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Sep 27, 2011, 01.39 PM IST | Source: CNBC-TV18

Eros International eyes 30% growth this year on new films

Kamal Jain, Group chief executive officer - India, Eros International Media Ltd, in an interview to CNBC-TV18, gave his comments on how the recently released films are doing and what kind of growth the upcoming films like Ra.One would bring.

Kamal Jain, Group chief executive officer - India, Eros International Media

Kamal Jain, Group chief executive officer - India, Eros International Media , in an interview to CNBC-TV18, gave his comments on how the recently released films are doing and what kind of growth the upcoming films like Ra.One would bring.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: The film Mausam got ripped apart by most of the critics, has it done you a lot of good?

A: This film is by far the biggest opening for Shahid. It's a complete family entertainer and he gave a very good performance considering it was solo hero film. For the last weekend, we did a business of about Rs 41 crore gross worldwide and we released this movie on more than 2,000 centers across the world.

Moreover, it was a very economically budgeted film. It's already a profitable venture for us because of our de-risking approach as we already had pre-licensed website and other monetisation revenues of the film. So, we covered most of the cost before the movie got released. I think we will be seeing more numbers around it.

Q: What will be the incremental gains you will make on it? Will you make money only on ticket sales in the various Indian cinema houses or are you likely to make incremental gains on music and other merchandising?

A: It is a good draw on theatrical front as well, apart from that the satellite was sold to other channels. It was one of the unique deals, which is also first of its one kind that Eros has started, wherein the satellite deal was linked to the performance on the box office.

So, when the film does some X amount of Net Box Office Collection (NBOC) numbers, we will get certain percentage of that NBOC also from the satellite. Moreover, we would be expecting certain revenues from digital and new media platforms.

Q: The next big release that everyone's watching from Eros is Ra.One and its being touted as one of the costliest films made in Indian cinema. Are you confident of recovering the cost there?

A: As far as cost of Ra.One is concerned, it's sub Rs 100 crore a film. As strategic approach from Eros, we try to cover 40-80% of the cost before the movie comes to the theatre. So, most of the monetisation streams like satellite, music, have been already monetised. So we have covered quite a bit of the cost up there as well.

Well, Ra.One is of the biggest anticipated film of the year and the entire nation is waiting for this film. So, the film has been looked up to as one of the biggest opening of the year and you have five day weekend during the release of Ra.One. We are planning a very big release on 3,000 screens across the world. There are new territories, which we have opened on Ra.One. So, we are expecting good revenues from overseas since Ra.One is a Shahrukh starrer.

Q: I have a report here which is expecting you to do nearly Rs 900 crore in sales this year and Rs 1,100 crore next year. Profits have been estimated at Rs 150 crore and about Rs 190 crore next year. Are these details outlandish or reasonable?

A: We are eyeing 30% on topline, which is very much achievable as far as this particular year is concerned, because third quarter is very big for us. Apart from Ra.One, there is Desi Boyz and Rockstar, which are another big films releasing for us. Plus, we have couple of films releasing in the fourth quarter as well. So the numbers, which have been slated, are quite achievable as far as FY11 and FY12 are concerned.

Eros Intl stock price

On December 19, 2014, Eros International Media closed at Rs 346.80, up Rs 24.00, or 7.43 percent. The 52-week high of the share was Rs 369.65 and the 52-week low was Rs 136.50.


The company's trailing 12-month (TTM) EPS was at Rs 14.03 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 24.72. The latest book value of the company is Rs 96.62 per share. At current value, the price-to-book value of the company is 3.59.

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