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Tag: Q2-2016

  • Q2-2016: ENIL reports 11.6% YoY revenue & 15.8% PAT growth

    Q2-2016: ENIL reports 11.6% YoY revenue & 15.8% PAT growth

    BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL) reported 11.6 per cent increase in Total Income from Operations (TIO) in the quarter ended 30 September, 2015 (Q2-2016, current quarter) at Rs 116.27 crore as compared to the Rs 104.14 crore in Q2-2015. TIO in the current quarter was 14.5 per cent more than the Rs 101.56 crore in immediate trailing quarter.

     

    The company’s profit after tax (PAT) in Q2-2016 increased 15.8 per cent to Rs 26.97 crore (23.2 per cent margin) as compared to the Rs 23.30 crore (22.4 per cent margin) in the corresponding year ago quarter and was 4.2 per cent more than the Rs 25.88 crore (25.5 per cent of TIO) in Q1-2016. The company had entered the Rs 100 crore PAT club in FY-2015 with a PAT of Rs 105.98 crore (24.2 per cent margin) on a TIO of Rs 483.48 crore. 

     

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

    (2) The numbers in this report are consolidated unless stated otherwise.

     

     

    Let us look at some of the other numbers reported by ENIL

     

    The company’s EBIDTA in Q2-2016 at Rs 35.71 crore (30.7 per cent margin) was 13.7 per cent more than the Rs 31.40 crore (30.2 per cent margin) in the corresponding year ago quarter and almost flat (up by 90 basis points) as compared to the Rs 35.38 crore (34.8 per cent margin) in the previous quarter.

     

    ENIL total expense (TE) in Q2-2016 at Rs 90.86 crore (78.1 per cent of TIO) was 12.3 per cent more than the Rs 80.89 crore (77.7 per cent of TIO) in Q2-2015 and was 22.2 per cent more QoQ than the Rs 74.38 crore (73.2 per cent of TIO) in Q1-2016.

     

    ENIL paid 48.8 per cent higher license fee in Q2-2016 at Rs 7.83 crore (6.7 per cent of TIO) as compared to the Rs 5.27 crore (5.1 per cent of TIO) in Q2-2015 and 53.3 per cent more than the Rs 5.11 crore (5 per cent of TIO) in Q1-2016.

     

    The company’s marketing expense in Q2-2016 at Rs 15.47 crore was (13.3 per cent of TIO) was seven per cent lower than the Rs 16.63 crore (16 per cent of TIO) in Q2-2015, but 37 per cent more than th Rs 11.29 crore (11.1 per cent of TIO) in Q1-2016.

     

    Employee Benefit Expense (EBE) in Q2-2016 at Rs 21.67 crore (18.6 per cent of TIO) was 7.5 per cent more than the Rs 20.17 crore (19.4 per cent of TIO), but was 1.9 per cent lower than the Rs 22.10 crore (21.8 per cent of TIO) in Q1-2016.

     

    ENIL managing director and CEO Prashant Panday said, “We are extremely happy with our results. Despite a sluggish economy, we have grown our revenues and profits substantially. With Phase-3 auctions over, we are gearing up to launch brand Mirchi into exciting new towns like Kochi and Chandigarh, as well as launch our second brand of radio in most of the major markets of the country. Radio is going to boom in the next five years, and Mirchi will surely be at the forefront.”

     

    ENIL’s participation in the first batch of Phase-3 auctions has resulted in an expansion of its footprint into seven new towns – Chandigarh, Kochi, Kozhikode, Jammu, Srinagar, Guwahati and Shillong.

     

    Further, ENIL recently received the permission from the Ministry of Information & Broadcasting (MIB) to acquire four stations from TV Today Network Limited, viz., Amritsar, Patiala, Shimla and Jodhpur – which the company says will be re-branded and re-launched shortly as Mirchi, adding to its North India network strength. With these 11 stations, the core Mirchi brand will now be available in 43 cities.

