ITV

Tag: Financial

  • FY-2015: HUL marketing spends up 7.2%; Q4-2015 marketing spends cross Rs 1000 crore

    FY-2015: HUL marketing spends up 7.2%; Q4-2015 marketing spends cross Rs 1000 crore

    BENGALURU: Indian FMCG giant Hindustan Unilever Limited (HUL) Advertisement and Promotions expense (marketing spends, ASP) in FY-2015 was 7.2 per cent more at Rs 3874.94 crore (12.6 per cent of Total Income from operations or TIO, approximately $590 million) than the Rs 3613.609 crore in FY-2014.

    For the fourth quarter ended 31 March, 2015 (Q4-2015, current quarter), the company exceeded the Rs 1000 crore (approx. $156 million) mark to clock Rs 1027.89 crore (13.4 per cent of TIO, approx. $160 million). ASP in the current quarter was 22.3 per cent more than the Rs 840.34 crore (11.8 per cent of TIO) in the corresponding year ago quarter and was 5.2 per cent more than the Rs 977.12 crore (12.6 per cent of TIO) in Q3-2015.

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

    (2) All figures in this report are standalone figures filed by the company. The trends are based on the numbers submitted by the company or picked up from the company’s website. For performance of HUL’s various product lines please refer to the attached earnings release for Q4-2015 and FY-2015.

    (3) The US dollar figures are approximately based on a conversion rate of 1$= Rs 64.The converted numbers have been rounded off.

    HUL chairman Harish Manwani said, “We have delivered another year of strong performance with broad based growth ahead of the market and sustained margin improvement. Our strategy remains focused on strengthening the core of our business through innovation, leading market development and continuous improvement of our executional capabilities. Despite market challenges, our strategic agenda remains unchanged as we continue to manage our business even more dynamically for growth that is consistent, competitive, profitable and responsible.”

    As a matter of fact, HUL’s ASP in Q4-2015 is the highest over a 12 quarter period starting Q1-2013 until the current quarter in terms of absolute rupee spends at Rs 1027.89 crore. In terms of percentage of TIO, during the period under consideration, ASP was 13.8 per cent of TIO in Q2-2014 at Rs 954.02 crore. Please refer to Fig A below.

    HUL’s ASP in absolute rupees shows a linear increasing trend during the 12 quarter period under consideration. The blue broken trend line intercepts Q4-2015 at Rs 995.876 crore, showing that the company has spent Rs 32.014 crore more than indicated by the trend line’s slope.

    HUL’s ASP in terms of percentage of TIO in Q4-2015 at 13.4 per cent is in excess of the 12.6839per cent represented by the slope of the orange broken trend line during the period under consideration.

    HUL TIO in FY-2015 at Rs 30805.62 crore (approx. $4.8 billion) was 9.9 per cent more than the Rs 28019.13 crore in the previous year. In Q4-2015, TIO at Rs 7675.63 crore was 8.2 per cent more than the Rs 7094.10 crore in Q4-2014, but was 1.3 per cent lower than the Rs 7774.32 crore in the immediate trailing quarter. Please refer to Fig B below. The orange broken trend line indicates that TIO has a linear increasing trend during the 12 quarter period under consideration in this report.The slope of the line indicates that HUL should have had a higher TIO of Rs 7856.14 crore and hence underperformed by Rs 180.51 crore (about $28 million).

    HUL PAT in FY-2015 at Rs 4315.26 crore (14 per cent of TIO, approx. $675 million) was 11.6 per cent more than the Rs 3867.49 crore in FY-2014. For Q4-2015, PAT at Rs 1018.08 crore (13.3 per cent of TIO) was 16.7 per cent more than the Rs 873.13 crore (12.3 per cent of TIO) in Q4-2014, but was 18.7 per cent less than the Rs 1252.17 crore(16.1 per cent of TIO) in Q3-2015.

    In Fig B below, the maroon broken line indicates that PAT in absolute rupees shows a linear increasing trend during the period under consideration. The slope of the line indicates that the HUL should had have had a higher PAT of Rs 1131.504 crore in Q4-2015 and hence underperformed by Rs 113.42 million ($18 million)

    In terms of percentage of TIO, the green broken line indicates a linear decreasing trend. The slope of the line indicates that HUL’s actual PAT as percentage of TIO of Q4-2015 at 13.3 per cent is higher than the calculated 13.12 per cent.

    HUL’s board of directors at its meeting held on Monday, 8 May, 2015 recommended a final dividend of Rs 9 per share of Re1 each, for the financial year ended 31 March, 2015. Together with the interimdividend of Rs 6 per share paid on 3 November, 2014, the total dividend for the financial year ended 31 March, 2015 works out to Rs 15 per share of Re 1 each. Final dividend, subject to approval of shareholders, will be paid on or after Friday, 3 July, 2015.

