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Eros Q1 net jumps 48.9% on back of box-office hits

MUMBAI: Film and entertainment company Eros International has posted a huge jump in its net profit and revenue in the first quarter of the fiscal on the back of strong box-office performance of movies like ‘Tanu Weds Manu Returns’, ‘Uttama Villain’, ‘Dil Dhadakne Do’ (overseas), and ‘Gabbar’ (overseas).

The company’s consolidated net profit (after minority) during the quarter ended 30 June 2015 jumped 48.9 per cent to Rs 53.4 crore (Rs 534 billion), compared to Rs 35.8 crore (Rs 358 million) in the corresponding quarter of the previous fiscal.

In the first quarter, Eros took an additional tax charge of Rs 4.63 crore (Rs 46.3 million) towards deferred tax liability due to a change in effective tax rate from 33.99 to 34.61 per cent.

Revenues, meanwhile, jumped by a whopping 96.5 per cent to Rs 480.6 crore (Rs 4.81 billion) compared to Rs 244.6 crore (Rs 2.45 billion) in the year-ago period.

According to the company, revenues from the television segment and valuable contribution from the film library contributed to the financial performance. While theatrical revenues contributed 51.5 per cent to total income, overseas revenues comprised 27 per cent and the remaining 21.5 per cent came in from television and other segments.

EBIT increased by 60.7 per cent to Rs 96.3 crore (Rs 963 million) from Rs 59.9 crore (Rs 599 million). The overall EBIT margin came at 20 per cent in comparison with 24.5 per cent in year-ago period, reflecting the slate mix, the company said.

Incidentally, significant contribution came in from ‘Tanu Weds Manu Returns’, a medium-budget movie directed by Anand L Rai and produced by subsidiary company Colour Yellow Productions.

The company released 16 movies during the quarter consisting of seven Hindi films, eight Tamil/Telugu films and one regional film. In the year-ago period, it had released nine films, including five Hindi and four Tamil/Telugu films.

Of the total 16 films released, two were high-budget, three medium, and 11 low-budget films as against one high-budget, three medium, and five low-budget movies in the year-ago period.

The company said that strong theatrical performance during the period was driven by the success of global and overseas releases including ‘Tanu Weds Manu Returns’, ‘Uttama Villain’, ‘Masss’, ‘Dil Dhadakne Do’ (overseas), ‘Gabbar’ (overseas), and other regional (Marathi) language releases.

Eros International Media executive vice chairman and MD Sunil Lulla said, “We have had an excellent start to fiscal 2016 with the resounding success of ‘Tanu Weds Manu Returns’ and our other major new releases, ‘Uttama Villian’ ‘Masss’, ‘Dil Dhadakne Do’ (overseas) and ‘Gabbar’(overseas), doing well. The portfolio performance reinforces our strategy of investing in content-driven films, which are prudently budgeted and then extensively monetised across traditional and emerging platforms.”

The company added that in line with its de-risking strategy, it registered strong pre-sales from theatrical, satellite, and music rights exploitation for the various movies it had released during the quarter.

“As a strategy, we continue to diversify our presence across difference film genres, budgets, and languages. Further, strong pre-sales for our films remain one of the cornerstones of our strategy,” Lulla added.