that there were no big releases during the quarter. It however says that food & beverages (F&B) revenues showed a strong growth of 20 per cent over corresponding quarter of previous year on account of success of the various strategic initiatives taken by the company.

     

    The company has also informed the bourses that the board of directors of the company at its meeting held on 31 July 2014, inter alia, has approved the issue of securities up to Rs 500 crore through Qualified Institutional Placement (QIP) subject to approval of the members in forthcoming Annual General Meeting of the Company.

     

    PVR chairman Ajay Bijli said, “Early Q2 industry box office results have been very strong with movies Ek Villain & Kick, we are optimistic regarding box office prospects for the remaining part of the year which underpins our confidence that we are on track with our plans for the full year. Our differentiated strategy, heightened brand awareness, and guest engagement tactics will further enhance the customer experience in 2014 & beyond.”

  • HUL q-o-q ad spend up 12.4 per cent in Q1-2015; PAT 21.2 per cent

    HUL q-o-q ad spend up 12.4 per cent in Q1-2015; PAT 21.2 per cent

    BENGALURU: Indian FMCG giant Hindustan Unilever Limited’s (HUL) Advertisement and Promotions expense (ASP) in Q1-2015 at Rs 948.88 crore (12.2 per cent of Total Income from Operations or TIO) was up 12.4 per cent as compared to the immediate trailing quarter Q4-2014’s Rs 830.34 crore (11.8 per cent of TIO). HUL’s above mentioned ASP in Q1-2015 was 6.2 per cent more than the Rs 889.78 crore (13.1 per cent of TIO).

    Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million.

    (2) All figures in this report are standalone figures filed by the company.

    The company has reported an 8.8 per cent jump in TIO in Q1-2015 to Rs 7716.34 crore from Rs 7094.1 crore in Q4-2014, and 13.3 per cent more than the Rs 6809.04 crore in Q1-2014.

    Fig 1 below shows the PAT trend of the company over a nine quarter period starting Q1-2013 until Q1-2015. The ASP expense in terms of rupee value shows an upward linear trend, while in terms of percentage of TIO, ASP shows a downward linear trend. The company’s ASP in terms of rupees spent and also in terms of percentage of TIO was in Q2-2014, during which HUL spent Rs 954.02 crore (13.8 per cent of TIO).

    As per Fig 2 below, HUL’s PAT has been showing a downward trend, both in rupee terms and percentage of TIO during the nine quarter period under consideration.  In Q1-2015, the company reported PAT of Rs 1056.85 crore (13.7 per cent of TIO), which was 21.2 per cent more q-o-q and 3.7 per cent more y-o-y. In Q4-2014, the company had reported PAT of Rs 872.13 crore (12.3 per cent of TIO) and in Q1-2014 its PAT was 1019.25 crore (15 per cent of TIO). HUL’s highest reported PAT during the above mentioned nine quarter period was in Q1-2013 at Rs 1331.19 crore and 20.9 per cent of TIO.

    Here’s what the company has to say about Q1-2015 results:

    NOTES:

    1. Net sales grew by 13.2 per cent during the quarter. Domestic Consumer Business (FMCG + Water) grew by 13.3 per cent with a 13.3 per cent growth in HPC and 13.4 per cent growth in food businesses.

    2. Operating Profit (Profit from Operations before Other Income, Finance costs and Exceptional Items) for the quarter at Rs 124,982 lakh (Q1-2014: Rs 101,916 lakh) grew by 22.6 per cent.

    3. Profit after tax from ordinary activities before Exceptional Items net of tax and prior period tax adjustments (refer note 6 and 7 below) for the quarter at Rs 101,968 lakh (Q1-2014: Rs 88,513 lakh) grew by 15.2 per cent.

    4. Employee benefit expense for the quarter includes a one-time credit of an amount of Rs 3,244 lakh on account of adjustments for un-utilised pension corpus relating to earlier years. (Q1-2014: Nil)

    5. Other income includes interest income, dividend income and net gain on sale of other non trade current investments aggregating to Rs 8,810 lakh (Q1-2014: Rs 7,974 lakh) and net gain on sale of non current investments Rs 10,622 lakh (Q1-2014 : Rs. 7,275 lakhs) and interest on income tax refunds of Rs 779 lakh (Q1-2014: Rs. 2,426 lakhs).