  • FY-2015: Dabur’s Real becomes Rs 1000 crore brand; PAT crosses Rs 1000 crore

    FY-2015: Dabur’s Real becomes Rs 1000 crore brand; PAT crosses Rs 1000 crore

    BENGALURU: Dabur India Limited’s brand ‘Real’ fruit juice crossed sales of Rs 1000 crore in FY-2015 in India, Nepal and a few other markets, the company revealed in its investor presentation.

    Dabur spent 12.5 per cent more towards advertising and publicity expenses (ASP) in FY-2015 at Rs 1124.38 crore (14.4 per cent of Total Income from Operations or TIO) as compared to the Rs 999.67 crore (14.1 per cent of IO) in FY-2014. Also, for the first time, the company has crossed the Rs 1000 crore mark by clocking profit after tax (PAT) of Rs 1068.47 crore (13.7 per cent of TIO) in FY-2015. In FY-2014, Dabur had reported PAT of Rs 916.45 crore (13 per cent of TIO).

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

    Dabur’s products

    Dabur’s products include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin hara fizz; OTC and ethicals such as Lal Tail, Honitus Syrup; haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine marks; toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem natural fairness, Gold Bleach, Gulabari; homecare brands such as Odomos, Odonil and Sanifresh; food brands such as Real and Real Active.

    “The gradual improvement in the consumption environment has helped our business perform well on all operating parameters. Our robust business model and our ability to efficiently manage the external challenges have helped us report a strong and consistent performance even in the face of intensifying competitive pressures. Our India FMCG business ended the fourth quarter with a 12 per cent growth, led by 8.1 per cent volume growth. Our EBIDTA margin saw a 17 per cent growth during the quarter,” Dabur India CEO Sunil Duggal said. 

    “Going forward too, our focus will be on pursuing an aggressive and profitable growth strategy. We will continue to invest behind our brands and on market expansion programmes while stepping up on innovation with a series of new product launches in the coming quarter,” Duggal added.

    Trends

    The company’s ASP in the quarter ended 31 March, 2015 (Q4-2015, current quarter) at Rs 265.39 crore (13.6 per cent of TIO) was 16.2 per cent more than the Rs 228.38 crore (12.9 per cent of TIO) in the corresponding quarter of last year, but was 16.9 per cent lower than the Rs 319.38 crore (15.362 per cent of TIO) in the immediate trailing quarter. Over the ten quarter period starting Q3-2014, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO  both show a linear increasing trend.

    Please refer to Fig 1 below. It may be noted that when calculated, the brown trend line for ASP in terms of percentage of TIO actually shows a figure of 14.25 per cent of TIO (Rs 277.838 crore), and the blue trend line for ASP in absolute rupees shows a figure of Rs 289.902 crores (14.9 per cent of TIO) for Q4-2015.

    During the ten quarter period under consideration, Dabur‘s ASP was highest in absolute rupees in immediate trailing quarter at Rs 319.38 (15.362 per cent), while and in terms of percentage of TIO, it was highest in Q1-2014 at 15.385 per cent (Rs 254.22 crore).

    Dabur TIO in FY-2015 at Rs 7827.20 crore was 10.6 per cent more than the Rs 7075.31 crore in FY-2014. In Q4-2015, the company reported TIO of Rs 1949.74 crore, which was 9.9 per cent more than the Rs 1774.41 crore in Q4-2014, but 6.2 per cent lower than the Rs 2079.02 crore in Q3-2015. The company’s TIO shows a linear increasing trend during the ten quarter period under consideration in this report.

    Dabur PAT for Q4-2015 at Rs 284.86 crore (14.6 per cent of TIO) was 21.1 per cent more than the Rs 235.29 crore (13.3 per cent of TIO) and 0.7 per cent more than the Rs 282.78 crore (13.6 per cent of TIO) in Q4-2014. PAT in abslute rupees as well as in terms of percentage of TIO show linear increasing trends.

    The company in its earnings release says that the Foods category for Dabur – riding on strong demand for its packaged juices – posted a near 20 per cent growth during the fourth quarter of 2014-15, while the Skin Care business ended with a near 17 per cent growth. The Toothpaste business, led by strong demand for Dabur Red Paste and Meswak, reported an over 14 per cent growth. The Health Supplements Business grew by 13 per cent, while the Home Care category grew by over 12 per cent.

  • FY-2015: Titan revenue up 9%, ad spends down 5.5%

    FY-2015: Titan revenue up 9%, ad spends down 5.5%

    BENGALURU: Titan Company Limited reported nine per cent increase in Total Income from Operations (TIO, revenue) in FY-2015 to Rs 11913.41 crore as compared to the Rs 10927.39 crore in FY-2014. The company’s profit after tax (PAT) for the year increased 11.1 per cent to Rs 816.26 crore from Rs 734.94 crore in the previous year.

