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Tag: Financial

  • Other income cushions Balaji Telefims FY-2014 loss; board recommends dividend of Rs 0.4 per equity share

    Other income cushions Balaji Telefims FY-2014 loss; board recommends dividend of Rs 0.4 per equity share

    BENGALURU: Balaji Telefilms Limited (Balaji) reported consolidated loss of Rs (-17.2124) crore in FY-2014, a loss that was lowered by other income to the extent of Rs17.984 crore.  The company had reported PAT of Rs14.58 crore in FY-2013. Other income includes proceeds of Rs 6.73 crore from a Keyman Insurance Policy taken by the company in earlier years. Other Income in FY-2013 at Rs 18.38 crore was 2.17 per cent more than the current year.

     

    Three major segments contribute to Balaji’s revenue – Commissioned Programs, Sponsored Programs and Films according to the results the company has submitted to the bourses. The board of directors of Balaji have recommended a dividend of Rs 0.40 per (20 per cent) equity share of face value of Rs 2- each for FY-2014 as compared to a dividend of Rs 0.20 (10 per cent) in FY-2013.

     

    The company reported Rs133.48 crore as the revenue from Commissioned Programs in FY-2014, (-1.63) per cent lower as compared to the Rs 135.69 crore in FY-2013. Commissioned programs reported an operating profit of Rs 21.21 crore in FY-2014 as compared to a profit of Rs19.32 crore in FY-2013.

     

    Revenue from Sponsored Programs in FY-2014 was nil as compared to the Rs 4 crore in FY-2013. This segment result in FY-2014 was nil as compared to a loss of Rs (-2.04) crore in FY-2013.

     

    Balaji’s Films reported consolidated revenue of Rs 273.43 crore in FY-2014 more than six times as compared to revenue of Rs 44.63 crore in FY-2013. This segment reported an operating loss of Rs (-27.72) crore in FY-2014 as compared to an operating profit of Rs 2 crore in FY-2013.

     

    Let us look at the other numbers reported by the company.

     

    Balaji Telefilms reported consolidated revenue of Rs 407.46 crore in FY-2014, more than double (2.19 times) the Rs185.97 crore in FY-2013.

     

    The company’s total expense in FY-2014 at Rs 435.97 crore was 2.34 times more than the Rs185.96 crore in FY-2013.

     

    Higher marketing and distribution expense, decrease in stock in trade are some of the major reasons for the increase in total expenditure.

     

    Balaji spent 6.125 times more money towards marketing and distribution expense at Rs 76.18 crore in FY-2014 as compared to the Rs 12.38 crore is FY-2013. The company showed a reduction in stock-in-trade of Rs 80.60 crore in FY-2014 which showed an increase in total expenditure as compared to an increase in stock-in-trade of Rs107.59 crore  which resulted in a reduction in total expenditure in FY-2013.

     

    The company has paid higher finance costs at Rs13.731 crore in FY-2014 as compared to the Rs 8.52 crore in FY-2013.

     

    Let us look at Balaji’s subsidiary companies

     

    Three companies – Balaji Telefilms (BTL), Balaji Motion Pictures Limited (BMPL) and Bolt Media Limited (Bolt) are a part of Balaji. Cost of Production / Acquisition and Telecast Fees is the highest expense head for all the three companies.

     

    BTL’s income from operations in FY-2014 was Rs131.54 crore, and the company reported a profit of Rs 10.02 crore in FY-2014. BTL paid Rs 100.60 crore in FY-2014 towards Cost of Production / Acquisition and Telecast Fees.

     

    BMPL had income from operation of Rs 271.69 crore in FY-2014 and the company reported a loss of Rs (-26.27) crore during the period. Cost of Production / Acquisition and Telecast Fees for BMPL was Rs 281.13 crore.

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    Bolt reported Operating revenue of Rs 4.75 crore in FY-2014 and an operating loss of Rs 0.93 crore. Cost of Production / Acquisition and Telecast for Bolt was Rs 3.76 crore.

     

    Balaji says that its revenue per commissioned hour for BTL in Q4-2014 was Rs 21.66 lakh as compared to Rs 21.18 lakh in Q3-2014 and Rs 22.30 lakh in Q4-2013. Excluding regional segment, event business and incentives, the company commissioned 173 hours in Q4-2014 which was same as the number of hours commissioned in Q3-2014 and 28.1 per cent more as compared to the 135 hours in Q4-2013.

