Brands
Q1-2016: PVR PAT improves more than sevenfold; to raise Rs 500 crore
BENGALURU: Indian motion picture exhibition, production and distribution house PVR Limited (PVR) reported more than sevenfold increase in profit after tax (PAT) in the quarter ended 30 June, 2015 (Q1-2016) as compared to the corresponding year ago quarter.
PVR’s PAT for Q1-2015 was Rs 58.45 crore (12 per cent of Total Income from Operations or TIO), while in Q1-2015, it was Rs 7.66 crore (2.1 per cent of TIO). The company had reported a loss of Rs 35.66 crore in the immediate trailing quarter (Q4-2015) citing impact by poor movie content and World Cup Cricket towards the end of FY-2015.
Note: 100,00,000 = 100 lakh = 10 million = 1 crore
All numbers are consolidated unless stated otherwise.
Additionally, PVR’s board of directors has also approved to raise a sum of Rs 500 crore by issuing Non Convertible Debentures (NCD) subject to approval by the members of the company in the forthcoming Annual General Meeting.
The board also approved the scheme of merger of PVR Leisure Limited and Lettuce Entertain You Limited with the Company.
Approval was also given for the allotment of 50,00,000 equity shares priced at Rs 700 per share of face value Rs 10 each equity share at a premium of Rs 690 per share aggregating to Rs 350 crore on preferential basis to Plenty Cl Fund I Limited, Multiples Private Equity Fund II LLP and Plenty Private Equity Fund I Limited.
Box Office performance
This quarter has seen the release of some hits and super hits like Tanu Weds Manu Returns (Gross Box Office or GBO Rs 46.9 crore, 25 lakh admits, Average Ticket Price or ATP Rs 185); Piku (GBO Rs 27.7 crore, 15 lakh admits, ATP Rs 186); Fast and Furious 7 (GBO Rs 26.6 crore, 15 lakh admits, ATP Rs 174); ABCD2 (GBO Rs 23.4 crore, 13 lakh admits, ATP Rs 183); and Avengers-Age of Ultron (GBO Rs 24.4 crore, 13 lakh admits, ATP Rs 182) that have driven the resurgence in revenue as well as PAT.
Net Box Office (NBO) collections in the current quarter increased 34.96 per cent to Rs 274.19 crore from Rs 203.16 crore in Q1-2015. Q1-2016 saw admits increasing by 25 per cent to 1.9 crore with an occupancy of 38 per cent as compared to 1.52 crore with an occupancy of 32 per cent in Q1-2015. ATP in the current quarter also improved to Rs 183 from Rs 176 in Q1-2015.
While the share of NBO as percentage of TIO has gone up fractionally in Q1-2016 to 59.3 per cent (Rs 249.12 crore) from 59.2 per cent (Rs 197.61 crore) in Q1-2015, Food and Beverage (F&B) share has gone up to 28 per cent (Rs 117.87 crore) from 25.9 per cent (87.04 crore) in Q1-2015, advertising share has dropped in percentage terms but increased in value terms to Rs 41.62 crore (9.9 per cent) in the current quarter from Rs 35.2 crore (10.2 per cent) and others contribution has dropped to 2.8 per cent (Rs 12 crore) from Rs 14.95 crore (4.5 per cent).
Let us look at the other numbers reported by PVR
The company has reported positive results in Q1-2015 from all its revenue generating segments, which include movie exhibition, movie production and distribution as well as ‘Others,’ which includes bowling, gaming and restaurant services, etc. As a matter of fact, the ‘Others’ segment has returned an operating profit of Rs 0.82 crore in Q1-2016 as compared to operating losses of Rs 2.46 crore and Rs 1.46 crore in Q1-2015 and Q4-2015 respectively.
TIO in Q1-2016 at Rs 486.02 crore was 34.2 per cent more than the Rs 362.26 crore in the corresponding year ago quarter and was 62.3 per cent more than the Rs 299.55 crore in Q4-2015.