    6. Exceptional items, net credit in Q1-2015 include profit on sale of surplus properties Rs  4,015 lakh (Q1-2014: Rs 10,625 lakh) and restructuring expenses Rs  51 lakh (Q1-2014: Rs Nil).

    7. Taxation for the quarter includes net write back of excess tax provisions of earlier years amounting to Rs 1,056 lakh (Q1-2014: Rs 6,421 lakh).

    8. Previous period figures have been re-grouped/reclassified wherever necessary, to conform to this period’s classification.

    9. The text of the above statement was approved by the Board of Directors at their meeting held on 28 July 2014.

    Click here to read financial statement

    Click here to read financial result

  • We remain focused on driving increased user growth: Dick Costolo

    We remain focused on driving increased user growth: Dick Costolo

    MUMBAI: Micro blogging site, Twitter has had an interesting second quarter. The company has announced its financial results for the second quarter ended 30 June 2014.

    In a company statement Twitter CEO Dick Costolo said, “Our strong financial and operating results for the second quarter show the continued momentum of our business.”

    “We remain focused on driving increased user growth and engagement, and by developing new product experiences, like the one we built around the World Cup, we believe we can extend Twitter’s appeal to an even broader audience,” he added.

    It can be noted that Twitter’s Q2 revenue was $312 million, up 124 per cent year-over-year. The company reported Q2 net loss of $145 million and non-GAAP net income of $15 million, Q2 GAAP EPS of ($0.24) and non-GAAP EPS of $0.02 and Q2 adjusted EBITDA of $54 million, representing an adjusted EBITDA margin of 17 per cent.

    According to a report by AP, San Francisco-based Twitter’s stock jumped 30 per cent to $50.01 in extended trading Tuesday.

    It can be noted that Twitter introduced new product experiences that were built around the World Cup, including real-time scoring, push notifications, event and match timelines, and a voting ballot feature. In addition, Twitter also launched new web profiles and the ability to send private messages within Vine.

    Twitter also launched a number of new advertiser tools including mobile app promotions, which allow mobile app developers to drive installs and engagements on Twitter, and website cards, which allow advertisers to easily surface website content within a Tweet and drive relevant traffic to any page of their site such as their home page, product page, or an important blog post.

    Twitter continued the international expansion of its advertising products, expanding state/region geo-targeting to help marketers meet local advertising objectives in additional countries including the UK, France, and Indonesia, among others, and launching its self service ad platform for small and medium sized businesses in Spain, Israel and South Africa.

    Twitter closed the acquisition of Gnip, a leading provider of social data, and entered into agreements to acquire several other companies including TapCommerce, a leader in mobile retargeting and re-engagement advertising, and SnappyTV, a platform for video editing and distribution.

    Second Quarter 2014 Financial Highlights

    Revenue: Revenue for the second quarter of 2014 totalled $312 million, an increase of 124 per cent compared to $139 million in the same period last year.

    • Advertising revenue totalled $277 million, an increase of 129 per cent year-over-year.

    • Mobile advertising revenue was 81 per cent of total advertising revenue.

    • Data licensing and other revenue totalled $35 million, an increase of 90per cent year-over-year.

    • International revenue totalled $102 million, an increase of 168 per cent year-over-year.

    • International revenue was 33 per cent of total revenue

    Net loss: GAAP net loss was $145 million for the second quarter of 2014 compared to a net loss of $42 million in the same period last year. Twitter’s GAAP net loss included $158 million of stock-based compensation expense.

    Adjusted EBITDA: Adjusted EBITDA was $54 million for the second quarter of 2014, an increase of 461 per cent compared to $10 million in the same period last year.

    Non-GAAP net income / loss: Non-GAAP net income was $15 million for the second quarter of 2014 compared to a Non-GAAP net loss of $16 million in the same period last year.