     

    Balaji also says that two movies were released in Q4-2014 and six movies in FY-2014. It adds that Production cost comprises old films inventory amortisation and marketing and distribution expenses of films releasing in FY-2015.

  • TV Today FY-2014 PAT quintuples, OYE! FM operating loss down 15 per cent

    TV Today FY-2014 PAT quintuples, OYE! FM operating loss down 15 per cent

    BENGALURU: TV Today Network Limited (TVTN), a part of the India Today group reported 5.02 times growth in standalone PAT in FY-2014 to Rs 61.32 crore (15.75 per cent of Income from Operations or Op Inc) as compared to the Rs 12.21 crore (3.9 per cent of Op Inc) in FY-2013.  In Q4-2014, the company reported PAT of Rs 15.85 crore (16.28 per cent of Op Inc), which was (-23.21) per cent lower than the Rs 20.65 crore (18.53 per cent of Op Inc) in the immediate trailing quarter Q3-2014 and almost two and a half times (2.49 times) the PAT of Rs 6.36 crore (7.54 per cent of Op Inc) in Q4-2013.

     

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

     

    TVTN’s Radio Broadcasting segment (Oye! FM) under the brand Oye! FM reported a (-15.41) per cent reduction in operating loss to Rs (-11.24) crore in FY-2014 as compared to the Rs (-13.24) crore in FY-2013. However, Oye! FM’s Q4-2014 loss at Rs(-4) crore was 35.86 per cent more than the Rs (-2.90) crore in Q3-2014 and 45.98 per cent more than the Rs (-2.74) crore in Q4-2013.

     

    Let us look at some of the other numbers reported by TV Today for FY-2014 and Q4-2014

     

    TVTN reported 24.56 per cent higher Op Inc at Rs 389.44 crore in FY-2014 as compared to the Rs 312.67 crore in FY-2013. Op Inc for Q4-2014 at Rs 97.41 crore was (-12.57) per cent lower than the Rs111.42 crore in Q3-2014 and 15.59 per cent more than the Rs 84.27 crore in Q4-2013.

     

    Total Expense in FY-2014 at Rs 304.35 crore (78.15 per cent of Op Inc) was 2.29 per cent more than the Rs 297.55 crore (95.16 per cent of Op Inc) in FY-2013. In Q4-2014, Total Expense at Rs 77.31 crore (79.36 per cent of Op Ic) was (-5.99) per cent less than the Rs 82.23 crore (73.9 per cent of Op Inc) in Q3-2014 and (-0.74) per cent lower than the Rs 77.89 (92.43 per cent of Op Inc) crore in Q4-2013.

     

    Major expense heads include Employee Benefits Expense (EBE), which at Rs 92.97 crore (23.87 per cent of Op Inc) in FY-2014 was (-0.12) per cent lower than the Rs 93.09 crore (29.77 per cent of Op Inc) in FY-2013. Q4-2014 EBE at Rs 21.67 crore (22.25 per cent of Op Inc) was (-12.85) per cent lower than the Rs 24.87 crore (22.32 per cent of Op Inc) in Q3-2014 and (-6.05) per cent lower than the Rs 23.07 crore (27.38 per cent of Op Inc) in Q4-2013.

     

    Production Costs at Rs 40.85 crore (10.49 per cent of Op Inc) was 9.16 per cent more than the Rs 37.42 crore (11.97 per cent of Op Inc) in FY-2013. In Q4-2013, Production Cost at Rs 12.91 crore (13.25 per cent of Op Inc) was 18.93 per cent more than the Rs10.85 crore (9.74 per cent of Op Inc) and 24.57 per cent more than the Rs10.36 crore (12.29 per cent of Op Inc) in Q4-2013.

     

    Other Expense in FY-2014 at Rs 60.61 crore (15.56 per cent of Op Inc) was 7.04 per cent more than the Rs 56.62 crore in FY-2013. During Q4-2014, other expense at Rs19.27 crore (17.30 per cent of Op Inc) was 24.52 per cent higher than the Rs15.48 crore (13.89 per cent of Op Inc) in Q3-2014 and 29.38 per cent more the Rs14.90 crore (17.68 per cent of Op Inc).

     

    Segment Revenue

     

    Two segments – TV Broadcasting (TV) and FM Radio Broadcasting (Radio) contribute to TVTN’s revenues.

     

    TV segment reported 23.58 per cent growth in operating revenue to Rs 374.06 crore in FY-2014 as compared to the Rs 302.69 crore in FY-2013. TV’s Operating revenue in Q4-2014 at Rs 93.50 crore was (-12.66) per cent lower than the Rs 107.06 crore in Q3-2014 and 14.54 per cent more than the Rs 81.63 crore in Q4-2013.

