Key highlights:-

For the quarter ended September 2016, the consolidated net sales grew by 7% at Rs 159.9 crore. The net profit level inclined by 23% to Rs 20.3 crore.

The consolidated core net sales excluding VDSPL grew by 7% at Rs 159.6 crore. The net profit level inclined by 33% to Rs 24.2 crore

Advertisement revenue grew 50% to Rs 51.7 crore. Average advertisement minutes sold per show per screen increased to 5.15 (Q2 FY16 - 3.85) minutes during the quarter. Avg. revenue per screen during quarter increased by 51% to Rs 139389 YoY

VPF revenue from E-cinema grew by 15% to Rs 29.3 crore and from D-cinema by 0.7% to Rs 39.8 crore. Lease rental income from E-cinema grew by 14% to Rs 11.3 crore while D-cinema de-grew by 4.5% to Rs 3.7 crore.

Total sales of products decreased by 40% to Rs 18.2 crore.

Numbers of screens increased from 3690 to 3784 YoY in Q2. Full house seating capacity on annualized basis decreased from 2573 mn to 2537 mn.

Screens - 100 to 200 plus / minus screens will happen always. Seat capacity reduced despite increase in screen as big screen go for renovation and come with less numbers of seats with addition of screens.

Caravan Talkies was non-operational in Q2FY17 due to monsoons. Efforts to improve revenues have further intensified. Caravan Talkies is expected to cash breakeven in H2FY17

Caravan - 40 vans are operating. Currently have 112 vans. By Q4, 80-90 vans will be running.

Operating leverage and advertisement revenue helped OPM growth in Q2.

Advertisement revenue contribution was 33% vs 23% YoY helped by government and private advertisers

H2 FY17 advertisement revenue looking promising due to strong content pipeline. 30% growth guidance can be achieved.

Rs 30 crore is net cash. Rs 2.4 crore is net debt.

DSO – 81 days as on September 2016 vs 91 days as on March 2016.

E-cinema revenue growth is primary driven by yield, though no prices increase. As there was less movies which run for longer weeks in quarter, helped revenue growth.

Average advertisement minutes sold per show per screen sharp jump as Q2 and Q3 sees high consumption by corporate due to festive season. Q4 sees high consumption by government agencies.

On Rs 100 crore plus cash on book, the company said that it will continue to follow its continuous dividend policy. Cash is scattered along various subsidiaries.

Will appoint all 600 DSA by end of FY17. Second half of FY18 will get real impact of DSA.

DSA – revenue was there but it was very small.

Nova cinemas - the company here looks at brown and green field projects. For brownfield project, the company invest around Rs 20 lakh ( Rs 10k for 250 seats each). Revenue sharing from ticket sales arrangement is there for brownfield. But focus gng fwd is on advertisement revenue and distribution revenue. Rs 15 crore capex for for 20 screens which will have 200 seats capacity for FY17. 20 screens will be mix of green and brown field. In green field project, capex is Rs 3.5 - 4 crore. This will be mostly in tier 2 and tier 3 cities.

Government advertisement revenue – 94% growth seen as it has added more states and few states spend more. Central government out of their total advertisement spend, small portion is getting allocated to digital cinema and the company being largest player in digital cinema is benefiting from it. Also some PSU started advertising.

Government advertisement revenue growth is volume driven.

More multiplex screens addition seen – due to lots of single screens getting converted to multiplex screen. Also few small multiplex screens have arrangement for selling their advertisement inventory which is also added to multiplex numbers.

Normal capex is Rs 50-60 crore every year. It excludes Nova capex

Sales of products depend on those screens which are coming up outside India. Product sales include equipment sales and lamp sales. Lamp sales are predictable. Equipment sales are 42% of total sales this year while lamp is 58%. Equipment sales are one time sale while lamp sales are perpetual business.