Cinevista Communications is in the business of supplying and producing serials and programmes for the television industry. The company is present in all the activities of the production process, right from the conception to getting the programme telecast on TV and marketing airtime on Doordarshan.
Cinevista has posted a 104% growth in top line from Rs 215 m in FY99 to Rs 439 m in FY00. However the operating margins show a negative growth due to the high component of other income (interest on the share application money) in the total income. The other income of the company went up sharply to Rs 71 m from Rs 2 m due to interest. The expenditures are also up sharply by 105% bringing down the bottomline.
Sales up; operating margins down
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share
* Earnings per share for FY99 is calculated with face value as Rs 10.
The performance of the company in FY00 with retrospect to the estimations as per the draft document.
Profit before tax
The stock is currently trading at Rs 302 at a P/E of 34 on FY00 earnings. The share was issued to the public at Rs 300 each. However the share opened Rs 270 and closed Rs 284. Given the recent under performance of several IPOs in recent weeks, the stock seems to have been more or less on target.
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