Our finances are looking up

Reliance MediaWorks still turned a small loss for the most recent quarter, but a significant improvement on the previous quarter and the outlook is very rosy, as this interview in ET with our CEO Anil Arjun makes clear. Some key stats:

How would the remainder of the year pan out for entertainment players?

You have to look at it in perspective. When we spoke about it last quarter I talked about the resolutions of the issues; we have seen an 80% growth in this quarter in terms of our topline itself. Now if I look at the market performance in terms of the box-office, like I said, it has been a 20% growth in terms of box-office. What is important is that the realisation per film has increased by about 38%. If you look at numbers like for instance the wide release films, which are about the 500 print release, it has been about a 68% increase in topline.

You are still at a net loss level of about Rs 11 crore, while revenues have jumped. When do you start to see the bottomline becoming profitable?

We have seen a major improvement between Q1 and Q2, in fact our EBITDA from operations was a minus Rs 9 crore in Q1, and it has grown to Rs 35 crore in Q2; our loss was about Rs 65 crore and it is now down to Rs 11 crore. A lot of that has been attributed to the depreciation in the interest cost because we went through a very large capital expansion in the past one year. I see a lot of gain flowing from Q3 onwards. Clearly by the third-fourth quarters will reflect positively on our topline and bottomline.

The war chest of INR 600 Cr (US$ 130m) will enable us to do some spectacular thing in the second half of this financial year. Stay tuned for details.