    EPS: Basic and diluted GAAP EPS was ($0.24) for the second quarter of 2014 compared to ($0.32) in the same period last year.

    Non-GAAP EPS: Non-GAAP EPS was $0.02 for the second quarter of 2014 compared to ($0.12) in the year ago period.

    Capital expenditures: Purchases of property and equipment for the second quarter of 2014 were $44 million. Additionally, $31 million of equipment was financed through capital leases during the second quarter of 2014.

    Cash, cash equivalents and marketable securities: As of 30 June 2014, cash, cash equivalents and marketable securities were approximately $2.1 billion, compared to $2.2 billion as of 31 March 2014.

    Way ahead!

    Twitter’s outlook for the third quarter of 2014 is as follows:

    Twitter’s outlook for the third quarter of 2014 is as follows:

    • Revenue is projected to be in the range of $330 million to $340 million.

    • Adjusted EBITDA is projected to be in the range of $40 million to $45 million.

    • Stock-based compensation expense is projected to be in the range of $180 million to $190 million excluding the impact of equity awards that may be granted in connection with potential future acquisitions.

    Twitter’s revised outlook for the full year of 2014 is as follows:

    • Revenue is projected to be in the range of $1,310 million to $1,330 million.

    • Adjusted EBITDA is projected to be in the range of $210 million to $230 million.

    • Capital expenditures are projected to be in the range of $330 million to $390 million.

    • Stock-based compensation expense is projected to be in the range of $640 million to $690 million excluding the impact of equity awards that may be granted in connection with potential future acquisitions.

    Click here to read the financial report

  • Q1-2015: Airtel Digital TV y-o-y revenue grows 21 per cent, subscriber base up 11 per cent

    Q1-2015: Airtel Digital TV y-o-y revenue grows 21 per cent, subscriber base up 11 per cent

    BENGALURU: India headquartered communications giant Bharti Airtel Limited (Airtel)’s digital TV (DTH)segment reported a y-o-y growth in revenue of 21 per cent to Rs 591.5 crore as compared to the year ago revenue of Rs 490 crore. The DTH segment’s contribution to Airtel’s Indian and South Asian (India & SA) revenue of Rs 16201.9 crore in Q1-2015 was 4 per cent. Airtel’s India & SA revenue forms 71 per cent of the company’s global revenue of Rs 22961.6 crore in the quarter.

     

    Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million.

     

    Airtel’s DTH segment reported  11 per cent jump in its net subscriber base to 93.88 lakh in Q1-2015 from 84.52 lakh in Q1-2014 and a 4.2 per cent rise from the 90.12 lakh in Q4-2014. Q-o-q the subscriber base grew by 3.76 lakh says the company.

     

    Airtel’s DTH segment reported average revenue (Arpu) of Rs 214, which was 5 per cent more than the Rs 203 in Q4-2014 and 9 per cent more than the Rs 195 in the corresponding quarter of last fiscal.

     

    Airtel’s DTH segment reported a monthly subscriber churn of 0.6 per cent in Q1-2015 and Q1-2014, as compared to 0.9 per cent in Q4-2014.

     

    The DTH segment’s EBITDA for the quarter increased to Rs 143.7 crore as compared to Rs 76 crore in the corresponding quarter last year. EBIDTA margin improved significantly in Q1-2015 to 24.3 per cent as compared to a margin of 15.5 per cent in the corresponding quarter last year.  During the current quarter, the DTH segment incurred a capital expenditure of Rs 262.7 crore for higher procurement of boxes  for higher gross adds.  The DTH Segment’s cash burn during the quarter at Rs 119 crore has dropped, compared to Rs 147.9 crore in the corresponding quarter last year reports the company.

     

    Bharti Airtel’s consolidated highlights for the first quarter ended 30 June 2014

     

    Overall customer base stands at 29.99 million across 20 countries, up 9.1 per cent y-o-y.

     

    Consolidated total revenues at Rs 22,962 crore, up by 13.3 per cent y-o-y.

     

    India & South Asia (India SA) up 11.8 per cent; Africa up 17.5 per cent (INR terms) y-o-y.