     

    TV segment reported Operating profit of Rs 103.75 crore in FY-2014, more than triple (3.16 times) the Rs 32.79 crore in FY-2013. TV segment’s Operating profit in Q4-2014 at Rs 27.55 crore was (-18.36) per cent lower than the Rs 33.75 crore in Q3-2014 and more than double (2.36 times) the Rs11.69 crore in Q4-2013.

     

    Radio segment reported Operating revenue of Rs15.38 crore which was 54.17 per cent more than the Rs 9.98 crore in FY-2013. Operating revenue for the segment in Q4-2014 at Rs 3.91 crore was (-10.36) per cent lower than the Rs 4.37 crore in Q3-2014 and 48.11 per cent more than the Rs 2.64 crore in Q4-2013. Radio results have been mentioned above.

     

    Presently, TVTN runs four 24 hours news and current affairs television channels, namely Aaj Tak, Dilli Aaj Tak and Tez in Hindi and Headlines Today in English and six FM radio stations in Delhi, Kolkata, Amritsar, Patiala, Jodhpur and Mumbai under the name Oye! 104.8 FM.

  • Prime Focus FY-2014 PAT Rs 33 crore

    Prime Focus FY-2014 PAT Rs 33 crore

    BENGALURU: For FY-2014, Prime Focus Limited (Prime Focus) reported a PAT of Rs 33.04 crore as compared to a loss of Rs (-20.31) crore in FY-2013. Forex loss of Rs (-9.02) crore, non-cash reversal of deferred tax during the quarter are some of the factors that have added to the loss in Q4-2014 of Rs (-7.16) crore to Prime Focus as compared to a profit of Rs 10.33 crore in Q3-2014 and a profit of Rs 12.44 crore in Q4-2013.

     

    During FY-2014, Q4 is the only quarter that has reported an operational loss and a forex loss. Between Q1-2014 and Q3-2014, the company had reported a forex gain of Rs 38.23 crore, much more than the PAT reported by the company during the entire fiscal. The Q4-2014 forex loss reduced overall forex gains by the company in FY-2014 to Rs 29.21 crore.

     

    Click to read full report:

  • DB Corp higher PAT on higher print, radio, and digital media ad revenue, business adjustments in FY-2014

    DB Corp higher PAT on higher print, radio, and digital media ad revenue, business adjustments in FY-2014

    BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported improved results in Q4-2014 and its board has recommended a final dividend of Rs 4.25 per share for FY-2014.

     

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

     

    The company reported a higher PAT at Rs 306.6 crore in FY-2014 as compared to the Rs 218.1 crore in FY-2013, which includes a onetime tax gain of Rs 14.9 crore, on account of demerger of digital media business.

     

    The company says that its FY-2014 consolidated advertising revenue grew by 17.4 per cent to Rs 1417.8 crore as against Rs1270.5 crore is FY-2013. The company says further that its radio business ad revenue grew by 19.2 per cent to Rs 80.1 crore from Rs 67.2 crore in FY-2013 and that its digital media ad revenue grew by about 54 per cent to Rs16.3 crore in Fy-2014 from Rs10.8 crore in FY-2013.

     

    Let us look at the figures for FY-2014 and Q4-2014 reported by DB Corp

     

    DB Corp’s Total Operating Income (Op Inc) in FY-2014 at Rs1895.76 crore was 16.8 per cent more than the Rs 1592.32 crore in FY-2013. Q4-2014 Op Inc at Rs 454.17 crore was (-12.36) per cent lower than the Rs 518.20 crore in Q3-2014 and 14.08 per cent more than the Rs 398.10 crore in the last year quarter Q4-2013.

     

    Total Expense (Tot Exp) in FY-2014 at Rs 1423.72 crore was 11.94 per cent more than the Rs 1271.91 crore in FY-2013. In Q4-2014, Tot Exp at Rs 366.02 crore was (-3.48) per cent lower than the Rs 379.21 crore in Q3-2014 and 14.67 per cent more than the Rs 319.19 crore in Q4-2013.

