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Declaring its first results post IPO, for the year ended March 2007, on a consolidated basis, Cinemax India reported 38% growth in sales to Rs 100.16 crore with Theatrical Exhibition segment contributing 84% of the revenues and balance from construction segment. Operating margins improved 440bps to 25.4% backed by decrease in direct costs. The consolidated net profit grew 49% to Rs 11.48 crore.
On standalone basis, Cinemax reported 63% growth in sales to Rs 68.98 crore with operating margins dipping 370bps to 24.2% on the back of fall in margins in Exhibition business due to expansion of business. The net profit before EO and prior period tax grew 16% to Rs 7.87 crore. For FY07, footfalls increased 142% from 36.70 Lakh to 52 Lakh.
Cinemax is the largest owner of theatre properties in Mumbai with 20 screens spread over 120,000 square feet area. With the recent launch of their Multiplex property in Guwahati, Cinemax now has 38 screens spread over 12 locations.
Yearly Performance (Consolidated)
For the year ended March 2007, on consolidated basis, comparing with proforma numbers as per prospectus, Cinemax reported 38% growth to Rs 100.16 crore. Exhibition business contributed 84% to Rs 85.14 crore and construction segment revenues contributed 16% to Rs 16.51 crore. Operating margins improved 440bps to 25.4% due to lower direct cost down 960bps to 52.2%. However, other expenditure was up 300bps to 16.2% and staff cost up 210bps to 6.2%. OPM for exhibition business stood at 24.5% and construction 28.7%.
Operating profits for the year grew 68% to Rs 25.49 crore. Other Income for the year was Rs 2.24 crore. Interest cost was up 21% to Rs 4.92 crore and depreciation cost was up 89% to Rs 5.52 crore on the back of addition of screens. PBT before EO grew 66% to Rs 17.29 crore. For FY07, the company wrote off excess insurance claim of Rs 0.51 crore. PBT after EO grew 61% to Rs 16.78 crore. Tax for the year was up 91% to Rs 5.21 crore. PAT was up 51% to Rs 11.57 crore. Net profit after prior period tax of Rs 9 lakh was up 49% to Rs 11.48 crore.
Yearly Performance (Standalone)
For the year ended March 2007, on standalone basis, Cinemax reported 63% growth to Rs 68.98 crore. Exhibition business sales grew 214% to Rs 53.80 crore and construction segment revenues dipped 35% to Rs 16.51 crore. The number of screens increased from 7 screens to 34 screens. Operating margins dipped 370bps to 24.2% due to higher other expenditure up 240bps to 16.4%, staff cost up 20bps to 7.9% and direct cost up 10bps to 52.2%. OPM for exhibition business stood at 24.7% and construction 28.7%.
Operating profits for the year grew 41% to Rs 16.66 crore. Other Income for the year grew 38% to Rs 2.07 crore. Interest cost was up 60% to Rs 3.91 crore and depreciation cost was up 331% to Rs 4.05 crore on the back of addition of screens. PBT before EO grew 9% to Rs 10.77 crore. For FY07, the company wrote off excess insurance claim of Rs 0.51 crore and in FY06, the company wrote back depreciation of Rs 2.2 crore on change of accounting policy. PBT after EO dipped 15% to Rs 10.26 crore. Tax for the year was down 8% to Rs 2.90 crore. PAT was down 18% to Rs 7.36 crore. Net profit after prior period tax of Rs 9 lakh was down 19% to Rs 7.27 crore.
Management Comments
Commenting on the performance of the Company, Mr. Rasesh Kanakia, Chairman, Cinemax India, said
"We have had a very fabulous year with a record growth As on date we have spread our presence to Himmatnagar, Gujarat and Guwahati, Assam. Over the next two years we plan to reach 49 locations housing 165 screens and 42000 plus seats as we strive to continue to invest in developing world class theatre properties across the country."
Valuation
Shares of the company are trading at Rs 157.30 at the bourses, which discount the consolidated FY07 EPS of Rs 4.3 by 36.6 times.
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