Tag: Namit Malhotra

  • Prime Focus turns around

    Prime Focus turns around

    BENGALURU: Prime Focus Limited (PFL) has reported robust financial performance, including consolidated profit after tax (PAT) for the period ended 31 March 2017 (quarter – Q4-17 and current quarter, current fiscal; year FY-17 and current year) as compared to the corresponding year ago periods – Q4-16 and FY-16 respectively. PFL reported consolidated PAT for FY-17 at Rs 1,397.39 million as compared to a consolidated loss of Rs 3,168.29 million in fiscal 2016. For the current quarter, PFL reported consolidated PAT of Rs 457.66 million as compared to a consolidated loss of Rs 2,648,86 million in FY-16.

    The company’s consolidated total revenue from operations (TR) in FY-17 increased 55.7 percent to Rs 21,536.25 million from Rs 13,828.15 million in the previous year. Consolidated total Income in the current year increased 52.5 percent to Rs 21,780.76 million from Rs 14,283.57 million in the previous year.

    In its investor presentation, PFL says that strong growth across businesses drove consolidated income growth of 14 percent primarily led by encouraging growth in Creative Services driven by additional capacity and deliveries from India. Creative and Tech/Tech Enabled services contributed 78 percent and 16 percent, respectively. The company’s three main businesses are Creative Services – it works on Hollywood Blockbusters; Technology Services; and Films and Media Services (FMS) where it works mainly with Indian films.

    PFL’s adjusted EBIDTA for FY-17 increased 50 percent to Rs 5,014 million from Rs 3,348 million in FY-16.

    Total Expenditure in FY-17 increased 29.2 percent to Rs 21,261.99 million from Rs 1,6454,04 million in FY-16. Employee benefits expense in FY-17 increased 41.5 percent to Rs 12,163.23 million from Rs 8,596.69 million in the previous year. Technicians fees in FY-17 increased 49.4 percent to Rs 368.92 million from Rs 246.95 million in FY-16. Technical Services cost in the current year increased by 28.5 percent to Rs 591.61 million from Rs 460.37 million in FY-16. Employee Stock Options or ESOP costs in fiscal 2017 increased by almost six-fold in FY-17 to Rs 256.69 million as compared to Rs 42.83 million in the previous year.

    Finance cost in FY-17 reduced 51.2 percent to Rs 1,278.73 million from Rs 2,620.21 million in FY-16.

    Other Expenditure in the current year increased 54.1 percent to Rs 3,841.70 million as compared to Rs 2,492.55 million in fiscal 2016.

  • Prime Focus World’s DeepGen stereo technology bags AIS award

    Prime Focus World’s DeepGen stereo technology bags AIS award

    NEW DELHI: Prime Focus World (PFW) has won a Lumiere award for its proprietary DeepGen stereo technology.

     

    The award was given by the Advanced Imaging Society (AIS) for technical achievement at their 6th annual technology and new products awards ceremony at Paramount Studios in Hollywood.

     

    PFW’s DeepGen technology, part of its Hybrid Stereo Pipeline, allows the use of deep compositing data in the stereo conversion process, providing superior conversion results, a more efficient workflow and more flexibility and control.

     

    PFW global CEO Namit Malhotra said, “Driving greater innovation through our R&D and pipeline teams is the future of our industry. I believe that our commitment to creating technological breakthroughs is our biggest differentiator, and I wholeheartedly support the effort to help drive our industry forward by constantly raising our own bar.”

     

    Accepting the award on behalf of the PFW technology team were PFW global head of view-D Eoin Greenham and software developer Laszlo Rikker, who attended the awards along with PFW global technical supervisor Rajat Roy and software developer Luke Gray.

     

    “I’m delighted to accept this award on behalf of the PFW technology development team. Having the opportunity to work on some of the best 3D content with the biggest studios in the world is a great honor, and being tasked with finding solutions and developing ever more efficient ways of working is both rewarding and gratifying. It’s a privilege to be working for a dynamic company that is constantly breaking new ground and pushing the boundaries of what is possible in stereo conversion,” said Greenham.

     

    PFW won the award alongside companies such as AMD, Barco, Jaunt, Nokia, Sony Computer Entertainment and Technicolor.