     

    Consolidated Mobile Data revenue at Rs 2,204 crore, up by 73.9 per cent y-o-y; growth across geographies.

     

    Consolidated EBITDA at Rs 7,720 crore, up by 18.0 per cent y-o-y, EBITDA margin up 1.3 per cent y-o-y.

     

    India & SA EBITDA margin at 37.2 per cent, up by 3 per cent y-o-y.

     

    Net Income at Rs 1,108 crore, up by 60.9 per cent y-o-y.

  • Hindustan Media Ventures Q1-2015 q-o-q income up 21 per cent; PAT up 25 per cent

    Hindustan Media Ventures Q1-2015 q-o-q income up 21 per cent; PAT up 25 per cent

    BENGALURU: Hindi newspaper ‘Hindustan’, Hindi socio cultural magazine ‘Kadambini’ and children’s Hindi magazine ‘Nandan’ publishers Hindustan Media Ventures Limited (HMVL – not to be confused with HT Media Limited of Hindustan Times, Mint and Fever FM fame) reported a 21.1 per cent growth in Total Income from operations (TIO) in Q1-2015 to Rs 222.6 crore as compared to the Rs 183.88 crore in Q4-2014 and 18 per cent more than the Rs 177.3 crore in Q1-2014.

     

    HMVL Q1-2015 PAT at Rs 33.9 crore (15.3 per cent of TIO) was 24.6 per cent more than the Rs 27.21 crore (14.8 per cent of TOI) reported in the immediate trailing quarter and 11.9 per cent more than the Rs 30.30 crore (16.1 per cent of TOI) in the year ago quarter Q1-2014.

     

    Let us look at the other numbers reported by HMVL for Q1-2015

     

    HMVL’s total expenditure (TE) in Q1-2015 at Rs 167.2 crore (75.1 per cent of TIO) was 7.5 per cent more than Rs 155.58 crore (84.6 per cent of TIO) in Q4-2014 and 18.8 per cent more than the Rs 140.7 crore (74.6 per cent of TIO) in Q1-2014.

     

    A major component of the total expenditure is raw materials (RM) consumed. HMVL’s RM in Q1-2015 at Rs 86.80 crore (51.9 per cent of TE) was 7.5 per cent more than the Rs 80.76 crore (51.9 per cent of TE) in Q4-2014 and 26.7 per cent more than the Rs 68.5 crore (48.7 per cent of TE) in Q1-2014.

     

     Y-o-Y the company attributes its growth to 17 per cent increase in advertising revenues to Rs 155.50 crore from Rs 132.60 crore primarily due to increase in advertising yields and a 17 per cent increase in circulation revenues to Rs  49.3 crore from Rs 42.1 crore primarily due to higher circulation and realisation per copy. 

     

    HMVL chairperson Shobna Bhartia said, “We have started the new financial year well and the first quarter saw a healthy growth in both revenue and profit. This was the result of growth in advertising, driven by our strong performance in Uttar Pradesh and Uttarakhand, and supported by our continuing dominance in Bihar and Jharkhand. With a strong brand, growing readership, and a healthy balance sheet we are confident of continuing to deliver value to our shareholders.”

  • Dish TV adds 3.32 lakh net subscribers in Q1-2015; maintains FY-2014 ARPU of Rs 170

    Dish TV adds 3.32 lakh net subscribers in Q1-2015; maintains FY-2014 ARPU of Rs 170

    Updated: 05:45 PM

     

    BENGALURU:  In its earnings release today, India’s largest DTH operator, Dish TV Limited (Dish TV) informed the bourses that its net subscriber base in Q1-2015 has gone up to 1.17 crore, the company says that it has added a net of 3.32 lakh subscribers in this quarter. The company says further that its average revenue per user (ARPU) is Rs 170, same as the ARPU reported for FY-2014.

     

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

     

    Dish TV’s total income from operations (TIO) has gone up marginally by 0.6 per cent in Q1-2015 to Rs 640.69 crore from Rs 636.91 crore in Q1-2014 but was 1 per cent lower than Rs 647.38 crore in Q1-2014. The company has reported a lower loss of Rs 16.5 crore in Q1-2015 as compared to a loss of Rs 149.05 crore in Q4-2014 and a profit of Rs 31.73 crore in Q1-2014. It may be noted that Dish TV’s Q4-2014 loss was impacted by a prior period adjustment of Rs 116.4 crore.