  • Q2-2016: Inox YoY revenue up riding on higher box office, PAT quadruples

    Q2-2016: Inox YoY revenue up riding on higher box office, PAT quadruples

    BENGALURU: Inox Leisure Limited reported 33.6 per cent increase in Total Income from Operations (TIO) in the quarter ended 30 September, 2015 (Q2-2016, current quarter) at Rs 355.38 crore as compared to the Rs 265.94 crore in Q2-2015. The company’s TIO in Q2-2016 also improved 192 basis points as compared to the Rs 348.68 crore in the immediate trailing quarter.

     

    The increase was driven by a 35.5 per cent increase in box office collection in the current quarter at Rs 243.87 crore as compared to the Rs 179.96 crore in Q2-2015 and fractionally higher than the Rs 239.38 crore in the immediate trailing quarter.

     

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

    (2) Figures include Satyam Cineplexes Limited which became wholly owned subsidiary of the company on 8th Aug 2014.

     

    Improved Box Office performance of a number of movies saw the company’s PAT in the current quarter almost quadruple (up 3.92 times) to Rs 20.51 crore (5.8 per cent margin) as compared to the Rs 5.23 crore (two per cent margin) in Q2-2015, but declined 18.8 per cent as compared to the Rs 25.26 crore (7.2 per cent margin) in the immediate trailing quarter.

     

    Performance of movies like Bajrangi Bhaijaan (Rs 53.26 crore GBOC or Gross Box Office Collection, 28 lakh footfalls); Baahubali –The Beginning (Rs 39.67 crore, 25 lakh footfalls); Welcome Back (Rs 16.1 crore GBOC, 10 lakh footfalls); Drishyam (Rs 13.72 crore GBOC, 8 lakh footfalls) and Brothers (11.03 crore GBOC, 6 lakh footfalls) drove the resurgence in revenue as well profit after tax (PAT).

     

    Footfalls, occupancy rates and average ticket price

     

    Inox reported a 30 per cent increase in footfalls in the current quarter at 145 lakh as compared to the 112 lakh in the corresponding year ago quarter and flat as compared to the 145 lakh in Q1-2016.

     

    Occupancy rate in Q2-2016 improved to 32 per cent as compared to the 26 per cent in Q2-2015 and slightly lower than the 33 per cent in the immediate trailing quarter.

     

    Average Ticket Price (APT) increased 3.6 per cent to Rs 167 in the current quarter as compared to the Rs 161 in Q2-2015 and Rs 165 in the immediate trailing quarter.

     

    Advertising, food and beverages and other operating revenues

     

    The company reported 20.2 per cent higher advertising revenue in Q2-2016 at Rs 21.40 crore as compared to the Rs 17.81 crore in Q2-2015 and was 3.2 per cent more than the Rs 20.72 in Q1-2016.

     

    Food and Beverages revenue (F&B) in Q1-2016 increased 36.5 per cent to Rs 69.24 crore as compared to the Rs 50.77 crore in Q2-2015, but declined 6.3 per cent as compared to the Rs 73.89 crore in Q1-2016.

     

    Other operating revenue increased 19.9 per cent to Rs 20.87 crore as compared to the Rs 17.40 crore in Q2-2015 and was 42 per cent more than the Rs 14.70 crore in Q1-2016.

     

    Entertainment Tax, Distributors share and F&B costs, rents, etc.

     

    Inox paid 48.7 per cent higher entertainment tax in Q2-2016 at Rs 47.57 crore as compared to the Rs 32 crore in Q2-2015 and 2.9 per cent more than the Rs 42.63 crore in Q1-2016.

     

    Distributors share (exhibition cost) in Q2-2016 at Rs 86.61 crore increased 26.1 per cent as compared to the Rs 68.71 crore in Q2-2015 and was 1.6 per cent more than the Rs 85.21 crore in Q1-2016.