  • ‘Augmented reality will become a big part of the film marketing & promotions:’ Merzin Tavaria

    ‘Augmented reality will become a big part of the film marketing & promotions:’ Merzin Tavaria

    Anything is possible” is the powerful thought that Prime Focus co-founder & chief creative director Merzin Tavaria lives by. His colorful career, which spans over almost two decades took a different turn when he partnered with Prime Focus founder and CEO Namit Malhotra, and co-founders Prakash Kurup and Hufeza Lokhandwala to set up the digital solutions provider that brought about a creative revolution within Bollywood and the entertainment industry in India before moving on to become an international success.

     

    Tavaria has donned several roles through his journey with Prime Focus, though his biggest contribution to the company and to the world of entertainment remains as a creative leader. His ability to think out of the box allowed him to experiment with the technology was available two decades ago to push the boundaries of special effects on screen. He was instrumental in guiding Prime Focus through its many phases — starting from editing TVCs in a small garage in Mumbai to packaging for channels like MTV and Channel [V], to making India cinema more familiar with motion control technology… the list goes on. Today Prime Focus is a key provider of visual effects and digital conversion solutions globally.

     

    Their work on film projects like Gravity, Guzarish, Ghajini, Avatar and Blue speak highly of the quality and handwork that Prime Focus puts in them, and there is no question about Tavaria’s role as a creative genius in their success. 

     

    In a free wheeling conversation with Indiantelevision.com’s Papri Das, Tavaria speaks on recent projects, the ever changing landscape of technology as well as on the emerging trends in VFX in India and Hollywood.

     

    Excerpts:

     

    Take us through Prime Focus’ journey and how the company became an international name?

     

    The big change that happened in the usage of visual effects in Indian cinema was in 2006. From 50 to 100 shots per film, we jumped to 1500 shots. VFX became a part of the entire film making process rather than coming in only during post production. However when recession hit in 2008, the entire progress that we had made till then, came to a stand still. With budget cuts, visual effects dropped low on filmmakers’ priority list. That’s when we started our foray into the international market and things started looking bright for us as a digital solutions provider. We were proud to be part of Avatar in 2008, and by 2010, we had established our market abroad.

     

    The year 2010 saw us introducing the concept of conversion, from 2D to 3D and that opened up a myriad of new opportunities for us. Before that movies were shot in 3D but after Avatar, filmmakers in Hollywood wanted to explore conversions.

     

    What are the current international trends in visual effects?

     

    3D is pretty big internationally and it is going hand in hand with virtual reality. That would be the next big thing. Augmented reality too is picking up pace, not just in movies but in many other different arenas. Augmented reality combined with virtual reality can work wonders for films. It was a phase that came in a few years back and quietened down but I think augmented reality is going to make a huge come back as we have seen it emerging in a big way this year.

     

    Virtual reality will push the budget of the films up by quite a few notches as well as it’s a new medium that needs to be explored. That said, augmented reality will become a big part of the film marketing and promotions, and bring it into your house, in malls or just outside theatres. It will add another way to engage the consumers and so the entire landscape needs to be changed to prepare for its wide range of applications.

     

    What new is happening with 3D in Indian cinema?

     

    Unfortunately, emerging trends in 3D are mostly global. Nothing interesting is really happening in the Indian landscape. I feel bad about that because there is so much we can explore with 3D and filmmakers must realise that it’s not just about releasing movies in the 3D format. 3D is a very immersive experience and some of our action films can greatly benefit from it wherein viewers can become part of the whole experience. I don’t see that happening in India soon but I hope the situation changes.

     

    What is the current demand for VFX in Indian cinema? 

     

    India has always been a try and test market, before going forward. We have seen a big change in the last two years when it comes to demand, specially in mainstream blockbusters like Bang BangKick and even recently released films like Bajrangi Bhaijaan and Phantom. All these movies have started using technology in a big way. Brothers is another big example where without the use of visual effects, the movie would not have been what it is. Technology played a huge part in the production and narrative process. The crowd that is seen in the film was not just about crowd multiplication but crowd stimulation, which was done through Computer Graphics (CG). It was a big project for us to use VFX at that scale and volume.

     

    How far behind is Indian cinema from its international counterparts? Are you happy with the kind of budgets Indian films set aside for VFX?