Net F&B revenue increased by 45.9 per cent in Q1-2016 to Rs 129.79 crore from Rs 88.97 crore in the corresponding year ago quarter. Spend per head has increased 16 per cent to Rs 74 in Q1-2016 from Rs 63 in Q1-2015. The company says that it has managed to lower the cost of goods and sold (COGS) by 4.1 per cent in Q1-2016 to 24.9 per cent from 29 per cent in Q1-2015.
PVR’s sponsorship revenue has gone up 27.5 per cent to Rs 45.69 crore in Q1-2016 from Rs 35.84 crore in Q1-2015. The company says that eight blockbusters in the quarter helped maximizing revenues namely Tanu Weds Manu Returns, Fast & Furious 7, Piku, Avengers, ABCD2, Jurassic World, Dil Dhadakne Do and Gabbar is Back.
Total expense in Q1-2016 at Rs 402.77 crore (82.9 per cent of TIO) was 19.6 per cent more than the Rs 336.68 crore (92.9 per cent of TIO) in Q1-2015 and was 28.2 per cent more than the Rs 314.12 crore (104.9 per cent of TIO) in the immediate trailing quarter.
The company’s film exhibition cost increased 30 per cent to Rs 113.69 crore (23.4 per cent of TIO) in Q1-2016 as compared to the Rs 87.48 crore (24.1 per cent of TIO) in Q1-2015 and increased a massive 80.6 per cent as compared to the Rs 62.96 crore (21 per cent of TIO) in Q4-2015.
F&B and other cost in Q1-2016 increased 25.2 per cent to Rs 34.59 crore (7.1 per cent of TIO) as compared to the Rs 27.63 crore (7.2 per cent of TIO) in Q4-2015.
Other expense in Q1-2016 increased 33.8 per cent to Rs 37.72 crore (7.8 per cent of TIO) as compared to the Rs 28.20 crore (7.8 per cent of TIO) in Q1-2015, but was 16.9 per cent lower than the Rs 45.38 crore (15.1 per cent of TIO) in the immediate trailing quarter.
Brands
Godrej clarifies ‘GI’ identifier after logo similarity debate
Says GI is not a logo, will not replace Godrej signature across products.
MUMBAI: In a branding storm where shapes did the talking, Godrej is now spelling things out. Godrej Industries Group (GIG) has issued a clarification on its newly introduced ‘GI’ identifier, addressing questions around its purpose and design following a wave of online criticism. At the centre of the debate were two concerns: whether the new mark replaces the long-standing Godrej logo, and whether its geometric design mirrors other corporate identities.
The company has drawn a clear line. The Godrej signature logo, it said, remains unchanged and continues to be the sole logo across all consumer-facing products and services. The ‘GI’ mark, by contrast, is not a logo but a corporate group identifier intended for use alongside the Godrej signature or company name, and aimed at stakeholders such as investors, media and talent rather than consumers.
The need for such a distinction stems from the 2024 restructuring of the broader Godrej Group into two separate business entities. With both continuing to operate under the same Godrej name and signature, the identifier is positioned as a way to differentiate the Godrej Industries Group at a corporate level.
The rollout, however, triggered a broader conversation on design originality. Critics pointed to similarities between the GI mark’s geometric composition and logos used by companies globally, raising questions about distinctiveness.
Responding to this, GIG said its intellectual property and legal review found that such overlaps are common in minimalist, geometry-led design systems. Basic forms such as circles and rectangles appear across dozens of brand identities worldwide, the company noted.
It added that the identifier emerged from an extensive design process and was chosen for its simplicity, allowing it to sit alongside the Godrej signature without competing visually. While acknowledging that elemental shapes may appear less distinctive in isolation, the group emphasised that the mark is part of a broader identity system that includes a custom typeface, sonic branding and other proprietary elements.
Following legal and ethical assessments, the company said it found no impediment to using the identifier, reiterating that the GI mark is a corporate tool not a consumer-facing symbol.
In short, the logo isn’t changing but the conversation around it certainly has.
