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Nov 26, 2012, 06.22 PM IST | Source: CNBC-TV18

Eros International optimistic about FY13

In an interview to CNBC-TV18, Kamal Jain, group chief financial officer -India, Eros International Media says this year has been good for the company. "The first half of this fiscal has been very encouraging. We have seen good set of numbers. We feel the coming quarter also is pretty good," he adds.

We are very much positive about the outlook.

Kamal Jain

Group CFO

Eros Intl

In an interview to CNBC-TV18, Kamal Jain, group chief financial officer -India, Eros International Media says this year has been good for the company. "The first half of this fiscal has been very encouraging. We have seen good set of numbers. We feel the coming quarter also is pretty good," he adds. 

As far as the FY13 is concerned, he is very optimistic. "We have just released Son of Sardaar during Diwali. It is doing pretty good as of now. In this particular quarter, Khiladi 786 is releasing on December 7," he adds.

Also read: Digitisation will help led by more content demand, says Eros

Below is the edited transcript of his interview on CNBC-TV18.

Q: Are there any key movies lined up in the last one-and-a-half month of the quarter? What could do to your revenues?

A: This year has been really good for us. The first half of this fiscal has been very encouraging. We have seen good set of numbers. We feel the coming quarter also is pretty good.

We have just released Son of Sardaar during Diwali. It is doing pretty good as of now. Being a very big film, we already have a strategy of de-risking ourselves in terms of pre-licencing. So, we have monetised the film across different platforms.

In this particular quarter, Khiladi 786 is releasing on December 7. This particular quarter is definitely looking very good to us. As far as the FY13 is concerned, we are very much optimistic.

Q: What explains this unusual rise in your stock?

A: I won’t be able to comment on the stock pricing. But certainly I would say that we are very much positive about the outlook. We have performed quite well. If you see on a year-on-year basis, last year, we grew about 35 percent on top-line and bottom-line.

Q: Are you looking for a strategic partner?

A: No. As of now, there is no such particular news. With respect to the company, there is no strategic partnership or there is no strategic equity sale. I don’t think there is any kind of abnormal news.

Q: Are you looking to raise capital?

A: Not exactly. The statutory dilution of balance 2.8 percent equity to raise it to minimum public shareholding to 25 percent is due. We will have to do that before June 2013. That is the only thing that is pending.

Q: What are your plans in that direction? Since Sebi has made it very clear in the last 24 hours that they are not going to extent that deadline, what are you doing about it? Any offer for sale which some companies have resorted to?

A: We have already started looking at it because Sebi has suddenly put a deadline to all of us. They have notified it very clearly. They have given us six options in terms of diluting the balance 2.8 percent. Most of the companies do offer for sale. So, we are also looking in that direction. We are already in discussion with a couple of merchant bankers for the same.

Q: Should it happen in 2012?

A: I can’t say that. The deadline is June 2013. So, certainly it has to happen before that.

Q: Any plans to reduce the debt on the books?

A: On a net debt level, we are still quite under leveraged. The net debt levels are quite low. It is less than Rs 150 crore. It is not even 0.3 percent in terms of debt/equity on a networth of Rs 900 crore. I guess we are pretty under leveraged with respect to debt is concerned. I don’t think debt is quite heavy on the book. I don’t think so.

Q: Is it only an offer for sale you will look at, nothing else, no other mode?

A: Even I can’t say that as of now. We have six options. We are looking at those, as of now, nothing has been fixed as yet.

Q: No FII, no one you have been speaking to, done any roadshow to increase equity or sell-off some stake?

A: Not as yet.

Q: Have you made any progress about your US listing?

A: US, this particular quarter, has gone into a holiday mood. After January, we would definitely begin the transaction in terms of updating our F1 document on that. As and when we see the market condition would be good over there or maybe we see a good opportunity we will definitely launch ourselves into US.

Eros Intl stock price

On October 22, 2014, Eros International Media closed at Rs 238.80, down Rs 1.05, or 0.44 percent. The 52-week high of the share was Rs 282.00 and the 52-week low was Rs 136.50.


The company's trailing 12-month (TTM) EPS was at Rs 12.74 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 18.74. The latest book value of the company is Rs 96.69 per share. At current value, the price-to-book value of the company is 2.47.

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