     

    It is unfair to compare the two because one is an Indian audience and the other is global. When you are making films for a global audience, your opportunity and footprint is much wider so the final revenue cannot be compared to that of India. 

     

    However, I feel that we need to do a bit of rationalisation and work on how producers locate their resources including VFX within their available budget. We are working with certain filmmakers and producers to create awareness for visual effects and the many ways that they can use it to enhance their films. They also need to budget for visual effects upfront rather than at the end, so there are no hidden surprises as far as cost is concerned.

     

    On the brighter side, filmmakers are starting to acknowledge the role VFX that plays in a film’s success. For example, scenes that were supposed to be shot in Shimla in Bang Bang, were actually shot in Delhi. It would have taken a huge hit on the film’s budget to shoot the entire thing in Shimla. The complete landscape had to be changed to make Delhi look like Shimla. We had to place mountains and rivers and the entire terrain needed to be changed. There was definitely a monetary benefit in it for the film’s producers.

     

    What are types of VFX that are popularly being used in India now?

     

    Right now whats popular is embedding VFX in scenes, specially to enhance action sequences. We are also seeing demand for the type of technology that we used for Brothers

     

    In general, there are two primary ways in which VFX is used in films. One would be the ‘in your face’ visual effects that we are so used to seeing in sci-fi and superhero movies. The other, which is increasingly becoming more popular in India, is visual effects blended in the narrative to enhance the entire look and feel of the film.

     

    The reason why we don’t see the other type more often is simply because we are not making too many films like AvengersIron Man, or Gravity here. Of course, when films like Ra.One or Krrish are made, we do use in-your-face VFX. But those films are rare and come out after long intervals unlike in Hollywood. If you take their summer line-up for 2015, there were multiple VFX and CG heavy films like Ant Man, Jurrasic World, Avengers and Transformers amongst many others. India is more into action and dramas.

     

    Why do you think India shies away from producing movies like Ant Man or Jurassic World? Do you think India picking up?

     

    It’s an evolution that needs to happen. Hats off to Rakesh Roshan, who reinvented himself to do projects like that. We need more pioneering people like him in the industry to actually attempt that type of filmmaking. We also need the right kind of script that supports such visual effects. It can’t be forced into a script, which has no room for such effects.

     

    We have enough super hero characters in our mythology, which haven’t really used to their potential. Baahubali would be a good example, and those films need to be taken seriously going forward. We haven’t been able to cash in on that yet but there is scope for sure. It takes investment of money and time, and the minute you short circuit that, the outcome isn’t that good. Filmmakers immediate knee jerk into thinking that those type of films don’t work, when in reality you need more patience for the formula to work. It just takes someone to do that.

     

    Why do you think Indian cinema are obsessed with mythology? Why don’t we make enough sci-fi films?

     

    Writers need to think big and make a story that is fit for sci-fi like visual effects. It starts with storytelling without which you can’t move forward in that direction. With mythology, they have a ready script and a story, which has worked for ages and their characters are ready as well. Our filmmakers like the tried and tested formula route and shy away from experimenting. We often hear people saying that India doesn’t have the technology to do so, which is wrong. If we had a ready script that allowed us to use special effects in a more futuristic way, we would absolutely love to do that for India. If we can do it for the rest of the world, why can’t we do it for India?

     

    Can you see VFX playing a role in Indian television?

     

    Visual effects plays a big role in television globally. I am not happy with its use in India though. There is so much more that producers can do with it. It requires the same seriousness, which they give to producing a show in general. Once we get used to a certain quality and see that it has worked, we often don’t want to put in an effort to upgrade.

     

    Visual effects and CG on international television has grown by leaps and bounds as compared to India. There are so many TV shows that cater to the super hero genre and sci-fi, like Star Trek. India isn’t looking at those kind of projects and therefore there is no opportunity to bring in such technologies to television here. Additionally, the narrative of technology is also limited because of the kind of stories we consume on television, if you consider just fiction.

     

    Tell us about Prime Focus’ new production facility in Mumbai?

     

    That is the part of our whole expansion measure. Through out last year we have been consolidating our visual effects team with Double Negative in London, which is one the leading studios in the world. Everything from Terminator to Avengers have done by Double Negative. The idea has always been to do some of that high end work and bring that to India. The merger deal we did with film city also brought up this property that we aim on redoing for launching this studio. We will be using Double Negatives technology and experience of years on the bigger Hollywood projects

     

    Which movies according to you have made good use of visual effects?

