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Tag: Indian visual effect

  • Q2-2014: Forex gains boosts PAT to more than double for Prime Focus

    Q2-2014: Forex gains boosts PAT to more than double for Prime Focus

    BENGALURU: Indian visual effect and 3-D conversion player Prime Focus Limited (Prime Focus) reported consolidated PAT of Rs 21.34 crore for Q2-2014, more than double (2.24 times) the Rs 9.54 crore for Q2-2013 and 2.53 times the Rs 8.53 crore for Q1-2014.

     

    The company reported exchange gain at Rs 20.37 crore for Q2-2014 on a consolidated basis, 44.8 per cent more than the Rs 14.06 crore for Q1-2014 and hence contributed to a major extent to the PAT. Prime Focus had reported an exchange loss of Rs 6.91 crore for Q2-2013.

     

    Let us look at the other figures reported by Prime Focus for Q2-2014

     

    Prime Focus reported consolidated net sales from operations for Q2-2014 at Rs 196.06 crore, almost flat (about 0.17 per cent lower) than the Rs 196.39 crore for Q2-2013 and 4.2 per cent higher than the Rs 188.47 crore for Q1-2014. Besides foreign exchange gain/loss mentioned above, other income for Q2-2014 was Rs 4.06 crore as compared to the Rs 6.63 crore for Q2-2013 and the Rs 2.78 crore for Q1-2014.

     

    Total expenditure at Rs 179.42 crore for Q2-2014 was 0.8 per cent less than the Rs 180.81 crore for Q2-2013, and 16.3 per cent more than the Rs 154.21 crore for the immediate trailing quarter Q1-2014.

     

    Personnel cost for Q2-2014 at Rs 92.74 crore was 11.05 per cent lower than the Rs 104.26 crore for the corresponding quarter of last year (Q2-2013) and 1.5 per cent lower than the Rs 94.11 crore for Q1-2014. Of these figures for personnel cost, the company paid Rs 16.89 crore towards technician fee for Q2-2014, a fraction of a per cent lower than the Rs 17.12 crore for Q1-2014.

     

    Depreciation and amortisation cost for Q2-2014 at Rs 28.44 crore was 35.2 per cent higher than the Rs 21.03 crore y-o-y and 26.6 per cent more than the Rs 22.47 crore for Q1-2014.

     

    Other expenditure for Q2-2014 at Rs 55.24 crore was 13.6 per cent more than the Rs 48.61 crore y-o-y and 6.8 per cent more than the Rs 51.68 crore q-o-q.

     

    Prime Focus paid Rs 11.09 crore towards finance costs for Q2-2014, 2.7 per cent more than the Rs 10.8 crore for Q2-2013 but 15.1 per cent lower than the Rs 13.05 crore for the trailing quarter (Q1-2014).

     

    Notes: (1) All figures on a consolidated basis.

    (2) On September 17, 2013, the company received an approval from its shareholders though a postal ballot, for sale of its ‘Backend Business’ which includes (a) business of providing service of conversion of 2D audio visual/moving images to stereo 3D audio visual/moving images provided by the company to Prime Focus World N. V., a company incorporated and operating under the laws of Netherlands (‘PFW’) (“Conversion Business”) and (b) business of providing  the services of computer generated film visual effects by the  company to PFW (“VFX Business”), to Prime Focus World Creative Services Pvt. Ltd., a company incorporated in India and an indirectly controlled  subsidiary of the company on a going concern basis by a slump sale  for a total consideration of not less than the Rupees equivalent of USD 3.8 crore (38 million).

  • Prime Focus: 77% rise in q-o-q profit from operations for Q1-2014; lower net profit

    Prime Focus: 77% rise in q-o-q profit from operations for Q1-2014; lower net profit

    BENGALURU: Indian visual effect and 3-D conversion player Prime Focus Limited (Prime Focus) reported consolidated profit from operations for Q1-2014 at Rs 34.26 crore which was 76.72 per cent higher than the Rs 19.39 crore for the previous quarter Q4-2013 but was 5.85 per cent lower than the Rs 36.39 crore for Q1-2013.