    The company spent 5.5 per cent lower amount at Rs 382.13 crore (3.21 per cent of TIO) towards advertising in FY-2015 as compared to the Rs 404.43 crore in FY-2014.

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

    Businesses and Brands

    Titan has three revenue segments – watches comprising brands namely Titan, Xylus, Nebula, Sonata and Fastrack and Zoop; Jewellery 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.

    During the current quarter, sales value of World of Titan grew 11 per cent; Tansihq sales value declined 21 per cent, Goldplus declined 4 per cent, Helios declined 3 per cent, Fastrack grew 1 per cent, LFS and Titan Eye+ grew 10 and 14 per cent respectively.

    Watches

    The watch segment saw an increment of two per cent in volumes in FY-2015 as compared to FY-2014. Net sales for the segment grew 7.3 per cent to Rs 1921 crore in the current year from Rs 1791 crore in FY-2014.

    Though Q4-2015 saw a fall of six per cent in volume as compared to Q4-2014, revenue increased 1.8 per cent to Rs 511 crore from Rs 502 crore in the corresponding year ago quarter on the back of increment of prices.

    Jewellery

    Titan’s jewellery distribution brands are Tanishq and Goldplus from Tata. Jewellery contributes about 80 per cent to Titan’s TIO. The segment’s sales grew eight per cent (excluding coins) in volumes in FY-2015 as compared to FY-2014. Sales revenue grew 9.2 per cent to Rs 9240 crore in FY-2015 from Rs 8632 crore in FY-2014. During the year the company witnessed a grammage growth of eight per cent, (including coins) and six per cent excluding coins. Also, the share of studded jewellery increased to 32 per cent from 30 per cent in FY-2015. The company says that it saw a customer growth of 13 per cent in the jewellery segment during the year.

    Q4-2014 was a quarter of falls for Titan’s jewellery segment. For Q4-2015, volumes witnessed a fall of 16 per cent as compared to Q4-2014, while sales of jewellery fell 15.3 per cent to RS 1828 crore from Rs 2157 crore in Q4-2014. Customers declined seven per cent in the quarter. While studded jewellery witnessed an 18 per cent decline during the quarter, it retained the same share of 37 per cent as last year.

    Others

    The ‘Others’ segment reported 12.9 per cent revenue growth to Rs 565 crore in FY-2015 from Rs 500 crore in Q4-2014. Eyeware witnessed a growth of 24 per cent and returned an operating profit of Rs 4 crore. For Q4-2015, the segment reported 12.8 per cent increase in revenue to Rs 165 crore from Rs 146 crore in Q4-2014.

    Trends

    Titan’s ASP declined 8.1 per cent in Q4-2015 to Rs 80.30 crore (3.22 per cent of TIO) from Rs 87.37 crore (3.12 per cent of TIO) in Q4-2014 and was 17 per cent lower than the Rs 96.75 crore (3.31 per cent of TIO) in Q3-2015. Please refer Fig A below. During a 13 quarter period starting Q4-2012, Titan’s ASP was highest in terms of absolute rupees in Q3-2014 at Rs 118.04 crore (4.41 per cent of TIO). It was highest in terms of per centage of TIO in Q1-2013 at 4.69 per cent of TIO (Rs 103.44 crore).

    Though ASP shows a declining trend both in terms absolute rupees and in terms of per centage of TIO, on calculation, the brown trend line actually indicates ASP as 3.15 per cent of TIO, while the actual amount spent by the company was 0.07 per cent more as mentioned above for Q4-2015. On calculation, the blue trend line indicates ASP in absolute rupees as Rs 96.48 crore as opposed to the actual Rs 80.30 crore spent by the company in Q4-2015.

    TIO and PAT

    Please refer to Figure B below. The company’s TIO in Q4-2015 fell 11 per cent to Rs 2496.19 crore from Rs 2803.38 crore in Q4-2014 and was 14.6 per cent lower than the Rs 2922.51 crore in the immediate trailing quarter. During the thirteen quarter period under consideration in this report, TIO shows a linear increasing trend.

    PAT in Q4-2015 at Rs 215.09 crore (9.6 per cent of TIO) was 4.3 per cent more than the Rs 190.73 crore (7.4 per cent of TIO) in Q4-2014 and was 12.8 per cent more than the Rs 190.73 crore (7.1 per cent of TIO) in Q3-2015. PAT shows a linear increasing trend during the 13 month period under consideration.

    Company speak

    Titan managing director Bhaskar Bhat said, “The economic outlook for the year 2014-15 was quite good but improvement in consumer demand has been quite lukewarm. Our jewellery business was also adversely impacted due to regulatory changes and termination of the consumer friendly Golden Harvest Scheme. All our brands witnessed good growth during the first half but post Diwali season we have seen tapering of growths. The Company will however continue to invest in strategic initiatives taking into account our long term and sustainable growth plans.”