     

    There are quite a few that have caught my eye and it is always a learning experience to see our others use VFX. Transformers, for example, is a beautiful movie and use of CGs is completely mind blowing. Michael Bay is a an amazing story teller and he has done a good job with VFX too. Then there’s the new Star Trek that comes out as well as the new Avengers. They just keep surprising you with new ways to use visual effects. The icing on the cake was Dawn Of The Planet of Apes, which brings reality so close to you that you forget after five minutes into the movie that the characters are all created in CG.

     

    What are the upcoming projects that Prime Focus is working on?

     

    We are working on quite a few projects both here and internationally. However, I can’t name some of them due to non disclosure agreements.

     

    We completed working on Mission Impossible 5 and we should be working on Snow White and the Hunstmen Part II as well as on Inferno, which is the part three of The Da Vinci Code.

     

    In India, we have a whole line up of releases, one of them being the Shahid Kapur and Alia Bhatt starrer Shandaar. We also worked on the recently released Katti Batti and Hero. There are many more to come.

  • Prime Focus & Double Negative ready new VFX facility in Mumbai

    Prime Focus & Double Negative ready new VFX facility in Mumbai

    mumbaiPrime Focus World (PFW), the creative services division of Prime Focus Limited, and VFX house Double Negative (Dneg) have entered the next phase of expansion plans with the building of a new VFX facility in Mumbai.

     

    Located in Mumbai’s Film City, the new studio will be built to the same exacting standards as Dneg’s facilities in London, Vancouver and Singapore, with particular emphasis on providing one of the best working environment for artists.

     

    Dneg’s technical infrastructure, tools and pipeline will be rolled out to the new facility as part of the build, mirroring Dneg’s other international locations.

     

    Recruitment roadshows are being planned throughout India and key international locations to attract the best VFX talent across all levels of experience to work exclusively on Dneg VFX projects. 

     

    Movies already slated for work in Mumbai include The Huntsman for Universal starring Chris Hemsworth, Charlize Theron and Emily Blunt, and Inferno, Ron Howard’s latest movie based on the Dan Brown novel, amongst others.

     

    The new VFX facility will also offer rigorous training programmes for staff with the intention of creating Asia’s leading ‘VFX Campus,’ complete with specifically-built classrooms and training areas, and offering Dneg’s training programmes.

     

    “Prime Focus is the undisputed industry leader in India and knows the market, the culture and the landscape better than any other company. This collaboration plays to the strengths of both companies, the intention being to create a world-class VFX facility that can proudly sit alongside the rest of Dneg’s global network,” said Double Negative CEO Matt Holben.

     

    “This is another great step forward for Prime Focus World and Double Negative, Prime Focus is committed to supporting Dneg in achieving its vision of becoming a truly global company in the high-end film industry, and this new state-of-the-art facility will help them to remain creative and competitive across all of their locations, and to continue producing award-winning visual effects work that is second-to-none,” added Prime Focus founder, executive chairman and global CEO Namit Malhotra. 

     

    Dneg and PFW have recently collaborated on a number of shows, providing VFX and stereo conversion services on projects such as Avengers: Age of Ultron, Terminator: Genisys and Ant-Man. Upcoming projects include Mission Impossible: Rogue Nation, Insurgent, Alice in Wonderland: Through the Looking Glass, Tarzan, Batman v Superman: Dawn of Justice and Spectre.

  • Prime Focus company Double Negative bags VFX Oscar for ‘Interstellar’

    Prime Focus company Double Negative bags VFX Oscar for ‘Interstellar’

    MUMBAI: VFX house Double Negative, which is a part of Prime Focus Media Services bagged the Academy Award for visual effects for their spectacular work on Christopher Nolan’s Interstellar.

     

    The award was presented to one of the founding members of Double Negative and VFX supervisors Paul Franklin and Andrew Lockley, SFX Supervisor Ian Hunter and New Deal Studios’ VFX supervisor Scott Fisher at the 87th Annual Academy Awards held on 22 February at the Kodak Theater in Los Angeles.

