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Tag: Q1-2015

  • Q1-2016: Vision Cinemas reports net sales & PAT growth of 69%

    Q1-2016: Vision Cinemas reports net sales & PAT growth of 69%

    BENGLAURU: The good days for the movie business seem to continue in this quarter also. A small three-screen multiplex with a food-court in Bengaluru, Vision Cinema Limited (Vision Cinema) reported 69.2 per cent growth in net sales/income from operations (excluding branch transfer, net of excise duty) or TIO to Rs 156.05 lakh in the quarter ended 30 September, 2015 (Q1-2015, since the company’s financial year is 1 July to 30 June) from Rs 92.22 lakh in the corresponding quarter of last year. TIO was 26.5 per cent higher than the Rs 123.4 lakh in the previous quarter (Q4-2015).

     

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

     

    Vision Cinemas PAT in Q3-2015 more than trebled (3.44 times) at Rs 39.16 lakh as compared to the Rs 11.39 lakh in Q1-2015 and 69.4 per cent more than the Rs 23.12 lakh in Q4-2015.

     

    Total expense (TE) for Q1-2016 at Rs 110.04 lakh was 45.6 per cent more than the Rs 75.58 lakh in Q1-2015 and was 12.1 per cent more than the Rs 98.13 lakh in Q4-2015.

     

    A major component of the company’s TE is ‘Purchase of Traded Goods – Distributor Share of Revenue’ (Distributor share). Vision Cinemas spent Rs 56.68 lakh in Q1-2016 towards distributor share, which was 29 per cent more than the Rs 43.93 lakh in Q1-2015 and 28.9 per cent more than the Rs 43.98 lakh in the immediate trailing quarter.

     

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  • Q1-2016: Marico marketing spends at Rs 197.52 crore

    Q1-2016: Marico marketing spends at Rs 197.52 crore

    BENGALURU:Indian consumer products in beauty and wellness space company Marico Limited (Marico) spent 2.8 per cent more towards advertisement and sales promotion (ASP, marketing spends) during the quarter ended 30 June, 2015 (Q1-2016) at Rs 197.52 crore (11.1 per cent of total income from operations or TIO) as compared to the Rs 192.18 crore (11.8 per cent of TIO) in Q1-2015 and was 44 per cent more than the Rs 137.15 crore (11.2 per cent of TIO) in the immediate trailing quarter.

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

    During a 14 quarter period starting Q4-2012 until the current quarter, the company reported record TIO for the current quarter at Rs 1783.22 crore, which was 9.9 per cent higher YoY than the Rs 1623.13 crore in Q1-2015 and 45.4 per cent more than the Rs 1226.25 crore in the immediate trailing quarter (Ref Fig B below). The company says that its topline growth was driven by sixper cent volume growth in India leading to overall volume growth of fiveper cent. Marico’s Domestic business recorded a value growth of 12 per cent while the International business posted a growth of fourper cent.

    Company speak

    Marico in its Q1-2016 earnings release says that market share gains continue in approximately 80 per cent of its portfolio; almost the entire domestic portfolio gained share. Marico’s FMCG business in India achieved a turnover of RS 1,428 crore ($227 million) during the quarter, a growth of about 12 period over Q1-2015. The Business continues to gain market share in more than 95 per centof the portfolio reveals the company.

    The company says that it has seen healthy volume growth in key categories in India: Parachute Rigids- eightper cent and Value Added Hair Oils (VAHO) 14 per cent with a continued premiumization in VAHO in India with higher share gain in value (230 bps) as compared to volume (124 bps). The company has four Prototypes in the market – three in Value Added Hair Oils and one in Leave-in Conditioners to fuel premiumization of hair nourishment portfolio. These prototypes will be scaled up based on prototype results.

    Marketing spends

    Marketing spends in Q1-2016 have been the highest during the fourteen quarter period under consideration in terms of absolute rupees. In terms of percentage of TIO, ASP was highest in Q3-2013 at 14.1 per cent of TIO (Rs 157.82 crore). While in absolute rupees, ASP shows a linearly increasing trend during the 14 quarters under consideration, in terms of percentage TIO, the trend declines linearly during the same period. Please refer to Figs. A and A-1 below.