  • NDTV reports operating profit in Q4-15, FY-15

    NDTV reports operating profit in Q4-15, FY-15

    BENGALURU: New Delhi Television Limited (NDTV) reported 31.8 per cent y-o-y growth in consolidated Total Income from Operations (TIO, revenue) to Rs 163.55 crore in Q4-2015 from Rs 124.09 crore in Q4-2014 and 9.1 per cent more than the Rs 149.93 crore in Q3-2015. TIO for FY-2015 at Rs 571.28 crore was 24.3 per cent more than the Rs 459.46 crore in FY-2014.

     

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

     

    The company reported consolidated loss after deferred tax (Rs 17.99 crore) and provision for diminution in the value of a quoted investment amounting to (Rs 7.81 core) of Rs 17.21 crore in Q4-2015. The Rs 7.81 crore is a non cash item-impairment of investment in Jaiprakash Power, as is the write down of deferred tax assets.

     

    For Q4-2014, NDTV had reported a consolidated loss of Rs 31.39 crore and a profit after tax of Rs 1.56 crore in the immediate trailing quarter. 

     

    NDTV consolidated profit in Q4-2015 (before tax and exceptional items) was Rs 10.48 crore as compared to a loss of Rs 35.02 crore same quarter last year and a profit of Rs 2.34 crore in Q3-2015. 

     

    Loss in FY-2015 almost halved (reduced by 45.8 per cent) at Rs 44.03 crore as compared to the Rs 81.18 crore in FY-2014. NDTV (other than e-commerce) reported an EBIDTA of Rs 64 crore in FY-2015, as compared to an EBIDTA loss of Rs 6 crores last year. NDTV’s digital arm NDTV Convergence reported revenue of Rs 107 crore in FY-2015 at a 47 per cent growth as compared to FY-2014.

     

    NDTV executive director and CEO Vikram Chandra said, “Overall it’s been a good year in all three areas of business. The TV and related areas saw a sharp turnaround, recording an EBIDTA improvement of about Rs 60 crore. The digital content business saw record revenue crossing the Rs 100 crore mark, together with strong profitability. And though the ecommerce business reported losses, as most of them do, there was an exponential increase in revenue- crossing Rs 60 crore in GMV.” 

     

    Segment results

     

    Two major segments add to NDTV’s numbers: Media and related operations segment and Retail/E-commerce segment.

     

    Media and related operations segment

     

    NDTV’s Media and related operations (Media) segment revenue in Q4-2015 was up 38.3 per cent to Rs 157.09 crore from the Rs 113.61 crore in Q4-2014 and 8.5 per cent more than the Rs 144.74 crore in Q3-2015. This segment reported an operating profit of Rs 25.77 crore as compared to an operating loss of Rs 23.31 crore in Q4-2014 and almost double (up 92.2 per cent) the Rs 13.41 crore in Q3-2015.

     

    For FY-2015, the Media segment reported 19.8 per cent growth in revenue to Rs 554.63 crore as compared to the Rs 462.79 crore in FY-2014. The segment reported an operating profit of Rs 31.92 crore as compared to an operating loss of Rs 39.43 crore in FY-2014.

     

    Retail/E-commerce segment

     

    This segment reported 94.3 per cent growth in revenue to Rs 6.8 crore as compared to the Rs 3.5 crore in Q3-2014 and 12.4 per cent more than the Rs 6.06 crore in Q3-2015. The operating loss from this segment increased to 9.99 crore as compared to a loss of Rs 6.25 crore in Q4-2014 and a loss of Rs 6.02 crore in the previous quarter.

     

    For FY-2015, NDTV’s Retail/E-commerce segment reported revenue of Rs 19.57 crore as compared to the Rs 5.49 crore in FY-2014. Operating loss from this segment increased to Rs 23.67 crore in the current year from Rs 16.33 crore in the previous year.

     

     

    The other results reported by NDTV for Q4-2015 and FY-2015 are as follows: 

     

    For Q4-2014, the company has pared major expenses, except production expense; and operating and administrative expenses.

     

    Production expense in Q4-2015 at Rs 33.32 crore was 4.6 per cent more than the Rs 31.87 crore in Q4-2014 and 16.4 per cent more than the Rs 28.63 crore in Q3-2015. Production expense in FY-2015 at Rs 120.25 crore was 18.3 per cent more than the Rs 101.61 crore in FY-2014.

     

    The company’s marketing and distribution and promotional (marketing) expense in Q4-2015 at Rs 24.93 crore was 8.8 per cent less than the Rs 27.34 crore in Q4-2014 and 19.4 per cent lower than the Rs 30.91 crore in the previous quarter. For FY-2015, marketing expense at Rs 106.57 crore was 5.6 per cent more than the Rs 100.94 crore in FY-2014.

