BENGALURU: Reliance Media Works (RMW), formerly Adlabs Films
and a part of the Reliance ADA group, reported lower consolidated
net loss in the April-June 2013 quarter as compared to the
preceding quarter (January-March 2013) and the corresponding
quarter (April-June 2012) of 2012.
RMW's net worth has eroded, however, having regard to revenue
visibility of new businesses in film and media services, improved
operational performance of exhibition business, financial
support from its promoters, further restructuring exercise
being implemented etc, the financial statements have been
prepared on the basis that the company is a going concern
and that no adjustments are required to the carrying value
of assets and liabilities.
(1) Since the previous financial year of the company was
extended till 30 September 2012, the result for the April-June
2013 quarter will be referred to as Q3-2013, January-March
2013 quarter as Q2-2013 and April-June 2012 quarter as Q3-2012
in this report/analysis.
(2) Notes of the attached financial statement must be
read along with this analysis.
For the current quarter (Q3-2013) RMW reported a consolidated
net loss of Rs 123.60 crore which was 5.9 per cent lower than
the Rs 131.30 crore (y-o-y) for Q3-2012 and substantially lower
by 44.4 per cent as compared to the Rs 222.12 crore for Q2-2013
Details of RMW's standalone financial information are: Turnover
Rs 126.40 crore for Q3-2013 as compared to Rs 122.61crore
for Q3-2012. RMW's loss before tax for Q3-2013 was Rs 83.73
crore as compared to the Rs 91 crore loss for Q3-2012. Loss
after tax stood at the same figure for Q3-2013 and the previous
year's corresponding quarter (Q3-2012).
Let us look at the other figures reported by RMW for the
April-June 2013 (Q3-2013) quarter
RMW reported a total income from operations of Rs 180.16
crore for Q3-2013, 10.91 per cent lower than the Rs 202.15
crore in Q3-2012, but 24.6 per cent higher than the Rs 144.63
crore for Q2-2013.
Its total expense for Q3-2013 was Rs 238.97 crore, 6.5 per
cent lower than the Rs 255.56 crore for Q3-2012 and 2.2 per
cent lower than the Rs 244.38 crore for Q2-2013.
RMW's net loss from operations at Rs 58.80 crore was 10.1
per cent higher than the Rs 53.41 crore of Q3-2012, but substantially
lower than the Rs 99.75 crore in Q2-2013.
Let us look at RMW's segment results
Film Production Services, Theatrical Exhibition, and Television,
Film Production & Distribution are the three segments.
Pursuant to the business restructuring exercise of Film Production
Services, with effect from 1 October 2011, animation business
is no longer considered to be a part of this segment.
Film Production Services reported income of Rs 41.62 crore
for Q3-2013, 2.4 per cent lower than the Rs 47.88 crore for
Q3-2012, but 14.33 per cent more than the Rs 36.40 crore for
Loss before interest and tax by this segment was Rs 33.55
crore, almost double (more by 93.9 per cent) the Rs17.31 crore
in Q3-2012, but 10.14 per cent lower than the Rs 37.53 crore
loss incurred in Q2-2013.
RMW's Theatrical Exhibition segment reported income of Rs
127.56 crore for Q3-2013 (Includes exceptional items of Rs
60 crore) which was 39.56 per cent lower than Rs 204.29 crore
for Q3-2012 and 11.86 per cent lower than the Rs 144.71 crore
Loss before interest and tax by RMW's Theatrical Exhibition
was Rs 24.25 crore for Q3-2013 was however 10.46 per cent
lower than the Rs 29.09 crore for Q3-2012 and less than a
quarter (4.42 times less or 21.74 per cent) of the Rs 111.56
crore loss incurred in Q2-2013.
RMW's Television/Film Production and Distribution income
of Rs 13.25 crore which contributed to just 7.4 per cent to
its consolidated revenues in Q3-2013 was the only one that
reported a profit before interest and tax of Rs 4.34 crore
in Q3-2013 which was 60 per cent higher than the profit before
interest and tax of Rs 2.73 crore in Q3-2012. This segment
had reported a loss of Rs 3.50 crore for Q2-2013. Revenue
from this segment in Q3-2013 was higher by 13.3 per cent as
compared to the Rs 11.7 crore for Q2-2012 and 25.7 per cent
higher than the Rs10.54 crore for Q2-2013.