     

    This is the second Oscar for Double Negative and Franklin, having previously won for Nolan’s Inception. Interstellar beat other nominees that included Captain America: The Winter Soldier, Dawn of the Planet of the Apes, Guardians of the Galaxy and X-Men: Days of Future Past. A week ago Double Negative had also won the BAFTA for Special Visual Effects for the same film.

     

    Prime Focus founder, executive chairman and global CEO Namit Malhotra said, “This is an incredibly proud moment for all of us at Prime Focus and Double Negative. I want to congratulate, Alex (Hope), Matt (Holben), Paul (Franklin) and the entire team of Double Negative for bringing home this exceptional honor. I have always been a great admirer of Mr. Nolan’s films and hence it is really heartening for me to see our work on Interstellar being recognized as the world’s best. On this joyous occasion I want to reaffirm our commitment to help Double Negative continue on its path of creative excellence that is second to none.”

  • Prime Focus World wins Lumiere for ‘Sin City 2’

    Prime Focus World wins Lumiere for ‘Sin City 2’

    MUMBAI: Prime Focus World (PFW) has won the ‘Lumiere’ for its spectacular work on Sin City: A Dame to Kill For at the International 3D & Advanced Imaging Society’s 6th Annual 3D Creative Arts Awards held in Los Angeles on 28 January, 2015.

     

    The Robert Rodriguez and Frank Miller directed ultra-stylized comic book sequel Sin City 2 was awarded in the ‘Best Stereography – Live Action’ category and PFW was the exclusive VFX and 3D conversion provider as well as equity partner.

     

    The 3D Creative Arts Awards honours the best in 3D image making, recognising outstanding achievement across all forms of creative content. Prime Focus founder, executive chairman and global CEO Namit Malhotra received the award at a function held at the Warner Bros. Studios, which was attended by eminent Hollywood personalities.

     

    Accepting the award, Malhotra said, “This is an incredibly proud moment for all of us at Prime Focus World. Sin City 2 has been our largest commission to date and the whole global construct of Prime Focus came together in achieving something that I believe only Prime Focus would have been able to do. This was an opportunity to not only put our best foot forward creatively and technically, but also to take the next step in terms of defining a new business model. This was a huge commitment: to our filmmaking partners, in helping to make this film happen; to the industry, in showing that there is another way for companies such as Prime Focus to engage; and to our own future. I’m delighted with the way this has played out.”

     

    Prime Focus chief creative director and co-founder Merzin Tavaria added, “We accept this independent industry recognition with great humility and pride. Our association with Sin City 2 has been a huge milestone in our global journey. Challenging opportunities such as these have enabled Prime Focus World to redefine 3D experience for the audiences’ world over and establish our leadership position in 3D conversion industry. We would like to thank the International 3D & Advanced Imaging Society for consistently acknowledging our work and honouring us three times in succession, which only validates our best-in-class creative credentials to deliver high quality 3D to the world’s most advanced film making community, Hollywood.”

     

    2014 was a distinguished year for PFW’s 3D team as it delivered the biggest line up of Hollywood’s summer releases – Noah, The Amazing Spiderman 2, Maleficent, Edge of Tomorrow, Transformers: Age of Extinction, Guardians of the Galaxy, Teenage Mutant Ninja Turtles and Sin City: A Dame to Kill for.

  • Prime Focus inks technology licensing deal with Gener8

    Prime Focus inks technology licensing deal with Gener8

    MUMBAI: Prime Focus Group has entered into a licensing and 3D conversion partnership with Gener8 Media Corp.

     

    As per the terms of the definitive agreement, Prime Focus will enter into an exclusive worldwide license to use the company’s proprietary 3D conversion technology throughout the entertainment industry.

    The Gener8 brand and team, which has become synonymous with top-quality 3D conversion in Hollywood, will continue to provide even more capacity for the 3D conversion business with help from the Prime Focus worldwide workforce. This will give Hollywood more confidence in Gener8’s ability to perform 3D conversion on a larger volume of movies. Further, by licensing the company’s technology, Prime Focus will push the quality and technical standards of the 3D even higher.

    “We could not hope for a better partner in this transaction, and we strongly believe the partnership will be good for Hollywood and the 3D conversion industry. This is the absolute perfect agreement for both parties–it facilitates the spread of technology to help improve the quality for all in the industry, while also allowing Gener8 to prove it can handle greater volume, which has been what has held back Gener8’s ability to grow. It is exciting to tap into Prime Focus’s production systems, experience and workforce,” said Gener8 CEO Rory Armes.