     

    Employee cost in Q4-2015 at Rs 44.57 crore was 6.7 per cent more than the Rs 41.79 crore in Q4-2014 and 4.4 per cent lower than the Rs 46.64 crore in Q3-2015. For FY-2015, employee cost at Rs 183.55 crore was 4.1 per cent more than the Rs 176.26 crore in FY-2014.

     

    Operating and administrative (Admin) expenses in Q4-2015 at Rs 32.25 crore was 35.4 per cent lower than the Rs 49.96 crore in Q4-2014 and was 18 per cent more than the Rs 27.33 crore in Q3-2015. For FY-2015, Admin expense at Rs 121.98 crore was 14.4 per cent lower than the Rs 142.48 crore in FY-2014.

     

    It may be noted that NDTV’s subsidiaries had paid managerial remuneration for the years 2011-12, 2012-13 and 2013-14, which was in excess of the specified limits / existing Central Government approvals. Following the outcome of representations made to Central Government, the subsidiaries have reversed excess remuneration paid till 30 September, 2014 amounting to Rs 4.71 crore in the previous quarter ended 31 December, 2014 and the amount has been credited in Employee Costs (Rs 1.10 crore) / Operating & Administrative Expenses (Rs 3.61 crore) with consequential impact on the net profit for the quarter.

  • Forex impact lowers Viacom Q2-2015 revenue

    Forex impact lowers Viacom Q2-2015 revenue

    BENGALURU:  Viacom Inc. reported three per cent increase in its Media Network revenue to $2452 million in the quarter ended 31 March, 2015 (Q2-2015, current quarter) from the $2375 million reported for the corresponding year ago quarter. The $77 million increase was more than offset by a two per cent negative impact of foreign exchange (forex) and a 21 per cent decline in revenue to $659 million in Q2-2015 from  831 million in Q2-2014. Overall, the company’s revenue in Q2-2015 declined three per cent to $3078 million as compared to the $3174 million reported for Q2-2014.

     

    The company reported a six per cent lower adjusted operating income (excluding restructuring and programming charges) of $822 million in the current quarter as compared to the $872 million in Q2-2014. Factoring in restructuring and programming charges of $784 million, the company’s adjusted operating income for Q2-2015 was just $38 million. 

     

    The company reported a loss attributable to Viacom of $210 million in Q2-2015 as compared to a profit of $502 billion in Q2-2015.

    Viacom executive chairman Sumner M. Redstone said, “Viacom’s outstanding brands deliver great entertainment content on every screen, from film to television, mobile and beyond. We have the global footprint and the expert leadership to continue our success.”

     

    Viacom president and chief executive office Philippe Dauman added, “We are deeply committed to investing in more and more original content, expanding in international growth markets, where we are launching networks at a rapid pace, and adapting to changes in technology and consumer behavior. In the quarter, Viacom’s Media Networks delivered higher advertising and affiliate revenues, and new hits like Lip Sync Battle set the stage for even more exciting, original programming across our networks. Paramount Pictures also continues to be a proven hit maker. The SpongeBob Movie: Sponge Out of Water was the first title from our brand new Paramount Animation division and a box office success around the world, and we look forward to the releases of Terminator Genisys and Mission: Impossible – Rogue Nation this summer.

     

    “With our strategic realignment largely complete, Viacom is in excellent position to take full advantage of the many opportunities in the rapidly evolving media environment. The $175 million in savings to be achieved in fiscal 2015 and substantial ongoing annual benefit will allow us to move efficiently through the second half of the year and beyond,” added Dauman.

     

    During the six month period ended 31 March, 2015 (6M-2015), Viacom revenue improved slightly by 0.8 per cent to $6422 million from $6371 million in 6M-2014. Comprehensible Income attributable to Viacom for 6M-2015 was $169 million, which was less than a sixth (1/6.4 times) the $1082 reported for 6M-2014.

     

    Media Networks

    Media Networks revenues increased $77 million, or three per cent, due to higher advertising revenues in Q2-2015, driven by the acquisition of Channel 5 Broadcast Limited in September 2014, and affiliate fees, partially offset by the impact of foreign exchange. Excluding an unfavourable four per cent and two per cent impact of foreign exchange, Filmed Entertainment revenues declined 17 per cent and Media Networks revenues increased five per cent, informs Viacom.

     

    Media Networks adjusted operating income declined $46 million, reflecting an increase in programming and promotional expenses, partially offset by higher revenues. 

    Within Media Networks, advertisement revenues increased four per cent in Q2-2015 to $1172 million from $1124 million in Q2-2014, Affiliate fees improve three per cent to $1146 million in Q2-2015 from $1114 million in Q2-2014, while Ancillary revenue reduced three per cent to $134 million from $137 million in the corresponding year ago quarter.

