Key highlights:-

For the quarter ended June 2015, the consolidated net sales grew by 23.5% at Rs 130.32 crore. The net profit level inclined by 41% to Rs 12.81 crore.

The average number of advertisement minutes sold per show per screen increased to 3.81 from 2.13 in Q1 FY15. As a result, advertisement revenue grew 88% to Rs 36.3 crore. The advertisement revenue per screen (average) stood at Rs 93098 in Q1 FY16 compared to Rs 53085 in Q1FY15.

Advertisement revenue contribution grew from 18% to 28% YoY.

OPM was down due to higher sharing of ad revenue with exhibitor and spend on new business of Caravan Cinema

The mgmt said that it has seen significant growth in revenue of Caravan talkies, which will help margin going forward.

The mgmt said that quarter can't be compared either on YoY or QoQ basis, as performance for the quarter depends on number of films released and its hit or not.

The mgmt said that going forward growth will mostly come from ad revenue and hardly from equipment rental and sales of digital cinema equipment as numbers of screen opening is coming down

Caravan Cinema now has 50 vans and expects to have 80 vans by end of September and 125-150 vans by end of FY16. The mgmt expects it will have 300 vans over period of next 2 years. The capex for each van is around Rs 14-15 lakhs and total capex for 300 van would be around Rs 40-45 crore.

The mgmt said that Q2 will also see margin pressure with long running of hit movies like Bajrangi Bhaijaan and Baahubali, but to large extent it will be compensated by increase in ad-revenue.

For last 3 years, the mgmt is focusing on increasing utilization of advertisement minutes. Ad rate has increased marginally.

The mgmt expects advertisement revenue to grow by 40-50% in FY16.

The net debt is around Rs 33 crore and cash is around Rs 82 crore.

Rs 40- 50 crore is maintenance capex per year.