     

    Raw Material consumption (RM cost) forms a major portion of DB Corp’s expense (Between 33 and 37 per cent of Tot Inc). In FY-2014, DB Corp’s RM cost at Rs 632.95 crore (34.03 per cent of Op Inc) was 16.4 per cent more than the Rs 544.54 crore (34.20 per cent of Op Inc) in FY-2013. RM cost in Q4-2014 at Rs 166.59 crore (36.68 per cent of Op Inc) was (-3.37) per cent lower than the Rs 172.41 crore (33.27 per cent of Op Inc) in the immediate trailing quarter Q3-2014 and 24.57 per cent more than the Rs133.74 crore (33.57 per cent of Op Inc) in the corresponding quarter of last year.

     

    PAT in FY-2014 at Rs 306.64 crore (16.49 per cent of Op Inc) was 40.58 per cent more than the Rs 218.14 crore (13.7 per cent of Op Inc) in FY-2013. In Q4-2014, PAT at Rs 7.59 crore (1.67 per cent of Op Inc) was 1.67 per cent more than the Rs 9.45 crore (1.82 per cent of Op Inc) in Q3-2014 and (-86.26) per cent less than the Rs 55.26 crore (13.88 per cent of PAT) in Q4-2013.

     

    Segment Results

     

    Printing and Publishing of Newspaper and Periodicals segment

     

    Printing and Publishing of Newspaper and Periodicals (Printing) segment contributes more than 94 per cent to DB Corp’s total revenue. During FY-2014, Printing segment revenue of Rs 1762.16 crore (94.75 per cent of Op Inc) was 17.02 per cent more than the Rs 1505.86 crore (94.57 per cent of Op Inc) in FY-2013. Printing segment revenue in Q4-2014 at Rs 421.21 crore (94.28 per cent of Op Inc) was (-12.37) per cent lower than the Rs 488.63 crore in Q3-2014 and 13.87 per cent more than the Rs 376.06 crore (94.46 per cent of Op Inc) in Q4-2013.

     

    DB Corp’s Printing segment results in FY-2014 at Rs 458.9 crore was 32.63 per cent more than the Rs 345.97 crore in FY-2013. The company’s Q4-2014 result at Rs 95.5 crore was (-32.38) per cent less than the Rs 488.63 crore in Q3-2014 and 2.35 per cent more than the Rs 93.31 crore in Q4-2013.

     

    Radio Business segment

     

    DB Corp’s radio segment reported revenue of Rs 79.45 crore (4.27 per cent of Op Inc) in FY-2014 was 19.2 per cent more than the Rs 66.65 crore (4.19 per cent of Op Inc) in FY-2013. This segment’s Op Inc in Q4-2014 at Rs 21.37 crore (4.99 per cent of Op Inc) was (-10.28) per cent lower than the Rs 23.83 crore (4.88 per cent of Op Inc) in Q3-2014 and 17 per cent more than the Rs18.27 crore (4.59 per cent of Op Inc) in Q4-2013.

     

    This segment returned a positive result of Rs 20.56 crore in FY-2014 which was 89.18 per cent more than the Rs 10.87 crore in FY-2013. In Q4-2014, DB Corp’s radio business reported a result of Rs 7.19 crore which was (-15.47) per cent less than the Rs 8.51 crore in Q3-2014 and 75.73 per cent more than the Rs 4.09 crore in Q4-2014.

     

    The other segments –events, internet and power have reported very low numbers and have eroded the profits generated by DB Corp’s Printing and Radio business segments.

     

    DB Corp managing director Sudhir Agarwal, said, “We have delivered a robust operating performance this year amidst a challenging market environment. Our focus on sustaining and extending leadership in core markets, consistent focus on operational efficiencies as well as strong performance across non-print segments have enabled us to report significant growth.

     

    The Bhaskar way of journalism places the reader at the center. Our growth strategy revolves around this philosophy and as we have successfully done in the past – we have ensured that our strategies combine ‘knowledge enhancement’ for the reader and ‘product differentiation’ towards growth. Therefore, our earlier associations with leading media brands for exclusive, unique content have started delivering exciting results. This quarter, we re-aligned our corporate sales and marketing strategy supported by key senior management appointments – with the aim of providing greater focus to advertisers at every state level. Our Un-Metro – Markets Driving India initiative extensively analysed the potential of high-growth non-metro regions with inspiring participation by marketing stalwarts across Bengaluru, Mumbai and New Delhi, have also contributed significantly towards broadening our horizons. Our Bihar-Patna launch was an exciting challenge in that region and we are encouraged by an overwhelming response and wide acceptance; while our progress in Maharashtra continues well on course.

     

    DBCL’s non-print media segments have been making strong headway as we report commendable

     

    developments across our digital and radio properties. We have been leveraging our leadership strengths in print media – extending our editorial excellence and deep readership insights to make steady progress across digital and radio platforms. We are excited with the potential of post Phase 3 licensing and are well poised to strengthen our radio footprint.