     

    Filmed Entertainment

    The company says that lower Filmed Entertainment segment revenue was because of lower license fees and home entertainment revenues. Filmed Entertainment adjusted operating income declined $10 million due to the number and mix of available titles in the television licensing windows.

     

    Within Filmed Entertainment, Theatrical revenues went down $24 million or 10 per cent to $205 million in Q2-2015, on the back of lower mix of prior period releases and 35 per cent lower international theatrical revenues. The Sponge Bob Movie: Sponge out of water and Selma helped spike revenues up by $41 million. Worldwide home entertainment revenues decreased $63 million, or 25 per cent, to $194 million in the quarter. Revenues from current quarter titles decreased $32 million driven by the mix of releases. Domestic home entertainment revenues decreased 16 per cent and international home entertainment revenues decreased 35 per cent. Foreign exchange had a seven percentage point unfavourable impact on international home entertainment revenues.

  • Marico q-o-q marketing costs down 10.4% in Q4-2015, but up 15.8% in FY-2015

    Marico q-o-q marketing costs down 10.4% in Q4-2015, but up 15.8% in FY-2015

    BENGALURU: Indian consumer products in beauty and wellness space company Marico Limited spent 10.4 per cent less towards advertisement and sales promotion (ASP, marketing) in the fourth quarter ended 31 March, 2015 (Q4-2015, current quarter) at Rs 137.15 crore (11.2 per cent of net Total Income from Operations or TIO) as compared to the Rs 153.02 crore (10.5 per cent of TIO) in the immediate trailing quarter, but 12.5 per cent more as compared to the Rs 121.91 crore (11.4 per cent of TIO) corresponding year ago quarter (Q4-2014). During FY-2015, the company’s ASP at Rs 649.82 crore(11.3 per cent of TIO) was 15.8 per cent more than the Rs 561.17 crore (12 per cent of TIO) in FY-2014.

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

    During the 13 quarter period starting Q4-2014 until the current quarter, the highest amount spent by the company towards ASP was in Q1-2015 at Rs 192.18 crore (11.8 per cent of TIO). The company’s highest ASP spend in terms of per centage of TIO was in Q3-2013 at 14.1 per cent (Rs 152.82 crore). While in absolute rupees, ASP shows a linearly increasing trend during the 13 quarters under consideration, in terms of per centage TIO, the trend declines linearly during the same period. Please refer to Figs. A and A-1 below.

     

    Marico’s TIO in Q4-2015 at Rs 1226,25 crore was 15.6 per cent less than the Q3-2015 TIO of Rs 1452.23 crore but was 14.4 per cent higher than the Rs 1072.76 crore in the year ago quarter. The highest TIO reported by the company during the 13 quarters under consideration was in Q1-2015 at Rs 1623.13 crore. TIO shows an increasing linear trend during this period. Please refer to Fig B below.

    For FY-2015, Marico reported 22.3 per cent growth in TIO at Rs 5732.98 crore as compared to the Rs 4686.52 crore in the previous year – refer Fig A-1 above.

    PAT in FY-2015 at Rs 573.46 crore (10 per cent TIO) was 18.1 per cent more than the Rs 485.38 crore (10.4 per cent of TIO) in FY-2014.

    PAT in Q4-2014 at Rs 110.04 crore (nine per cent of TIO) was 31.2 per cent lower than the Rs 159.88 crore (11 per cent of TIO) and was 24 per cent more than the Rs 88.77 crore (8.3 per cent of TIO) in Q4-2014. During the 13 quarters under consideration, PAT shows an increasing linear trend both in terms of absolute rupees and in terms of per centage of TIO. Please refer to Fig B below:

     

    Marico claims that it touches the lives of one out of every three Indians, through its portfolio of brands such as Parachute, Parachute Advansed, Saffola, Hair and Care, Nihar, Nina-r Naturals, Livon, Set Wet, Zatak, Mediker, Revive and Manjal. The company says that its international consumer products portfolio contributes to about 25 per cent of the group’s revenue, with brands like Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, L‘Ovite and Thuan Phat.

    Marico MD and CEO Saugata Gupta said, “We continued our journey of delivering sustainable profitable growth this quarter. Simultaneously we are taking definitive long term steps in creating the organization of the future especially in our identified areas of transformation. We are confident of a gradual improvement of the sector growth in the coming quarters especially in the urban markets while the rural consumption trends will depend a bit on the performance of the monsoon.”

     

  • Airtel DTH biz Q4-2015 revenue up 17%, segment reports Rs 8 crore operating profit

    Airtel DTH biz Q4-2015 revenue up 17%, segment reports Rs 8 crore operating profit

    BENGALURU: Bharati Airtel’s Digital TV services – Airtel DTH – reported 17.2 per cent increase in y-o-y revenue to Rs 634.7 crore in Q4-2015 from Rs 541.5 crore and 1.8 per cent growth as compared to the Rs 623.4 crore in the immediate trailing quarter.