    “We are focused on building a comprehensive creative services business, with an emphasis on visual effects and 3D conversion services. Our strength to date has been our significant offshore capabilities, which have now been enhanced by our technology partnership with Gener8. As well, with our recent merger with Reliance MediaWorks, we can leverage the Reliance infrastructure as a back end to help Gener8 increase capacity. This partnership will harness the strengths of both companies to create the best options for Hollywood in terms of 3D conversion and visual effects and leverage the existing workforce and scale of Prime Focus’s production capacity in India,” added Prime Focus CEO Namit Malhotra.

    Upon transaction closing, Prime Focus will enter into a five-year worldwide exclusive license agreement to use its 3D technology. Total consideration payable by Prime Focus to Gener8 over the five-year period will range between $11.5 million to $16.5 million. The two companies will also enter into a Technology Services Agreement, where Gener8 will provide technical service and support on a cost recovery basis. Proceeds from the transaction will be used to grow Gener8’s 3D technology as well as its other new and disruptive technologies, Cumul8 and Reelhouse.

  • Reliance MediaWorks and others acquire 54 per cent of Prime Focus

    Reliance MediaWorks and others acquire 54 per cent of Prime Focus

    BENGALURU: Reliance MediaWorks Limited (RMWL) along with Reliance Land Works Private Limited (RLWPL) and others had sought to acquire 26 per cent or 7,77,08,534 shares (about 77.7 million shares) of Prime Focus though a public offer from its shareholders.

    The acquirers offered a price of Rs 52 per equity share of face value of Re 1 each. The total value of the offer was Rs 404,08,43,768 (about Rs 4.04 billion). The planned acquisition would increase the shareholding of RMWL and others to 63.96 per cent, the other 37.96 per cent to be obtained by way of preferential allotment through agreements.
     
    The other parties include Namit Malhotra, Naresh Malhotra and Monsoon Studio Private Limited (MSPL). MSPL is a wholly owned company by Namit Malhotra and Naresh Malhotra who are its promoters.
     
    As per the public press advertisement issued by the acquirers, they have managed to obtain 16.1 per cent representing 4,81,24,618 shares (about 48.1 million shares) at a cost of Rs 250,24,80,136 (about Rs 2.5 billion) taking the total shareholding of RMWL and others to 54.06 per cent once the preferential allotment is complete.
     
    Prime Focus has announced an Extra Ordinary General Meeting (EGM) on 29 January, 2015 to create, offer, issue and allot, from time to time and in one or more tranches, by way of a Preferential Issue, through offer letter and/or circular and/or information memorandum and/ or private placement memorandum and/or such other documents/writings, in such a manner and on such terms and conditions as may be determined by the Board in its absolute discretion to the acquirers viz., (1) up to 23,076,923 equity shares to MSPL; (2) up to 23,076,923 equity shares to RMWL as first RML subscription shares (3) up to 67,307,692 equity shares to RMWL as second RML subscription shares.

     

    Click here to read the notice
     

    Click here to read the advertisement

     

  • Reliance Media Works files revised dates draft letter for acquiring 26% of Prime Focus

    Reliance Media Works files revised dates draft letter for acquiring 26% of Prime Focus

     BENGALURU: Reliance Media Works Limited (RMW, acquirer) has filed a draft letter of offer (LOF) with revised dates on the bourses for acquisition of a 26 per cent voting stake in Prime Focus Limited (Prime Focus, target company). RMW is acting in concert with Reliance Land Private Limited, Namit Malhotra, Narseh Malhotra and Monsoon Studio Private Limited (Monsoon Studios).  

     

    RMW will make a cash offer at Rs 52 per Equity Share to acquire up to 7,77,08,534 Equity Shares of face value of Re 1 each representing 26 per cent of the emerging voting capital (EVC) of Prime Focus. The target company’s EVC  comprises the paid-up equity share capital of Rs 29,88,78,974 divided into 29,88,78,974 equity shares, being the paid-up equity share capital of the target company after the allotment of the preferential allotment – 11,34,61,538 Equity Shares to the acquirer and Monsoon Studios on a preferential allotment basis.