     

    F&B costs in Q2-2016 increased 31.6 per cent to Rs 17.6 crore as compared to the Rs 13.37 crore in Q2-2015, but declined 4.2 per cent as compared to the Rs18.38 crore in Q1-2016.

  • Q2-2016: HUL YoY marketing spends up 23.8%

    Q2-2016: HUL YoY marketing spends up 23.8%

    BENGALURU: Indian FMCG giant Hindustan Unilever Limited’s (HUL) Advertisement and Promotions expense (marketing spends, ASP) in Q2-2016 (quarter ended 30 September, 2015, current quarter) was 23.8 per cent more at Rs 1145.04 crore (14.4 per cent of Total Income from operations or TIO, approximately $176.7 million) than the Rs 925.05 crore (12.1 per cent of TIO) in Q2-2015 but was 0.7 per cent lower than the Rs 1153.39 crore (14.2 per cent of TIO) in Q1-2016.

    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 Q1-2016.

    (3) The US dollar figures are approximately based on a conversion rate of 1US$ = Rs 64.79 at a particular time on October 19, 2015.The converted numbers have been rounded off.

    HUL chairman Harish Manwani said, “The business delivered another quarter of profitable volume-led growth. We continue to invest behind our brands and in-market executional capabilities to drive the competitiveness of our portfolio. The deflationary commodity cost environment is likely to continue in the near term and our strategy of delivering consistent and competitive growth with sustainable improvement in operating margin remains unchanged.”

    Advertising and Sales Promotion trends

    HUL’s ASP in Q1-2016 was the highest during a four quarter period starting Q1-2013 until Q2-2016 in terms of absolute rupees. Q2-2016 ASP (current quarter) in terms of percentage of TIO was the highest during the period under consideration. Further, during the period under consideration in this report, ASP in absolute rupee spends shows a marked linear increasing trend, while ASP in percentage of TIO terms shows a slight linear increasing trend. The company’s lowest ASP was in Q2-2013 at Rs 768.98 crore (12.2 per cent of TIO) in absolute rupee spends during the period under consideration, while the lowest in terms of percentage of TIO was in Q4-2014 at 11.8 per cent of TIO (Rs 840.34 crore). Please refer to Fig A above.

    If the company follows the trends of the past three fiscals, at least one or more quarter in FY-2016 will see higher ASP in terms of absolute rupees than Q1-2016.

    HUL Revenue and PAT

    Please refer to Fig B above. HUL reported 4.1 per cent growth in TIO in Q2-2016 at Rs 7955.39 crore as compared to the Rs 7639.33 crore in the corresponding year ago quarter, but was 1.8 per cent lower than the Rs 8105.13 crore in Q1-2016. The company’s TIO shows a linear increasing trend as indicated by the broken blue trend line in Fig B. TIO in Q1-2016 is the highest reported by the company during the 13 quarter period under consideration in this report.

    HUL’s PAT in Q2-2016 was lower by 2.6 per cent at Rs 962.24 crore (12.1 per cent margin) as compared to the Rs 988.1 crore (12.9 per cent margin) in Q2-2015 and was 9.1 per cent lower than the Rs 1059.14 crore (13.1 per cent margin) in Q1-2015. During the period under consideration, HUL’s highest PAT was in Q1-2013 at Rs 1331.19 crore (20.9 per cent of TIO), both in terms of absolute rupees and in percentage of TIO. While PAT in absolute rupees shows a linear increasing trend as indicated by the broken pink trend line in Fig B below, while in terms of percentage of TIO, the linear trend is declining as indicated by the broken yellow line.

    Company Speak

    During the quarter, the Domestic Consumer business grew at five per cent, with seven per cent underlying volume growth. The growth in the quarter continued to be impacted by the phasing out of Excise Duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers.

    Soaps and Detergents: Robust volume growth partially offset by price deflation. Skin Cleansing was driven by double digit volume growth on Dove, Pears, Hamam and Lifebuoy. The liquids portfolio registered another robust quarter.