     

    The segment reported an operating profit of Rs 8.1 crore for the current quarter as compared to an operating loss of Rs 110.7 crore in Q4-2014 and an operating loss of Rs 36 crore in Q3-2015.

     

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

     

    Airtel DTH revenue in FY-2015 grew 19.2 per cent to Rs 2475.9 crore as compared to the Rs 2077.1 crore in FY-2014. Operating loss was lower at Rs 158.1 crore in the current year as compared to the Rs 427.1 crore in FTY-2014.

     

    The company reported 2.7 per cent q-o-q growth in Airtel DTH customer base for Q4-2015 to 100.73 lakh from 98.1 lakh in Q3-2015. For the year, the segment reported 11.8 per cent growth in customer base from 90.12 lakh in FY-2014.

     

    Airtel MD and CEO, India & South Asia Gopal Vittal said, “The year has ended on a healthy note, with revenue growth accelerating to 12.1 per cent in FY 2014-15, from 9.9 per cent and 9.5 per cent respectively in the previous two years. Once again, the 20,000 – strong Airtel family has stood together to deliver these results. Airtel is spearheading the country’s digital agenda with substantial investments in the Internet space. The cumulative investment of Rs 68,000 crore in spectrum is a reflection of our commitment to the cause of a Digital India, and our belief in the potential of the exciting opportunity.”

     

    Overall, Airtel’s consolidated revenues for Q4-2015 at Rs 23,016 crore grew by 3.6 per cent over the corresponding quarter last year. Improved operational efficiency has resulted in consolidated net income growing by 30.5 per cent y-o-y to Rs 1,255 crore says the company.

     

    Annual consolidated revenues at Rs 92,039 crore grew by 7.3 per cent over the previous year, led by robust top line growth in India. Airtel informs that net income for the year grew by 86.9 per cent to Rs 5,183 crore despite higher forex losses of Rs 2,153 crore (FY-2014 forex loss – Rs 1,242 crore).

  • FY-2015: Hinduja Ventures reports 13% growth in standalone profit

    FY-2015: Hinduja Ventures reports 13% growth in standalone profit

    BENGALURU: Hinduja Ventures Limited (HVL), the holding company of IndusInd Media & Communications Limited (IMCL) reported a 12.9 per cent growth in standalone net profit after tax (PAT) to Rs 92.59 crore in FY-2015 as compared to a PAT of Rs 82.03 crore in FY-2014. 

     

    The company reported total standalone income of Rs 110.45 crore for the current year ended as against Rs 106.54 crores in FY-2014.

     

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

     

    HVL consolidated total income for the year ended was Rs 786.11 crore as compared to Rs 773.49 crore for the same period in the previous year. Consolidated total income grew by 1.63 per cent y-o-y. Consolidated net profit after tax and minority interest has increased for the year ended 31 March, 2015 from 0.21 crore to 18.25 crore. EBIDTA for the year end stood at Rs 146.75 crore as against Rs 144.11 crore in the previous year.

     

    Its media segment reported a 15 per cent drop in revenue in FY-2015 to Rs 536.16 crore as compared to the Rs 638.84 crore in the previous year. The loss from this segment widened to Rs 239.71 crore in FY-2015 from Rs 197.33 crore in the previous year.

     

    During the year, IMCL, has disposed its investment in one of its subsidiary company – Jagsumi Perspectives Pvt. Ltd. and the said company has ceased to be a subsidiary of the company effective 31 December, 2014. IMCL booked a loss of Rs 6.2 crore in the said transaction and the same is disclosed under exceptional item in the Consolidated Profit and Loss Statement.

     

    During the year, the company entered into a business Transfer Agreement with a Bangalore  based company viz. Mplex Networks Private Limited (Mplex), to acquire their Digitally Addressable Cable Television Network (CATV) rights pertaining to Bangalore and Mysore region together with certain fixed assets pertaining to CATV division for an overall consideration of Rs 35 crore.

  • Dolby declares improved q-o-q results for Q2-2015

    Dolby declares improved q-o-q results for Q2-2015

    BENGALURU:  Audio equipment maker Dolby Laboratories Inc (Dolby) reported a 16 per cent quarter on quarter (q-o-q) growth in revenue for the quarter ended 27 March, 2015 (Q2-2015, current quarter) to US$ 271.95 million as compared to the US$ 234.24 million reported for the immediate trailing quarter. However, y-o-y, revenue fell 2 per cent from the US$ 278.59 million reported for Q2-2015. The company says that total revenue for Q2-2014 included a back payment settlement of US$ 24.7 million, which did not repeat in Q2- 2015.