     

    The offer shall open on 19 December 2014 and will remain open until 2 January 2015. All owners (registered or unregistered) of Equity Shares, regardless of whether he/she/it held Equity Shares on the identified date 5 December 2014), are eligible to participate in the offer any time before the closure of the tendering period.

     

    Click here to read the offer letter

  • Prime Focus Q1-2015 revenue up 78%, loss widens to Rs 22 crore because of global integration process

    Prime Focus Q1-2015 revenue up 78%, loss widens to Rs 22 crore because of global integration process

    BENGALURU: Prime Focus Limited (PFL) reported 78.3 per cent growth in Income from Operations (TIO) in the quarter ended 30 September 2015 (Q1-2015, current quarter) to Rs 350.17 crore from Rs 196.38 crore (quarter ended 30 September 2013, or Q2-2014) and 76.6 per cent more than the Rs 199.5 crore in Q5-2014 (q-o-q).

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

    (2) The company had filed results for a15 month period ended 30 June 2014, hence comparison is being done between Q1-2015 and Q2-2014 as well as Q5-2014 (quarter ended 30 June 2014).

    The company’s loss widened to Rs 22.02 crore in Q1-2015 from the Rs 8.78 crore in Q5-2015. The company had reported a profit of Rs 21.34 crore (10.9 per cent of TIO) in Q2-2014. PFL, in its earnings release, says that loss for the quarter has risen to Rs 22.02 crore because margins have been impacted primarily due to seasonal effects and due to significant duplication of costs in the creative services business in the first quarter post-merger. The company has initiated a global Integration process at its London, Vancouver and Indian facilities across both these entities. Consequently, the effects of the first phase of one time integration costs are also reflected in the financials claims PFL.

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

    The company’s total expenditure (TE) in Q1-2015 at Rs 385.6 crore (110.1 per cent of TIO), which was more than double (2.15 times) the Rs 179.42 crore (91.4 per cent of TIO) in Q2-2014 and 80 per cent more than the Rs 214.52 crore (107.5 per cent of TIO) in Q5-2014.

    Figures A and B below show PFL’s major expense heads. As is obvious, a major expense head for the company is employee benefit expense or EBE.

    PFL’s EBE in Q1-2015 at Rs 232.77 crore (60.4 per cent of TIO) was almost triple (2.91 times) the Rs 79.84 crore (40.7 per cent of TIO) in Q2-2014 and more than double (2.1times) the Rs 111.50 crore (55.9 per cent of TIO) in Q5-2015. Fig B indicates that EBE also shows a linear upward trend in terms of percentage of TIO over the seven quarters starting Q4-2013 until the current quarter Q1-2015.  EBE has been the highest in Q1-2015, both in terms of absolute rupees and in terms of percentage of TIO during the period under consideration.

     Finance and Interest cost in Q1-2015 at Rs 15.84 crore (4.25 per cent of TIO) was 42.8 per cent more than the Rs 11.09 crore (5.6 per cent of TIO) in Q2-2014 and 9.5 per cent less than the Rs 17.5 crore (8.8 per cent of TIO) in Q5-2015.

    PFL executive chairman and group CEO Namit Malhotra said, “It has been an eventful quarter for us as a Group, where PFW (Prime Focus World) completed the merger with Double Negative (D-Neg) which we all are very excited about. At the same time, we initiated a significant integration and consolidation exercise across our global footprint.”

    “These extra ordinary onetime costs juxtaposed with seasonally the slowest quarter in the Industry has had

    a major impact on our bottomline. The integration process with D-Neg has started well with the strategic assumptions playing out as expected. Post D-Neg integration, we are proud to announce that we have now become a fully integrated Tier I provider of creative services solutions globally. Our focus on cost stays high – we have shut down our London and Vancouver VFX operations in PFW. The RMW’s FMS business merger is awaiting regulatory

    accelerated growth path we are extremely positive approval post which we expect to complete the transaction expeditiously. PFT is witnessing increasing traction for its products in the International markets and we are very excited about the growth opportunities there in addition to the continued momentum in India. With all our businesses on an accelerated growth path, we are very excited about the future, as you look beyond the one time integration costs, there are significant post-merger revenue and margin enhancement opportunities ahead,” added Malhotra.

     

    Click here to read full unaudited results