    Profit after Tax

    Marico’s TIO numbers have been mentioned above. During the period under consideration in this report, the company has reported the highest profit after tax (PAT) in the current quarter at Rs 237.83 crore (13.3 per cent of TIO), which was 28.4 per cent more than the Rs 185.28 crore (11.4 per cent of TIO) in Q1-2015 and was more than double (2.16 times) the Rs 110.04 crore (nineper cent of TIO) in Q4-2015.

  • Hawkins ad spend flat in Q1-2015

    Hawkins ad spend flat in Q1-2015

    BENGALURU:  Indian pressure cooker manufacturer Hawkins Cookers Limited (Hawkins) spent Rs 3.37 core (34.1 per cent of Advertising and Sales Promotion or ASP) towards Advertising (Ad spend) in Q1-2015, 2.7 per cent lower than the Rs 3.46 crore (19.7 per cent of ASP) in Q4-2014 and 1.2 per cent more than the Rs 3.33 crore (39.4 per cent of ASP) in Q1-2014. Overall, ad spend was almost flat across the three quarters – Q1-2015, Q4-2014 and Q1-2014.

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

    The company’s ASP comprises ad spend and discounts. As per Fig 1 below, based on historical data over the nine quarter period starting Q1-2013 until Q1-2015 (current quarter), the company spends the maximum towards ads in Q3, the festive season in the country. In Q2 and Q4, it resorts more towards discounting.

    The company has been skewed more towards offering discounts as compared to advertising. Over the nine quarter period under consideration, the simple average ad spend in terms of percentage of ASP is 26.7 per cent, while the proportion of discount over the same period works out to 73.3 per cent of ASP.  This trend is likely to continue based on historical data across the nine quarters under consideration. The company in Q2-2015 is likely to resort significantly on offering discount and spend a lower towards advertising. Q3-2015 is likely to see the company’s ad spend go up significantly.

    The company’s highest ad spend over the nine quarters has been Rs 8.67 crore in Q3-2014 (49.3 per cent of ASP). Hawkins ad spend has been lowest in terms of rupees in Q4-2013 at Rs 0.35 crore (2.9 per cent of ASP), while the lowest in terms of percentage of ASP was in Q2-2013 at 2.8 per cent (Rs 0.37 crore).

    The company’s ASP in Q1-2015 at Rs 9.88 crore (10.2 per cent of Total Income from Operations or TIO) was 43.7 per cent lower than the Rs 17.55 crore (12.4 per cent of TIO) in Q4-2014 and 17 per cent more than the Rs 8.44 crore (11.2 per cent of TIO) in Q1-2014. ASP in terms of simple average in absolute rupees across the nine quarters under consideration is about Rs 13.01 crore.

    Hawkins TIO in Q1-2015 at Rs 97.20 crore was 31.5 per cent less than the Rs 141.87 crore in Q4-2014 and 29.1 per cent more than the Rs 75.31 crore in Q1-2014.

    While the company’s TIO across the nine quarters under consideration shows a linear upward trend, the company’s ASP seems to have flattened out linearly in terms of absolute rupees, and shows a slightly downward trend in terms of percentage of TIO. Please refer to Fig 1A below.

    Hawkins PAT for Q1-2015 at Rs 7.07 crore (7.3 per cent of TIO) was 46.1 per cent lower than the Rs 13.13 crore (9.3 per cent of TIO) in the immediate trailing quarter and 44.6 per cent more than the Rs 4.89 crore (6.5 per cent of TIO) in the corresponding year ago quarter. Please refer to Fig 2 below.

    Overall, on a linear basis, PAT seems to be moving upward both in terms of absolute rupees as well as percentage of TIO.

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  • Severance pay, doubtful debts, obsolescence result in Rs 154 crore loss in Q1-2015 for TV18

    Severance pay, doubtful debts, obsolescence result in Rs 154 crore loss in Q1-2015 for TV18

    BENGALURU:  The clean-up process, and that includes cleaning up of figures, by Reliance has begun.  TV18 Broadcast (TV18) posted a massive loss of Rs 154.54 crore in Q1-2015. The loss would have been higher, if not for the company’s minority interest sharing Rs 54.99 crore from the overall loss.

