MAM
FY-16: UFO Moviez ad revenue 35 percent up
BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform, UFO Moviez Limited (UFO) reported a 35.3 percent growth in advertising revenue for the year ended 31 March 2016 (FY-16, current year). The company reported advertising revenue of Rs 157.8 crore in FY-16 as compared to Rs 116.7 crore in the previous year. Average advertisement minutes sold per show per screen increased to 4.15 (FY-15 – 3.36) minutes during the year. Theatrical and In-Cinema advertisement (consolidated excluding new businesses) revenues grew by 18.6 percent to Rs 567.1 crore (FY-15 – Rs 478.3 crore). Consolidated revenues improved by 19.4 percent to Rs 572.1 crore (FY-15 – Rs 479.3 crore)
Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
Let us look at the other numbers reported by UFO Moviez
Total Expense in FY-16 increased 17.5 percent to Rs 464.70 crore from Rs 395.45 crore in FY-15. Ad revenue share (expense) in FY-16 increased 27.2 percent to Rs 47.15 crore from Rs 39.39 crore in the previous year. Visual Print sharing expense in FY-16 increased 22.9 percent to Rs 73.36 crore from Rs 63.31 crore.
The company’s expense towards purchase of digital cinema equipment and lamps in the current year increased 62.7 percent to Rs 66.0s crore as compared to Rs 40.59 crore in FY-15.
Company speak
“Fiscal 2016 was another successful year for UFO as our financial results exceeded expectations across all metrics,” said UFO Moviez founder and managing director Sanjay Gaikwad. “Our confidence in our advertisement growth strategy has further strengthened. We continued to generate strong cash flows, allowing us to return value to our shareholders through dividends. We are excited about the potential of our advertisement platform and committed to deliver growth ahead aiming at unlocking further value for shareholders.”
“UFO delivered record revenue and profitability with consistent growth year on year for the last 5 fiscal years,” said Kapil Agarwal, Joint Managing Director. “Our theatrical business continues to deliver stable results and we remain strategically focused on driving growth through advertising. Momentum from advertisements continued in fiscal 2016 with advertisement sales exceeding 35 percent growth achieving record levels. As we enter fiscal 2017, we remain confident in our momentum and see tremendous opportunity and exciting prospects for the company.”
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
