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FY-2015: Tepid box office, World Cup Cricket chop PVR profits
BENGALURU: Impacted by poor movie content and World Cup Cricket towards the end of FY-2015 (year ended 31 March, 2015, current year) Indian motion picture exhibition, production and distribution house PVR Limited reported just 23.1 per cent PAT at Rs 11.64 crore as compared the Rs 50.39 crore in FY-2014.
PVR, in its earnings release, says that there was a 12 per cent drop in the footfalls in Q4-2015 at 1.22 crore and that its entertained one per cent lesser patrons (5.92 crore) in FY-2015 and profit could have been lower but for strong performance of its Food and Beverages (F&B) revenues and Sponsorship income.
Note: 100,00,000 = 100 lakh = 10 million = 1 crore
All numbers are consolidated unless stated otherwise
The company’s Q4-2015 performance has been poor. PVR’s Movie Exhibition segment revenue dropped 4.3 per cent in Q4-2015 to Rs 271.40 crore as compared to the Rs 283.69 crore in Q4-2014 despite the company adding 50 more screens spread over nine properties in FY-2015. Also, Q4-2015 movie exhibition segment revenue was 30.9 per cent lower than the Rs 392.88 crore in the immediate trailing quarter. The movie exhibition segment has reported an operating loss of Rs 14.68 crore in Q4-2015 as compared to operating profits of Rs 18.99 crore of Rs 50.08 crore in Q4-2014 and Q3-2015 respectively. PVR’s movie exhibition revenue in FY-2015 at Rs 1370.31 crore was 9.1 per cent more than the Rs 1255.59 crore in FY-2014. The segment reported 28.2 per cent lower operating profit of Rs 88.23 crore in the current year as compared to the Rs 122.87 crore in FY-2014.
In Q4-2015, PVR’s net Total Income from Operations excluding other income (TIO) at Rs 299.55 crore was 4.5 per cent lower than the Rs 314.23 crore in the corresponding year ago quarter and 28.6 per cent lower than the Rs 419.71 crore in Q3-2015. TIO in FY-2015 at Rs 1481.34 crore was 9.6 per cent more than the Rs 1351.23 crore in FY-2014.
PVR reported a loss of Rs 35.56 crore in Q4-2015 as compared to PAT of Rs 0.74 crore in Q4-2014 and PAT of Rs 31.59 crore in the immediate trailing quarter.
PVR’s EBIDTA in FY-2015 also suffered on this account. EBIDTA including other income in the current year at Rs 209.67 crore (14.2 per cent margin) declined six per cent as compared to the Rs 222.99 (16.5 per cent margin) in FY-2014. EBIDTA including other income in Q4-2015 at Rs 12.71 crore (4.2 per cent margin) was almost a third (down 63.9 per cent) of the Rs 35.18 crore (11.2 per cent margin) and a little more than one seventh (15.3 per cent margin) of the EBIDTA including other expenses of Rs 82.23 crore (19.8 per cent margin) in the previous quarter.
Let us look at the other numbers reported by PVR
PVR’s Total Expenditure (TE) in FY-2015 at Rs 1393.11 crore (94 per cent of TIO) in FY-2015 was 13.2 per cent more than the Rs 1230.22 crore (91 per cent of TIO) in FY-2014. TE in Q4-2015 at Rs 314.12 crore (104.86 per cent of TIO) was 0.5 per cent lower than the Rs 315.58 crore (100.43 per cent of TIO) and 14.9 per cent lower than the Rs 369.33 crore (88 per cent of TIO) in Q3-2105.
The company’s Film Exhibition Cost in FY-2015 at Rs 342.18 crore (23.1 per cent of TIO) was 3.9 per cent more than the Rs 329.49 crore (24.4 per cent of TIO) in FY-2014. Film Exhibition Cost in Q4-2015 at Rs 62.96 crore (21 per cent of TIO) was 8.2 per cent lower than the Rs 68.6 crore (21.8 per cent of TIO) in Q4-2014 and 36.1 per cent lower than the Rs 98.49 crore (23.5 per cent of TIO) in the previous quarter.
PVR’s cost of Food and Beverages consumed (F&B cost) in FY-2015 at Rs 107.38 crore (7.2 per cent of TIO) was 16.3 per cent more than the Rs 92.31 crore (6.8 per cent of TIO) in FY-2015. F&B cost in Q4-2015 at Rs 21.05 crore (seven per cent of TIO) was 2.9 per cent lower than the Rs 21.67 crore (6.9 per cent of TIO) in Q4-2014 and 30 per cent less than the Rs 30.05 crore (7.2 per cent of TIO) in Q3-2015. PVR says that F&B revenues increased 17 per cent in FY-2015 as compared to FY-2014.