    However, consolidated net profit after tax and minority interest for Q1-2014 at Rs 8.53 crore was 31.4 per cent lower than the Rs 12.44 crore for Q4-2013 and just 40.6 per cent of the Rs 20.98 crore for Q1-2013.

    Let us look at Prime Focus’ other figures for Q1-2014

    Net Sales/Income from operations on a consolidated basis for Q1-2014 at Rs 188.47 crore was almost flat (0.14 per cent higher) as compared to the Rs 188.21 crore for Q1-2013 and 4.3 per cent lower than the Rs 193.87 crore for Q4-2013.

    Prime Focus reported an exchange gain of Rs 14.06 crore in Q1-2014 which was 12.05 per cent more than the exchange gain of Rs 12.54 crore in Q1-2013. In Q4-2013 the company incurred an exchange loss of Rs 3.01 crore.

    Neglecting the exchange gain or loss, Prime Focus reported consolidated expenditure of Rs 168.26 crore which was 2.37 per cent higher than the Rs 164.36 crore in Q1-2013 and 3.6 per cent lower than the Rs 17.45 crore in Q4-2013.

    Depreciation and amortisation cost of Rs 22.47 crore for Q1-2014 was 8.2 per cent higher than the Rs 20.77 crore in Q1-2013 and 36.4 per cent lower than the Rs 35.32 crore for Q4-2013.

    Personnel cost for Q1-2014 at Rs 88.35 crore was higher by 1.2 per cent as compared to the Rs 87.29 crore in Q1-2013, but 6.1 per cent lower than the Rs 94.12 crore for Q4-2013.

    Other expenditure for Q1-2014 at Rs 51.67 crore was 24.8 per cent higher than the Rs 41.42 crore for Q1-2013 and almost flat (0.4 per cent lower) as against the Rs 51.88 crore for Q4-2014.

    Finance cost at Rs 13.05 crore for Q1-2014 was 67.5 per cent higher than the Rs 7.79 crore for Q1-2013 and 19.3 per cent more than the Rs 10.94 crore for Q4-2013.

    Exceptional Item:

    Exceptional item includes revaluation loss of Rs 82.28 crore on redemption of FCCBs of $55 million on 13 December, 2012 and also includes provision and write off of debtors amounting to Rs 25.38 crore.

    As a part of reorganisation of businesses of the group under common control, Prime Focus Technologies acquired the New York based post-production business from Prime Focus World on 1 April, 2013. As a result of this there is a write-down in the value of assets by Rs 721.68 lakh ($1.3 million) during Q1-2014.

    Notes:

    (1)  The Company has informed BSE that the Board of Directors of the Company at its meeting held on 21 June, 2013, inter alia, has transacted the following:
    a) Took on record principal terms and conditions on which Prime Focus World, N.V. proposes to raise $38,000,000 from Macquarie (UK) Group Services Limited at an Enterprise Valuation of USD 300 million.

    b) Considered and approved to provide a corporate guarantee for an amount not exceeding $44,650,000 in favour of Macquarie (UK) Group Services Limited to secure the obligations of Prime Focus World Limited, Mauritius, a wholly owned subsidiary of Prime Focus.

    (2)  The Board of Directors of Prime Focus at its meeting held on 5 August, 2013, inter-alia, has considered and approved to sell, transfer, and/or otherwise dispose of its ‘Backend Business’, which includes (a) business of providing the services of conversion of 2D audio visual/moving images to stereo 3D audio visual/moving images provided by the Company to Prime Focus World N.V., a company incorporated and operating under the laws of Netherlands (“PFW”) (‘Conversion Business’); and (b) the business of providing the services of computer generated film visual special effects by the Company to PFW (“VFX Business”),to Prime Focus World Creative Services Pvt. Ltd.’, a company incorporated in India and an indirect controlled subsidiary of the Company on a going concern basis by way of slump sale for a total consideration not less than INR equivalent of $38 million subject to the approval of the shareholders of the Company through a postal ballot and on receipt of requisite/regulatory approvals.

    Click here for Prime Focus – Financial Result