End March 2013 Eros International’s stock was quoting at ?175 (which is the same as the issue price when the company went public in 2010) and the market cap was ?1,609 crore. Currently the stock is quoting at ?473, implying a market cap of ?4,452crore with no significant change in equity. The scrip touched a high of ?644 in July this year as against a low of ?235 in September 2014. The reason for the stock moving up is perhaps because the company has tasted success at the box office, of late.
Ye Jawani Hai Deewani, Ram Leela and Krish 3 were released in 2013-14, all three of them were box office hits. However, Dishki- yaaoon did not fare well. In 2013-14 its revenues improved by 6 per cent to ?1,140 crore and its net profit rose 29 per cent to ?200 crore. In 2013-14, a total of 69 movies were released (37 in Hindi, 30 in Tamil/Telugu and 2 in other languages).
Kochadaiyaan was released in 2014-15. The Tamil version was a hit. But it flopped in other languages – Hindi and Telugu. Bajirao Mastani was supposed to be released in 2014-15, but now is slated for a December release. Sarkar 3 has to yet hit the floors.
In 2014-15, Eros tasted success with several Hindi films – NH10, Badlapur, Tevar, Mary Kom and Singham Returns. The company’s
consolidated revenues in 2014-15 rose 21 per cent to ?1,441 crore and net profit by 24 per cent to ?247 crore. In 2014-15, the company released 64 films (44 in Hindi and 20 in Tamil/Telugu).
The first quarter of FY16, the company’s revenues jumped 96.5 per cent to ?481 crore and net profit moved up 48.9 per cent to ?53.4 crore. However, the net margins were down at 11.1 per cent as against 14.71 per cent in the corresponding quarter last year.
“We have had an excellent start to fiscal 2016 with the resounding success of Tanu Weds Manu Returns (Hindi) and our other major new releases, Uttama Villain (Tamil), Masss (Tamil), Dil Dhadakne Do (Hindi, overseas) and Gabbar (Hindi, overseas), doing well,” said Sunil Lulla, executive vice- chairman & managing director, Eros International Media.
Even the beginning of the second quarter of 2015-16 has been good for the company. Bajrangi Bhaijaan (Hindi) collected ?500 crore world-wide. Srimanthudu (Telugu) which was released in the first week of August collected ?100 crore in the first week. High profile films set for release in the current financial year include Bajirao Mastani, Welcome Back, Hero, Gabbar Singh 2 (all in Hindi).
There have been rumours that Eros International Media might be de-listed. But Jyoti Deshpande, executive director of the company, scotched these rumours. The company is exploring options of listing its parent company (Eros International) on the local bourses, she added.
Eros International, the parent company of Eros International Media, holds 74.37 per cent of the company through its subsidiaries. Through its parent company Eros distributes movies internationally. Eros International, which was earlier listed on AIM (London Stock Exchange), is now listed on the New York Stock Exchange (NYSE) and commands a market cap of $1.65 billion having touched a little over $2 billion earlier this month.
Eros International, which got listed on NYSE in 2013, has two class of shares – A and B. A class shares are listed on NYSE and each share carries a voting right of one. B class shares, owned by the promoters (Kishore Lulla brother of Sunil Lulla and Vijay Ahuja, cousin of Kishore Lulla), carry voting rights of ten for every share held. Effectively the promoters hold a little over 89 per cent of the total voting rights.