     

    The loss before tax for the quarter ended 30 June 2014 is Rs 214.2 crore after considering one time exceptional adjustments of Rs 223.3crore. The adjustments made by way of exceptional items to the P&L account for Q1-2015, is based on a review of the current and non-current assets of the company. The company says that these adjustments reflect the diminution in the value of certain tangible and intangible assets as well as write-offs and provisions for loans and advances and receivables. These adjustments, however, will not impact future operating profits and cash flow of the business of the company and its subsidiaries, TV18 adds (refer additional notes below)

     

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

     

    Let us look at the other numbers reported by TV18 for Q1-2015

     

    TV 18 reported 33.2 per cent higher quarterly revenues on a consolidated basis in Q1-2015 at Rs 527.7 crore as compared to Rs 396.2 crore in Q1-2014, but 6.3 per cent lower q-o-q as compared to the Rs 563.3 crore in Q4-2014.

     

    The company’s profit from ordinary activities before exceptional items and tax in Q1-2015 was Rs 9.1 crore, almost double the Rs 4.8 crore in Q1-2014, but was about a fifth of the Rs 45.3 crore in the immediate trailing quarter.

     

    TV18’s total expenditure at Rs 509.5 (96.6 per cent of TIO) crore in Q1-2015 was 32.9 per cent more than the Rs 383.4 crore (96.8 per cent of TIO) in Q1-2014 and 0.8 per cent lower than the Rs 513.8 crore (91.2 per cent of TIO) in Q4-2014.

     

    The company’s programming cost almost doubled (went up by 90.5 per cent) in Q1-2015 at Rs 165.7 per cent as compared to the Rs 87 crore in Q1-2014 and was 6.7 per cent more than the Rs 155.3 crore in Q4-2014. TV18’s employee benefit expense (EBE) in Q1-2015 at Rs 103.9 crores (19.7 per cent of TIO) was 49.1 per cent more than the Rs 69.7 crore (17.6 per cent of TIO) in Q1-2014 and 31.5 per cent more than the Rs 79 crore (14 per cent of TIO) in Q4-2014.

     

     

    TV18 spent Rs 102.2 crore(19.4 per cent of TIO) in Q1-2015 towards marketing, distribution and promotional expense, which was 27.1 per cent lower than the Rs 140.2 crore (35.4 per cent of TIO) in Q1-2014 and 32.1 per cent lower than the Rs 150.5 crore (26.7 per cent of TIO) in Q4-2014.

     

    TV 18 has two revenue streams – media operations and film production and distribution. In Q1-2015, the media operations segment reported revenue and results of Rs 513.42 crore and Rs 19.37 crore respectively; for Q1-2014, the corresponding figures were Rs 383.49 crore and Rs 22.23 crore; for Q4-2014, the corresponding figures were Rs 550.31 crore and Rs 54.33 crore respectively.

     

    The company’s film production and distribution segment reported revenue of Rs 14.32 crore and an operating loss of Rs 0.95 crore. The corresponding figures for Q1-2014 and Q4-2014 are Rs 18.79 crore and an operating loss of Rs 8.47 crore; revenue of Rs 14.49 crore and an operating loss of Rs 4.59 crore.

     

    TV18’s business news operations saw the successful launch of CNBC Bajar, India’s first Gujarati language channel business channel on July 1, 2014. ETV News saw the successful launch of ETV Gujarati bringing the total bouquet strength to nine channels; ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Bihar, ETV Urdu, ETV Kannada, ETV Bangla, ETV Haryana. The channels sustained their strong viewership performance aided by the national general elections.

     

    Additional Note:  (1) During the quarter ended 30th June, 2014, based on a review of the current and non-current assets, the Group has accounted for (a) obsolescence/impairment in the value of certain tangible and intangible assets to the extent of Rs 122.27 crores and (b) write-off and provisions of non-recoverable and doubtful loans/advances /receivables to the extent of Rs 87.70 crores and the same has been disclosed as Exceptional Items in the consolidated accounts. Further, Exceptional Items also includes Rs 13.31crores towards severance pay and consultancy charge.

     

    (2) Equator Trading Enterprises Private Limited (“Equator”) including its subsidiaries Panorama Television Private Limited and Prism TV Private Limited had become wholly owned subsidiary of the Company with effect from 22nd January, 2014. Hence, the consolidated results of the current period include the results of these subsidiary companies. Eenadu Television Private Limited had also become an associate with effect from 22nd January 2014 and its results have been accounted as “Associate” under accounting standard 23 on Accounting for Investments in Associates in Consolidated Financial Statements. To this extent, the results of this period are not comparable with the corresponding previous period.

     

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