     

    While the macro outlook does remain undefined, we are hopeful that, as we move towards political

     

    certainty, the consumer sentiment will become more positive and result in better growth across sectors. I am confident that with our clear strategic focus, strong business fundamentals, superior execution capabilities supported by a talented team, we will strive towards our vision to be the largest and most admired media brand as well as active socio-economic change agents.”

  • Gillette India q-o-q ad spend up 28 per cent in Q4-2014; PAT down 23 per cent

    Gillette India q-o-q ad spend up 28 per cent in Q4-2014; PAT down 23 per cent

    BENGALURU: Procter & Gamble Hygiene and Health Care Limited (P&G) subsidiary Gillette India Limited (Gillette) advertising and sales promotion spend (Ad & SP)in Q4-2014 at Rs 123.84 crore (27.19 per cent of Total Income from Operations of Op Rev) was 27.8 per cent more than the Rs 96.9 crore (22.69 per cent of Op Rev) in the immediate trailing quarter and a whopping 85.92 per cent more than the Rs 66.61 crore (18.66 per cent of Op Rev) during last year’s quarter Q4-2014.

    Note: Gillette’s financial year ends on 30 June. However, in keeping with convention in India, its June ended quarter has been termed as Q1 (instead of Q4 of the previous year), Its September ended quarter has been termed as Q2 (instead of Q1 of Gillette India’s new fiscal), the December ending quarter has been indicated as Q3 (instead of Q2 of Gillette’s fiscal), and the March ended quarter as Q4 (instead of Q3 of Gillette’s fiscal) in this article and figures/graphs.

    Gillette’s ad & SP trends upwards both in terms of absolute rupee value as well as percentage of Op Rev across nine quarters starting Q4-2012 until Q4-2014. Please refer to Fig 1 below for Gillette’s Ad & SP Exp. Over 4 quarters starting Q1-204 to Q4-2014, Gillette’s ad & SP Exp was Rs 387.90 crore or 23.34 per cent of Op Rev.

    Gillette’s PAT has nose-dived (-23.19) per cent to Rs 8.48 crore (1.86 per cent of Op Rev) in Q4-2014 from Rs 11.04 crore (2.59 per cent of Op Rev) in the immediate trailing quarter Q3-2014 and was less than a third (down by -68.78 per cent) of the Rs 27.16 crore (7.16 per cent of Op Rev) of the year ago quarter Q4-2013. Overall, during the nine quarters under consideration, Gillette’s PAT has shown a falling trend in terms of absolute rupee value as well as in terms of percentage of Op Rev. The company’s PAT over four quarters starting Q1-2014 until Q4-2014 was Rs 51.13 crore or 3.08 per cent of Op Rev.

    The company’s Op Rev shows an upward trend. During Q4-2014, Op Rev at Rs 455.50 crore was 6.68 per cent more than the Rs 426.97 crore in Q3-2014 and 27.62 per cent more than the Rs 356.92 crore in Q4-2013. During the last four quarters starting Q1-2014 until Q4-2014, Gillette’s Op Rev was Rs 1662.13 crore. Please refer to Fig 2 below.

    Three segments contribute to the company’s income from operations – 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.

  • Sterling Holiday Resorts sales promo spends down 24 per cent in Q4-2014

    Sterling Holiday Resorts sales promo spends down 24 per cent in Q4-2014

    BENGALURU: Sterling Holiday Resorts (India) Limited (Sterling Holidays) sales promotion spend (Sales Promo) Q4-2014 at Rs 2.194 crore (5.91 per cent of net sales) was (-23.99) per cent less than the Rs 2.8866 crore (8.40 per cent of net sales) in the immediate trailing quarter Q3-2014 and (-17.04) per cent less than the Rs 2.6448 crore (9.39 per cent of net sales) of the year ago quarter Q4-2013.

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

    Over nine quarters starting from Q4-2012 until Q4-2014, Sterling Holiday’s sales promo spend shows a slight downward trend in terms on absolute rupee value, but the drop is much steeper in terms of sales promo as percentage of net sales.

    Overall, the company’s net sales show an upward trend and in Q4-2014 at Rs 37.11 crore was 7.98 per cent more than the Rs 34.37 crore in Q3-2014 and was 31.70 per cent more than the Rs 28.18 crore in Q4-2013. Please refer to Fig 1 below.

