X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Cinevista: Costly entertainment - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jul 31, 2001

    Cinevista: Costly entertainment

    Cinevista has again posted an operating loss, this time in 1QFY02. While revenues have dropped by 57%, operating margins have turned heavily into the red. The sharp fall in operating margins can attributed to the fact that most of the air time slots which the company had bought from DD remained unsold due to slump in demand for advertising on DD. Further, the company also had to withdraw some of its programs from air due to ongoing litigation with DD.

    (Rs m) 1QFY01 1QFY02 % change FY01
    Sales 138 59 -57.3% 397
    Other Income 6 6 7.6% 39
    Expenditure 111 75 -32.3% 544
    Operating Profit (EBDIT) 28 (16) -157.1% (147)
    Operating Profit Margin (%) 20.0% -26.8% -37.1%
    Interest 3 1 -59.8% 4
    Depreciation 1 4 144.6% 8
    Profit before Tax 29 (14) -148.4% (120)
    Extraordinary Income - - -
    Tax 8 - -100.0% 0
    Profit after Tax/(Loss) 22 (14) -165.5% (120)
    Net profit margin (%) 15.7% -24% -30.3%
    No. of Shares (eoy) (m) 10.1 10.1   10.1
    Diluted Earnings per share 2.2 (1.4)   (11.9)
    P/E (at current price) NA    

    While the company had to book the production and telecast costs in both the cases, the revenues did not match up, resulting in an operating loss. Production and telecast costs have eaten up almost the entire revenues, as shown in the table below.

    (Rs m) FY99 FY00 FY01 1QFY02
    Sales 215.1 439.2 396.7 590.9
    Production/Telecast cost 135.5 261.3 394.1 583.3
    Production/Telecast cost
    as % of sales
    63.0% 60.0% 99.0% 99.0%

    Cinevista, has also missed out on all its IPO projections. While there have been cost overruns in terms of land & equipment purchase as well as on the issue expenses, the web casting and overseas production center projects have run into rough weather.

    The current market price of Rs 35 is at 86% discount to its IPO price of Rs 255, leading to an erosion in market capitalisation of more than Rs 2.2 bn. This is certainly a heavy price investors have paid for the kind of entertainment provided by the company. Given that the company was heavily dependent on DD, the only way to mop up revenues in the current year, is to have reruns of existing software on other satellite channels.

     

     

    Equitymaster requests your view! Post a comment on "Cinevista: Costly entertainment". Click here!

      
     

    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    CINEVISTA LTD. SHARE PRICE


    Aug 17, 2017 03:37 PM

    TRACK CINEVISTA LTD.

    • Track your investment in CINEVISTA LTD. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MARKET STATS