Phantom Films’ operating income more than doubles to Rs. 275.37 cr in FY18

MUMBAI: Film production company Phantom Films Pvt Ltd (PFPL) has more than doubled its operating income to Rs. 275.37 crore for 2018 fiscal. In FY17, the company had posted an operating income of Rs. 126.95 crore while in FY16 the operating income stood at Rs. 262.57.

The EBITDA during the fiscal nearly doubled to Rs. 6.24 crore from Rs. 3.53 crores in FY17. For FY16, the figure was Rs. 3.89 crore. The company posted a net profit of Rs 76 lakh as against Rs. 1.32 crore in FY17 and Rs. 1.17 crore in FY16.

PFPL was incorporated in 2011 by three film directors, Anurag Kashyap, Vikramaditya Motwane and Vikas Bahl along with producer Madhu Mantena. In FY 15-16 Reliance Big Entertainment entered into Business Transfer Agreement with PFPL by acquiring 50% equity shares in the company.

The company is engaged in production, distribution and syndication business. Their notable projects include ‘Queen’, ‘Lootera’, ‘Sacred Games’, ‘Ghoul’ among others. The upcoming content pipeline includes films like ‘Super 30’, ‘1983’, ‘Sacred Games 2’, ‘Ghoul 2’ besides other untitled projects under production.

Meanwhile, Acuité has reaffirmed long-term rating of ‘ACUITE BBB-’ on the Rs. 40 crore bank facilities of PFPL. The outlook is ‘Stable’.

On 16th October 2018, Acuité had placed the long term rating of ‘ACUITE BBB-‘ on ‘Rating watch with developing implications’ in response to news reports relating to the intention of directors to dissolve the company.

As per the subsequent discussions with the management, Acuité has been informed that there is no intention to discontinue the operations and the company will continue to function as earlier under the same management.

The rating agency further stated that PFPL has a diversified revenue mix which includes theatrical revenue from feature films vis-à-vis revenue from original contents creation for digital platforms like Netflix, Amazon Prime, and others, distribution of movies in the domestic market and syndication of library content.

At present, PFPL has approximately 500 movies and other content in its library. The company generally pre-sells majority of its content to mitigate the risk related to its box office performance.

Phantom has an above average financial risk profile marked by a healthy net worth of Rs. 183.33 crore as on 31st March 2018 as compared to Rs. 182.54 crore as on 31st March 2017. The debt to equity stood healthy at 0.37 times as on 31st March 2018 as compared to 0.39 times as on 31st March 2017.

The total debt of Rs. 68.36 crore as on 31st March 2018 includes Rs. 39.37 crore of unsecured loans from the promoters and related parties and Rs. 28.99 crore working capital borrowings from the bank.

The company’s major earning assets comprises of the inventory of Rs. 311.74 crore as on 31st March 2018 which includes the library of content of Rs. 76.09 crore and content under-production of Rs. 226.30 crore.

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