    Over three years starting FY-2012 until FY-2014, Sterling Holidays sales promo spend at Rs 16.48 crore and 12.50 per cent of net sales was 32.90 per cent more than the Rs 12.40 crore (11.40 per cent of net sales) in FY-2013. The company’s net sales in FY-2014 at Rs 131.89 crore was 21.28 per cent more than the Rs 108.75 crore in FY-2013. Please refer to Fig 1A below

    The company has in general been a loss making company. Please refer to Fig 2 below. With a new tie up with Thomas Cook International Limited expected to be completed by the end of this year, the company expects to turn the corner.

    Sterling Holidays says that the significant improvement in the company’s performance in the year is an indicator of the strong resurgence of brand Sterling, a result of the strategic turnaround initiatives over the last couple of years.

    It says further that the substantial investments the company made in enhancing the overall customer holiday experience through refurbishment of its resorts and an expanded menu of recreational and culinary experiences have resulted in a healthy rise in the number of Vacation Ownership members and non-members holidaying at the company’s resorts, leading to an increase in resort occupancy to 49 per cent from 41 per cent in the previous year.

    Sterling Holidays managing director Ramesh Ramanathan said, “The company’s performance has been improving consistently over the last couple of years. The synergies with Thomas Cook with their wide reach and distribution in the travel space will help us strengthen our market position, increase our occupancy levels and allow expansion to new destinations and markets.”

    completed by the end of this year, the company expects to turn the corner.

  • Emami q-o-q ad and sales promo spend down 44 per cent in Q4-2014

    Emami q-o-q ad and sales promo spend down 44 per cent in Q4-2014

    BENGALURU:  In keeping with its norms, Indian personal and healthcare company Emami Limited (Emami) Advertisement and Sales Promotion (Ad & SP) spend during the last quarter of FY-2014 was the lowest during the year. In Q4-2014, Emami Ad & SP at Rs 49.53 crore was  down (–43.64) per cent as compared to the Rs 87.85 crore in the immediate trailing quarter Q3-2014 and just a meagre 1.18 per cent more than the Rs 48.95 crore in the year ago quarter – Q4-2013.

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

    (2) All trends mentioned in this report are linear trends based on data across nine quarters starting Q4-2012 and ending Q4-2014 and across FY-2012 to FY-2014.

    At 11.11 per cent of net sales, Emami’s Q4-2014 Ad & SP percentage of net sales was the third lowest over a nine month period starting Q4-2012 and ending Q4-2014. The lowest corresponding figure over the nine quarters was in Q4-2012 at 9.19 per cent of net sales (Rs 36.60 crore). During Q3-2014, Ad & SP as percentage of net sales was 15.03 per cent and during Q4-2013 it was 10.85 per cent (second lowest).

    In terms of absolute rupee value terms, Emami’s Ad & SP Exp trends upwards, while in terms of percentage of net sales, it shows a downward trend. Also, in Q1-2013, and Q1-2014, Emami’s Ad& SP Exp was 18.72 per cent (second highest over nine quarters) and 18.85 per cent (highest over nine quarters) respectively of net sales.  If the company follows these norms, Q1-2015 should see a substantial increase in Ad & SP Exp as percentage of net sales. Please refer to Fig 1 and Fig 1A below.

     

    Emami’s PAT and net sales across the quarters under consideration and the three financial years FY-2012 to FY-2014 trends upwards as per Fig 2 and Fig 2A below.

    Among the brands in the company’s portfolio are Zandu, Zandu Balm, Himani Navratna, BoroPlus, Fair and Handsome, Emami Vasocare, Emami Mentho Plus, Himani Fast Relief, Zandu Sona Chandi Chyawnprash Plus, Zandu Kesari Jivan, etc.

  • Bajaj Corp ad & sales promo exp up 11 per cent in FY-2014

    Bajaj Corp ad & sales promo exp up 11 per cent in FY-2014

    BENGALURU:  Note: (1) Bajaj Corp’s  Advertisement and Sales Promotion (ASP) expense comprises  two parts – Advertisement (Ad Exp) and Sales Promotion (SP). 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) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million

    Bajaj Corp Limited (Bajaj Corp) spent 10.98 per cent more towards Ad and Sales Promotion Expense (ASP) in FY-2014 at Rs 113.30 crore (16.87 per cent of Operating Income or Op Inc) as compared to the Rs 87.92 crore (14.49 per cent of Op Inc) in FY-2013. The breakup of these figures was – FY-2014 Ad Exp Rs 46.427 crore (6.91per cent of Op Inc), SP Rs 66.872 crore (9.96 per cent of Op Inc) and FY-2013 Ad Exp Rs 41.8354 crore (6.90 per cent of Op Inc), SP Rs 46.0846 crore (7.60 per cent of Op Inc). During three financial years from FY-2012, to FY-2013, ASP, Ad Exp and SP show an increasing trend in terms of absolute value in rupees as well as in terms of percentage of Op Inc.