    In Laundry, growth was led by the premium segment, with Surf maintaining its strong momentum and Rin accelerating post relaunch. Comfort Fabric Conditioner delivered another strong performance on the back of sustained market development. Household Care growth was driven by Vim, with the tubs and liquids portfolio doing well. The segment witnessed further price deflation in the quarter due to soft commodity costs.

    Personal Products: Healthy double digit growth

    Skin Care delivered broad based growth across Fair and Lovely, Pond’s, Lakme and Vaseline. Fair and Lovely continued to do well, while the performance of Pond’s was led by premium skin lightening and Lakme by Perfect Radiance and CC Cream. The facial cleansing portfolio sustained high growth.

    Hair Care maintained its momentum with another strong quarter of volume led double digit growth, as Dove growth accelerated and TRESemmé gained further ground.

    In Oral Care, Close Up registered double digit growth on the back of impactful activation.

    In Colour Cosmetics, Lakme delivered another quarter of innovation led double digit growth across the core, Absolute and 9 to 5 ranges.

    Beverages: Steady performance

    Tea growth was led by Red Label and another quarter of high growth on Lipton Green Tea, driven through impactful market activation. In Coffee, Bru Gold continued to lead category premiumisation and performed well.

    Packaged Foods: Eighth successive quarter of double digit growth

    Packaged Foods saw double digit growth across all key brands, driven by the continued focus on market development. Kissan sustained robust activation led growth across both Ketchups and Jams while Knorr growth was led by the strong performance on Instant Soups. In Ice Creams, Kwality Walls had a good quarter on sharper in-market execution and Magnum continues to perform well and delight its consumers.

    Water: Leadership sustained in a challenging market context In a soft market, Pureit continued to drive the performance of premium devices with a focus on Modern Trade and in-store execution. The business benefited from a strong performance in the e-commerce channel.

    The Board of Directors have declared an interim dividend of Rs 6.5 per equity share of face value Re 1 each, for the year ending 31 March, 2016.

  • Q2-2016: Reliance Jio to ramp beta program; organized retail on growth path

    Q2-2016: Reliance Jio to ramp beta program; organized retail on growth path

    BENGALURU: The Mukesh Ambani led Reliance Industries Limited (RIL) organised retail segment – Reliance Retail, continued its growth momentum and profitability in the quarter ended 30 September, 2105 (Q2-2016, current quarter).

     

    RIL chairman and managing director Ambani said, “Reliance Retail achieved a milestone of Rs 5,000 crore quarterly turnover mark for the first time, reflecting continuing growth momentum in physical retailing. In Digital Services, we have substantially completed the network roll-out across the country and initiated the process of beta testing of our network and platforms.”

     

    “We achieved record levels of EBITDA and profits for the quarter, underscoring our ability to optimally utilise our assets across the value chain to leverage favourable market conditions. Refining business performance was notable, as it benefited from a combination of high utilisation levels, advantageous crude market opportunities and strong global fuels demand. Petrochemicals segment performance reflects strong volume growth, product mix improvement and lower energy costs,” he said.

     

    “We maintained a rapid pace of construction activity during the quarter. The company’s world-scale petroleum coke gasification facility and ethylene cracker complex remains on track for its planned 2016 start-up,” added Ambani.

     

    Revenues for Q2-2016 grew by 22 per cent Yo-Y to Rs 5,091 crore from Rs 4,167 crore and 8.4 per cent QoQ from Rs 4698 crore. RIL says that all format sectors grew through store additions as well as like for like growth ranging up to 16 per cent. The business delivered PBDIT growth of 12.9 per cent at Rs 210 crore in Q2-2016 as against Rs 186 crore in the corresponding period of the previous year, and PBIT growth of 3.4 per cent from Rs 203 crore in Q1-2016.