     

    The company reported subscription revenue for the quarter were Rs 588.6 crore while total standalone operating revenues stood at Rs 640.7 crore.

     

    Let us look at the other Q1-2015 numbers reported by Dish TV

     

    Dish TV’s Total expenditure (TE) in Q1-2015 at Rs 628.88 crore (98.2 per cent of TIO) was 4.3 per cent lower than the Rs 657.05 crore (103.2 per cent of TIO) in Q4-2014 and 3.4 per cent more than the Rs 607.94 crore (93.9 per cent of TIO) in Q1-2014.

     

    The company’s programming content and other costs (programming cost) in Q1-2015 at Rs 66.44 crore (10.4 per cent of TIO) was 0.8 per cent lower than the Rs 66.98 crore (10.5 per cent of TIO) in Q4-2014 and 0.9 per cent less than the Rs 67.04 crore (10.4 per cent of TIO) in Q1-2014.

     

    Dish TV paid 16 per cent lower licence fees at Rs 69.24 crore (10.8 per cent of TIO) in Q1-2015 as compared to the Rs 82.38 crore (12.9 per cent of TIO) in the immediate trailing quarter and 10 per cent more than the Rs 62.92 crore (9.7 per cent of TIO) in the year ago quarter Q1-2014.

     

    The company’s commission expense at Rs 54.12 crore (8.5 per cent of TIO) was 6.9 per cent higher than the Rs 50.65 crore (8 per cent of TIO) in Q4-2014 and 36.4 per cent more than the Rs 39.69 crore (6.1 per cent of TIO) in Q1-2014.

     

    Dish TV’s other selling and distribution expense for Q1-2015 at Rs 37.86 crore (5.9 per cent of TIO) was 15.9 per cent more than the Rs 32.66 crore (5.1 per cent of TIO) in Q4-2014 and 24.8 per cent lower than the Rs 50.32 crore (7.8 per cent of TIO) in Q1-2014.

     

    Dish TV’s finance cost in Q1-2015 at Rs 39.48 crore (6.2 per cent of TIO) was 8.4 per cent more than the Rs 32.3 crore (5.1 per cent of TIO) in Q4-2014 and 5 per cent lower than the Rs 35.44 crore (5.5 per cent of TIO) in Q1-2014.

     

    Dish TV chairman Subhash Chandra said, “Going by the first quarter run-rate, the Indian DTH industry seems to have set ground for a 25 per cent growth in subscriber additions this year. Factoring in the opportunities ahead Dish TV is optimistic about outgrowing the industry growth rate. The company delivered in line with expectations during the first quarter and reclaimed its position as the fastest growing DTH player in the country”.

     

    Dish TV managing director Jawahar Goel said, “Post a mediocre 2014, fiscal 2015 had a promising start for the DTH industry. Dish TV, supported by a debt light balance sheet and a more willing consumer market, put the pedal to the metal and led the industry growth by garnering the highest incremental share during the quarter.”

     

    “In line with our objective of growth with profitability, we took a price hike of 5-7 per cent across the middle and top level packs with effect from the first week of June. ARPU increased to Rs. 170 per month in the first quarter with churn also increasing marginally to reach 0.7 per cent per month. There have been efforts to implement last mile billing by the MSO’s however, a full-fledged roll-out is key to a step jump in ARPU’s across the category,” added Goel. In Q4-2014, the company had reported a churn of 0.6 per cent.

     

     “We continued to expand ‘Zing’, our innovative offering for vernacular content across regional markets. The ‘Zing’ service is now available across Odisha, West Bengal, Tripura, parts of Assam and most parts of Maharashtra. A powerful sub-brand, ‘Zing’ has also propelled the sales of the main brand through a wider reach and top of the mind recall. Moving closer towards Phase III and IV of digitisation we remain optimistic about our strategy to capture leading share in these markets,” further added Goel.