    Bajaj Corps ASP was just 0.81 per cent more in Q4-2014 at Rs 28.54 crore (15.47 per cent of Op Inc) as compared to the Rs 28.31 crore (17.85 per cent of Op Inc) in the immediate trailing quarter Q3-2014 and (-5.62) per cent lower than the Rs 30.24 crore (16.42 per cent of Op Inc) during the year ago quarter of Q4-2013. Please refer to Fig 1 and Fig 1A below for more details and breakup of ASP. Overall, during nine quarters starting from Q4-2012 until Q4-2014, ASP shows an upward trend in absolute rupee value terms as well as in terms of percentage of Op Inc.

    Fig 1C below indicates that over the nine quarters under consideration, Ad Exp show a decreasing trend, while SP shows an increasing trend.

    Fig 2 and Fig 2 A below indicate the Op Inc and PAT trends of Bajaj Corp

    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 in its April 2014 investor presentation says that it intends to gain market share from other hair oil segments. To that end it intends to convert coconut hair oil users to light hair oil users through sampling, targeted advertising campaigns, product innovation and creating awareness about product differentiation including communicating the advantages of switching to lighter hair oils. It is aiming for a market share of 65 per cent by the year 2015-16.

    It says that it will focus on rural penetration and tap the increase in disposable income of rural India and convert rural consumer from unbranded to branded products by providing them with an appropriate value proposition. Also, among its key competitors, Bajaj Corp’s Almond Drops is the only brand which is available in sachets – a marketing initiative to penetrate the rural market.

    Bajaj Corp says that it will leverage its existing strengths to introduce new products. Bajaj Corp claims that it has over the years created a strong distribution network across 26.7 lakhs retail outlets which can be optimally utilized by introducing new products. The company intends to extend ‘Almond Drops’ platform developed by its Almond Drops Hair Oil brand to other personal care products to leverage on the strong connotation of almonds with nutrition.

    It says further that it will also pursue inorganic opportunities in the FMCG and hair oil market as part of growth strategy. The inorganic growth opportunities will focus on targeting niche brands which can benefit from Bajaj Corp’s  strong distribution network so that they can be made pan India brands.

  • Dabur ad spends in FY-2014 up 19.4 per cent, PAT up 19.7 per cent

    Dabur ad spends in FY-2014 up 19.4 per cent, PAT up 19.7 per cent

    BENGALURU:  Dabur India Limited (Dabur) spent 19.44 per cent more towards Advertisement and Publicity (Ad & Pub) in FY-2014 at Rs 999.67 crore (14.09 per cent of Income from Operations or Inc from Ops) as compared to the Rs 836.98 crore (13.55 per cent of Inc from Ops) in FY-2013. The company’s PAT at Rs 913.92 crore in FY-2014 was 12.88 per cent more than the Rs 763.42 crore in FY-2013.

    Notes: 100,00,000=100 lakhs = 1 crore

    Dabur Ad & Pub spend was Rs 228.38 crore (12.87 per cent of Inc from Ops) in Q4-2014 which was (-21-14) per cent lower than the Rs 289.62 crore (15.87 per cent of Inc from ops) in Q3-2014, but 19 per cent more y-o-y as compared to the Rs 191.92 crore (12.43 per cent of Income from Ops) in Q4-2013.

    Though the company’s Inc from Ops in Q4-2014 at Rs 1774.41 crore was (-7.06) per cent lower than the Rs 1909.29 crore during the immediate trailing quarter, y-o-y, Op inc was 14.95 per cent more than the Rs 1543.65 crore in Q4-2013. Dabur’s Inc from Ops for FY-2014 at Rs 7049.43 crore was 14.87 per cent more than the Rs 6176.12 crore in FY-2013. Please refer to Fig 1 & 1A below. Across 9 quarters starting Q4-2012 to Q4-2014, the company’s Ad & Pub Exp shows an upward trend, both in terms of absolute value as a well as percentage of Op Inc.

