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India Equity Research Reports, IPO and Stock News
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D e m e r g e r o f t h e a t r e e x h i b i t i o n b u s i n e s s …
Cinemax India Ltd (CIL) has reported its Q4FY12 numbers, which were
broadly in line with our expectations. The topline for the company stood
at | 67.2 crore against our expectation of | 66.4 crore, growing 84.4%
YoY from an ICC cricket world cup hit Q4FY11. While the occupancy for
the quarter fell from 26% in Q3FY12 to 22% in Q4FY12, the ATP remained
more or less stable at | 147. EBITDA for the quarter stood at | 2.1 crore
vs. our expectation of | 4.0 crore, de-growing 16.9% YoY due to higher
other expenses, which included a loss of | 1.0 crore on account of sale of
assets due to upgradation from analogue to digital projectors. CIL
reported a loss of | 2.6 crore helped by a tax credit of | 3.0 crore.
The theatre exhibition business of Cinemax will be de-merged into a
separate entity viz. Cinemax Exhibition India Ltd (CEIL). Each shareholder
of CIL will get a share of face value of | 5 of CEIL. As a result, the face
value of CIL will be reduced from | 10 to | 5, thus reducing the paid up
capital from | 28 crore to | 14 crore. Currently, trading is suspended in
the stock. We leave the stock as unrated and will come up with an update
once trading resumes in the stocks of CIL and CEIL. This will transform
the exhibition business into an asset light model like that of PVR and
improve the return ratios of the company, going forward.
Slow roll out of properties
The company has been slow in rolling out properties. The management
had planned to roll out a property in Q4FY12 in Hyderabad but it has not
been rolled out as yet. CIL rolled out only six properties in Q4FY12.
V a l u a t i o n
Currently, trading is suspended in the stock. We have left the stock as
unrated and will come out with an update once trading resumes in the
stocks of CIL and CEIL.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
D e m e r g e r o f t h e a t r e e x h i b i t i o n b u s i n e s s …
Cinemax India Ltd (CIL) has reported its Q4FY12 numbers, which were
broadly in line with our expectations. The topline for the company stood
at | 67.2 crore against our expectation of | 66.4 crore, growing 84.4%
YoY from an ICC cricket world cup hit Q4FY11. While the occupancy for
the quarter fell from 26% in Q3FY12 to 22% in Q4FY12, the ATP remained
more or less stable at | 147. EBITDA for the quarter stood at | 2.1 crore
vs. our expectation of | 4.0 crore, de-growing 16.9% YoY due to higher
other expenses, which included a loss of | 1.0 crore on account of sale of
assets due to upgradation from analogue to digital projectors. CIL
reported a loss of | 2.6 crore helped by a tax credit of | 3.0 crore.
The theatre exhibition business of Cinemax will be de-merged into a
separate entity viz. Cinemax Exhibition India Ltd (CEIL). Each shareholder
of CIL will get a share of face value of | 5 of CEIL. As a result, the face
value of CIL will be reduced from | 10 to | 5, thus reducing the paid up
capital from | 28 crore to | 14 crore. Currently, trading is suspended in
the stock. We leave the stock as unrated and will come up with an update
once trading resumes in the stocks of CIL and CEIL. This will transform
the exhibition business into an asset light model like that of PVR and
improve the return ratios of the company, going forward.
Slow roll out of properties
The company has been slow in rolling out properties. The management
had planned to roll out a property in Q4FY12 in Hyderabad but it has not
been rolled out as yet. CIL rolled out only six properties in Q4FY12.
V a l u a t i o n
Currently, trading is suspended in the stock. We have left the stock as
unrated and will come out with an update once trading resumes in the
stocks of CIL and CEIL.
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