     

    Click here to read the financial result

    Click here to read the Earnings release

  • Britannia FY-2014 ad and sales promo spends up 13 per cent; PAT up 52 per cent

    Britannia FY-2014 ad and sales promo spends up 13 per cent; PAT up 52 per cent

    BENGALURU: Indian food industry major Britannia Industries Limited (Britannia) advertisement and sales promotion expense (ASP) in FY-2014 at Rs 603.65 crore (8.7 per cent of Net Total Income from Operations or Op Inc) was 13 per cent more than the Rs 534.28 crore (8.6 per cent of Op Inc) that the company spent in the previous fiscal towards this head. However, in Q4-2014, the company’s ASP was 5.9 per cent lower at Rs 146.19 crore (8.1 per cent of Op Inc) than the Rs 155.28 crore (8.7 per cent of Op Inc) in Q3-2014 and 0.4 per cent less than the Rs 146.76 crore (8.9 per cent of Op Inc) in Q4-2013.

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

    In FY-2014, the company reported a 11.8 per cent jump in Op Inc to Rs 6912.71 crore from Rs 6185.41 crore in FY-2013. For Q4-2014, Britannia’s Op Inc at Rs 1812.44 crore was 1.1 per cent more than the Rs 1793.01 crore in the immediate trailing quarter and was 9.7 per cent more than the Rs 1651.66 crore in the year ago quarter Q4-2013.

    Though in rupee value terms, Britannia’s ASP over eight quarters starting with Q1-2013 till Q4-2014 shows an upward linear trend, in terms of percentage of Op Inc., ASP expense seems to have flattened out linearly to about 8.7 per cent of Op Inc over this period (which is also the average ASP in terms if percentage of Op Inc over the 8 quarters).  Over a five year period starting FY-2010 till FY-2014, the company’s ASP spent has been trending upward linearly, both in terms of rupees spent and in terms of percentage of Op Inc. Please refer to Fig. 1A and 1B below.

    Fig. 1B below is quite interesting. During the eight quarters under consideration, the two curves representing percentage changes of Op Inc and ASP between two corresponding quarters (Q-o-q) run side by side, except between Q1-2014 and Q2-2014 where they intersect. This suggests that a change in ASP spends definitely effects the Op Inc, a dip in ASP results in a dip in Op Inc growth, and an increase in ASP results in an increase Op Inc growth.

    Britannia reported PAT of Rs 395.35 crore (5.7 per cent of Op Inc) in FY-2014, which was a phenomenal 52.4 per cent more that the Rs 259.5 crore (4.2 per cent of Op Inc) in FY-2013. For Q4-2014, the company’s PAT at Rs 108.12 crore (6 per cent of Op Inc) which was 7.8 per cent more than the Rs 100.32 crore (5.6 per cent of Op Inc) in Q3-2014 and 17.2 per cent more than the Rs 92.26 crore (5.6 per cent of Op Inc) in Q4-2013. Across the eight quarters and the five years under consideration, PAT curves and ASP curves in terms of percentage of Op Inc run side by side and are almost parallel. The company’s PAT has been climbing upwards from 3.4 per cent of Op Inc in FY-2010 to 5.7 per cent of Op Inc in FY-2014. Across the eight quarters under consideration, PAT has climbed from 3.4 per cent of Op Inc in Q1-2013 to 6 per cent of Op Inc in Q4-2014. As mentioned above, ASP in terms of percentage of Op Inc seems to have flattened out. Please refer to Fig 2 below:

    Commenting on the performance, Britannia managing director Varun Berry said, “Overall, It’s been a good year with double digit revenue growth and a solid profit growth. This is the result of disciplined effort that focused on the primary building blocks of business viz. supporting our brands, an empowered and passionate front-line organisation delivering increased distribution depth in urban and width in rural India, consistently high product quality and improved operational efficiency. Toughening economic environment called for a focus on fundamentals and we did that. We have established a great platform to take our organization to greater heights.”

    The board of directors has recommended a dividend of 600 per cent or Rs 12 per equity share of Rs 2 each.

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