Q2-2016: Prime Focus revenue up 47 percent, EBIDTA doubles

BENGALURU:  Prime Focus Limited (PFL) reported 47 percent YoY revenue growth for the quarter ending 31 December 2015 (Q2-2016, current quarter) at Rs 468.52 crore  from Rs 318.67 crore in Q2-2015 and 4.4 percent higher QoQ as compared to Rs 448.57 crore in the immediate trailing quarter. The company reported more than double (2.02 times) YoY EBITA at Rs 75.56 crore (15.3 percent margin) as compared to Rs 35.48 crore (11.1 percent margin) and 37.4 percent higher QoQ as compared to Rs 52.07 crore (11.6 percent margin). Notes: (1) 100,00,000 = 100 lakh = 10 million =1 crore (2) The company had filed results for a fifteen month period ended June 30, 2014, hence YoY comparison is being done between Q2-2016 and Q2-2015 and QoQ comparison is between Q2-2016 and  Q1-2016 (quarter ended September, 2015). The company reported a lower net loss of Rs 11.40 crore in Q2-2016, a loss of Rs 36.17 crore in Q2-2015 and a loss of Rs 22.51 crore in Q1-2016. Let us look at the other numbers reported by PFL Figures A and B below show PFL’s major expense heads. As is obvious, a major expense head for the company is employee benefit expense or EBE. Fig A Prime Focus PFL’s EBE in Q2-2016 at Rs 284.10 crore (62.4 percent of TIO) was 43.8 percent higher YoY as compared to Rs 197.54 crore and (62 percent of TIO) and was almost flat (went up by 0.5 percent) QoQ as compared to Rs 282.57 crore (61.6 percent of TIO). Technician’s Fees in the current quarter increased 19.6 percent YoY to Rs 7.88 crore (1.7 percent of TIO) as compared to Rs 6.35 crore (2.1 percent of TIO), but declined 19.3 percent QoQ from Rs 9.77 crore (2.2 percent of TIO). Fig B indicates that EBE also shows a linear upward trend in terms of percentage of TIO over the twelve quarters starting Q4-2013 until the current quarter Q2-2016.  EBE has been the highest in Q2-2016 (62.4 percent) in terms of absolute rupees, but in terms of percentage of TIO, it was highest in Q3-2015 at 64 percent Finance and Interest cost in Q12-2016 at Rs 25.11 crore (5.4 percent of TIO) increased 45.3 percent YoY from Rs 17.28 crore (5.4 percent of TIO) and increased 41.4 percent QoQ from Rs 17.75 crore (4 percent of TIO). Fig B Prime Focua Click here to view the financial statement