The company’s movie production segment (movie segment) in FY-2015 reported 35.9 per cent growth in revenue at Rs 51.23 crore as compared to the Rs 37.71 crore in FY-2014. Movie segment revenue in Q4-2015 at Rs 13.61 crore was 28.3 per cent lower than the Rs 18.99 crore in Q4-2014 and 14.9 per cent more than the Rs 11.85 crore in Q3-2015. The segment reported operating profit of Rs 2.74 crore as compared to an operating profit of Rs 0.90 crore in FY-2014. Operating profit of PVR’s movie production segment in Q4-2015 was Rs 1.54 crore as compared to an operating loss of Rs 0.56 crore in Q4-2014 and an operating profit of Rs 0.43 crore in Q3-2015.
PVR’s Others’ (including Bowling, gaming and restaurant services, etc) segment reported almost flat revenue (down 0.1 per cent) in FY-2015 at Rs 73.96 crore as compared to the Rs 74.02 crore in FY-2014. Revenue from ‘Others’ segment in Q4-2015 at Rs 17.27 crore was 9.9 per cent less than the Rs 19.16 crore in Q4-2014 and 9.1 per cent less than the Rs 19 crore in Q3-2015. The ‘Others’ segment reported slightly higher operating loss of Rs 2.80 crore in FY-2015 as compared to the Rs 2.63 crore in FY-2014. Operating loss of the segment in Q4-2015 at Rs 1.46 crore was higher than the operating loss of Rs 0.96 crore in Q4-2014 and the operating loss of Rs 0.13 crore in Q3-2015.
Assuring stakeholders of a better FY-2016, PVR chairman and managing director Ajay Bijli said, “While Q4-2015 performance stood tepid, with the consumer sentiment coming back Q1-2016 box office have been very strong with movies like Fast & Furious 7, Avengers, Gabbar, Piku and Tanu Weds Manu leading the pack. Going forward we have Dil Dhadakne Do, Jurassic World and ABCD-2 releasing in June followed by Bajrangi Bhaijaan, a Salman Khan starrer and Drishyam in July. The content pipeline looks pretty promising and hopefully the worst in terms of content should be behind us and we expect a blockbuster 2015-16.”
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Trump announces $300bn Texas oil refinery with Reliance, calls it the biggest in US history
First new US refinery in 50 years planned at Brownsville port with Reliance
WASHINGTON: The United States may soon see the first brand-new oil refinery built on its soil in half a century.
Donald Trump announced a proposed $300 billion refinery project in Texas, calling it a landmark moment for American energy production and jobs.
Posting on Truth Social on 10 March, Trump said the facility would be built at the Port of Brownsville and developed by a company called America First Refining, with major investment from India’s Reliance Industries.
The announcement frames the project as a centrepiece of the administration’s push for “energy dominance”, with Trump claiming it would deliver thousands of jobs and billions of dollars in economic activity to South Texas.
If realised, the plant would mark the first all-new major refinery constructed in the United States since the 1970s. In recent decades, oil companies have largely chosen to expand existing facilities rather than build new ones, citing high costs, regulatory hurdles and environmental scrutiny.
Trump described the proposed investment as the “biggest in US history”, positioning it as proof that policy changes such as streamlined permits and lower taxes are drawing large-scale energy investments back into the country.
The refinery is planned for the Port of Brownsville, a strategic Gulf Coast location that provides easy access to shipping routes and export markets.
A key partner in the project is Reliance Industries, controlled by billionaire industrialist Mukesh Ambani. The company already runs the world’s largest refining complex in Jamnagar, India, making it one of the most experienced operators in large-scale petroleum processing.
The Texas venture would mark a significant step for the group into America’s domestic refining sector, potentially strengthening industrial ties between the US and India.
The proposed refinery is being promoted as a next-generation facility capable of processing American shale oil while maintaining high environmental standards. Trump said it would be “the cleanest refinery in the world”, although the specific technologies behind that claim have not yet been detailed.
Industry observers also note that the $300 billion figure is unusually large for a refinery project, and analysts are waiting for more clarity on whether the number reflects total construction costs, long-term infrastructure investment, or broader economic impact estimates.
As of 11 March, Reliance Industries had not publicly confirmed the investment size or the structure of its involvement.
For now, the announcement has sparked equal parts excitement and curiosity in energy markets. If the plan moves from promise to pouring concrete, the refinery could reshape the Gulf Coast energy landscape, and reopen a chapter in American refining that has been quiet for nearly fifty years.