    Q-o-q, Dabur’s PAT in Q4-2014 at Rs 235.29 crore was (-3.13) per cent lower than the Rs 242.88 crore in the immediate trailing quarter, but was 17.32 per cent more than the year ago PAT of Rs 200.55 crore in Q4-2013. Please refer to Fig 2

    Category Growths

    The company says that the digestives category posted a 23.3 per cent growth during the fourth quarter of 2013-14, while the foods business riding on strong demand for its packaged juices ended the period with a 20.6 per cent growth. The toothpaste business for Dabur led by Dabur Red Paste reported a 20.7 per cent growth, while the shampoo business grew by 19 per cent. The health supplements business saw a 17.6 per cent growth during the quarter, while the home care category grew by 13 per cent.

    “The business has performed well on all operating parameters. Our strong performance reflects the robustness of our business model and our ability to efficiently manage the emerging challenges. Dabur has been reporting strong and consistent performance despite intensifying competitive pressures and the challenging market environment being witnessed for some quarters now. Going forward too, our focus will be on pursuing an aggressive and profitable growth strategy,” Dabur chief executive officer Sunil Duggal said.

  • Airtel DTH services y-o-y growth 23%, EBIDTA up 226%, ARPU up 10% in Q4-2014

    Airtel DTH services y-o-y growth 23%, EBIDTA up 226%, ARPU up 10% in Q4-2014

    BENGALURU: Indian and international mobile services giant Bharati Airtel Limited’s DTH (Airtel DTH) services business total revenue has grown 23 per cent to Rs 541.5 crore in Q4-2014 as compared to the Rs 441.9 crore in the year ago quarter (Q4-2013).  During FY-2014, total revenue at Rs 2077.1 crore was 27 per cent more than the Rs 1629.4 crore in FY-2013.

     

    Airtel DTH has reported higher EBIDTA at Rs 96.3 crore in Q4-2014, 226 per cent more than the Rs 29.6 crore in Q4-2013. During the current financial year, EBIDTA was even higher (by 638 per cent) at Rs 333.8 crore as compared to the Rs 45.2 crore in FY-2013.

     

    Airtel DTH’s operating margin (EBIT) loss reduced by 38 per cent to Rs (-111.1) crore in Q4-2014 from Rs (-178.4) crore in Q4-2013. Over the year EBIT reduced by 41 per cent to Rs (-482.1) crore in FY-2014 from Rs (-810.5) crore in FY-2013.

     

    Capex at Rs 177.9 crore went up 34 per cent in Q4-2014 from Rs 132.6 crore y-o-y. However the company’s capex in FY-2014 was (-18) per cent lower at Rs 617 crore as compared to the Rs 754.8 crore in FY-2013.

     

    The company’s DTH business’s cumulative investments in Q4-2014 and FY-2014 went up 15 per cent to Rs 4646.8 crore from Rs 4036.6 crore in Q4-2013 and FY-2013.

     

    Airtel DTH q-o-q customer base went up 2 per cent in Q4-2014 to 90.12 lakhs from 88.07 lakhs, with net additions of 2.05 lakhs new subscribers during Q4-2014. This is (-13) per cent lower than the 235000 net additions the company had declared during Q4-2013. Y-o-y the customer base was 11 per cent more than the 81 lakhs subscribers in Q4-2014, but net new subscriptions during Q4-2014 was less by (-1) per cent than the 207000 net new subscriptions in Q4-2013.

     

    Average Revenue Per User (ARPU) in Q4-2014 has gone down (-2) per cent to Rs 203 in Q4-2014 as compared to the Rs 207 in the immediate trailing quarter, but was 10 per cent more than the Rs 184 in the year ago quarter (Q4-2013).

     

    Airtel DTH’s monthly churn was also higher at 0.9 per cent in Q4-2014 as compared to the 0.8 per cent in Q3-2014, but was lower than the 1.1 per cent in Q4-2013.

     

    It became the first DTH player in the country to showcase a feature film on the same day of its theatrical release with the showcase of Telugu movie ‘Minukumanna Minugurulu’ on its Pay Per View (PPV) platform.

     

    In line with company’s initiatives to associate with events, shows and initiatives that resonate well with the preferences of today’s India, Bharati Airtel co-sponsored the popular TV show ‘Satyamev Jayate’ again this year. The brand integration with the show included innovations like in-show calls on Airtel 3G and use of Airtel money for donations along with access to exclusive show content to customers.

     

    In an effort to provide a world-class experience to the customers, the company launched Airtel ‘Pocket TV’ – a mobile app which will enable customers to watch their favourite TV programs on the move while also being the first player to release a feature film on digital TV platform.