Highlights of the call

• During the quarter, the Company added a multiplex with 4 screens and 634 seats at Cochin, Kerala. The Company withdrew from Himmatnagar where it has 3 screens and 1146 seats. At the end of the quarter, the Company is present at 28 locations with 91 screens and 24027 seats.

• The Company withdrew from Himmatnagar as it was no longer viable. The management expects that it would not lose any money from cancellation of the contract. Further, ther are chances that it could get license fees of 3 – 5% from the current owner in return to using the Cinemax brand name.

• For FY2011, the management expects revenues of Rs 250 – 275 crore and PAT of Rs 18 – 24 crore. The seat turnover is expects at 1.5 – 1.75 times.

• The tax rate for FY2011 would be 33% and a tax reversal of Rs 5 – 6 crore similar as in FY2010 where it has tax reversal of Rs 8 crore being tax paid on the entertainment tax paid by the Company.

• The Company does not plan to raise funds. It has a capex plan of Rs 48 - 50 crore to add 8375 seats in FY2011. This would be funded through bank loan of Rs 25 – 30 crore and balance through internal accruals. The Company has already done capex of Rs 10 – 12 crore.

• For Q2FY2011, the Company has plans to add 7 screens and 1357 seats across Ahmedabad, Baroda and Kolkata. The management is confident of adding these capacities.

• Further for Q3FY2011, the Company as plans to add 4 screens in Bangalore with 1000 seats. For Q4FY2011, the Company plans to add 27 screens and 6018 seats across Raipur, Delhi, Malegaon, Pune, Surat and Hyderabad. There could be changes in this plan.

• For the first quarter of FY2011, on consolidated basis, Cinemax reported 96% growth in operating revenues at Rs 45.99 crore with operating margins improving 1210bps at 14.4% and the PAT was at Rs 1.09 crore against loss of Rs 0.58 crore for the corresponding quarter previous year.

• Of the revenues, ticket sales are 70%, F&B income is 17%, advertising income 6%, rental income 3% and gaming income of 2%.

• For the quarter, footfalls surged to 27.08 lakh up 85% and occupancy was at 22% up from 18% in the corresponding quarter previous year. ATP improved sequentially by 8.6% at Rs 139 per patron, F&B spent per head was up 16.1% at Rs 36. Footfalls for the quarter were at 27.08 lakh.

• The management expects the ATP to be in the range of Rs 139 – 145 per patron.

• The debt on books are at Rs 90 crore and cash was Rs 4 crore.