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MUMBAI: It has great pedigree and a fabulous roster of the work that it is doing for studios in Hollywood, and in television in India. But the financials of Reliance ADA group company - Reliance Media Works which is involved in TV production, visual effects, post-production, and exhibition - for the quarter ending 31 March 2013 are stained a dark red.
While total income on a standalone basis has gone up in Q4 2013 to Rs 100.69 crore (Rs 95.92 crore in Q4 2012 and Rs 135.91 crore in the preceding quarter Q3 Oct-Dec 2012). The company seems to be burdened by weighty expenses. These were at Rs 150.92 crore for the latest quarter (Rs 174.15 crore in Q4 2012 and Rs 165.69 crore in Q3 2013). Additionally, financial costs of Rs 70.57 crore (Rs 56.69 core in Q4 2012 and Rs 66.51 crore in Q3 2013) have dragged the company down. Its net losses have mounted to Rs 180.91 crore (Rs 137 crore in Q4 2012 vs Rs 89.21 crore in Q3 2013).
Reliance Media Works has said that the previous financial period was extended to 30 September 2012. And if one looks at the company's performance for the six months from 1 October 2012 to 31 March 2013, while income is at Rs 240.39 crore (as against the previous year's corresponding period figure of Rs 239.50 crore), losses are up to Rs 270.11 crore (Rs 252.14 crore).
The company says it has been rationalising its theatrical exhibition business by renegotiating rentals for some of the cinema halls it is exhibiting in. It has also exited some properties and it has written off Rs 56.83 crore on account of this, thus reducing its cash losses by that amount.
On a consolidated basis, Reliance MediaWorks reported a total income of Rs 144.72 crore in Q4 2013 (Rs 206.96 crore in Q3 FY 2013 and Rs 177.91 crore in Q4 FY 2012). Its expenses in Q4 FY 2013 were at Rs 232.94 crore (Rs 260.19 crore in Q3 FY 2013 and Rs 278.51 crore in Q4 FY 2012). It showed a sharp drop in direct operational expenses to Rs 18.35 crore (Rs 37.28 crore in Q3 FY 2013 and Rs 24.31 crore in Q4 2012). Its financial costs of Rs 71.99 crore in Q4 FY 2013 (Rs 67.70 crore Q3 FY 2013 and Rs 58.31 crore in Q4 FY 2012). Its net loss for Q4 2012 stood at Rs 219.20 crore (Rs 119.61 crore in Q3 FY 2013 and Rs 154.15 crore in Q4 2012).
On a consolidated basis, its six monthly results (1 October 2012-31 March 2013) are as follows: income is at Rs 351.68 crore (Rs 388.98 crore from 1 October 2011-31 March 2012); expenses are at Rs 493.14 crore (Rs 567.61 crore); net loss is at Rs 338.81 crore (Rs 305.26 crore).
The stockmarket beat the (Rs 5 face value share) share price down 8.5 per cent to Rs 55.65 at the time of close of trading on the BSE.
The company says that - during the quarter - it had made a draft letter of offer filing with the BSE to issue rights shares to existing shareholders to the tune of Rs 600 crore. It is now proceeding to file the final letter of offer with the BSE and other exchanges and SEBI.
Additionally, it has also extended the exclusivity for a non-binding term sheet that it signed with a private equity fund to invest Rs 605 crore in the company's film and media services business from mid October 2012 to 30 June 2013.
Obviously, despite its losses, Anil Ambani has tremendous aspirations for the venture. He has recently hired VFX Oscar winning legend George Murphy - who has worked on KingKong, Starship Troopers, The Matrix Reloaded and Revolution, Forrest Gump and on Jurassic Park - as its chief creative officer last month.
Indiantelevision.com > News Headlines > Reliance MediaWorks continues to bleed
While total income on a standalone basis has gone up in Q4 2013 to Rs 100.69 crore (Rs 95.92 crore in Q4 2012 and Rs 135.91 crore in the preceding quarter Q3 Oct-Dec 2012). The company seems to be burdened by weighty expenses. These were at Rs 150.92 crore for the latest quarter (Rs 174.15 crore in Q4 2012 and Rs 165.69 crore in Q3 2013). Additionally, financial costs of Rs 70.57 crore (Rs 56.69 core in Q4 2012 and Rs 66.51 crore in Q3 2013) have dragged the company down. Its net losses have mounted to Rs 180.91 crore (Rs 137 crore in Q4 2012 vs Rs 89.21 crore in Q3 2013).
Reliance Media Works has said that the previous financial period was extended to 30 September 2012. And if one looks at the company's performance for the six months from 1 October 2012 to 31 March 2013, while income is at Rs 240.39 crore (as against the previous year's corresponding period figure of Rs 239.50 crore), losses are up to Rs 270.11 crore (Rs 252.14 crore).
The company says it has been rationalising its theatrical exhibition business by renegotiating rentals for some of the cinema halls it is exhibiting in. It has also exited some properties and it has written off Rs 56.83 crore on account of this, thus reducing its cash losses by that amount.
On a consolidated basis, Reliance MediaWorks reported a total income of Rs 144.72 crore in Q4 2013 (Rs 206.96 crore in Q3 FY 2013 and Rs 177.91 crore in Q4 FY 2012). Its expenses in Q4 FY 2013 were at Rs 232.94 crore (Rs 260.19 crore in Q3 FY 2013 and Rs 278.51 crore in Q4 FY 2012). It showed a sharp drop in direct operational expenses to Rs 18.35 crore (Rs 37.28 crore in Q3 FY 2013 and Rs 24.31 crore in Q4 2012). Its financial costs of Rs 71.99 crore in Q4 FY 2013 (Rs 67.70 crore Q3 FY 2013 and Rs 58.31 crore in Q4 FY 2012). Its net loss for Q4 2012 stood at Rs 219.20 crore (Rs 119.61 crore in Q3 FY 2013 and Rs 154.15 crore in Q4 2012).
On a consolidated basis, its six monthly results (1 October 2012-31 March 2013) are as follows: income is at Rs 351.68 crore (Rs 388.98 crore from 1 October 2011-31 March 2012); expenses are at Rs 493.14 crore (Rs 567.61 crore); net loss is at Rs 338.81 crore (Rs 305.26 crore).
The stockmarket beat the (Rs 5 face value share) share price down 8.5 per cent to Rs 55.65 at the time of close of trading on the BSE.
The company says that - during the quarter - it had made a draft letter of offer filing with the BSE to issue rights shares to existing shareholders to the tune of Rs 600 crore. It is now proceeding to file the final letter of offer with the BSE and other exchanges and SEBI.
Additionally, it has also extended the exclusivity for a non-binding term sheet that it signed with a private equity fund to invest Rs 605 crore in the company's film and media services business from mid October 2012 to 30 June 2013.
Obviously, despite its losses, Anil Ambani has tremendous aspirations for the venture. He has recently hired VFX Oscar winning legend George Murphy - who has worked on KingKong, Starship Troopers, The Matrix Reloaded and Revolution, Forrest Gump and on Jurassic Park - as its chief creative officer last month.
Indiantelevision.com > News Headlines > Reliance MediaWorks continues to bleed