     

    Further, Reliance Retail expanded its reach with a net addition of 110 stores during the quarter. As on 30 September, 2015, Reliance Retail operated 2,857 stores across over 250 cities in India.

     

    The company says that Reliance Retail 2.0 initiatives encompassing fashion and lifestyle e-commerce, development of market place platform and building distribution ecosystem for Reliance Jio devices are on track and gearing up for rollout in a staged manner.

     

    Reliance Retail would soon launch its own brand of 4G LTE smartphones under the brand LYF. The brand built on the premise of unmatched user experience will offer high performance handsets that deliver a true 4G experience comparable to the best in the world. LYF range of smartphones with features like Voice over LTE (VoLTE), Voice over Wi-Fi (VoWi-FI), HD Voice and HD quality video calling will enable users to experience a new digital life.

     

    LYF phones will reach consumers across the country through one of the widest distribution and retail network for smartphones. The devices will soon be available at multi-brand outlets (MBOs) and modern trade including Reliance Retail stores across India.

     

    RIL numbers

     

    For Q2-2016, RIL achieved a turnover of Rs 75,117 crore, a decrease of 33.8 per cent, as compared to Rs 113,396 crore in Q2-2015 and 9.6 per cent lower than the Rs 83064 crore in the immediate trailing quarter.

     

    However, RIL’s net profit after tax (PAT) increased 12.5 per cent in Q2-2016 to Rs 6720 crore as compared to the Rs 5972 crore in Q2-2015 and increased 8 per cent as compared to the Rs 6222 crore in the previous quarter.

     

    Sale of Network18 shares

     

    In July 2015, RIL sold 3.25 crore shares of Network18 Media & Investments Limited, (representing 3.10 per cent of the equity capital of NW18) to bring down the aggregate shareholding of the promoter and promoter group to 75 per cent and increase the public shareholding to 25 per cent as mandated by Clause 40A of the listing agreement pursuant to Securities Contract (Regulation) Rules, 1957.

     

    Reliance Jio Infocomm Limited

     

    Reliance Jio Infocomm Limited (RJIL), a subsidiary of RIL, has substantially completed its network roll-out across the country. The network is currently being tested and optimised. Most of the business platforms have been rolled out and are being tested in a limited use environment. Large number of testers have been employed by the company across the country to facilitate extensive testing of network and business platforms.

     

    The company expects to ramp up its beta program over the next few weeks to further optimise the network, prior to commercial launch of operations. Financial year 2016-17 is projected to be the first year of commercial operations for RJIL.

     

    RJIL has launched Wi-Fi hot spots across several locations in the country and has entered into agreements with some of the State and Local Authorities to provide Wi-Fi services. RJIL has also started rolling out last-mile connectivity for its fibre-to-the-home (FTTH) business.

  • Q2-2016: Ad & subscription revenue growth drives Zee net up 9%; income up 24%

    Q2-2016: Ad & subscription revenue growth drives Zee net up 9%; income up 24%

    BENGALURU: Riding on the back of higher advertising and subscription based revenues in the quarter ended 30 September, 2015 (Q2-2016), the Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited’s (Zeel) net income was up nine per cent at Rs 247.40 crore (17.9 per cent margin) than the Rs 229 (20 per cent margin) in Q2-2015. This was also 1.5 per cent more than Rs 243.76 crore (18.2 per cent of consolidated total revenue or TR) in the immediate trailing quarter.

     

    The company’s total revenue in Q2-2016 increased 23.9 per cent to Rs 1384.90 crore from Rs 1117.82 crore in Q2-2015 and was 3.4 per cent more than the Rs 1339.86 crore in Q1-2016.

     

    Advertising revenues saw a 34.7 per cent hike in Q2-2016 to Rs 843.31 crore (60.9 per cent of TR) as compared to the Rs 625.94 crore (56 per cent of TR) and was 8.1 per cent more than the Rs 779.93 crore (58.2 per cent of TR) in Q1-2016.

