Surpassed all expectations with Dabangg: Shree Ashtavinayak

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Surpassed all expectations with Dabangg: Shree Ashtavinayak

In an interview with CNBC-TV18, Dhilin Mehta, CEO of Shree Ashtavinayak, producers of the mega hit Debaang, spoke about the latest offering by the company and future projects.

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In an interview with CNBC-TV18, Dhilin Mehta, CEO of Shree Ashtavinayak , producers of the mega hit Debaang, spoke about the latest offering by the company and future projects.

Here is the verbatim transcript of their interview with CNBC-TV18's Latha Venkatesh and Reema Tendulkar. Also watch the accompanying video.

Q: What have you already earned in terms of selling the audio rights to the songs-most of them have been hits and what have you already grossed in terms of gate collections?

A: I just want to say that this is a tremendous opening. We have surpassed the expectations. The opening day collections are tremendous. We have surpassed the collections, which were there as far as the previous films are concerned-the blockbusters films. The weekend we may cross a figure of around Rs 45-50 crore and as far as the other rights are concerned we have pre-sold most of the rights. We were on the money on the first day itself and whatever upsides we are adding to the revenues as well as the bottom-line.

Q: At what point do you meet production cost and what did you make on the audio already?

A: We have sold the audio rights at a revenue of around Rs 9 to 10 crore including all the rights. But that is a small chunk of revenue, which is around 5% to 7%. Most of the collections, around 50 to 60%, comes from box office collection, that is, Indian theatrical rights and overseas rights and that is the main revenue which is driving the film because the collections that we speak that is around Rs 50 crore at the week end around on the first day we cross the figure of around Rs 15 crore which is highest-ever and it has created history.

I am hopeful that it will continue in the future also because still we are seeing that the film is going with packed houses.

Q: So what you have in the pipeline for us. We understand that you are expected to release three movies in the coming months. Could you elaborate on that?

A: After Dabangg, in fact before Dabangg we had Khatta Meetha in the month of July, in the month of September we had Dabangg and in Diwali that is November we have Golmaal Part III so we are continuing with the brand of Golmaal and hopefully we will surpass the expectations in that film also. One film we have it with Govinda that is Run Bhola Run.

We are working with one of the best directors of the country Imtiaz Ali is directing the film called Rockstar with Ranbir Kapoor and lead actress. So we are applying the concept of multiple products. Every quarter there will be one film with Ashtavinayak and continuous supply of entertainment will be delivered to the audience that is what the aim of the company is.

Q: We understand that you have a board meeting on the twentieth of this month to raise some equity. How much are you looking to raise and foe what purpose?

A: As far as the September 20 meeting is concerned, it is regarding the conversion of shares. As far as new fund raising is concerned, we will not do that in the immediate future. We are just considering the proposal and as and when some concrete information is there we will be happy to declare the same.

Q: Can you give us an idea of what this will mean to the listed Ashtavinayak stock? How much money comes into the company itself. Consolidated total income was Rs 243 crore for FY10 what does FY11 look like.

A: I cannot tell you about the exact figures because we have to complete the two quarters. But yes we expect that there will be around 30-35% better performance compared to last year in terms of bottom-line as well as top-line. Consolidated figures will be much higher.

Q: Why don't you give me the quarterly number? What can you expect in terms of second quarter vis-à-vis first quarter because first quarter was a bit of a washout?

A: First quarter was we did not do so well because the film that was Khatta Meetha which was release in July was supposed to be released in the month of June. We had to delay the release because we felt that July is the best week for the release to maximize the collection and it was a profitable venture for us. As compared to the first quarter we will double the performance in the second quarter because two films are getting released, Dabangg and Khatta Meetha including, third and fourth quarter will be even better.

Q: You did Rs 5 crore in profit, so should we expect Rs 10 crore?

A: I cannot tell the exact figure because right now Dabangg has only done business of three days. So let us wait for the exact collection and we will give you the details as such.