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Eros’ net profit down 65% in quarter of ‘Bajirao Mastani’

MUMBAI: Film production studio Eros International Media’s consolidated net profit has slipped 65 per cent to Rs 37.8 crore for the quarter ended 31 December 2015 compared to Rs 109.3 crore a year ago.

The company’s expenses declined to Rs 270.59 crore during the quarter as compared to Rs 345.34 crore in the previous fiscal.

Revenue was down 31 per cent to Rs 338.2 crore compared to Rs 492 crore in the trailing fiscal. EBIT shrunk by 54 per cent to Rs 67.7 crore compared to Rs 146.6 crore.

In Q3 FY2016, total income stood at Rs 3,382 million (Rs 4,920 million in Q3 FY2015), registering a 31.3 per cent decrease.

bajirao-mastaniRevenue performance during the quarter was driven by the blockbuster success of ‘Bajirao Mastani’, which grossed over Rs 2 billion in India and Rs 3 billion globally.

During the quarter, the studio released one high-, four medium- and 10 low-budget films as against three high-, one medium- and eight low-budget films in the preceding fiscal.

The company said that there was only one high-budget film compared to three in the earlier-year period, with only partial revenues of ‘Bajirao Mastani’ getting captured in the quarter under review.

During the quarter, 15 films were released comprising seven Hindi and five Tamil/Telugu films and three regional film as against 12 films during Q3 FY15, which included eight Hindi and four Tamil/Telugu films.

Commenting on the performance, Eros International Media executive vice chairman and MD Sunil Lulla said, “I am pleased to announce yet another profitable quarter from Eros International driven by the blockbuster success of ‘Bajirao Mastani’ and a string of regional releases. Our results for the nine months ended December 2015 reflect the strong performance of our film slate with total domination of the box-office charts with ‘Bajrangi Bhaijaan’, ‘Tanu Weds Manu Returns’, ‘Welcome Back’, etc., and strong television, ancillary and overseas revenues to complement the box office. We are very proud that our films have been dominating the Bollywood awards declared for CY2015. We continue to pride ourselves on our green-lighting process and build on our portfolio strategy of films across varied budgets and languages backed by strong presales to de-risk the business model.

“We are upbeat about our film slate for FY2017, which includes a string of high-octane releases such as R Balki’s ‘Ki & Ka’, the hit franchise comedy ‘Housefull 3’, the highly anticipated rock musical franchise ‘Rock On 2’, the action drama, ‘Shivaay’ and a host of regional releases.

“We firmly believe that the company has a conservative capital structure and a well-funded balance sheet and we are proud to bring down our net debt/equity ratio to just 0.11 with a free cash flow of Rs 1,320 million in the 9M FY2016. I am confident that with our clear strategic focus, differentiated revenue streams and regional strategy execution, we will continue to deliver solid results in the future and we thank all our shareholders and associates for their continued support.”

jyoti_deshpandeCommenting on the highlights, Eros International group CEO and MD Jyoti Deshpande commented, “Calendar year 2015 has been nothing short of brilliant for Eros International operationally with a higher than average box-office success of our entire film slate along with critical acclaim and awards to go with it. This year also marked the beginning of the monetisation of the 30 million+ registered users of Eros Now, our OTT platform, and our foray into what could be potentially groundbreaking Indo–China co-productions.

We continue to support Eros International Media in every possible way with our strong balance sheet and are thrilled that Eros International Media has achieved a free cash flow (FCF) of Rs 1,320 mn in the 9MFY16. We look forward to announcing Q3 results of Eros International Plc later in February with a further update on other related matters. Once again, we thank our shareholders, business associates, the Indian film industry and other partners who have helped us strengthen our resolve even in tough times.”