Eros International Posts Blockbuster Profits In Q3FY14 Results
DSIJ Intelligence / 13 Feb 2014
Eros International Media, a global media and entertainment company, today posted strong performance in October-December quarter in FY14. Backed by which, the company’s stock price gained 3% after the result announcement, closed at Rs 161.80 in today’s trading session.
Eros International Media, a global media and entertainment company, today posted strong performance in October-December quarter in FY14. Backed by which, the company’s stock price gained 3% after the result announcement, closed at Rs 161.80 in today’s trading session.
The company’s year-on-year net sales jumped by 17% to stand at Rs 433 crore for third quarter FY14. The higher growth in sales is on account of increase in new movie releases during the quarter in various languages like Hindi, Tamil and other regional languages.
Operating income of the company boosted by 50% and stood at Rs 135.6 crore, backed by the higher sales and decline of 6.6% (Rs 297 crore) in the operating expenses of the company. Though, total operating expenses on yearly basis has increased, but it has declined as a proportion of revenue (69% in Q3FY14 over 75.5% in Q3FY13).
Net Profit of the entertainment company surged up by 41% to Rs 92 crore against Rs 65 crore in Q3FY13. The profit would have crossed Rs 100 crore during the quarter, while it got impacted to a small extent by the higher increase in tax expenses (increased by 127% to Rs 37.4 crore).
For the fourth quarter of current financial year, the company has a positive outlook with two big movies released in the first month (January) of the quarter (Q4FY14) - ‘Jai Ho’ starring Salman Khan and Tamil movie ‘1 Nenokkadine’ starring Mahesh Babu.
Besides this there are various movies in the pipeline to release in the financial year 2014-15. The films includes Action Jackson, Happy Ending, Dekho Magar Pyaar Se, Purani Jeans, Tanu Weds Manu Season 2. Apart from this there are also other movies in the pipeline in various regional languages.
Eros International Media, MD, Sunil Lulla, said the prominent movie releases such as Raam Leela, R...Rajkumar, Raanjhaana, Yeh Jawani Hai Deewani etc. earned a good income during the period. Also the company is looking forward to collaborate with HBO and expects to gain a good momentum in its digital content space.
The stock price is trading at trailing twelve month price to earnings multiple of 7.9x.
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