     

    “We had another solid quarter driven by growth in our broadcast business,” said Dolby Laboratories president and CEO Kevin Yeaman. “In addition, we saw significant progress with our new initiatives as AMC Theatres and Disney announced their support for Dolby Cinema and Vizio announced the first Dolby Vision TV.”

     

    Revenue

     

    Three streams add to the company’s revenue – Licensing, products and services, with licensing contributing the lion’s share. Q-o-q licensing revenue increased 4 per cent to US$ 243.33 million in Q2-2015 as compared to the US$ 216.6 million in Q1-2015, but was 6 percent less than the US$ 258.62 million reported for Q2-2015.

     

    A major chunk of licensing revenue comes from broadcast licensing (42 per cent in Q2-2015, 41 per cent in Q1-2015 and 46 per cent in Q2-2014). PC licensing, Consumer Electronics licensing, mobile licensing and other licensing are the other contributors to licensing revenue. Mobile licensing in Q2-2014 contributed just 11 per cent to licensing revenue, as compared to 16 per cent in the previous quarter and the corresponding year ago quarter.

     

    Products revenue for Q2-2015 was US$ 22.99 million, for Q1-2015 it was US$ 13.26 million and for Q2-2014 it was 14.56 million. Services revenue for Q2-2015 was US$ 5.63 million, for Q1-2015, it was US$ 4.38 million and for Q2-2014, it was US$ 5.41 million.

     

    Income

     

    Q2-2015 GAAP net income was US$ 58.0 million, or US$ 0.56 per diluted share, compared to US$ 75.9 million, or US$ 0.73 per diluted share, for Q2-2014. On a non-GAAP basis, Q2-2015 net income was US$ 74.9 million, or US$ 0.72 per diluted share, compared to US$ 91.7 million, or US$ 0.88 per diluted share, for Q2-2014.

     

    Dividend

     

    Dolby today announced a cash dividend of US$ 0.10 per share of Class A and Class B common stock, payable on May 12, 2015, to stockholders of record as of the close of business on May 4, 2015.

     

    Company forecast

     

    For Q3-2015, Dolby estimates that total revenue will range from US$230 million to US$240 million. Gross margin percentages are projected to range between approximately 89 percent and 90 percent on a GAAP basis and between 90 percent and 91 percent on a non-GAAP basis.

     

    For FY-2015, Dolby anticipates that total revenue will range from US$ 970 million to US$ 1 billion.

     

  • Omnicom’s net income up 2% at $209 million in Q1 2015

    Omnicom’s net income up 2% at $209 million in Q1 2015

    MUMBAI: The world’s second largest advertising company Omnicom Group Inc reported a meagre two per cent rise in net income for the first quarter of 2015 despite seeing a decline in revenue. The company’s net income rose from $205.5 million (or 77 cents per share) to $209.1 million (or 82 cents per share).

     

    Omnicom’s worldwide revenue in the first quarter of 2015 decreased one per cent to $3,469.2 million from $3,502.2 million in the first quarter of 2014.

     

    Domestic revenue for the first quarter of 2015 increased 4.6 per cent to $1,958.2 million compared to $1,871.8 million in the first quarter of 2014. International revenue decreased 7.3 per cent to $1,511.0 million compared to $1,630.4 million in the first quarter of 2014.

     

    For the quarter ended 31 March, 2015, organic growth increased revenue 5.1 per cent, acquisitions, net of dispositions increased revenue 0.4 per cent, while the impact of foreign exchange rates decreased revenue 6.4 per cent when compared to the first quarter of 2014.  

     

    Across regional markets, organic revenue in the first quarter of 2015 increased 4.8 per cent in North America, 9.3 per cent in the United Kingdom, 2.7 per cent in the Euro Markets and Other Europe, 6.7 per cent in Asia Pacific, 3.4 per cent in Latin America and 10.6 per cent in Africa/Middle East, when compared to the same quarter of 2014. 

     

    The change in organic revenue in the first quarter of 2015 as compared to the first quarter of 2014 in our four fundamental disciplines was as follows: advertising increased 7.7 per cent, CRM increased 2.6 per cent, public relations increased 3.1 per cent and specialty communications increased 2.6 per cent.

     

    For the first quarter of 2015, Omnicom’s earnings before interest, taxes and amortization of intangibles (EBITA), a non-GAAP financial measure, decreased $2.1 million, or 0.5 per cent, to $405 million from $407.1 million in the first quarter of 2014. The company’s EBITA margin increased to 11.7 per cent for the first quarter of 2015 versus 11.6 per cent in the first quarter of 2014.

     

    Operating income in the first quarter of 2015 decreased $5 million, or 1.3 per cent, to $377.7 million from $382.7 million in the first quarter of 2014. Operating margin in the first quarter of 2015 of 10.9 per cent was unchanged when compared to the first quarter of 2014.