     

    Subscription revenue in the current quarter also increased 12.9 per cent to Rs 479.14 crore (34.6 per cent of TR) from Rs 424.45 crore (38 per cent of TR) in the corresponding year ago quarter and rose 3.6 per cent as compared to the Rs 462.53 crore (34.5 per cent of TR) in the immediate trailing quarter.

     

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

     

    Zeel’s total revenue during the half year ended 30 September, 2015 (HY-2016) increased 25.4 per cent to Rs 2724.76 crore from Rs 2172.88 crore in HY-2015.

     

    Advertising revenue increased 30.1 per cent to Rs 1623.24 crore (59.6 per cent of TR) in HY-2016 from Rs 1248.04 crore (57.4 per cent of TR) in the corresponding year ago period. 

     

    Subscription revenue in HY-2016 at Rs 941.67 crore (34.6 per cent of TR) increased 12.6 per cent from Rs 836.58 crore (38.5 per cent of TR) in HY-2015.

     

    PAT for the current half year increased to Rs 491.16 crore (18 per cent margin) from Rs 438.12 crore (20.2 per cent margin) in HY-2015.

     

     

    Other results reported by Zeel for Q2-2016 and HY-2016:

     

    Total Expense (TE) in Q2-2016 at Rs 1050.05 crore (75.8 per cent of TR) increased 29.5 per cent as compared to the Rs 810.75 (72.5 per cent of TR) in Q2-2015 and was 0.4 per cent more than the Rs 1045.47 crore (78 per cent of TR) in Q1-2016.

     

    Zeel’s operating cost increased 28.3 per cent to 603.62 crore (43.6 per cent of TR) as compared to the Rs 470.30 crore (42.1 per cent of TR) in the corresponding year ago quarter, but was 1.2 per cent lower than the Rs 610.76 crore (45.6 per cent of TR) in Q1-2016.

     

    Other expense in Q2-2016 fell 18.3 per cent to Rs 179.05 crore (12.9 per cent of TR) as compared to the Rs 219.11 crore (19.6 per cent of TR) and was 2.3 per cent lower than the Rs 183.24 crore (13.7 per cent of TR) in Q1-2016.

     

    Employee Benefit Expense increased 17.4 per cent to Rs 126.70 crore (9.1 per cent of TR) than the Rs 107.96 crore (9.7 per cent of TR) in Q2-2015, but was 8.2 per cent lower than the Rs 138.01 crore (10.3 per cent of TR) in Q1-2016.

     

    Advertisement and Publicity expense in the current quarter was 64.6 per cent more at Rs 120.90 crore (8.7 per cent of TR) in Q2-2016 as compared to the Rs 73.45 crore (6.6 per cent of TR) and was 25.1 per cent more than the Rs 96.65 crore (7.2 per cent of TR) in Q1-2016.

     

     

    Company speak

     

    Chandra said, “Zee has seen an impressive performance during the second quarter. The improvement in advertisement industry and improved performance of our network has helped us grow ahead of the market. We continue to see the positive results of our investments. We will endeavour to continue on this track going forward and pursue new opportunities that will yield long term growth. Our effort is to entertain audience across the world.”

     

    Zeel managing director and CEO Punit Goenka added, “We are quite pleased with our quarterly performance and it continues to remain on track. We have grown as a network on the back of superior programming on our new and existing products. The improvement in the overall advertisement market has further aided our strong growth. The domestic subscription market has also seen steady growth.”

     

    “Zee is the leading content player in the Indian TV industry offering maximum hours of content for audiences both home and abroad. Going forward, our endeavor would be to further enhance our offerings and be ahead of the market in delivering innovative and high quality entertainment to our viewers across consumption platforms. We believe that in this fast evolving media and  entertainment space delivering excellent content will remain key for monetising revenues, from both advertising and subscription standpoint,” said Goenka.